7 Challenges for the Network Marketing Industry | Michael Sparks

Michael Sparks

Igniting the “Spark” within – Sharing thoughts and ideas on success

From the Direct Selling News: AdvoCare International today announced a revision of its business model from multi-level marketing to a direct-to-consumer and single-level marketing compensation plan. [read more…]

After watching and jotting down some challenges facing the industry today I’m sort of relieved to report the companies that we work with don’t really have any of the problems listed.

7 Challenges of the Network Marketing Industry by Eric Worre

A Network Marketing Wake Up Call

  1. Stop unsubstantiated product claims
  2. Stop the Business is Easy claims. It’s not easy (Get rich quick)
  3. Stop the income claims
  4. Lazy overpriced products
  5. Low customer to distributor ratio
  6. Increase the customer experience
  7. Time for distributor leadership to grow

Product Claims
Many companies out there may make outrageous claims on what product can do. With AMSOIL, our company performs exhaustive research, testing and field testing to insure the claims are true and accurate. Yes it may be hard to believe that an engine oil can last 25,000 miles, but we have proven this time and time again.

In our SendOutCard business, one of the beauties is that the product isn’t created until a card is sent. Hard to make any claims other than sending out kindness into the word usually comes back to you many times over.

Easy Claims
I know of no one in our company that say’s creating a successful business is easy. It either takes time or money or both. The more time and money you focus on your business the faster it will grow, but to think you can sign up and sit back and collect mail box money will never be true. Understanding what it takes to become successful and working toward your goals is the surest way to success, but it will never be easy.

Stop the income claims
I’ve always thought the income claims were a bad idea. Now, personally I’ve seen some income claims from others, and I know how hard they worked. The biggest problem with income claims, would be what I earn could be looked at in two ways, 1. I either earn way more than my prospect could ever see themselves earning and therefore turned off or 2. I earn so little compared to what they expect that they don’t feel it’s worth the effort.

I once had a distributor tell me that “I know how hard you work, and if you worked in any other business you would earn 10x you do.” To this day I’m still aghast at what he said. Really, he knows how hard I work? Really, I know people in many businesses and fields that earn a lot less….Really my checks come on some months I may only “work 30-40 hours that whole month”

My income claim is that I earn a full-time income plus and that our business is our main income. We do believe in having multiple income streams….

Lazy overpriced products
Being around the MLM industry for almost 20 years, you can imagine that I’ve been propositioned by literally hundreds of people with various products and services. I can spot these companies that are only in business to build a network and not an innovative product or service. Most of the type of companies that I’m talking about (lazy overpriced) fold after a few years. Many of these are what has given the industry a bad name.

Our companies have stood the test of time through breakthrough innovation and product offerings. They have continued to come up with great products that people want that allows their distributors to educate their customers and solve a problem with a superior product.

Customer to distributor ratio
When everyone is a distributor and no one is a customer then we have a problem. Luckily again, the companies we work with have lots and lots of buying customers. Our main company even sells on shelves in literally thousands of stores. This company has many different types of customers that support the dealer network. This just makes sense to us. While we understand and are enthusiastic about people becoming entrepreneurs, we also understand that it’s not for everyone. We appreciate all of our buying customers and we have hundreds of them!

Increase the customer experience
Today with online companies shipping products and providing services as the blink of an eye, it’s up to us to be on our toes regarding customer service. We always tell our customers, you get us for free. Call, text or email anytime and well take care or answer any question you have. This is what sets any serious independent dealer apart from a chain or even an internet only company. The face to face (even if it’s on social media) is still an important need and we do our best to help make the customer experience as good as possible.

Time for leadership to grow
Leadership is the life blood for any company. This is true in our profession as well. Working on leadership development and training is key to long term growth of your business? Would your business continue to grow if you were not there? That’s the question to ask yourself, if it won’t then you need to find and develop leaders within your organization. This is probably the hardest part as most people are trained from an early age to follow. Follow Rules, Listen to your parents, Listen to your teach, listen to…..There is little “think for yourself” or “what’s your idea” etc. Finding leaders can be challenging but it is a must if you want your business to survive.

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