On a Shoe String Budget at Home
This report, "How To Build A Massive Moneymaking Machine By
Mail...On A Shoe String Budget At Home" is one of 15 reports
contained in our set, "How to Build A Lean, Mean MLM Machine . .
.By Mail!" If you have not ordered the complete MLM Machine set
of reprintable reports, I urge you to do so immediately so you can
take full advantage of this program.
Before you can appreciate and understand how to promote MLM
programs by mail, it is appropriate to review first the
fundamentals of MLM(Multilevel Marketing) and mailorder methods
that are proven. Let's talk first about MLM that is also known as
Networking or Network marketing.
The Basics of MLM Programs
First understand that MLM is not an illegal pyramid scheme. It is
100% legal and many multimillion companies market their product
strictly through MLM promotion. Some of the best known MLM
companies include Amway, Shaklee, Tupperware, Princess House. . .
a subsidiary of Colgate Palmolive, A.L. Williams, MaryKay
Cosmetics, U.S. Sprint, MCI, and NSA. These companies have been
around for decades. There are actually 100's to 1,000's more MLM
companies. Like other companies, some are good and some are not
so good. But one thing is for sure. MLM is here to stay, and it
is an explosive growth field!
So what's the big attraction to MLM companies and programs? Well,
it represents a wonderful opportunity for the "little fella" to
start his own business on a part time basis and make a whole lot
of money! How is this possible? The concept is fairly simple,
MLM companies offer their products and services through
independent distributors who can then recruit other distributors.
That way, a distributor can buy the MLM products at a discount and
earn money selling the product directly to others. He also earns
"overrides" for the distributor that he has sponsored. And it
gets better. Normally, a distributor also earns "overrides" for
several levels that are deep in his organization. These
distributors are called his "downline" or his "organization." You
have probably seen how an organization can grow, but I'll show you
again just in case. Let's say that your organization has 5
levels. Let's assume that you sponsor 5 people, and everyone does
likewise. Your downline would then grow like this:
Level 1 5 Distributors
Level 2 25 Distributors
Level 3 124 Distributors
Level 4 625 Distributors
Level 5 3,125 Distributors
Total = 3,905 Distributors
Now that's quite a few distributors. If you earned $10 a month
for each distributor in your "downline," you would be earning
$39,050 a month! So theoretically, you can earn a lot of money!
If everything worked perfectly. but it normally doesn't since
your downline will not build perfectly. In fact, in most cases if
you are using standard MLM techniques, you'll be lucky to build
anyone on your second level! Now, I'm going to tell you the way
it is in the real MLM world. You can make a lot of money in MLM,
but most people don't! Let me explain what it takes to succeed
and also to fail in MLM. You need to understand the underlying
principles of MLM first.
You Must Build Your Organization Deep!
Notice in the previous table that you earn your big money on your
5th level. That's because that's where most of your distributors
are. To build a deep organization, you MUST train and help your
first level! In other words, you must have a method that is
duplicative! Your first level people must have a way to help
their first level (your 2nd level) and so on. Otherwise your
organization will die on the vine! Most new people in MLM make
the serious mistake in trying to build their first level wide.
That is, they personally want to recruit as many people as they
can. Here is how they reason. If he can't or doesn't want to
sell, surely if he sponsors enough people on his first level, some
of these people will magically sell for him. Bad mistake! If you
can't sell the product or service, how can you expect to train
others to sell? You have just got to have a duplicative method
that you, your people, and their people can easily duplicate.
This is the fundamental basic rule that makes MLM promoters
wealthy! Violate it and you're dead in the water!
You Must Learn How to Sell and Teach Others to Sell
Yuck! This is the kiss of death for most people! Let's face it,
most people hate to sell, can't sell, and don't want to learn how
to sell! But don't fret. In these reports, I will show you how
to succeed in MLM without direct selling by using mailorder
techniques. but for now, understand that if you are strictly in
MLM only, you "gotta" sell. There is no other choice!
Another unique problem with MLM'ers is that they find it difficult
to generate leads. That is, once you have joined a MLM company,
who do you find to sell? Where do you find interested people to
talk to? Lead generation is generally very awkward. Since the
very principle of MLM is that all selling is done by word of
mouth, advertising just doesn't seem to fit. If advertising is
used, it is mostly used nationally, and the long distance phone
calls for following up gets to be very expensive very quickly.
Generally, if your upline gives you a few leads a month, you're
lucky. Or sometimes, you will be invited to participate in
cooperative advertising. This is OK, but these leads generally
cost $1 to $5 each and then again you have the long distance
problem.
Oh yes, the MLM companies come up with all kinds of disguised ways
to overcome the selling and lead generation problems. They try to
teach you how to "share" your product with friends and relatives.
They want you to bring your potential distributors to rah, rah,
rah "Opportunity Meetings." All selling techniques! And yes,
they show you how you can lose a lot of money by trying to sponsor
new distributors by "long distance." I say "lose a lot of money"
because the MLM companies in general don't seem to understand the
first thing about how to use proven mailorder techniques.
Another theory that MLM companies will tout is that you should be
100% loyal to only them. That is, they insist that you are active
only with their MLM company. This goes against human nature! I
know many people who are in MLM, but not one of them is in only
one program! Most MLM'ers get into several MLM companies. Yes, I
know some of the "old timers" that have been in only one MLM
company, and they adamantly advise you to do the same. But it
seems that most MLM newcomers all get involved in more than one
MLM program.
Can you imagine K-Mart or drug stores if they handled only one
brand of products? So this is a contradiction in the minds of
most MLM'ers. They want to handle several companies, and most
people want to "buy into" several companies, but no MLM company
openly discusses it. Certainly no MLM company trains you how to
do it.
How to Go Broke Promoting MLM by Mail
Let's review how MLM companies operate in general. Mostly, all
quality MLM companies have first class promotional material and
services that you can use. This can include expensive full color
literature, audio tapes, video tapes, local and national meetings,
training seminars and the like. They encourage you to have #800
phone numbers, voice box mail services and FAX machines. This is
all geared primarily to sponsor local people. And it works when
you are primarily selling face to face! But none of this is worth
a "plugged nickel" if you are trying to sell by mail! It's way
too expensive.
Here's how the typical MLM "BIG TIME" promoter can lose a lot of
money. First, he signs up in a wonderful MLM program. And it
probably is. Next, he decides to sponsor as many people as he
can. (Surely if he gets 100 people in his first level, he can
get 1,000's in his organization? Wrong!) Let's continue on. To
sponsor 100 people fast, he advertises in USA Today under
Business Opportunities." Ninety percent of all ads in this
section are MLM companies and distributors! He gets to spend
about $500 for one weed with a tiny ad! Next, he gets a voice box
mail service with a pre-recorded message. (I hate those!) Now he
sits back and, sure enough, he gets about 50 to 100 leads. (That's
$5 to $10 a lead cost!). Now guess what next? He now has about
100 leads that he must call back at HIS cost! And he'll probably
have to call several times to catch these people. Another cost of
$5 to $10 for everyone that he talks to! Well, sure enough, some
of the people are genuinely interested and they want more
information and literature! Remember that expensive literature I
told you about? Well, now he has to send it! Let's see. He has
to send the expensive $10 to $20 video with the expensive
literature. Otherwise he can't possibly "sign" anyone up without
meeting him face to face. So be it. Send it all out. Now we're
up to $30 to $50 cost on just this one person! Whew! Oh well, we
have now sent out the expensive packages and we'll see what
happens? Probably nothing! Well, that's what follow up phone
calls are for. Another cost. More time. And if he is lucky, he
will finally sign up 1 or 2 new distributors. What a messy,
costly way to do this!
But what was that fundamental principle that I taught you earlier?
You must be able to duplicate you system! Now that you have
finally signed up 1 or 2 people, you are now going to try to show
him how you did this! You would be nuts if you tried this! But
nevertheless, there are plenty of people that try to do it this
way. Just read the ads in the USA Today if you don't believe me!
OK. Let's recap on MLM. If you want to succeed in MLM using
standard MLM techniques you need to:
1. Handle Just One MLM Company
2. Sell Face To Face
3. Recruit Only a Few On Your First Level
4. Have a Duplicative Method
5. Build a Deep Organization
6. Help and Train Your First Level
7. Primarily Sell Locally
Mailorder Techniques
Now that we have covered MLM, let's now see how the professional
mailorder dealers operate. It's entirely different! Let me
explain to you the fundamentals that all mailorder dealers will
use.
First, the basic idea in mailorder is to get as many customers as
you can get so you can sell to your customers over and over again.
The very first objective in mailorder is to develop your own
customer base. Once you have a customer base of, let's say, 100
to 10,000, you can keep sending them your new offers or catalogs
and keep reselling them! Professional mailorder dealers talk in
terms of the "front end" and "back end." The "front end" is the
method of simply getting customers . . . even at no profit or at a
slight loss! No professional mailorder dealer will ever attempt
to make a "killing" with advertising or mass mail to
non-customers!
It just doesn't happen. They will, however, do a lot of
advertising and mass mailings to build their customer base! A
customer base is pure gold! These customers like to deal with you
and they buy again . . . and again. . . .and again. As long as
you have several offers! And that brings up another fundamental
point. To succeed in mailorder, as with any business, you just
have to have several products or offers to sell. If you don't,
you will most likely lose money in trying!
When it comes to advertising, these guys are pro's. All will use
tiny classified ads that you see in the back of national
advertising. If these ads get results, they will test and test
and then place small 1" ads. When they have an offering and a
publication fit, they then might place a large ad. Only then.
You will rarely see them advertise in USA Today. Way too
expensive!
They will use "leader items." A leader item is an inexpensive
report or item that typically sells for less than $5.00. By
advertising a leader item that costs 2 or 3 dollars, you can
expect to get orders directly. The objective is break even with
your mailing and advertising costs and build your customer base.
Reprintable reports are excellent for this. Sometimes you can
actually make money right up front if you have a "HOT" item.
Everyone that buys the "leader item" will then get another
literature included. It generally goes postage FREE! Do you see
how they operate? Slowly but surely. Making money as they go!
Testing and re-testing! Mailorder dealers know that they can
make a lot of money! Some reports say that there are over 50,000
small mailorder dealers quietly earning over $50,000 a year
operating out of their homes! You and I also know that there are
also many big time mailorder operators that become very wealthy by
selling by mail.
Let me recap what successful mailorder dealers will do.
1. Develop as many customers as they can
2. Promote nationally
3. Have several offerings
4. Develop cost effective ways to generate customers
How to Combine MLM with Mailorder
If you look at the "recaps" above, you will not find many
common ties between MLM and mailorder . . do you? But yet, there
are a lot of amateurish MLM distributors and companies that try
to promote MLM via mail without understanding the first basic
principle of mailorder techniques! But it can be done! With
astounding results!
Do you see some of the main differences between promoting MLM and
mailorder? In MLM you should "Sign Up" only a few people on your
first level. Say no more than 10 and then help them. With
Mailorder, you want to develop as many customers as you can. . .
1,000's if you can! With MLM, you want to sell locally, and with
mail-order, you have to sell nationally! With MLM, you are told
to be loyal to just one company, but with mailorder, you should
have many offerings.
Wouldn't it be nice to be able to take all the good techniques
from both MLM and from Mailorder Techniques and throw away the
nasty ones? Well, that's just what these reports are all about!
Mailorder dealers operate lean and mean. If they don't make a
profit on everything that they do, they are out of business!
That's a good premise to start with. don't do ANYTHING unless you
can make some up front money, or at least break even! If
mailorder dealers were to make deals like a lot of MLM
distributors do, they would be out of business immediately! Let
me give you a few examples. Avoid them like the plague!
MLM Offers to Avoid!
In these examples, remember that the offer that is being made
must be duplicated (by you) if it is any good!
1. "Join my program and I'll pay your way in." What a miserable
offer! This guy is willing to pay his money to get me into his
program. What is he really saying? If I join him, I will have
to pay for my new people? This can't get any worse!
2. "Sure, I'll send to you the information FREE." Now let's
see. If he is sending me video's and expensive literature, I'll
bet that is costing him at least $10 to $20! Hmmm. If I get into
this program, does this mean that I will have to send out this
FREE stuff? At my cost? No way!
3. "Join now, and I will build your downline." This guy is
absolutely naive or just a flat out liar! It is impossible for
him to build your downline. And you cannot possibly duplicate
this method. Watch your wallet and stay away! While you may be
able to help a few select people by "signing up" a few people for
them, you cannot possibly do this for your entire downline! You
must provide a logical method that your people can do this for
themselves!
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