November 2008 Archives

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A lot of network marketing gurus today are teaching people how to build their business via the Internet. They talk about "attraction marketing," "funded proposals," "social networking" and "Web 2.0". I don't have anything against this; I do some online marketing myself. What I object to is the message that "the Internet is the only way."

Some trainers say the "old way" don't work anymore. Nothing could be further from the truth. Network marketing started in living rooms and kitchens, long before the Internet, fax machines, voice mail, conference calling, webinars, or even video or cassette tapes. People built successful businesses sharing their products or services with their friends and families. It worked because people will do business with people they know, like and trust. It duplicated because everyone could do what had been done to them.

Success in network marketing requires duplication and duplication means using a simple system that everyone can do. If only some people can do it, duplication ceases. Without duplication, you are limited to what you and a few others can do. You'll never grow into the thousands. That's why in my business, we teach a system that everyone can do. Everyone can hand out a tool to people they know. Not everyone can create a web site.

The "Internet is the only way" crowd says you don't have to talk to people or go to meetings, you can do everything online. They may understand "high tech" but they are missing the essence of network marketing–"high touch." We are in the people business and our relationships are the glue that holds our business together.

To make matters worse, the "Internet only" folks will tell you your Uncle Fred isn't interested in starting a business or he would have done so already. "Don't chase Uncle Fred," the new age crowd says. But this misses a big point.

While it's true you don't want to chase anyone, it doesn't mean you shouldn't show people the information and let them decide. That's why we say, "don't prejudge." Uncle Fred may indeed be interested in starting a business but might have thought he needed a lot of money or experience or time. Show him your business. If he's not interested, that's okay. He can still buy your product or service. He can give you referrals. And he might become very interested a few months from now if he gets laid off at work.

Marketing online is an excellent way to attract prospects and if you're interested in doing that, go right ahead. But don't make the mistake of believing it's the "only way" to build your business. The gurus will tell you anyone can market online, all they need to do is use the tools they'll gladly sell you. But if it was as easy and duplicable as they say, everyone would be doing it already and it would have been game over a long time ago.

I just read an article by one guru who said the same thing. He's been in network marketing for decades and says that "the idea that 'the Internet is the only way' will ultimately fail for the masses". For one thing, he points out, "47% of the American population does not use email." and "[t]he average American checks their email every 8 days. . .".

So, let's put things into perspective.

If you have (or want to develop) expertise in marketing online, that's fine. Go for it. It doesn't matter that everyone can't do it. Not everyone is good at giving seminars or networking at Chamber of Commerce events, but that doesn't mean they shouldn't do it. You can do whatever you want to do to find people to show your business to, so long as when you show it to them, you use the same tools everyone else can use. That's the key to duplication.

And when they sign up, show them the old fashioned ways: making a list, inviting friends over to see a DVD, three-way calls, going to weekly and monthly events, getting on team calls, and so on, because everyone can do those things. You can ALSO show them how to market online if they are interested in that, but as a supplement to, not a replacement for, the basics.

The old school works. The new school works, too, just not for everyone.

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I was at a network marketing training Saturday and one of the speakers asked, "How many of you were sponsored by someone you didn't know?" There were about 450 in the room and thirty or forty raised their hands.

That meant that over 90% were recruited by people they know–their warm market. This was visual proof of something we have always taught: this is a "warm market business."

Always was. Always will be.

It's "network marketing," after all, not "direct marketing". It's friends telling friends who tell friends. It's marketing via "word of mouth". It's people who are willing to look at the information because they know and trust the people who are showing them.

That's why recruiting in the cold market–people you don't know–is harder. That trust doesn't exist.

And so when you do recruit someone you don't know, your goal should be to help them introduce your business to their warm market. You do that, of course, by plugging them into the warm market system (make a list, share the tools, invite to events, do three-way calls to answer questions, etc.)

The cold market has one big advantage: it's bigger than your warm market. But don't be in any hurry to get there. Stay in your warm market as long as possible. Build your team and build your skills. You don't need to be good in your warm market–you can tell your friends that you're new and bring someone else into the picture. You can depend on the system instead of yourself. That's harder to do in the cold market.

One last thought–the best way to recruit in the cold market is to make it your warm market. That means as you meet new people, you might not expose them immediately. Start building a relationship with them. Make a new friend. Demonstrate that they can trust you and that you have something valuable to offer. When the time is right to show them what you do, you'll know it. And when you do show them the information, they'll look at it because they know you and trust you.

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