Here's the conclusion of the previous two excerpts from Roberto Torres. And we're clearly dealing with Kung Fu Roberto, today. Head gear and pads highly recommended. You may not like what the man is telling you and... (of course) It's time...
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"The business model of a network
marketing business truly does drive
the behavior in the field."
I've found that 92% of the population doesn't like to sell and doesn't want to be sold. Here is an example:
When most people go to a store and a salesman approaches them and says "Hi, how can I help you?" Most people say "No thank you, I am just looking." Why? Because they do not want to be sold and therefore if they do not like to be sold to, they do not want to sell to other people.
So, how good of a sales person do you think you have to be to move a box of a 30-day supply of a multi-vitamin pack at $117 each?
Pretty good, don't you think?
And let me ask you this. Who do you think is buying this? You don't know anybody who'd buy it. I sure don't know anybody who'd spend $117 for it. But plenty of product is being moved at company #1 and #2. Who do you think is buying it?
It's the distributors. The distributors are buying it. Why? Because they have to qualify to get their commission check. That's the only reason they're buying it. This pricing doesn't create a retailing behavior.
Here Is a Real Life Example Of How To Use An MLM Product
Do you know anybody who suffers from a blood-sugar disorder like hypoglycemia or diabetes?
OK. This person that you know, do you think they might know 5 or 10 other people who also suffer from diabetes?
Yes, they probably would.
OK. Well, do you think they might be interested in a product that could help them rebuild the pancreas and possibly take them off insulin or help them cut down their insulin? Do you think they'd be interested in a product like that?
I bet they would. Do you think they can afford to pay $19.95 for that product?
Sure they could. In fact, if you had that product, you could even afford to gift that to the right people, using it more or less as advertising, couldn't you?
OK. Now what would you rather have? Would you rather have people coming to your website, purchasing this product for $19.95, all these different people sharing with each other, or would you rather be in one of those first 2 companies, trying to market a $117 multi-vitamin pack? Which one makes sense to you?
Sure. The diabetic product. And look again, why can this company afford to do this?
Because they are streamlined. It creates a retailing behavior. Average part-time people can do business this way. Anybody can purchase products at this price, because it's affordable. Does that make sense?
Of course.
Surprise, Surprise, Surprise!
This is really interesting— guess which company of those three pays more to the distributor in the compensation plan and requires fewer people to get you to a $10,000 a month income?
Yes, it's Company #3. How is it they can do that?
Simple. Less overhead. And now you're starting to get the picture. You're understanding why it's so tough for you to make money in network marketing.
Next question. As time goes on and the HIGH OVERHEAD business model of Company #1 & #2 continues, what is going to happen?"
Let me tell you what MUST happen. They'll have to raise the price of the products and pay less in the compensation plan. It has to happen. There's no other source of money for them, so there's no other way to pay for increased expenses. They've created a monster that they can't control. The only thing they can do to keep it going is to keep feeding it.
And this is where you'll end up paying $5 for a bar of soap, $20 for a bottle of shampoo, $100 for some liquid nutritional. There are MLM companies out there right now where you can find those prices.
What Has Happened to The MLM Icons?
And it will get worse and worse over time. That's why companies flat-line. You know the famous names of the big-time, old-line companies... they are flat lined.
So what do they do? They open new countries, because they cannot compete in the US anymore. Their product prices are too high, their pay plan is too not enough. Their US business and distributor base just falls by the wayside.
I recently read about a well-known nutrition juice company. The article had a lot of stories of people making money. The company has an absolutely gorgeous building, all decorated in a tropical motif. The building temperature is maintained high to be the same temperature as it is in the island paradise the juice comes from! They have a beautiful waterfall, a fountain in the foyer with their nutrition juice pouring out of it!
And what is this company doing to make money? They're opening up other businesses (not MLM) where they'll serve their juice along with other consumable items. Now, where is that money coming from? It's coming out of the compensation plan, and distributors are paying for it.
They say they're doing it to generate leads which will go to certain leaders in the company … which means that if any distributors benefit, it will be the heavy hitters— the ones who've already built big. It's just a way of transferring money from the part-time rep to the company and the heavy hitters!
You can look for product prices to increase and rep compensation to decrease. That's the problem when you do not have streamlined overhead.
The business model of a network marketing business truly does drive the behavior in the field.
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So, what do you think...?
Anything in need of TransformingMLM here...?
It's time...
In Search and Praise of Network Marketing Excellence
You really should buy a copy here >>