Thursday, January 09, 2014

Direct Sales = Network Marketing. Here are some hard truths.

Are you one of the millions of people on social media are struggling to make their business work?

I've tried a few Direct Sales businesses before I found the one that I felt truly and honestly would be proud to be a part of. My experiences with Amway, Melaleuca and Excel Communications helped me along in my decision to Choose to be a part of Ambit Energy. Today I wanted to share with you all what helped me make my decision:

I have a Fan Page on Facebook to help fellow Network Marketing Professionals and from time to time, actually almost daily, I receive a message from people I never met or spoke to trying to push their business. (if you do one or more of these things then you definitely need to read this blog):

1. “Hi Ya Paul, this trend setting weight loss berry that is from the jungle and has the BEST pay plan ever!!!”

2. “This one’s different…. you should check it out”

3. “The pay plan is killer, if you sign up someone for $30 you make $200!!” RED FLAG

4. (This is my favorite) — “If you sign up for FREE you’ll have thousands of people placed under you and it’s FREE!!!”

Now what I do as a Network Marketing Professional:

Network Marketing Professionals look for a few key things. We sit back and ask some key questions that allows us to develop successful businesses.

- Is it the right time?

- Has it been done before?

- Is there a demand?

- What competitive advantage do I have?

- Who are my competitors?

Now here is my approach to those pitches.

I’ve talked to so many people that are in the latest greatest health and wellness or technology mlm… All of those products are excellent. I have had a TON of juices and pills and lotions in my pantry that I absolutely LOVE! BUT… what about the Network Marketing Professional mindset?

Has health and wellness been done before? Of course! Is it the right time? Well, with New Years Resolutions still fresh in many peoples mind, this is probably the most profitable time of the year for this business. However, I would have to say NO for the right time, unless you can find your annual profit before the New Years Resolutions are forgotten. Once resolutions are forgotten and the reality of spending a premium for the product in today's economies high end items like juice and pills are the first to go.

Is there competition? There are about 4,000 other Health and Wellness companies. Just go and Google Health and Wellness companies. Pages and pages of results. Each one of these represents someone trying to sell their product to your customers.

Is there a competitive advantage? Maybe, but it has to be BIG to distinguish yourself from all of the rest. This is why some MLM’s in this category are extremely hard right now for people to build. All network marketing companies can be built if you work hard, but sometimes it’s better to work smart, not hard.

Now lets talk about those unbelievable compensation plans.

When a company is paying out more than it takes in may seem possible when told with enthusiasm and hype. But peel back the hype and look for reality. No company will continue to pay out more than it takes in. In many cases this is considered a Pyramid or Ponzi Scheme and are highly illegal. Businesses like this bring the dark cloud over our profession. A Network Marketing Professional is looking for cash flow. As a Network Marketing Professional, we build a long term relationship with our team. Our team is our best asset.

Here is my favorite pitch. People jump at the word "FREE". Well wake up. Nothing out there will build you a residual income for "FREE". Every business has a startup fee, whether it’s franchising, small business or network marketing!

I have been a part of one of these so called "FREE" business opportunities. Not only was it Free but they had started to build a downline for me. I was then receiving emails every day telling me that I just lost a few hundred dollars because someone in my downline just became a paid member. At one point I called them out on this tactic. I would go into their back office and capture my list to compare from day to day. Because I was not a Paid member all I would see is user names with half of the name x'd out. Well after comparing day 1 to day 2 after receiving a "You have lost money" email, there were no lost userids. I then hit the Good Bye button on them forever.


First of all the MLM will never make you rich. You need to have the mindset of a Network Marketing Professional. You have heard me drop that title throughout this article. Those that do not have the mindset of a Network Marketing Professional usually have the attitude that they will "Try" this MLM or that MLM. While a Network Marketing Professional think like entrepreneurs. We treat our MLM like it should be, a Business. A business takes time to build. In Direct Sales nothing is more important than your reputation. Treat your reputation as a Brand for your business.

I hope you have found my info useful. I would like to close this by asking you a question.

Do you consider yourself a Network Marketing Professional?

Let me know.
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