Lessons on napkins - a lesson 1
Multi - Level Marketing (MLM) holds a specific place among modern ways of sale as one of the most quickly extending and at the same time causing misunderstanding.
Many see MLM as a fashionable wave of the eightieth years, but its value is much more. Societies MLM in 90 - x have years turnover of goods more than 100 billion dollars a year.
The purpose of this book - by means of illustrations and examples to show you that such MLM. You will get acquainted also with how it is possible effectively, I repeat, EFFECTIVELY, to explain to other Multi - Level Marketing.
This practical reference book is written to help training of your business partners. Therefore generalize material of this book in “ " package; initial information for your business partners.
Since 1973 Don Faylla (Don Failla) constantly worked on the material “ Lessons on a napkin “. This book is constructed at this its work. I in 1969 joined in system of multistage marketing. This book contains full material developed still “ Lessons on a napkin “.
Before to go deep into details “ Lessons on a napkin “ allow to answer the most often asked question: “ What is MLM? “ In this book alternately we use the concepts MLM (MLM) and Multi - Level Marketing (multistage marketing). Marketing (sale) means delivery of goods of MLM service from the producer to the consumer. Expression of Multi - Level (multistage) means system of encouragement of the people delivering goods MLM service to the consumer. Multi (other) means “ more, than one “. Level (level, a step) designates " rather; generation “. Thus, it is quietly possible to call the Multi Generation Marketing system (sale by means of several generations). But we will stop on expression of Multi - Level, as on the most widespread. So widespread that the set of illegal chain systems and pyramids on distribution of goods also designate themselves “ " programs; Multi - Level. Therefore Multi - Level became the press. Unfairly. Therefore many new societies MLM think out other names for the systems of sales. For example, Uni - Level Marketing (one-stage sale) MLM Network Marketing (sale through a network).
Actually there are three main ways of sale of goods:
* Retail trade - it is sure that it is familiar to everyone, department store, greengrocery, you will come and will buy something.
* Direct sale - generally, it can be insurance, sale of the kitchen equipment etc. An example of direct sale cosmetic products, MLM exhibitions - sales of home stoves.
* Multistage sales of MLM Multi - Level Marketing (MLM) - what in this book is in detail stated. This form of sale cannot be confused to two others, especially to direct sale which is mistakenly ranked most often as MLM.
The fourth way of sale - the order by mail that can belong to the MLM system, but is direct sale rather.
The fifth type of sale which is also often confused to MLM, the mentioned Pyramid. The fact that transactions of the Pyramid are illegal. The main reason is that this system is not adapted for advance of goods of MLM services. If the goods do not move, it is impossible to speak about marketing, especially about multistage marketing. It is possible that multigradualness, but at all not marketing is characteristic of this way.
The main misunderstanding arises because that people do not see a difference between MLM and direct sale.
Think of societies MLM that they submit the program of direct sale with visit of apartments and houses of one behind another. Such is there was also your first impression when the agent knocked at your door to sell something.
But there are several features distinguishing multistage marketing from retail and direct trade. The characteristic that you are in MLM thanks to the interests, but never you remain one.
As you are in business thanks to the interests, buy goods at wholesale price from firm which you represent. It means that you can use the bought goods, moreover, has to use. In the beginning many people join such firm only to buy goods at wholesale price. Later many of them become “ more seriously “.
As you buy goods at WHOLESALE price, if you want, you can sell them on retail, having got thus PROFIT.
The misunderstanding connected with MLM arises from representation that you NEED to SELL to be successful. There are several such programs which surely demand achievement of a certain retail quota to receive a discount.
If you want or if it is demanded by the special program of transactions, you can sell, but the real material success will be brought only by the organization of business.
IMPORTANT: Achieve that sale was natural result of the organization of business. Many suffered because that approached a question on the other hand - tried to organize business with the emphasis on sale. Having read up to the end “ Lessons on napkins “ you will understand why the system thus does not work.
Word “ sale “ causes negative thoughts in 95% of people. In MLM it is not necessary to sell in traditional sense of the word, but the GOODS HAVE TO MOVE, without it nobody will receive money. Don Fayll defines sale as the address to the stranger with attempt to sell something in what there is no need and desire. Let`s repeat:
GOODS HAS TO MOVE, OTHERWISE NOBODY WILL RECEIVE MONEY.
Other name MLM - Network Marketing (sale through a network). When you create business of MLM, you create, as a matter of fact, a network through which you look for a way of advance of goods. Retail - a sale basis through a network (Network Marketing).
In MLM, in a different way. In Network Marketing - e, sale occurs when agents offer goods to friends, neighbors, relatives. Apparently, nobody addresses strangers. To create BIG and SUCCESSFUL BUSINESS, there is a need for BALANCE.
You need to sponsor and train in the MLM system until you create a stable circle of buyers from friends, neighbors and relatives. Do not try to sell everything alone. Remember that MLM or, in a different way, sale through a network, designates that you create the organization in which each of many businessmen sells few goods. It is much more effective, than to try to make alone everything. If you track, you will see that MLM firms do not spend large sums for advertizing. Advertizing happens almost only through direct communication of consumers. As these firms can spend more funds for development of production, quality it is much higher, than at the goods extended in retail trade.
You can surely offer the friend the excellent goods similar on that which he already uses. Just you replace the goods used by the friend long ago on new about which you know from own experience that it is much better.
Now you see that MLM does not mean circulation on apartments and the offer of goods to strangers. Some Network and MLM programs. which I know, confirm that if just you OFFER friends these goods or service, then thereby already executed necessary “ sale “. (We it better will call “ " Offer; because actually it is about it).
And other difference of MLM from “ direct sale “ this SPONSORING of distributors of goods (businessmen). At direct sale, as well as at some MLM it is called “ recruitment “ but SPONSORING and RECRUITMENT not so same. If you sponsor somebody, then actually you train it as it has to do what you do, you, or as to it to construct own business.
We would like to emphasize that there is a big difference whether you sponsor somebody, or only help “ to enter “ in business.
If you sponsor somebody, you undertake the obligation. If you do not undertake “ Obligation “ you do harm to those that only you help to enter business.
In this case it is necessary to HAVE DESIRE to help the new partner to create his own business. This book is urged to develop your abilities to take the responsibility.
Sponsoring - the action allowing business of MLM to become large. When your organization begins to grow, you will turn into the independent and successful businessman. You will become itself the HEAD.
If you work at firm of direct sale, then work for the benefit of firm. If decided to leave firm, to move to other place, everything needs to be finished and started anew. Unlike it in the majority of MLM firms practice when and after moving to other region of the country you continue to sponsor people is applied, without losing the values created by your group of people.
A pyramid and MLM In MLM firms you can earn a lot of money. It happens in some firms more slowly, and in others - quicker. But the profit always never depends on the organization of business and - on sales volume. In some firms reliable accommodation is provided by sale of goods, but the CAPITAL can create to yourself only by means of the organization of business as the paramount purpose.
People begin business of MLM with hope to earn 50, 100 or 200 dollars a month. Then unexpectedly note that if seriously to treat business, then in a month it is possible to earn 1000, 2000 dollars and more. Repeatedly we want to remind that nobody can earn so much money only with sale of goods, such money is earned with business creation.
The PARAMOUNT PURPOSE of THIS BOOK - to develop your abilities to creation, besides fast, large and successful business of MLM. The minor purpose - creation of the corresponding spirit for MLM. If somebody thinks that MLM is illegal and its organization is meant as a pyramid, then there are many problems with sponsoring.
If you meet such phenomenon, it is necessary to show the facts which disprove the wrong understanding of MLM as pyramids. The example is visible in fig. above. The transaction of a pyramid is constructed from top to down and only those will appear at top who the beginning of a pyramid had. In MLM triangle everyone begins with equal launching sites and everyone has an opportunity to create business, it is even many times more, than at the sponsor.
A main goal - to give the general information on MLM, to understand a difference between retail, direct sale and MLM. After that you can begin successful sponsoring in the business with MLM.
As I mentioned already earlier, in 90 - x years the annual turnover of MLM firms exceeds 100 billion dollars. It is LARGE BUSINESS. Most of people does not suspect, MLM is how big. Multi - Level Marketing as system of sales works more than 35 years. There are MLM firms which annual turnover makes several billion dollars.
We know firm which in the first year of work made a turn of 2 000 000 dollars. Next year - 15 million, for the third year planned 75 million. And the purpose - by the end of the fifth year of work to bring to 1 billion dollars.
The principles stated in this book give the chance to achieve such objectives. And nobody can tell that it is bad business.
MLM - the most reliable road for the inventor or the producer who wants to advance new goods on the market, without having one million dollars and without wishing to give goods to another for sale.