The Quintessential Qualifying Question The Only Qualifying Question You'll Ever Need.
This powerful presentation breaks new ground in the arena of sales and sponsoring theory.
GROWTH & DEVELOPMENT STRATEGIES
Having been involved with a number of start ups over the past 20 years, on both a distributor and corporate level, I've learned by emersion a number of valuable lessons that never appear in any how-to book or MLM start-up manual. Just the psychological aspects alone of launching and running a network marketing company deserves its own book. MLM distributors are a very unique group of people, and no amount of traditional corporate experience is going to prepare you for them. And not knowing their behaviors, and how they react to certain events can be challenging. It can even destroy your company. Here's an example:
Note the first growth chart below. Looks familiar, right? That's the common MLM company growth chart that we've been seeing for decades. Although the phases may have different names, there's always four of them, and the third one is always called momentum. Now check out the second chart to see an example of how many companies actually grow. Here's why:
There is a very large faction of distributors in the US who still naively believe that getting involved during a company's pre-launch, or when it's "ground floor", somehow offers them an opportunity to gain a free downline, or at least a larger downline than they otherwise might have had. I call them the 49ers. They're why such companies, and most likely your company, will experience this gold rush mentality in the first few weeks or even months of business. Companies with depth oriented pay plans, such as the matrix and binary, are especially vulnerable to this initial rush of new distributors that aren't necessarily joining for the right reasons. And if they're unaware of the motives and mentality in play here, you may assume that your company has achieved this momentum phase right out of the gate, and then project your growth going forward per the dotted line in chart number two. Then, a phenomenon called "the window shade effect" occurs. This is where those 49ers who got in too late come to the realization that they're not going to get a free lunch out of this deal so, lacking any real affinity for the product, they drop out. Then those directly above them see their small incomes evaporate, and they drop out. As does the level above them, and then the level above them, and so on. Much like a window shade being pulled down, and then released. What's even worse is that, as the company is ramping up inventories, hiring new staff, and leasing larger office and warehouse space in anticipation of this continued growth, not only does the growth slow down, level out, or even start to drop, but all of these exiting 49ers are deluging the company with product returns. Please understand that the chart here does depict a somewhat exaggerated, or worst case example, but virtually all start up companies, to some degree, will experience these conditions, and you do need to properly prepare for them.
In spite of what you may hear, there is no predictable pattern as to when an MLM company will go into momentum. I've seen this happen in the second, third or fourth year, or even after ten years. And yes, some companies actually go into momentum during their first year. Predicting when a company will go into momentum is like predicting when a stock is about to sore in price. However, much like the stock market, there are historical trends and patterns that can help us better determine what companies might go into momentum based on what they tell us about why they go into momentum. And if we look at every company that's went into a well defined momentum phase over the past 30 years, and we evaluate what they were doing right before that phase began, there is a pattern. There is a common event. They all did it by attracting massive amounts of new distributors from outside the industry, and usually with some sort of product promotion. No company has ever went into momentum by this constant migration of distributors from company to company. Real, sustained momentum is created by attracting new leaders to the profession, who work their way up through the ranks of your plan, and who exhibit commitment and loyalty to your company and opportunity. That's why most wise and prudent start ups today don't offer deals to top leaders to entice them to abandon their organization or move them over. You want committed, loyal leadership. In other words, the only leaders that you want from other MLM companies, are the ones you can't get.
Thank you for listening to these brief overviews. There are, of course, many other aspects of your business that we can discuss during your consulting sessions. I do offer a free initial consultation, or audition, so you and your team can move forward with confidence that you've hired the right man for the job. To set up this initial consultation just call 702-914-1771 or email me at MarketWave@cox.net. Thank you for your consideration.
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