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Revolution In Network Marketing


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Revolution In Network Marketing

  1. 1. Copyright 2009, All Rights Reserved About the Authors Bo Short and Ty Tribble were recognized to be among "52 of the brightest minds inside and outside Network Marketing” along with Paul Zane Pilzer, Dr. Denis Waitley and Robert Kiyosaki Bo Short Bo is an author, speaker and leadership expert. He has spoken around the world to more than 1,000,000 people in 21 countries. He has built numerous successful companies in various industries. Within the Network Marketing industry he has risen to the top of two companies and served as CEO for another. Bo has been featured on the cover of industry magazines and in numerous books about Network Marketing. He has been highlighted in Entrepreneur Magazine and appeared on Oprah and Dateline NBC. Bo lives in Charlottesville, Virginia with his wife Sandy and their daughter Taylor. Ty Tribble Ty Tribble is an Internet entrepreneur, former President of a Network Marketing company and a six-figure Work At Home Dad who lives in Federal Way, Washington with his wife, Richelle and two children, Emma and Tyler. Ty has been featured in Entrepreneur and Success From Home magazine and a number of books about word of mouth, relationship and traditional marketing. Ty also authors three of the most influential blogs on the web on the subject of Network Marketing.
  2. 2. Copyright 2009, All Rights Reserved What people are saying about Ty Tribble and Bo Short: "Ty Tribble is one of the few networkers out there who's really on top of the Internet marketing world. Not only does he know how to generate tons of traffic, but he knows how to convert it into leads, cash, and distributors, which is an extremely rare and valuable talent. If you want to learn from one of the best, Ty's your man..." - Mike Dillard, Founder - Magnetic Sponsoring and MLM Traffic Formula "Bo designs and implements tailor-made programs that build winning organizations and allow individuals to achieve personal greatness…" - Jim McCaslin, Chief Operating Officer, Harley-Davidson Motor Co. "As a true solutions provider Ty is someone who genuinely cares about the best interest of his prospects and business partners...he wants to help others get to the next level in their business regardless of what business they are in, Network Marketing or not. Additionally, Ty has a range of experiences that helps people bridge the broad span of Warm Market to Cold Market to Internet Marketing.” - Ann Sieg, Founder & Author, The Renegade Network Marketer “Bo Short develops great leaders. He has a talent for coaching people to attain significance in their personal and professional lives.” - Rudy Ruettiger, Author/Speaker, and the inspiration for the TriStar Motion Picture RUDY "Ty, I have enjoyed your articles and believe you are one of the most experienced people in the MLM field. You have studied the companies and have benchmarked the best in different areas. When I look for news in the MLM area I come to your site." - Orrin Woodward, Founder of the TEAM and Best Selling Author “Bo touched our people in a way no other speaker has done. His lessons on leadership are inspiring.” - Robbie Callaway, President & CEO, Technology Investors, Inc., former Chairman, National Center for Missing & Exploited Children Copyright 2009, All Rights Reserved
  3. 3. Table of Contents: Introduction: Page 5 Preface: The Revolution Page 7 Chapter 1: The Product Page 9 Chapter 2: Corporate Leadership Page 11 Chapter 3: Field Leadership Page 13 Chapter 4: Compensation Page 15 Chapter 5: Timing Page 17 Conclusion: Page 19 Disclaimer: Page 20 Copyright 2009, All Rights Reserved
  4. 4. INTRODUCTION It’s our opinion that most of the companies in network marketing fail their people. Not the other way around. Please understand, they do not do so on purpose, there are just certain flaws that are inherent in most companies in this industry. Those weaknesses present a unique opportunity for companies willing to do things properly. That, coupled with your willingness to act, can set the stage for great success. This industry attracts ambitious, focused people that want to accomplish more. For the most part, they’re already leading busy lives. Some are professionals and some are not. However, they have certain commonalities, regardless of their age, sex, or ethnicity. They get things done, they are willing to learn, and they want to succeed fairly and honestly. They are usually not looking for the diamond rings and the typical hype that accompanies most of the sales presentations in this industry. That does not mean that people do not want nice things. There is absolutely nothing wrong with that. However, most people are looking and working for goals much more important than that. “People want more time...” People want more time with their families, security to know that “everything is alright” and the freedom and independence to do what is important to them. Their challenge is not themselves; it is finding the right company and the right people that will help them engage and win. The hardest part of being successful in this industry is not your effort. You are responsible for that. It is finding the right company and the right people to work with. Copyright 2009, All Rights Reserved – 5
  5. 5. Finding that right company is like finding a needle in a haystack. Quite frankly, it is our opinion that this industry is filled with hay and very few needles. That does not mean that there are not people making money in most companies. Of course there are. However, the premise on which Network Marketing is built upon is that the average person, willing to work, can succeed. One of the great mistakes that people make as they attempt to evaluate companies in this industry is they themselves are not knowledgeable enough about what specific questions to ask and what the correct answers should be. The reasoning is simple; this business model is very different from what most people do for a living. If you were a taxi cab driver and we put you in the room with a Physician and we said, “Analyze their performance, their effort and their potential results and then give us feedback.” You would not know what to do. Bear in mind, if the roles were reversed the challenge would be the same. Most people are invited to a meeting or sit down in the privacy of their living room with someone they know or have recently met and are introduced to this business model. Depending on your life’s experiences you have one of 3 responses. Simply stated they are good, bad or indifferent. Please keep in mind that all of them are valid. However, even though they are all valid very few of them are supported by more than anecdotal information. In addition, if your perception of this industry is not good, we completely understand. Hence, the reason for this book. Do not let someone’s experience in the wrong company cloud your judgment over what is truly possible in the right one. “’s impossible for all of them to be the best.” Think about what the average person is told. In every room around the country someone stands on stage and says, “we have the best product, the best team, the best compensation plan, it’s the best time to come with us! Now it’s impossible for all of them to be the best. Most people go to Network Marketing meetings and walk away with little factual information. They’re excited, but not educated. We hope you use this book to educate yourself about what to look for in a company so that you know what you are excited about when get started. Copyright 2009, All Rights Reserved – 6
  6. 6. PREFACE: The Revolution We are in he midst of a revolution in the Network Marketing industry. The question is not whether you will participate in the revolution (statistics say you will), the question is whether you will profit from the revolution. Before we get into how you profit from the revolution, let’s talk about the events leading up to the current revolution and why it is important to be an early adopter in this massive shift. 2008 was the year of Social Media. The adult version of MySpace known as Facebook went into hyper-growth in 2008 reaching nearly 150 million users and growing at a rate of 600,000 new users per day. Social Media, led by Facebook went mainstream. 2008 also saw additional acceptance of blogging as a method to engage in a social conversation on the Internet. (Blogging stats) With the mainstream acceptance of blogging and Facebook, 2009 is shaping up to be the year of Social Commerce. Think about the books listed on for a moment. When you find a book on Amazon, there is a large social element to Amazon making a sale. There is a good chance that a friend or colleague told you about the book and then to further add to the social element, you have the ability read dozens of reviews about the book. Social Commerce is best defined as a social influence on the purchase of goods and services. It’s a friend telling you about a movie she saw. It’s searching Google for a review about the new Apple iPod and finding a blogger who writes gadget reviews on his blog. In many cases affiliate programs are a large part of review sites and blogs. If you find value in a bloggers intelligent and descriptive review of a new product and purchase the product through the bloggers link, the blogger makes a small commission on the sale of that product. While affiliate marketing is relatively new, Network Marketing, the sister to affiliate marketing has been around for roughly 60 years. Copyright 2009, All Rights Reserved – 7
  7. 7. Driven by the widespread adoption of Social Media, billion dollar entrepreneurs are taking notice of the Network Marketing industry. Names like Warren Buffet, Donald Trump and Richard Branson are either current Network Marketing company owners or advocates for the industry. A new era is dawning for the once maligned Network Marketing industry and you have a chance to be an early adopter in the revolution. Copyright 2009, All Rights Reserved – 8
  8. 8. Chapter 1 The Product “Unique Product In A Growth Market” You are looking for an impact product, one that will literally sell itself. This puts you in a unique position that allows you to give out a sample of the product to your warm market and not feel like you are “pitching” them on some deal. You simply ask your friends and neighbors to try the product and promise to give you feedback. Remember, this only works if you truly have an impact product. If the product works, you will get some people that are interested in being preferred customers, (some companies offer this type of program where they fill the order for you, the customer gets to buy at wholesale and you receive a commission). Some of the people that try the product will have additional questions. For example, “I really like this product. Can we make money with this?” These are also great responses because that person may be a potential business partner for you. Let the product be your “sales soldier”. “…nutritional products are growing at an astounding rate…” The second area of importance in picking a product that is tied to a growth industry. For example, nutritional products are growing at an astounding rate, a $228 Billion dollar global industry that is projected by many to grow by another 30% in the next 5 years. The fasting growing segment of nutrition is classified as functional beverages. Some may look at functional beverages as a crowded marketplace, but the reality is quite contrary. Growth is driven by anti- aging and antioxidant-seeking Baby Boomers and the Energy Drink-loving Generation Y. With this thought in mind stay away from Network Marketing companies promoting Services, such as phone-related services and electricity. People are too reluctant to change from their current service to something they don't have confidence in. Avoid competing with companies such as Verizon, Comcast, and AT&T, or your local powerful electric company. Copyright 2009, All Rights Reserved – 9
  9. 9. In addition, we suggest that you avoid the increasing number of Network Marketing companies that are cropping up in the Travel Industry. Beware of businesses that are too directly linked to the economy. We suggest companies in the Health & Wellness area. This is an area that is immune to changes in the economy and is growing faster than any other in Network Marketing. Also focus on finding a company with fewer, rather than more, products (this helps avoid confusion on the part of the Associate). Identify companies with innovative products that are affordable for both the Associate and their customers. Copyright 2009, All Rights Reserved – 10
  10. 10. Chapter 2 Corporate Leadership Do the Corporate Leaders/Owners Have a Demonstrated Track Record of Success in Building Previous Businesses? This area is one of the most misunderstood in Network Marketing. Many companies in this industry are owned and/or run by large distributors that left their companies and decided to start their own network. On its face you may think that this dynamic offers you an advantage. We would suggest that the opposite is true. Their “call to action” is based on the premise that “we have been where you are and we know what you need.” Of course there is some truth to that statement, however, we would suggest that most distributor-run companies do not posses the skill-set required to effectively build a company that can prosper over time. We are not criticizing the intentions of the distributor that wants to launch a company of their own. In our opinion, most big distributors, while good team-builders, usually do not possess the knowledge and experience required to run a global company. In order to become a global world-class enterprise it is always advantageous to have an ownership/leadership team in place that has already built and run one. In that case there are fewer surprises to deal with. In fact, most executives at that level have already dealt with similar experiences in other settings. In addition, a higher caliber of ownership understands the intricacies of global expansion, R&D, marketing and distribution. They are also skilled in the area of strategic planning. In our opinion, most distributor-owned companies are much more tactical in their orientation instead of strategically-focused. With these thoughts in mind let's discuss five traits of company ownership that are important: Well-financed: Make sure you are working with people that can sustain the initial period of funding during a pre-launch phase and then are financially secure enough to be able to fund massive growth. Many companies fail for one of two reasons: They are under capitalized at launch and have slow sales and/or they are poorly funded and collapse under the weight of their own success. Copyright 2009, All Rights Reserved – 11
  11. 11. Previous Experience Building and Leading a Multi-Million Dollar Company: Never underestimate the knowledge that comes with previous success. Network Marketers are well-known for promoting the importance of following people that have “done it before.” Make sure you apply those same principles to your ownership's ability to build and lead a global enterprise. Core Competency in Branding and Marketing: One of the challenges facing Network Marketing companies today is their lack of experience and knowledge regarding utilizing other forms of media to promote their company and its Associates. Look for owners that are willing to help “tell the story through various forms of advertising and promotion.” You want to work with corporate leaders that are willing to embrace technology, utilize the Internet for example, in creative ways to help you build a profitable business. Commitment to Research and Development: Find a company that is committed to conducting clinically-validated studies that provide proof that the products do what they are supposed to do. Research is very expensive and few are willing to provide it to the associate field. Beware of companies that say they are based on science and studies but fail to produce anything in writing. Reputation: Look for an ownership team that has a stellar reputation beyond the Network Marketing space. This will offer your Associates a higher degree of credibility and a bolstered confidence that they are creating a company that will have more mainstream acceptance. Copyright 2009, All Rights Reserved – 12
  12. 12. Chapter 3 Field Leadership Who Will be My Mentors and How Will They Teach Me to Succeed? These are the people that are there to help you personally. They are the various levels of Associates that have actually done what they are prepared to teach you to do. One of the great challenges in this industry is finding people to team with that know where to send you for information and support. As a new Associate you need to find a team that offers an extensive hands-on training program that allows you to learn at your own pace and begin generating product volume quickly so that you can start earning now. Avoid any team that generates large sums of income through the sales of training aids. Google can be a good friend as you search for information. An excellent source of reliable information can be found at . Keep in mind that you will need to spend some money to build a business of your own but beware of teams that promote $40 websites and costly CD's and literature. An ideal situation is to team with people that offer a training website in which you have free access to training & motivational information that offers free downloads. In essence, you do not charge your army for “bullets”... you equip them! Using an online marketing system is also advantageous but should be available for a reasonable fee. Under $18/month is fair. Blend offline training and events with today's technology. Look for a team that helps you identify your strengths and assists you in building your business through those strengths. Join a team of people that utilizes technology for webinars and teleseminars. This offers you the opportunity to reach out to multitudes of people in a single day/night. Make sure you are teamed with people that also blend offline training and teambuilding events along with their use of technology. Please make note: Find a team that has an in-depth understanding of how to utilize the power of the Internet along with offline capabilities. Too much reliance on one over the other will not give you the best possible opportunity to succeed. Balance is crucial. Copyright 2009, All Rights Reserved – 13
  13. 13. Engage with people that offer you value; people that genuinely serve your best interests. The most dynamic teams are those that are concerned about your success and well-being and their actions demonstrate such. Align your future with people that ask you to “give your best and reach your highest.” Working with people that share your values are crucial to your long-term success. Look for a team that is moving forward. Make sure their claims are verifiable. Ask for copies of company newsletters, for example, that reinforce their statements of growth. Look for success that has been duplicated by members of the team, not just the lone star that is often highlighted. If they cannot provide this information, look elsewhere. While joining the right company is important, joining the right team in the right company is as important. It might be easier to relate this recommendation to the following example: Playing in the NFL is great, however, if you desire is to become a Super Bowl Champion then is it important to play on the right team. Copyright 2009, All Rights Reserved – 14
  14. 14. Chapter 4 Compensation Is the Compensation Plan Fair and Lucrative for the Newest Associate and the Most-Seasoned Professional? Before we delve into compensation plans, let's see if we agree on the following statement; a 2009 Toyota Camry Hybrid will perform better than a 1959 Edsel. The fact is that the 2009 will have better performance, better gas mileage, and will probably be more attractive to most people. If I am banking on getting from point A to point B and I have a choice to drive the 1959 or the 2009, I am going to choose the 2009 every time. The car example is not much different than Network Marketing compensation plans. For the most part, plans that are thoughtfully constructed in 2009 will outperform those plans that were constructed years earlier. Having said that, the most effective compensation plans in Network Marketing today are Hybrid plans that take advantage of the best and most attractive attributes of the vast menu of plans that are available. The fastest growing companies in the last 5 years have all had something in common...they learn from the past. Some plans have a history of creating great momentum, but fail to provide long-term security, while others provide long-term security but only for a few of the highest earners. Balance is a key when considering what type of plan you want to invest your time in. Here are a few important questions to consider on the subject of compensation: • Does the plan offer “today” money as well as mid-range income and long-term residual income? Avoid plans focused solely on “delayed gratification”. • Does the plan offer multiple ways to earn money? Copyright 2009, All Rights Reserved – 15
  15. 15. • Is there an emphasis on the importance of customers including some type of Preferred Customer program in which customers can enroll at no cost? Stay away from programs that diminish the value of customers and the balance between them and Associate growth. Avoid companies with over-priced products. • Does the plan have a component called a “unilevel” plan? It is crucial that the hybrid include that component. This is the most fair plan for all participants and offers each the opportunity to create wealth. There is some confusion about the definition of a unilevel plan. Please understand, a unilevel plan has no breakaway or stair- step component. • Does the plan reward you for creating high achievers on your team or cut your bonus money when someone reaches the same level as you do? • Can you earn income on every person that enters your business or do you get paid only on the smallest part of your business? Copyright 2009, All Rights Reserved – 16
  16. 16. Chapter 5 Timing Is it the Best Time, a Good Time or a Bad Time to Get Started With a Particular Company? Never underestimate timing. Timing is a factor when buying and selling real estate, it is a factor in determining when to buy/sell stocks, it is a factor in securing the proper interest rate when securing a mortgage, and it is a key factor when making a decision regarding which Network Marketing company to join forces with. Everyone in this industry says “It’s the best time to get involved in their company.” The funny thing about that is that most of them make this announcement without understanding how important the aforementioned fundamentals are to such a statement and how each plays a key role into this even being a true statement. Please note; if these 5 vital factors we have discussed are not present that does not mean that a company will not have explosive sales growth, but it can’t be sustained over a long period of time. By the way, if there is a best time to engage that also means there is a worst time. The worst time is the ceiling phase. Some companies that have been around for years and have declining sales fit that category. Look for sales figures in the country in which you are going to build. International growth will mean little to the average Associate. If sales are declining in the primary country in which you are going to build, a red flag should go up. Copyright 2009, All Rights Reserved – 17
  17. 17. “ do you know the best time?” Some consider the ground floor phase of a company to be very risky and they are partially right. Ground floor companies are risky when they are operated out of someone’s garage with no resources and capital. However, finding the right ground floor opportunity can be very rewarding if all of the other four key factors are in place, especially proven corporate leadership, capital and resources. Copyright 2009, All Rights Reserved – 18
  18. 18. Conclusion We hope this Book has provided the information you need on which to base your decision about which Network Marketing company is right for you. Beware of the “get rich quick” hype associated with many in this industry. Recognize that success takes time. To ensure that your time is not wasted engage in the right opportunity that is aligned with the aforementioned criteria. Assuming that you have selected wisely, develop a list of goals and accomplishments that are measurable. Work toward them in a diligent fashion. Stay focused on the end result and understand that nothing happens overnight. However, if you are not gaining ground then step back, meet with your mentors, and regroup. Lastly, but most importantly... “Do your best and reach your highest.” Always Lead, Bo Short and Ty Tribble Copyright 2009, All Rights Reserved – 19
  19. 19. Disclaimer Please note that much of this publication is based on personal experience and anecdotal evidence. Although the author and publisher have made every reasonable attempt to achieve complete accuracy of the content in this guide, they assume no responsibility for errors or omissions. Also, you should use this information as you see fit, and at your own risk. Your particular situation may not be exactly suited to the examples illustrated here; in fact, it's likely that they won't be the same, and you should adjust your use of the information and recommendations accordingly. Any trademarks, service marks, product names or named features are assumed to be the property of their respective owners, and are used only for reference. There is no implied endorsement if we use one of these terms. Copyright 2009, All Rights Reserved – 20