News Tristan on 11 Jul 2008 10:00 am
I went to a presentation last night, for an opportunity in the growing health and wellbeing market. The presentation was to demonstrate how the business operates and how the opportunity can help to create either a nice extra income on a part-time basis or in some cases a decent income on a full time basis.
Like all network marketing businesses, they always demonstrate how it is easy to make a bit of extra money around your current job/business, but also show that if you are willing to work at it full-time, you can create, for most people a much better income/work life balance than you could achieve by having a job.
The reason I went to the presentation is that a friend of mine invited me, she’s been trying to get me to come along for a little while, and eventually myself and my wife had time to go to the presentation and see what was on offer.
I was a little surprised to learn what I did learn during the presentation. The income available, if you were prepared to work hard, was much greater than I ever imagined it would have been. I never realised there was such demand for health and wellbeing products, it is an industry that is set to become the next trillion dollar industry. The company already has turnover of over $2billion worldwide, and a pretty healthy £36million in the UK alone.
How do they make so much money without any advertising? By network marketing, using the power of a personal network (your family, friends, colleagues, etc) and a personal recommendation to spread the good word, so to speak. It’s not exactly re-inventing the wheel, many industries work on personal referrals/introduced business, and there are a plethora of network marketing opportunities, such as Utility Warehouse/Herbalife and many more.
Effectively, you have to sell to your personal contacts. This is difficult for many people. In fact the lady that I sat next to last night was telling me that she finds that the biggest obstacle to overcome. I simply told her that she had nothing to worry about; it’s natural for an inexperienced salesperson to find the idea of selling a struggle when they first start out.
I remember the first time I had to do sales work. I was at university and had taken on a job as a telesales agent for a company that sold mobile phone contracts. The work involved cold calling people from the phone book and asking them if they would be interested in speaking to someone about getting a mobile phone. I didn’t last long, and in fact the company didn’t last long either – it went under a few months after I left!
In reality, the products should sell themselves, and that’s what the company relies upon, as it knows that most people are not naturally gifted sales people, so the benefits of the products must be fairly obvious so that inexperienced salespeople (the everyday people that sign up as distributors) will have a fighting chance of shifting the products and therefore making some money.
Where these network marketing companies really work is when they sign up distributors who are actually good at selling. The people they sign up as distributors who are good at selling with invariably be able to take the proposition and quickly sell enough of the stock to make a decent amount of money, and then sell the idea of being a distributor onto someone else, effectively duplicating what they have done.
It’s this process of duplication which grows the team of distributors and provides the leverage – you benefit from the efforts of the people you sign up as distributors – that the real income opportunity is based on.
In any network marketing business there will be 9 people who poke it with a stick, sign up a few of their own customers and make a small amount of money each month from their purchases, and 1 who will sign up other distributors and make a nice income by leveraging the efforts of others in their team.
Some people think it’s wrong to make money off the back of other people’s efforts, but in reality, the successful distributors have put in much more effort in signing up a team than the team members who in turn only sign up retail customers.
In reality, it’s very easy to sell the products being offered here, it’s much harder to sell the proposition of becoming a distributor, so I say well done to those that do.
Why is it so much harder to sell the proposition of being a distributor? Mainly because the vast majority of people are resistant to change. If you have someone who is in a job, they are probably in their comfort zone, and becoming a distributor will most likely take them out of their comfort zone.
I would love to get involved with this business, I believe in wellness products, I would probably benefit from using some if not all of the products, however, I suspect I won’t.
“Why not?” I can almost hear people saying. Because, what interests me most in any network marketing business is always the product/service, and never the business. I sat through the presentation last night and couldn’t think of a single person I knew who would be interested in the business opportunity, but I could think of lots of areas that you could sell large volumes of the product.
You’re probably thinking, “why’s that a bad thing?”, well I suspect if you wanted to simply set yourself up as a distributor and not a team builder, the powers that be would not be that happy, and you would be under pressure from above to build a team that each did small volumes of business rather than building a business yourself that did large volumes without the help from a team. Perhaps I’m wrong.