How to market when things go bad

Let's take a lesson from the travel industry. Case study #1

Several weeks ago, the airlines told travel agents, "Instead of paying you 10% commission to book tickets, we now will limit the maximum commission to only $50."

Ouch! Travel agencies panicked. Most travel agencies were barely making a living. Now, their main source of income was seriously injured. What did the travel agencies do? Some closed their doors. Some sold out to larger agencies. Others banded together to complain. And, some agencies started charging customers a $20 surcharge for tickets.

Now, what did the marketers do?

One Houston agency mass mailed corporations. Their message? "While your present travel agency may be reducing its services, or charging you an extra $20 surcharge for tickets, we are expanding our free services. We'll still deliver tickets to your office at no charge. We'll never charge you extra for issuing tickets."

The result? Lots of new, profitable corporate clients for the agency. Why? This agency took lemons (reduced commissions) and turned them into lemonade (higher volume through new corporate business).

While the rest of the agencies were depressed, this one agency seized the opportunity and almost doubled its business.

Case study #2

Most hotels and car rental companies pay travel agents 10% commission for their service. So, how can one hotel or car rental company distinguish itself during this travel agency cash flow crisis?

Well, almost 100 hotels managed by Richfield Hotel Management in Denver saw the opportunity. The management company raised commissions paid to travel agents from the present 10% to 15%. that caught the travel agents' attention. Result? More bookings and higher occupancy figures for these hotels. The Hotel Reservations Network, a discount hotel booking service in Dallas, doubled its commissions to "help" travel agencies.

Amtrak got into the act and raised its traditional 10% commission up to 15%. Value Rent-a-Car raised its commissions from 10% to 13%. Carnival Cruise Lines raised its commissions from 10% to 12%.

And, the story goes on. Smart marketers used this bad news to get new market share from its competitors.

Case Study #3

Commercial real estate is suffering in Houston. Too many unit for rent, not enough renters.

Opportunity? Yes.

One Houston real estate owner is offering a $67,000 Porsche to any real estate broker who brings in a tenant to lease two floors. Guess which office space was the first to be shown to prospective tenants? You're right. Marketing pays big dividends in tough times.

Case Study #4 (your case study)

What problem do you have? Increased competition? No visibility because the market is flooded? No prospects?

Why not take advantage of bad times and turn them into an unfair advantage over your competition? For example, what could you do in your MLM business? One MLM distributor spends $150 in advertising to locate a new distributor. Now there is too many ads in her preferred medium.

Her solution? Take the $150 advertising cost and invest that money in a top notch training program for a local prospect. While the local competition is saying, "Join me and give me $50 for a distributor kit", our marketing distributor is saying, "Join me and I'll invest $150 in your personal development."

Which sponsor do you think is doing better?

Another weight-loss distributor faces strong competition from area health food stores and health clubs. This distributor now takes part of her commission and takes her customers out to dinner once a month to a "healthy" restaurant. The customers love the product, love the dinner out, and love the fellowship.

This marketing distributor now gets lots of referrals and can reduce her regular advertising budget.

Again, we're turning bad news into profitable marketing strategies.

So, what's your problem? Can your problem be an opportunity for profit and organizational growth? Only if you decide it to be.

EDITOR'S NOTE: The above article is reproduced with permission from the Online Edition of Big Al's Recruiting Newsletter. If you want to receive the full 24-page edition of the Big Al Recruiting Newsletter by mail, call (713) 280-9800, FAX (713) 486-0549 or E-Mail BigAlMLM@AOLCOM.