Harvard Business School developed criteria for desirable multi-level marketing opportunities: 1) the company must be at least 18 months old to ensure stability, 2) the product must be unique and consumable to guarantee repeat sales and loyalty, and 3) it must be a "ground floor" opportunity with under 500,000 distributors for great growth potential. The document discusses how being involved at the ground floor of a company can lead to a ten-fold increase in earnings as the company experiences explosive growth. It then argues that Rodan + Fields meets these criteria as a ground floor opportunity with a 7-year history, unique consumable products, and expansion into new markets, positioning it for momentum and growth.
The Sales Leaders' Guide to B2B Sales Growth in 2019
Why Rodan + Fields
1. Why Rodan + Fields? Why Now?
Network Marketing or Multi Level Marketing (MLM) is being taught at more than
200 colleges including Harvard Business School. After extensive research into the
network marketing industry, Harvard Business School developed 3 criteria that a
network marketing company must have in order to make it a desirable opportunity.
They are:
1. The company must be at least 18 months old. 90% of all network marketing
companies that fail do so in the first 18 months of operations. Lack of adequate
financing and inexperienced senior management are two of the more common
pitfalls of start up companies so be sure to find out what you can about the MLM's
funding and management.
2. The company must have a product that is both unique and highly consumable.
Meaning it must be an exclusive product that can be purchased only from your
distributors with repeated sales thereby guaranteeing customer loyalty versus a
one-time sale and having to locate new customers.
3. It needs to be a "ground floor" opportunity. Harvard Business School suggests
that in order for the opportunity to qualify as a ground floor type, the number of
existing distributorships should be less than ½ of 1% in the country where this
network company exists. In the U.S., this figure is equal to 1.5 million people.
Harvard Business School also stated that if there were less than 500, 000 people
involved, you would be on the cutting edge of a great opportunity. If the company
has less than 100, 000 distributors, Harvard Business School considers it to be a
once in a lifetime opportunity.
The Harvard Business School study also stated that there are 4 distinct stages of
growth in a network marketing company - Foundation, Concentration, Momentum,
and Stability. The Momentum Phase is when the company experiences phenomenal
growth. Both retail and distributorships explode in terms of expanding growth. It is
during this period that the company virtually sweeps the nation. When a company's
sales reach about 50 million annually (4.2 million a month), they reach what is
called "critical mass" (sales go vertical right off the graph). Let's assume you have an
organization which is producing an override bonus check to you of $1, 000 per
month. When the company reached critical mass, distributors almost automatically
experience a ten-fold increase in their earnings. In other words, $1, 000 per month
2. becomes $10, 000 per month. This is the reason for getting involved on the ground
floor, so you will experience the benefits of explosive growth
Rodan + Fields is hitting momentum! We expanded into Canada early 2015, and will
be opening Asia late-2015. We have been in the network marketing channel for 7
years! Our products are unique and consumable! And this is a GROUND FLOOR
opportunity.
Any questions? Message me at vickipene@cableone.net to start a conversation.
Then, we can connect by phone to talk about the details of what this business can
offer YOU and your family.