Transcript Breaking Down MLM Barriers

Breaking Down
MLM Barriers
Let’s look at the FACTS so we can use
them to address concerns
1/7/12 - Marty Harger
Common Barriers, Objections &
Challenges About the MLM Industry
• Which of these have been said to YOU?
1.
2.
3.
4.
“Network Marketing is not a legitimate business”
“That’s not one of those pyramid schemes is it?”
“I tried it and it doesn’t work”
“I don’t want to ‘sell’ anything, so no thanks”
#1 - “Network
Marketing is not a
legitimate business”
---oh really?
Let’s explore the facts…
Legitimate Business Models
Business -to –Business (B2B)
Example: manufacturing, service industry
Primary form of marketing/promotion to make a sale = Sales Reps, trade advertising
Business -to –Consumer (B2C)
Example: retail stores, online businesses, service industry, finance industry
Primary form of marketing/promotion to make a sale = Major advertising media,
Store front, sales representatives
Consumer-to –Consumer (C2C) = DIRECT SELLING
Also known as Multi-Level or Network Marketing
Example: doTERRA! Avon, NuSkin, Silpada, Tupperware
Primary form of marketing/promotion to make a sale = in-person sales, parties
Monies used for advertising in other models is redirected to commission payments.
What is the “Direct Selling” Industry?
• Direct Selling is the sale of a consumer product or service,
person-to-person, away from a fixed retail location. Other
terms are “Network Marketing” or “Multi-Level Marketing”
• These products and services are marketed to customers by
independent salespeople. Depending on the company, the
salespeople may be called distributors, representatives,
consultants or various other titles.
• Products are sold primarily through in-home product
demonstrations, parties and one-on-one selling.
MLM/Direct Selling Industry IS
a Major Economic Force
$117 billion sales worldwide
Industry Leaders
Avon ($9 billion)
Amway ($6 billion est.)
Mary Kay ($3 billion est.)
Herbalife ($2 billion)
Tupperware ($1.8 billion)
Nu Skin ($1 billion)
“At this particular time in history, when
traditional business offers so little security,
network distribution is literally the last bastion
of free enterprise. It’s a system in which
common people can invest a small sum and,
through sheer tenacity and determination, rise
to staggering levels of financial reward and
personal freedom. It’s a field devoid of the
pitfalls of traditional business: payroll, employee
benefit costs, advertising, overhead,
bookkeeping, and accounts receivable.”
---Mark Yarnell, Your First Year in Network Marketing
Why doTERRA? Why Now?
• “Entrepreneurial fever
has been kicking into
high gear, because
when the economy
slows down,
entrepreneurial activity
heats up. In fact,
entrepreneurs flourish
in down times.”
• “Network marketing is a
real-world business
school for people who
want to learn the realworld skills on an
entrepreneur, rather
than the skills of an
employee.”
Robert Kiyosaki, The Business of the 21st Century
When someone says“Is this one of
those network marketing companies?”
RESPOND: “Yes it IS, and I am so GLAD it is!
If these oils were only available in a retail store,
you wouldn’t learn anything about what makes
them different, how to best use them or hear
about the health-changing experiences others
have had.
This way you can touch them, smell them and
learn about them!”
Direct Selling allows a product
experience that might be rejected or
avoided with other channels
• “This also explains why direct selling (person-toperson versus television-to-person or store-toperson) is often the best way to explain a new
product or service that challenges an established
belief. When most people are confronted with
such a challenge, they simply change the channel
or continue to walk down the aisle – something
that politeness prevents when listening to a
friends or acquaintance.”
---Paul Zane Pilzner, The Wellness Revolution
Main Reasons for Becoming An
IPC/Distributor or Direct Sales Representative
• 36% - Additional income
• 31% - It's your business and making money through direct
sales in important to you
• 29% - Discount/wholesale/free products
• 4% - Other
doTERRA offers everyone a legitimate business opportunity to
earn an income sharing effective, natural essential oils that
are changing lives around the world!
#2 - “That’s not one of
those pyramid
schemes, is it?”
---no!
Let’s explore the facts…
What is a “Pyramid Scheme”?
• Direct Selling/MLM is NOT a “Pyramid Scheme”!
• Pyramid Schemes are illegal and monitored by the
Federal Trade Commission
• Payment or commission based on the recruitment
of individuals and not on the sale of product.
• Promise of sky-high return on investment over
short time for doing nothing other than recruiting
others.
• No refund for goods or services.
• Large entry fees to cover paying others already
involved
What’s the Difference?
• Network Marketing
– FTC says this is a legitimate
way to sell goods and services
through distributors
– Distributor is entitled to
receive commissions on sales
of products and services sold,
and sometimes for recruiting
other distributors.
– Model is used today by many
companies including online
companies who offer
“affiliate” programs
• Pyramid Scheme
– ILLEGAL!! Different focus,
similar structure
– Reward members for
recruiting new distributors,
and generally overlook the
marketing and selling of
merchandise.
• Ponzi Scheme
– ILLEGAL!
– Promoter collects payments
from a stream of people,
promising them all a high rate
of return – “rob Peter to pay
Paul”
(Bernie Madoff)
doTERRA is structured as a Multi-Level-Marketing company, not a Pyramid Scheme.
#3 - “I tried doing it
and it doesn’t work”
---hmmm.
Why not? And can that be overcome?
Did They Get “Burned” in the Past?
• Hollow Promises/Past Disappointments:
– “No work required, massive income, zero risk”
– “HUGE INCOME - $10,000 in 1st month!”
– “Downline built FOR you…guaranteed!”
– “YOU CAN EARN CASH DAILY”
• Be HONEST with your own experience or
experience you can share with an upline’s
help...paint a realistic picture. Be trustworthy.
• This business DOES require effort and time!
How is Network Marketing different
than other forms of distribution?
• Network marketing income is a direct result of
the amount of wholesale products and/or
services purchased in your organization.
• Understand how long were they involved,
what type of product, what did they do, what
training received?
• Assess if this person has what it takes to
succeed on their own in your network
marketing business?
Top 10 Characteristics of Network
Marketers…They are:
1. Dreamers
2. Don’t “Try”, They
Commit
3. Teachable
4. Have STEAM
(Salespeople who are
Trainers, Enthusiastic,
positive Attitude and
desire to earn Money)
5. Builders
6. ‘Good’ Finders
7. Always Present
8. Motivated
9. Persistent and Patient
10. Have a Heart
Does this describe
the person you are
talking to?
doTERRA works VERY well for people who are committed to building a business with oils
and best for those with these characteristics.
#4 - “I don’t want to
sell anything”
---don’t you do this
already in life?
Take a look…
“Sharing” vs “Selling” with doTERRA
Here are some examples of “sharing”
• Telling a friend about a great restaurant
• Recommending a movie
• Suggesting a competent physician
• Giving directions to a new store you like
• Offering a SAMPLE and INFORMATION to help them feel better
With doTERRA – we provide an experience for others by
SHARING the oils/products.
We let people make their OWN choices.
We don’t “sell” them on anything!
We share our passion and conviction about the products
and what they do.
Why is Breaking Down MLM Barriers
Worth Your Time to Listen & Explain?
“I came to realize that while
personal success is fulfilling, it’s much
more fulfilling when you can help many
others create their own success as well.”
Robert Kiyosaki, The Business of the 21st Century
Great MLM Reference Books
•
•
•
•
•
•
•
•
Network Marketing for Dummies – Zig Ziglar and John P Hayes, PhD
Your First Year in Network Marketing – Mark Yarnell and Rene Reid Yarnell
Making the First Circle Work – Randy Gage
The Business of the 21st Century – Robert T Kiyosaki
The Wellness Revolution – Paul Zane Pilzner
Learning the Business – Michael S Clouse
Brilliant Compensation – Tim Sales
Essential Oils Business Book – Christina Calisto-Winslow
Wishing YOU Great Success with
your doTERRA business in 2012!