Three Dirty Little MLM Secrets for Network Marketing Online

“MLM Secrets”? Really? Yes, despite the fact that 70% of all online network marketers fail, and over 90% of offline network marketers fail, there must be a reason, right?

Well, actually, there is good substantial proof of why some people fail and others succeed in online network marketing.

It’s no secret that the vast majority of people who try out marketing online – or even offline for that matter – fail with network marketing. Studies have shown that there are virtually three “MLM secrets” that breed online network marketing success.

Real network marketing secrets stem in how to make your business duplicable. Duplicable? Is that even a word? Didn’t use to pass spell check but now it does… hmmm… guess the network marketing industry added that one.

You’ve heard the pitch… “All you need to do is get five people, and teach each of your five to get five.. yada yada yada”.

Yeah, right. Here’s the problem with getting your business to duplicate like that:

While you’re working with the first guy to help his business, the other four will quit. In fact, you can pretty much count on about 90% of the people you recruit to quit. That’s the bleak statistic.

MLM business training for the business today does advocate taking your business online. And, this makes perfect sense because statistics show that online spending is up, even despite the “sad economy”!

Here’s the problem with that: online recruiting is in the toilet… actually around 1% to be exact.

And there’s a reason for that…

… It has to do with what makes people buy in the first place.

Consider yourself for a minute… if you’re shopping in a furniture store and someone approaches you and says, “May I help you?” What’s your initial response? Most will say, “No thanks, just looking”, even if they came in to look for something specific!

Why? Because, even though people love to buy, they hate to be sold!

Now, consider the average network marketing guy doing his thing offline… “Hi there, you look like a sharp guy. What do you do? Do you keep your options open?” Sound familiar?

And what is YOUR response when some stranger approaches you with that line? Exactly.

Hence, I think we all can agree that it makes more sense to take your network marketing online rather than try the old traditional techniques. Because people who search for something online feel that THEY are the ones who find the “goods” and therefore they want, and they buy.

However, even network marketing online can be tricky these days, as 30% of online marketers “fail”, or give up.

So, here are three MLM secrets that actually have to do with how to make your online network marketing business duplicable…

1) Making your online network marketing business duplicable has to do with finding a way that EVERYONE – not just the “rock stars” who want to work 24/7- can make money.

And, you need to find a way to keep your downline “reved up”. It is a known fact that most people buy out of shear emotion. (Actually, I heard somewhere that everyone buys out of emotion, even logical people!) Hence, this is why you see so much hype on the internet.

However, there’s a problem with hype. Did you notice how you tend to not want to read the “hypey” stuff? That’s your brain trying to shut down because you’re aware of how many scam artists there are in “cyber world”. So it’s strongly advised these days to give you prospective buyers as much value as possible.

An email response system is pretty much mandatory for network marketing online. It has been said that most people, on average, need to approached seven times before even will consider buying. Well, this sums up why so many offline network marketers quit, right? Who would want to hound everyone they know a minimum of seven times?

You can setup your email response system to get in touch with your prospects right away. However, it’s strongly advised that you also send out “real time” email “blasts” with personal stories and/or videos so your prospects can get to know you. You know what they say – people tend to buy from people they know, like and trust.

2) Upselling is a key factor in becoming successful with network marketing online.

It has been proven that 30% of the people who buy from you would be willing to buy other products. The key here to make sure that your customers really WANT to buy other products. People “hate to be sold”, remember?

Hence, the best way to upsell your existing customers is by giving real value that shows them that what they have is good – but what they can get is even better. The art of network marketing success is the art of attracting people to you who want to buy.

You do this by giving value to the marketplace through articles, videos, and blog posts. Send your valuable posts to your list that you’re creating through your auto response email system.

3) The “scarcity” factor is used among many successful network marketers. How many times have you heard “if you buy now, you get two for one”, or “this tremendous discount is only available for a limited time”. This is because that tactic works.

The problem with this is that many marketers bluff their way through on this. How often have you heard that line and say to yourself, “yeah, right, it will probably be even less next month if I wait”.

This why internet recruiting has been going down, while internet sales have gone up.

Six Common Marketing Mistakes

Having run my own business for a while now, I have been fortunate enough to work with a cross-section of people, companies and industries. From my own observations, I frequently come across six common inaccuracies and assumptions that small business operators make when it comes to marketing. Surprisingly, the themes don’t change across industries, but they all result in lost income and unnecessary expense and if you’re on a shoestring budget such mistakes can be devastating.

If you are one of the small business operators who would like to do better than the average competitor, then this article is for you. Here are my six common mistakes that many small business owners make and switched on operators should avoid.

No Marketing Plan

Can you easily locate an up-to-date plan of how you are going to market your business over the next six months? Failing to plan or planning to fail?

While planning a marketing strategy is often thought of as something reserved solely for big business, it is equally applicable or even more critical for small business. Unlike bigger companies where a strategic error may not be as critical, a mistake made within a smaller company can put it out of business.

It is amazing how opportunities open up and become clearer during and after the marketing planning process. I recently completed a marketing plan for a fashion client where we identified both long- and short-term goals. To get some immediate ‘money in the bank’, we decided to have a sale to clear out a number of items that were sitting in the client’s showroom, taking up space as well as restricting working capital.

The sale was highly successful and the small business owner was very pleased to have a few more thousand dollars in the bank account! I realise that this may seem quite an obvious thing to do, but it is often difficult to think of new ideas to promote your business and generate sales when you are the person involved in it, all day every day. An external supplier’s point of view and fresh perspective can make the world of difference.

By failing to plan is planning to fail. By going through the marketing planning process a business can define, refine and fully communicate the product or service for itself, its team and for its customers. By doing so, a business can understand the strengths of what it does and how to apply these into real business situations.

Not Knowing Who Your Target Audience Is

Can you define specifically for each product and/or service in your business, who your target audience is?

All of the savvy and smart marketing decisions are based on knowing and specifically understanding who your target audience is. Be as narrow as possible in your definition – having fewer people to market to can be a strong advantage.

For example, if you are a gym your overall product offer is fitness. At various times of the day, however, a gym attracts different types of clientele – during the day your clients may be mums and retired people, whereas the afternoon and before work times may be more suited to young professionals. Both groups are using the same equipment and perhaps have similar motivations; however, each group has different needs and hot buttons when it comes to using a gym.

Marketing campaigns should be created for each target audience group and tailored to their individual requirements where possible. As demonstrated above, one size does not fit all.

No One Assigned to Marketing

Can you identify one person in your business that is responsible and accountable for marketing?

If everyone is responsible for marketing in your business, then no one actually is. Marketing by committee also does not work. While it is important to take into account various points of view, at the end of the day marketing is best assigned to one person who can be wholly accountable and responsible for the marketing function in your business.

Does having one person responsible for marketing work in big and small business? Looking back on a job I held a number of years ago as a marketing manager, I was the sole person responsible for marketing in that company. Though at times it was frustrating and isolating, I only realised what I had achieved in my role when I left that company. The evidence was in the fact that they ended up hiring three people to do my old job!

As a small business owner you may not have the luxury of being able to afford to hire a full-time senior marketing person. Nonetheless, it is important to make someone responsible for marketing regardless of whether that is a junior marketing assistant, yourself or an outsourced marketing supplier.

No Tracking Mechanisms

For each marketing campaign you have, do you have mechanisms in place for tracking results? In the era of digital communication, tracking campaigns will no doubt continue to become easier and more cost-effective. If there is no way to track your results easily and cost-effectively, do you really want to make an investment in a campaign where the results are based on gut feels?

My suggestions for ways to measure campaigns include:

  • Unique URLs (website pages) – tracked through programs such as Google Analytics
  • Use of virtual numbers for large campaigns
  • Coupon codes, and
  • Specific offers only available through one campaign

No Consistent Brand Templates

Do all of your business and marketing tools do justice to your logo and follow a style guide template?

The question is: does your branding appear consistently across all of your business and marketing tools. Things to check are business cards, invoices, letterhead, websites, blog pages, Yellow Pages, advertisements etc… It is very easy over a period of time to develop numerous templates in your business. The receptionist creates a fax form, your salesperson creates a sales follow-up letter and your accounts person creates a debt collection template, all of which have your name and logo on them, but may in fact look completely different.

Creating a strong and consistent brand template and following a strict style guide helps all the people in your business use your brand correctly. I recently worked with a client on creating a style guide as the imagery of the business had changed over a five-year period.

While all the changes were subtle, they became quite noticeable when observed from start to finish. Having a clear and consistent brand that is used correctly across all aspects of your business subtly tells your customers that your service offer is reliable and you are a strong, organised business.

Poor Copy/Text

Do you have an expert who can write text for your marketing tools?

When was the last time you went to a restaurant and spotted spelling mistakes on the menu? It is a common mistake and I see it at least once a week.

In my own business we have a policy of having two external people check any document that is being published. I know we aren’t perfect, but hopefully we catch any mistakes before they get published. Can you afford for your customers to think you can’t spell? Perhaps it is time to get external help.

By working on these six areas and even with a shoestring marketing budget, you will be well-positioned to market your business favourably for the rest of 2010.

Marketing Success Online: The Attraction Marketing System Myth

Attraction Marketing System “MYTH”? Don’t worry, there’s a way around it now so you can still achieve marketing success online. Let me explain…

Recently, I witnessed a colleague of mine who has recently achieved marketing success online make a funny statement. He referred to the use of an “attraction marketing system” as “old school”. (Of course, he’s only 22, so he doesn’t really know what old school is, LOL).

Nevertheless, this guy – as young as he is – is making over $10,000 monthly, so I’m gonna listen to him!

What’s wrong with attraction marketing?

It was all the rage when Mike Dillard brought the idea of “Magnetic Sponsoring” to the industry about five years ago and made a huge splash with attraction marketing training. The idea, of course, is to draw people to you by the idea of attracting their interest on the internet.

While some of Mike’s ideas are now widely practiced, such as “posturing” or positioning yourself as a leader so others will want what you have – the industry is actually now trending more towards direct marketing websites.

The problem with attraction marketing is that it’s all based on the idea of “you BECOME the expert marketer”.

“When your audience sees you as an expert who wants to help instead of a sales person after a dollar, they will gladly come and pursue you as soon as they are ready to make a purchase.”… Mike Dillard

Of course, Mike’s advice is grand, and internet marketers all over (including myself) are continuing to strive to become “expert marketers”. However, this takes a LOT of time, energy and money!

People become experts by “failing forward”… continuing to try, tweaking mistakes to make better – and try, try again. Let’s face it; marketing yourself online is not only a little scary at first, it takes a lot of trial and error before you become the expert.

Most will quit.

Hence, the problem with attraction marketing for network marketing, because the idea here is to build a downline – people who YOU SPONSOR who can become just a successful as you.

So what is direct sales online and how is that different from attraction marketing?

In a word (or a few)… anyone can do direct sales online.

This is because now there are systems in place with capture pages and sales videos already created for you. I tried using my own “God-given talents” out on attraction marketing back in 2010 with an “MLM attraction marketing system”. I can remember watching the first training video…

“The way to marketing success online is that you simply become the expert.”

My head was spinning like a washing machine.

“BECOME THE EXPERT?” I thought. I struggled with this and tried – copying sales videos from the experts in the hope of becoming the expert.

But the bottom line was… well, my videos JUST PLAIN SUCKED.

These days I’ve resorted to making short face-on videos from my cell phone for online video marketing, because it’s quick, easy and something that can be done on my lunch break.

The most popular direct marketing websites now-a-days use techniques both from attraction marketing and direct sales. The idea is to attract people to your website or blog with use of keywords or tags – so the people who wind up reading your stuff are actually people who want to listen to you.

(This is a REAL breath of fresh air if you’re an “old school” marketer and accustomed to chasing down your friends and family!)

However, the follow up is “direct sales online”, because your leads are directly introduced to what you have to offer by the use of a direct marketing email list. Many successful internet marketers actually skip the attraction marketing part altogether and use solo ads, or professional emails sent out to a list of leads purchased online.

Isn’t it great to know that anyone can do this? I for one and thrilled about it!