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posted on:
10/17/2011 8:04:48 PM EST
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Are You Set Up To Fail In Network Marketing?
att, network, marketing, fail, successful, business
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Most people don’t ask this question because they believe that’s being negative. I would agree with that if the majority of people who joined network marketing did not fail. And the reason I ask this question is because there is a familiar pattern between traditional marketing and network marketing. This pattern is the life cycle or length of time a product or service is marketed to build awareness before the marketing campaign comes to an end.
When I was marketing AT&T UVerse IPTV, I was working for a marketing company at $18.00 an hour. Although AT&T had a marketing department it saw fit to contract a company to market its new services. Why? Anyone who has studied marketing knows there are two things you want to accomplish. One is to create awareness and anticipation and the other familiarity and this called branding which on going. In the case of AT&T it did not need branding because it was well known, so it needed a company to make the public aware of its new IPTV service. In addition to creating awareness, the company gathered name, phone numbers and address of those interested in getting the IPTV services. Interestingly, it was not available to the majority of the Connecticut although it was being marketing to the whole state. So what was the reason for gather this information? Follow up and sells which a sales company was hired to do. AT&T did not hire hundreds or thousands of people to market and sale its new service; hired marketing and sales firms. Now pay attention to what happen once AT&T harvested millions of names and sold only hundreds of Uverse packages.
Once the marketing company fulfilled its contract, the contract was not renewed for Connecticut. AT&T hired another sales firm and call center to knock on doors and call prospects that were able to get service. Many of these sales firms are still being used 5 years later while the marketing firm is looking to secure new contracts with other companies.
What I just described to you is typical in the marketing industry and this pattern is present in the network marketing industry with the only difference that people are paying to be marketers instead of being paid to market. Network marketers are expecting to make sales while creating awareness not knowing that marketing is not sales but instead promotion of products and services to be sold later. And as I describe above, marketing has a life cycle. It has a beginning and end when it comes to creating market awareness. After people are aware and began to use the products and services, marketing is used to maintain brand awareness and maintain a certain market share.
The life cycle of a typical network marketer is 90 days. Every 90 days people quit and join a network marketing company. As a result network marketing companies started losing money and came up of with a way to profit from this 90 day life cycle. So instead of a network marketer being training properly in to be a loyal network marketing representatives, companies capitalized off this life cycle by requiring anyone who wanted to qualify for commission to either go on auto ship or make sales. Of course the easiest thing is auto ship so this is what people decided to do. So for 90 days network marketing companies, not to mention the top upline are getting wealthy from representatives behaving like consumers and not business people. Have you ever known a successful business person who behaved like a consumer in his own business?
Now I love network marketing for the multi level and residual income compensation, but what I don’t like is that companies are not really interested in helping anyone make money because they designed their program around the fact that people don’t understand marketing and that they are behaving like consumers instead of business people. They have found this as an opportunity to make millions.
So do you think you are set up to fail in network marketing?
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 | | This is a great post Jones and one I am sure that most new marketers don't realize getting into this industry. With all the hype out there, it is nice to see a honest, refreshing, realistic scenario! Much success to you! ~ Kris Karafotas |
| | |  | | Great observations about MLM marketing, Jones. Since so many Biz-Ops promoted on the Web today are really illegal pyramid schemes, "money games" with no real product or service, ninety days is about the limit of these so called Biz-Ops before they fail. |
| | |  | | Very interesting Jones...you have hit the nail on the head to some of my beefs...associates acting like a consumer instead of a business person...90 day cycle...false belief that anyone can do it...no training necessary..know of a couple of guys who start a new MLM every 90 days...excellent ..thanks |
| | |  | | Amazing blog, I believe you have hit the tragic nail on the head...too many people are uneducated and unexperienced in marketing...and I agree these companies are guilty of getting consumers at any cost vs business builders. A refeshing breath of air..well done |
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