Saturday, February 12, 2005

Does Multi-Level Marketing Deserve It's Bad Name?

Or should the public give it a break? In surveys conducted across the country, most people, those who were not involved with MLM when asked, believed MLM to be a pyramid scheme. A scam. A con game. Why? Because most of those surveyed have either lost money themselves in MLM or known someone who has. Think about it. How many people do you know who are REALLY living well because of MLM? Not "how many stories have you heard" about people doing well. How many RICH MLMers homes, purchased with money they earned from MLM, have you actually been in? How many have you followed to the bank as they actually cashed those "5 figure" checks? Success leaves clues and so does failure. Continue to follow the EMM SUCCESS trail. Everything you need for REAL success is revealed in this course. KEEP READING! Welcome back to EMM! Copyright 2001 - Exact Method Marketing (all rights reserved)

DAY 4 - A NEW BRAND OF MENTAL ILLNESS

It's called OPD, Obnoxious Personality Disorder. The symptoms are easy to recognize. A loud or grating or whining speech pattern. An insistent, sleeve-tugging, unrelenting demand to be noticed. Persistent refusal to listen to anyone else. An annoying pattern of changing the subject. And, unlike some other personality syndromes, the sufferers are not the people who HAVE the disorder. They are the people who must be AROUND the ones with the disorder!You've probably known some of them.

The phone rings just as Rick begins to enjoy a quiet family dinner.

Rick: "Hello."(It's Joe. Oh, NO!)
Rick: "Hi, Joe. May I call you back...we've just sat down..."
Joe (interrupts): "Rick, this will only take a second, and you won't believe who I've got on the phone with me...Billy Hypeman! Look, he's sorry for what happened in the last deal, BUT...this is the ONE! This thing is HOT! You've got to hear this. Go ahead Billy"
Rick: "But I'm trying..."
Billy (interrupts): "You've gotta hear this Rick. This one can make us a fortune. Joe and I are excited! We've found the mother lode! We've got other people on Joe's list but we decided to call you first. You know what that means. You can go front level to Joe!"
Rick: "Yeah. I know. That's exactly what you told me last time. I don't have any more money to throw at a ..."
Rick's Wife (background): "Hang up the phone Rick. Dinner's getting cold."
Joe (interrupts): "Hey, listen. This one just started. I'm only six levels from Billy Hypeman and I thought of you first. I can put you right on my front line!"
Rick: "Joe, my dinner's getting..."
Joe: "It will only cost you $400 to join and just think, with the super, double-barrel one-line comp plan you could make thousands before the charge shows up on your credit card."
Rick: "But...my..."
Joe: "This will only take a minute. What's your Social Security number?"
Rick: "CLICK" (Hanging up on Joe)

And, as Rick returns to his cold dinner and frustrated family, the phone begins ringing again.

WELCOME TO THE NFL (NO FRIENDS LEFT).

Is it any wonder that a lot of people cross the street when they see an MLMer coming. Seth Godin, author of the excellent book PERMISSION MARKETING refers to this unpopular, irritating technique as "Interruption Marketing". Joe's loud, inconsiderate, intrusive approach, delivered without regard to your feelings and oblivious to what you're doing at the time, resulted in you hanging up the phone in anger and resentment. Some MLMers, that ever-present 5%, can close sales in spite of the anger and resentment. The rest can't. Like Joe, they seldom actually complete a presentation, let alone close the sale.THE MORE IT HAPPENS THE WORSE IT GETS. When you think about it, nearly all forms of traditional advertising and promotion qualify as "Interruption Marketing". Let's explore that concept. According to Godin, Americans are bombarded with something like 3,000 advertising messages every day, on average. Most of them are simply ignored. So how do these advertisers get your attention? They try everything from packages that shout "Buy Me" from the shelf to selling with sex. How do you respond? You try even harder to shut out the intrusion. It's a vicious circle that keeps getting larger. And most MLMers are still trying to build their businesses with the same old tired, irritating methods. Read the Business Opportunity ads in any major newspaper. Long ago they promised "an honest opportunity with good upline support". When that stopped working they began promising "easy work and quick wealth". That turned into "instant wealth and we do most of the work for you". Now it's "massive wealth with NO work". Soon, if the pattern continues you may see ads that promise "$1,000 TRANSFERRED TO YOUR ACCOUNT WHEN YOU SIGN UP FOR FREE!" Yet, no matter how loud they shout, no matter how outrageous the promises, the 95% failure rate remains. These marketing methods are a big part of the reason.

IDENTIFYING INTERRUPTION MARKETING.

Do the senders of junk mail ask if they can send it to you? Do the advertisers on TV ask if they may interrupt the show you are watching? Do the telemarketers that call your home have your consent? Do bulk email advertisers ask if they can send you their SPAM messages? If you didn't ask for it, then it's Interruption Marketing. FURTHERMORE Did your MLM Prospect ask for you to call and pitch them? The simple truth is this. If your prospect did not specifically request your information, then you are using Interruption Marketing.

WHY IT DOESN'T WORK

When Obnoxious Joe interrupted Rick's dinner he stole his most precious possession - his time. He didn't ask. He just TOOK. Rick's resentment was completely justified. So what is the natural reaction to interruption marketing? The urge to get away. And as the target withdraws the advertiser shouts louder. The louder he shouts, the more the prospect tries to escape. It becomes a battle of wills! Marketing consultant Faith Popcorn (her last name chosen because Plotkin was harder to remember) predicted in 1991, in her now famous POPCORN REPORT, that a trend she called "cocooning" would develop. She saw a future in which people would retreat to the relative safety of their homes to escape the harsh realities of the world. They would rent movies to avoid the commercials and use voice mail to avoid unwanted phone calls. Her predictions were right on target. How does this affect MLMers who are taught to make a list of their family and friends? They become just another voice crying in the wilderness. Another interruption. Another irritation. Is it any wonder that MLMers complain about being members of the NFL?If your prospects did not ASK for your marketing message or your presentation then you are using Interruption Marketing. End of story.

BUT WON'T YOUR ENTHUSIASM CONQUER ALL?

Self-help gurus have preached the doctrine of enthusiasm for centuries. If you believe in yourself and your message then your enthusiasm will be contagious and irresistible. Oh, really?SACRED COW TERMINATOR #5: ENTHUSIASM IS NOT ENOUGH. Enthusiasm is wonderful. So is belief. So is self-confidence. But enthusiastically and confidently bullying people with your pitch will not get you what you want. If you believe that people will join your MLM deal just because you are enthusiastic and excited then you are destined for some rude awakenings. It's not about you. {End of Sacred Cow Terminator #5.} Here's the bottom line. Most of the people you know are not prospects. Most of them are not interested in starting a business. That brings up the really important question. How can you build a business if most of the people you know are not prospects and the rest of the world has withdrawn into their cocoons? Simple. You build a business using EXACT METHOD MARKETING that does not depend on calling people out of the blue, recruiting, friends and family, enthusiasm or hyped-up advertising.

WHAT HAVE YOU LEARNED IN THE FIRST FOUR DAYS?

1. MLM works for about 5% of the participants.

2. Companies, compensation plans, products, recruiting systems, and hype have been shuffled into every possible configuration for the past fifty years. They have all resulted in a 95% failure rate across the board.

3. The Ray Kroc business model allowed teenagers with no particular marketable skills to produce and sell billions and billions of burgers. At the same time, MLM has failed for 95% of all people because it requires them to do things for which they have no particular skill or interest. Like recruiting and closing.

4. Typical MLM advertising is Interruption Marketing. It actually CONTRIBUTES to the 95% failure rate instead of reducing it! So. Is it ALL bad news? Napoleon Hill wrote "In every adversity, there is a seed of an equal or greater benefit". Like the Phoenix rising from the ashes, EXACT METHOD MARKETING is emerging from the ruins of a failed MLM industry. With it, it is bringing the light of truth and renewed hope to thousands of good and honest people who want and deserve a real chance in life.

**********************************

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