Currently, I am an independent distributor for NuSkin/Interior Design Nutritionals, and an Independent Sales Representative for PowerNet, and a Chartered Member with Global Entrepreneurs Network.
I have been in some Network Marketing Company or two for the last 14 years. You would think I would know what I am doing by now, or at least be a millionaire. Well, it has taken this long, and now I have found out what makes it tick. This is no easy statement to make.
I have met with top people in Amway, Nuskin, Herbalife, Enrich, NSA/JuicePlus, and a few others. I have heard tapes from all of those and CellTech, Quorum, New Ways, Mela Leuca, Starlight, and some others. Learning from the masters, only to find I don't want to be what they are; salesmen. Or very good trainers. Or very good speakers.
The ultimate network marketing / network distribution company would allow me to work within my Lifestyle, make some extra money to extend myself to better options in life. If I so desire, I would like to make millions in this Industry. Who wouldn't?
Well, taking all the good things from people I have seen over the years, it occurred to me that there are many ways to do this business, but only one that I have seen makes you really wealthy.
I have handed out flyers, put business cards everywhere, sent videos, cassettes, and mailers, until I ran out of money. Even have done my fair share of illegally advertising on the net. Even bulk mailing. Somehow hoping that the person on the other end will jump for joy and sign up.
I have done the famous "walking and talking", 30 people a day. That works, but it is not duplicable. If I felt uncomfortable, so I was told that I was going to need to grow to be successful. I found, that if it's uncomfortable not many will do it for very long. I have become a non-duplicable salesman, just what I didn't like.
Have you ever wondered how the big guys have done it? Why are they still doing it? Can't they stop? I thought they could do this for 2 years then stop?? A-haaaa! Attrition. That's the enemy. Doing the numbers, doing the numbers, doing the numbers. The top three things in Network Marketing. Just what are those numbers? Well for each company they differ greatly. The harder the plan, the more the numbers you have to do, but the more money you make. etc..
In April of this year, I came across John McCleland. He taught a crowd of Nuskin/IDN people that; he had spoken to 100 people, 60 signed up, and 12 became executive. Those numbers were etched in my mind. (In NuSkin/IDN it takes 12 executives to reach the top level of our compensation plan) The small crowd was totally shocked. I was amazed.
We had many, many other top level guys saying, "Do the Numbers." In essence, 30 people a day for two years. That's 21,000 when you work it out. How the hell can I meet 21,000? Some said 1 year at 30 people a day, that's roughly 10,000 people. Others have said 3 a day for 4 years. None before Mr. McCleland had said 100 total.
So how did this John McCleland do it? How had the other top level people done it? It turns out they did some form of warm market referraling. Whether they realized it or not, in any of their primitive methods, they essentially said, "Who do you know?"
The "in-home" is effective. You have new recruits get their friends into their home, and present. Still warm market! Many Amway, Nuskin/IDN , Mela Leuca, Starlight, NSA and other leaders have done this very effective approach. It requires a good host, with lots of friends. Unfortunately, that dies if it is done slowly. Once again, the almighty attrition.
Another approach is "boot camp" where they train you how to "pick up the phone" and make calls to just about anybody. Well this is effective because it gets people in a friendly environment doing uncomfortable activities. It lessens the feelings about cold calling because they see others doing it. It works, until boot camp stops.
Most compensation plans, require that it be done quickly to beat attrition. Attrition in many Network Marketing companies is about 50% loss in the first year. WOW, what a turnover. That's more than the average sales force. WHY? I kept asking myself WHY? I was puzzled without answers, until....
Recently, I attended and Executive Training in Dallas for a group of somewhat radical type people in the NuSkin/IDN company. They call themselves the WealthNet Group. What I saw in this training was more than mind boggling! I had finally seen the light at the end of the tunnel. I can now do this business!
This group had taught me that not everyone is a "prospect", because not everyone can do this business! Why sign someone who can't do it? Why waste their time and yours? So now we are looking for a certain type of person. And an effective way of finding them. . .
Essentially we have people running around NuSkin, who are successful say, "Do the numbers, do the numbers, blah blah!" And those numbers can go to the thousands to become successful. (sucessful is having 12 executives) So John McCleland had done it by only talking to 100 people!
This is miraculous. In actuality, he had a laser targeted approach to ask his friends basically, "who do you know?" He truly networked. I was now getting close to finding out how to really do this business properly!
Along comes Rod Smith. He had spent time and money to get nowhere. Rod got frustrated. Instead of giving up he searched for a better way.
He designed WealthNet. It took over 2 years to develop the methods of networking, and fine tune his program. Finally he has created a concrete system which is also showing the paradigm shifts in network marketing. Paradigms that are moving in very focused, forceful directions.
Maintaining volumes are a difficulty in NuSkin, or any step-stair breakaway compensation plan. Rod suggested that we provide our product to people "at our cost." This causes quite a stir in the teachings from our uplines, but shows that he has really studied the compensation plan. Essentially, you are paid on volume. You will get more volume in your organization if people promote product, and get it out at their cost. (There is a very sophisticated way to do this, space limits me describing the intricacies, but it is brilliant.)
Next problem was the approach. Rod found that the more he told the prospect, the more they didn't sign up. The more information he gave them, the more they didn't sign up. The more he argued with them about the industry or the products, or the company, the more they didn't sign up. Advertising only got him a lot of shoppers. Plus, it's an expensive way to get leads. So he stopped doing that.
He bagan to PRE-QUALIFY and PROFESSIONALLY approach his friends looking for BUSINESS PARTNERS. When he got one, he carefully screened them to see if they were right for the business. (Another very sophisiticated methodology; a series of questions to determine if they are qualified to do this business.)
The referraling approach he uses, is basically "Who do you know?" Which he has developed a very personable, friendly method of asking for referrals from friends. Surprisingly they don't say no! Think about it... If you want something from someone, you network. If it works in the business world, it works in Network Marketing.
Inviting people to a rah-rah session will only annoy them. So will not telling them what it really is. He's got another series of steps to follow, to walk the friend through the company, the complaints, the benefits, the interest, then the investigation of the company, and industry.
Presented professionally, network marketing can be a viable option. Hitting people over the head and saying "Don't you want to make more money?" will scare them, and think that you want them for their money. Which is how most people do network marketing and fail miserably. Hence that attrition thing I mentioned before.
Imagine screening people and interviewing them to see if they qualify. Imagine giving them tools to find out more about your business, but not spending money unless you qualify them first.
This keeps up relations. You never have your friend who gave you the recommendation complain "you bugged my friends"
I am interested in showing people a warm market referraling system that actually uses the NETWORKING principles! Here it is basically;
Normally, when the warm market is burned out, most people turn cold. This separates the salesperson from the casual network marketer. From my studies, even the saleperson has difficulties keeping the pace, as attrition in his un-duplicable activity keeps him working to re-build his crumbling organization.
An organization built on relationships, and true warm market referraling has a solid base to build a large foundation on. Which in turn substantially creates a large organization of people that stick.
I have dramatically seen a difference in my attitudes towards people that I meet. No longer do I see them as a prospect. I see them as a contact, who when I get to know, will be more than happy to help me find my future business partners. Helping people is a good basis for a strong series of relationships.
Remember, forget any cold activity. I have a whole series of documents on why cold marketing doesn't work. I have another series of documents on why warm marketing works. Stick with what you are comfortable doing. Drop what you aren't. Bets are on that your future downline of 10,000 or more will stay longer if they are happy, having fun, and comfortable doing what they do.
Your compensation plan will be the blueprints on how you build your organization, but your methods will be the bricks. I believe we now have some of the strongest bricks in the industry.
If you need more informaton on the WealthNet system or comments, please contact me. If we can bring the level of network marketing to a professional, ethical, moral, well-percieved industry, then we will all prosper. This is my goal.
Warwick Greville
Certified Network Marketer from the University of IL - Chicago warwick@pwrnet.com - Talk or type to me anytime!
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