I have been following Larry Beacham’s teachings on Network Marketing for a while and his most recent article hit me like a ton of bricks because it makes so much sense. I read a lot of what many of the self-proclaimed guru’s put out there. There is a lot of information to sift through and not all of it is right on target and a lot is downright cheesy. However, some of it is firmly based on marketing principles and reality, which I believe this article fits into. Therefore, I am posting it here in it’s entirety.
I do not benefit for promoting Larry, other than helping others, so if you’re interested in more of what he has to write check him out on LinkedIn or visit his website.
I was having dinner the other night with one of my favorite couples, and in the midst of our conversation the subject of how difficult it is for most to succeed in network marketing came up. I believe the single most important reason why only a tiny few succeed was revealed, and I want to share it with you today.
The fact is, 97% of network marketers don’t see themselves in the same way that their MLM company sees them – as their “reverse” ad agency. You see, every network marketing company could easily be operated like a traditional company, which hires an ad agency to handle the mass exposure of their goods or services.
That ad agency would employ multiple strategies, including endorsements of celebrities and athletes, to help promote the products. Millions of dollars are put up year after year in this way, and the risk is very high because there’s no guarantee that you’ll be able to recoup the upfront expenses tied to this conventional approach.
So instead of putting those millions in harm’s way through traditional “front end” marketing, the network marketing company instead puts those ad dollars into the compensation plan and pays you and me on the “back end.”
Look at it this way. Let’s say that the company has budgeted $50 million dollars per year towards advertising expenses. Those funds will be paid out proportionately to the individuals who have generated the most business. If there are reps making ungodly amounts of money in your company, it’s because they are the most successful advertising agencies within the company. Everyone is an ad agency; the question is do you see yourself in this manner?
So, for those of us who understand that we are an ad agency, our creativity spawns our many different mediums in which we employ the acquisition of clients and reps. While the “average” network marketer limits their “marketing” to the extent of only his/her social network, a “real” network marketer takes it a few steps further.
My sponsor PERSONALLY recruited over 140 reps in less than 60 days, and in the same time period, I recruited 43. Now, either number may sound astronomical, even unbelievable, but when you consider the methods that we implemented in our marketing strategy, you’ll soon see that we clearly see ourselves in the same way that the network marketing company sees us.
Friends and family had little to do with this growth. Strategies such as video marketing, PPC (Pay-Per-Click), CPA (Cost Per Action), Classifieds, webinars, blogging, social media marketing, public speaking, and a host of other methods were dispensed into the marketplace to attract literally thousands of interested people to what we have to offer every single month. With this influx of interest, massive growth is inevitable. Some of these strategies cost, while others don’t. But really it doesn’t matter if they do cost because if you are successful, you’ll retrieve every dime you invest and then some.
If you are part of the 97% who can’t seem to get off square one, maybe you need to shift your thinking. Stop thinking like a part-time sales rep and start thinking like a multi-million dollar ad agency.
After all, that’s what you were hired to be.
“The Stonecold Millionaire”