I just finished reading a great article on the Business For Home website titled “Top Executive Speaks Out On State Of The USA Network Marketing Industry” which I will give you a link to in a minute.
The article was written with comments by Justin Serra who is the General Manager for Modere.
His LinkedIn page is a good place to learn a little more about him and his qualifications as an expert on MLM and the topic of the article.
Here are the highlights and my own comments.
The FTC Is Acting Against MLM Companies
This is real and for people at the highest levels of MLM companies it has them worrying about whether they will be next. A $200 Million judgement by the FTC against Herbalife recently will do that I guess.
I like how Justin has decided not to debate how the FTC is wrong and biased against MLM companies. That is a fight to be taken up at the top by the lawyers and executives of the MLM companies when the FTC comes knocking.
How Many Customers Do You Have?
When you boil down what the FTC holds against network marketing companies it primarily comes down to getting retail customers. Not wholesale customers buying at distributor pricing either.
Retail Customers. Real customers who buy your products from you!
I like to think of it this way…
Real Customers + Real Products = A Real Business!
I worked for almost 20 years at Amana Refrigeration as a factory sales rep. in the Heating & Cooling Division.
My job was to sell Amana products to HVAC contractors who then sold and installed those furnaces and air conditioners to the end user which was their customer.
I never spent one minute in 20 years trying to recruit new sales people under me. I did not have to buy Amana products to work for them. I did not have to listen to positive thinking tapes or read self help books unless I wanted to on my own.
Here is my question to all of you network marketers; how many real retail customers do you have?
Network marketing distributors better start focusing more on selling and less on recruiting!
With the Internet, websites, and customer fulfillment handled at the MLM corporate level there is no excuse not to focus on selling. You do not have to collect any money, or ship the products. You do not have to inventory anything or deliver to your customers either.
How about getting 100 customers on autoship?
What would that do for your business?
It would make you a lot of money and it would set the example for your downline.
Then when you do recruit find people who think selling first and recruiting second. What if you had 10 frontline distributors with 100 customers?
Now it gets exciting!
100 retail customers of your own and 1000 retail customers for your personally sponsored distributors. That is a lot of real customers buying your great products and everyone has a real business!
If even a fraction of this were to happen the FTC will not be talking to your MLM company because they have no reason too!
Here is the link : Top Executive Speaks Out On State Of The USA Network Marketing Industry.