How To Create A True Business Franchise?
An Overview
REMEMBER THIS : The Fastest Way to Get Rich in Life Is to Solve Other People’s Problems
What are the two primary problems faced by the average or new network marketer?
1. A lack of prospects.
2. A lack of immediate cash flow.
I want to acknowledge Mike Dillard and his team for continuing working on it to expand his unique approach and ground-breaking business franchise that is congruent with MLM/Networking Marketing business.
This guy went from waiting tables to become a millionaire in three years in network marketing. I think he said somewhere along the line he is earning at least 10 millions USD a year or so far from his “Magnetic Sponsoring”. He was not even good at school. Lo and behold, that caught by attention.
He struggled with network marketing for many years and jumped from one MLM company to another, thinking that he has not had the best company or the best product or the best compensation plan. He truly found a path to endless financial and personal prosperity by emerging himself from the crowd of mediocrity to become one of the most influential leaders in the Home Business arena.
The source of today’s information comes from Mike. I am leveraging off his expertise in this area.
Take McDonald’s franchise business as an example.
McDonald is a multi billion dollar franchise run by high school kids.
No kidding. This is made possible by the unified, duplicatable system they have put in place.
There are only three core jobs their employees have:
1. Provide customer service
2. Take the order
3. Train new employees to provide customer services and take the orders
That’s it and the system does the rest.
The employees push the buttons that turn on the fryers, microwaves, and cash registers. This level of duplication created a completely predictable experience for the customers, which is McDonald’s real product. This is why McDonald has succeeded. Every kid in town knows about McDonald.
Their success is not in their food. In my opinion, they don’t have the best beef burger. We go to McDonald because we know exactly what to expect.
They don’t make much profit from hamburger. The burgers are there to get you in the door, so that they can charge you astronomical for a slice of cheese, sell you carbonated sugar water, fries and salad which have massive profit margins.
Your network marketing business should be no different. Understand that network marketing is a business model designed to accrue value and net worth over time. Your job is to simply provide customer service and build a relationship with your prospects/retail customers. The system does all the selling and telling for you. You just need to participate with patience and persistence, and just be a “Leader”.
What we are going to show you is some missing components to a complete marketing system.
Most network marketing companies’ websites contain the company and products information. They are not designed for marketing. Very few network marketers succeeded in just using that tool to make six figures income. Their success story is only the visible piece standing atop what is usually 3 to 10 years of failure and money spent that you don’t know about. They paid their dues and became leaders in their own right.
How should Your Home Business Model looks like?
Your home business model needs to consist of 3 Overlapping Parts where the Network Business itself comes LAST instead of First. Why? It is because only Leadership and Marketing builds downlines.
Part A: You need a low-cost, high volume retail product that are congruent to your MLM/Network business which will fund your advertising, erases your expenses and produces a never-ending source of leads for your MLM/Network business.
You retail your MLM/network marketing products at the backend in Part B and /or Part C as explained later in this article.
Why? Because you can’t market 90% of MLM health products through direct response/direct mail except for some superhot weight loss products which give you instant dramatic weight loss without changing lifestyle and doing exercise. Try selling 5 bottles of vitamins a day! If you could, your company wouldn’t need you!
Selling your mlm opportunity up front ( first ) as your only product is like selling a Mercedes without having your customer to test drive. Not a very appealing offer!
Part B: This is a medium to high cost backend product that puts real cash in your pocket. This could be your “Fast Start Bonus” of your mlm company that is usually paid to you for recruiting new customers/distributors. This could also be your monthly bread-and-butter cash profit from your primary business or from affiliate programs that you have which you can use to pay your bills and invest.
Part C: This is where you promote your MLM/Network Marketing opportunity that creates your long term, residual income. Position your MLM inside that marketing product as a solution or induce them to use the product to begin building a relationship with that person.
The majority of the people in this industry start with Part C which is why they end up spending themselves out of the business. The average person can’t create cash fast enough to pay for their expenses while going through a learning curve, let alone create a full-time income.
Retail is the critical and often a missing link in network marketing today. It is where your seed money is generated that funds your business growth until the backend residual income from your MLM starts to payoff. This will work for most networkers if they want to become professionals.
These are the Five Components to a successful MLM/Network Marketing Business:
1 Prospects /Lead Generator. This consists of market advertising through any media type such as postcards, classifieds, pay per click, display ads, social networking, press release, e-bay and etc. but aim at your niche target market. This army of ads creates leads for you 24/7, and introduces them to your marketing pipeline below.
2 The Marketing Pipeline. This system serves several purposes and is automated:
The first is to capture the attention and time of your prospects by providing valuable information that is of true benefit to them (not you).
Second, the information you provided should position you as a leader and an expert instead of a salesman.
Third, it should market, promote and induce the sale of an inexpensive retail product and point to the cash register which takes the order for you.
3 The Cash Register. This is the online or offline sales order processing system that produces retail cash and creates retail customers 24/7. This money helps you to pay for your advertising, so that you can afford to keep advertising going forever. Not to make a profit.
4 The Retail Product. The retail product that your marketing system markets should be intimately connected or in harmony with your mlm opportunity. The sales content should sell the opportunity for you also, or rather; it should induce the customer to sell themselves to your mlm opportunity.
For an example: If your retail product was a “how to” guide for succeeding in a home business then it should suggest, sell, and promote your actual home business product.
5 Your MLM Business. This is where your long-term residual income is created and leadership development takes place.
The best part is …a lot of the abovementioned processes can be automated. Once you have your marketing system set up, your job is to simply provide customer service and build a relationship with your prospects/retail customers.
You can probably see now how the use of a complete mlm /network marketing system solves the two primary problems suffered by most average or new network marketers: A lack of prospects and a lack of immediate cash flow.
In the next issue, we will talk more about using Affiliate Programs to start earning your first front-end commission cheques. Stay tuned!