What a great definition of CANNIBALISM from the Wikipedia …
In marketing, it may refer to the loss of a product’s market share to another product from the same company.
In my humble opinion, the incredible attrition rate of downlines in network marketing is a form of cannibalism. Industry statistics show that 80% of ACTIVE network marketers have been involved with a minimum 7 different network marketing businesses in the past 12 months alone. And that the majority of those folks have NOT recouped their start up expenses, much less gotten into profit.
Most people are focused on finding THE business that will bring them immediate, autopilot income. If the business doesn’t produce results FAST, they move on to the next … and the next … and the next …
Why do I call this cannibalism…???
People that get into the network marketing industry are not taught how to build REAL BUSINESSES … and because people have to justify getting into a network marketing business to THEMSELVES … they keep on doing things that simply don’t work over and over and over again…
Isn’t the definition of insanity doing the same thing over and over again and expecting to get a different result…???
Network marketers are eating other network marketers alive …
The constant hype … the constant “mine is better than yours” … the “get in on the ground floor of this AMAZING opportunity” … the “you can make $10,000 a month your first month ONLY WORKING 5 hours a week” … the “this totally customizable “prospecting system” does ALL the heavy lifting for you” …. ughhhhh 🙁
Do you think for one minute that a REAL BUSINESS stays in business long term, and by that I mean the business is PROFITABLE, by setting up a revenue generation model without putting in place MULTIPLE REVENUE STREAMS that are controlled by the OWNER of the business?
Let’s move this from a conversation about network marketing for a minute to something everyone is familiar with…
RESTAURANTS
Restaurants sell food right….???
On the surface, the answer to that question is yes ….
But the real answer is … not really … at least that is not where their profit is coming from …
Restaurants profit by selling bottles of water, bottles of wine, mixed drinks, catering services, party platters, convenience foods, coffee, specialty items, cookbooks, cooking classes …. and they keep on raking in the profits because of HOW good they make people feel about doing business with them.
A restaurant will NEVER be profitable by selling just food …. NEVER …
OK … back to network marketing ….
The infamous funded proposal …
I’ve got a question … How’s that been working for ya … ???
Some people will say GREAT … some will have a very different answer …
In my humble opinion … funded proposals are AWESOME when they are YOURS because YOU control everything…
By YOURS, I mean, the products and services that you are selling BELONG TO YOU.
Funded proposals are GOOD when you are being paid a commission for product purchases you have referred to the owner of that product or service … Keep in mind though … YOU do not control this because you do not OWN it.
If the product is yours, YOU get to KEEP 100% of the PROFITS from the sale… If the product belongs to someone else you are paid a percentage of the profits from the sale as an affiliate.
A distributor in a network marketing business is nothing more than an affiliate salesperson earning a commission based on the volume of sales in their organization.
A network marketing distributor DOES NOT OWN their own business. Things happen with companies all the time. Pay plans change, network marketing companies go out of business, the company can decide that they no longer need a network marketing sales force to market their products. When any of those things happen, the network marketer, who’s sole source of revenue is the check from his or her company, either has a significant decline in income or has no income at all.
Network Marketers should consider themselves to be small business owners who are working from home. And, in order to stay in business for the long term, they MUST learn how to build REAL BUSINESSES that are profitable and will stay profitable regardless of what their network marketing company does or doesn’t do.
Don’t allow your network marketing company to cannibalize you … your family … your hopes and dreams for the future.
Smart business owners set themselves up for success and they do it by finding as many ways as possible to help other people solve their problems. There are opportunities to help other people … and get paid to do so … all around us.
For the most part … we simply don’t see them. Believe me … I have been guilty of that one myself on many occasions. And … that is why I believe that there is hope for all of us small business owners. We just need to learn how to look for and find those opportunities.
Over the past several months I have been GLUED to my computer watching how some of the Big Boys in internet marketing have been truly helping the internet marketing community with the free information and tools they gave away to help promote their high ticket product launches. What an amazing education I got on someone else’s dime. 😉
I have to tell you … the most eye popping … head tilting education I got was from Mike Koenigs over the past few days while he was building up to the launch of his new Main Street Marketing Machines training course. There is a huge shift occurring right now … and it is affecting every small business owner in the world.
If you do nothing else …. watch Mike’s “Get It” video …
When I saw it … the light bulbs started popping in my head … I realized that THIS is one way to totally set yourself head and shoulders apart from all of the other “Network Marketing” noise out there.
It is a great way to get top search engine rankings … get branded in your local market … create a nice lead flow … get product moving … find PERFECT business partners …. give HUGE value to other business owners … and allow you to teach your TEAM some things that no one else can teach them about getting into the profit zone quickly. And you know as well as I do … when you can show people the way to the money … they will stay with you for a long, long time.
Do I recommend and endorse this training program. You bet I do.
Do I think you should “Get It” …
ONLY if you see what I see …
ONLY if you KNOW that you are going to do the work that you have to do to make it work for you…
Only if you can AFFORD it without taking the food off your table or the shoes off your kids feet…
This training and the collateral materials costs $2997 …. a tiny price to pay for a “franchise business”
But a HUGE price to pay if you don’t show up ready for business every day …
This is NOT a MAGIC BULLET …
You will NOT get RICH overnight …
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But as Frank Kern so awesomely put it …
I’m no longer teaching Internet Marketing or releasing products. I’ve simply decided to build, grow, and ultimately SELL a company that (you guessed it) sells Internet Marketing services to small local businesses.
So for the next year, that’s where the majority of my focus will be.
…And that just goes to show you that I firmly believe that the whole “marketing for local businesses” thing is, without question, the
future of Internet Marketing.SOMEBODY is going to get insanely wealthy in this market. We might as well join in …don’t you think?
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Great post Rose
I agree with you totally that too many people are spending way too much going from one business to the next….without really trying…they were just 'sucked in' with some empty promises that didn't serve them well.
Speaking of serving, I loved your restaurant analogy and I would love to add to it by saying that the one thing that a great restaurant is also 'serving' is Great “Customer Service”….that is the key ingredient that will make your customers come back…again…and again…and again….well you get the pic!
So thank you for Serving us!!!!
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Excellent thoughts. I get appalled by all the mail I get from certain NM marketers I have worked under in the past. It seems like every month they are promoting a different opportunity. How can I take them seriously? When they do that, my respect for them slips and their email goes to my spam folder.
Hey Ross … Thanks so much for sharing your experiences with me. I have exactly the same reaction the venture hopping crowd.
I LOVE NM … but when I see some one involved in multiple biz opps .. that is a big red flag for me especially when I know that they have not built any one of the businesses yet.
There is NOTHING wrong with getting involved with a new business … but IMO there is something really yucky about pitching every new deal under the sun.
It takes time and focus to build a business…. how can anyone possibly build multiple business from scratch at the same time and expect to be successful…???