New FTC Changes Effecting MLM Industry

How many MLM sales meetings have you been to where you heard testimonials?  All of them right?  Well that’s about to change and soon.  The Federal Trade Commission (FTC)  is putting a stop to all of the hype that people have to listen to when they look at a network marketing program.

I’m sure you know what I mean.  You go to a hotel meeting, webinar, teleseminar, or whatever to look at a network marketing program (although you probably thought it was about something else) and you hear one person after another tell you about how much money they are making with this wonderful business opportunity that has come along at just the right time and if you don’t get involved NOW, you are going to be missing out.

Well the FTC has made a revision to their guidelines as it pertains to endorsements and testimonials .  Here is the excerpt from the FTC:

 ”Under the revised Guides, advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the results that consumers can generally expect. In contrast to the 1980 version of the Guides – which allowed advertisers to describe unusual results in a testimonial as long as they included a disclaimer such as “results not typical” – the revised Guides no longer contain this safe harbor.”

Frankly, I am a little upset about this new rule, only because now that people won’t be able to use testimonials without disclosing the typical results that someone can actually expect, marketers will be forced to use a different technique.  I actually like it when marketers use hype to sell there network marketing program because when I come along and tell the actual MLM truth, it hurts their chances of making the sale.  Now that marketers won’t be able to use this technique anymore, they will probably start using the methods that I have been advocating for years, creating more competition.

That being said, I am also glad for the changes because money shouldn’t be the main reason for someone to join a network marketing program.  Yes, everyone wants to be rewarded for their efforts but let’s not make money the main focus.  Instead, I prefer to help people get what THEY want and in doing that if I happen to make a dollar, well that’s okay too.

The new changes start December 1, 2009.  That’s right, in just a few weeks!  Are you ready to market your business without the hype?

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Amy Howard, November 10th 2009 | Tags: , ,
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Another MLM Secret Exposed

I was preparing my notes for a class that I am going to be teaching next week and it reminded my of an important MLM secret – training your downline.  If you want to have a successful network marketing business you have to pass on some of your knowledge to the people that are helping you to grow that business, your downline. 

This may not sit too well with some of the network marketers out there because they were taught to just bring in the people and the MLM company will take care of the training.  The problem is that most MLM companies (even the top MLM companies) don’t provide the kind of training that is needed to make a six figure income. 

The majority of the MLM network marketing training provided is only designed to get you STARTED in your business.  You may make a few sales using their techniques but for the most part, you won’t be able to quit your day job.  Here are some of the techniques that are currently taught by almost all MLM companies:

  • Make a list of your friends and family and show them what you are doing.  This network marketing tool is usually good for signing up 1-3 people into your business.
  • Three foot rule (talk to everyone within earshot of yourself).  This network marketing tool usually helps you to develop your 30 second introduction speech but it’s pretty rare that anyone will sign up from it.
  • Hand out CD, DVD, or brochures that you have to purchase from your MLM company.  This network marketing tool puts a lot of money in your company’s pocket but vary rarely puts any in yours.
  • Pass out flyers, business cards, or sizzle cards to everyone, put them on cars, leave them in books at the library, etc.  This network marketing tool usually only gets one person to call your number, the security guard at the mall telling you to stop putting your trash on people’s cars.
  • Buy expensive opportunity seeking leads and call them on the phone.  I personally spent thousands of dollars using this network marketing secret and managed to sign up a couple of people but it didn’t justify the expense of the leads.

The thing is that these network marketing tools work great for the MLM company but don’t usually work for the individual distributor. So if you want to be successful in your network marketing business you have to teach your downline the real network marketing secrets that actually help people to sell their network marketing product.  That’s right the product, not the business.

Let’s put it like this.  Would you buy a franchise from someone that couldn’t or wouldn’t show you how to sell your product?  Of course you wouldn’t, that would be silly.  So why are we taught to sell our business and not our product?  Oh, but I digress.  This is supposed to be about teaching your downline.

So, what do you teach your downline?

You don’t have to try to teach them everything all at once.  Start off with the basics:

  • Teach them who their target market is.  That way they won’t be wasting time talking to the wrong people.
  • Teach them where to get leads.  If you are really nice, you may even want to give them some of your leads so that they can get started right away.
  • Give them your prospecting script and role play it with them.
  • Give them access to the presentation that you are using to bring in new customers.
  • Give them your closing script and role play it with them.

If you give your downline access to the things that are working for you, they will feel like they have a partner in their network marketing business and want to work harder.  Make yourself available to your people and they will reward you.

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Amy Howard, October 7th 2009 | Tags: , , ,
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How To Invest In Your Network Marketing Business

A lot of people believe that network marketing is a business that increases in value over time.  In other words, a network marketing business isn’t worth anything until you have a large downline buying the products and recruiting people into the MLM Company. However, network marketing is just like every other business and as such it’s important to treat it as a business.

One of the sad statistics in the network marketing industry is that – Most network marketers will run out of cash flow in about 3 months and quit because they aren’t making the money they wanted to. 

Just like any other business, most home based businesses fail within their first two years of operation.  One of the keys to survival is investing in your network marketing business in order to create cash flow.  You have to know how to properly spend your MLM income.

What Serious Network Marketers Invest In

If you look at the successful network marketers, you will see that they ALL invest in at least two things:

Leads – it’s vital to your network marketing business to have people to talk to.  You will have to buy network marketing leads either with your time or with your money.
Training – successful people are always looking to improve themselves with more training.

You will probably notice that some of the top network marketers will also invest in other tools that help to bring in more revenue (internet marketing, predictive dialer, etc.).  But, these tools are only useful if you know how to use them (training) and you have the leads to put through them.

How Much To Invest In Your Network Marketing Business

I don’t care what MLM Company you are involved with; you will have expenses if you want YOUR business to grow.  Typical network marketing business expenses are:

Sign up fee
Auto-ship of MLM product
Phone
Leads
Training
MLM Meetings
Travel Expenses

Some of these expenses you can’t get away from but there are ways to limit how much you are spending in order to grow your network marketing business. 

For instance, there is always a sign up fee when you are joining a MLM Company but did you know that most MLM Companies have more than one sign up package available.  (I’m probably going to tick off a few heavy hitters by letting you know this MLM secret.  Oh well, I’m here to make a difference in YOUR business.  They will just have to get over it.)  Anyway, if you are looking to join a MLM Company, ask if there is a less expensive sign up package available.

Every MLM Company on the planet will want you to consume their MLM product/service on a monthly basis and will want you to be on auto-ship but does it make sense for YOUR network marketing business to be receiving product on a regular basis.  Look at what you are buying, are you using the MLM product, selling the MLM product, or are you stockpiling it in your garage>

You may have to have a telephone to operate your network marketing business, however, there are numerous options available today when it comes to using the telephone to grow your network marketing business.  There is VOIP, Skype, even a new thing called Magic Jack that can lower your monthly phone bill.  Find something that works well and works within your budget.

When it comes to training, there are a ton of options available.  You can go online and get loads of information on how to grow your MLM business.  You can go to the library or bookstore and get books on the subject of sales.  There are even a lot of training programs designed specifically for network marketers.  My suggestion is to look at what is available in your price range and go from there.  If you can’t afford to buy into a training program, then go to the library and get all of the books that you can on the subject of network marketing, sales, cold calling, closing, marketing, advertising, etc. and get busy reading.  Yes, it will take a LONG time to get all of the information that you need but at least it won’t break the bank.

If the idea of having to wade through a ton of information to get your training makes you want to stop before you get started or if you can afford to buy into a training program, check out the MLM training programs thoroughly.  Does it come with a guarantee, is the MLM training limited, how is the material delivered, etc.?  Find a program that works for YOU!

Some expenses you can totally eliminate.  For example, we are in network marketing and as such, we are supposed to be able to operate our business from home.  With that in mind, there really isn’t any reason to go to the local MLM Company meetings.  (This will probably tick off a few more heavy hitters but I don’t care.)  All the meetings are the same; the information is always the same, the only thing that may change is the person that delivers the message.  So, stop going to the meetings.

If the purpose of the meeting is to put your prospects in from of the information, but you don’t have any prospects at that meeting, then why do YOU have to be there?  In fact, couldn’t you have your prospects listen to a similar presentation over the phone using a free conference line?  That way no one has to spend money on gas getting to a briefing.

I hope that I have given you some ideas that you can take back and apply to your network marketing business.  it doesn’t really make sense to keep spending money on growing your home based business without getting any positive results.  Remember this is YOURnetwork marketing business not anyone else’s and you have to treat it like a business.  There are only 2 things that you MUST have in order to grow your network marketing business; leads and the training to close the sale.

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Amy Howard, August 5th 2009 | Tags: , , ,
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