Network or Multi-Level Marketing . . . Is it time?

To most people, any mention of Network Marketing or MLM (Multi-Level-Marketing) sends them running for cover. It's like garlic to a vampire; they don't want it near them -no how, no way. But, maybe in today's economy, it's time to add small doses of garlic to our financial diet.

I've tried them. Amway, Excel and a few others that I can't even remember. But that was years ago. I tapped into my friends, neighbors, co-workers and relatives; brow beating them until they either ex-communicated me or ultimately gave in to, as they called it, another "pyramid scheme". I swore off ever getting involved in another MLM opportunity...until now.

PLEASE READ THE REST OF THIS POSTING BEFORE YOU TELL ME I'M CRAZY!

After all, only the people that get in early make all of the money. The people at the bottom are left with closets-full of "product" such as soap, make-up, vitamins or long distance calling cards. Am I right? I've read the propaganda. I've been to the conventions. I've seen the countless pictures of a select few with the mongo huge houses, luxury cars, exotic vacations and unfathomable residual checks. They hypnotize and mesmerize us into staking our claim to that elusive pot of gold at the end of the rainbow. It's another cult. It's big rallies with everyone but us up there on stage receiving those big payouts. I know I felt inadequate, got discouraged and eventually gave up.

But, that was all before the Internet really took hold and gave the MLM industry a powerful marketing tool.

MLM has changed in a BIG WAY!

TRADITIONAL BUSINESS MODEL?
Let's step back for a moment and look at the traditional business. As an entrepreneur, I have what I think is a great idea for a business. I invest thousands of dollars in product development, product testing, office space, utilities, employees, taxes, insurance, marketing, advertising and more. Then, I work my ass off prospecting and convincing others that they need my product or service. I pay my sales people (if I can afford them), to sell. Most importantly, I am gambling that my satisfied clients, without any incentive to do so, will tell others about my business and I will be able to convert them into clients. Those new clients will tell two people, who will tell two people, who will...you get the point. I'm hoping that word spreads about my business so far and wide that I...

...Wait a cotton pickin' minute! Doesn't that smell of multi-level marketing? People...tell people who... tell more people. Hmmm.

But something doesn't make sense. I'm spending my life savings or paying to use a bank's money, hoping to someday turn a profit without giving my clients an incentive, beyond maybe an occasional gift card, to help my business grow ? It's no wonder that about 80 percent of all new businesses fail within the first two years - and their owners find themselves in financial ruin.

The MLM Model
So, let's take another look at the MLM (also called Referral Marketing) way of doing business. I can buy in to a company that's already spent millions of dollars on product development and marketing. My initial investment is usually less than $100. Then, I agree to purchase a product or service that I'm either already using, or should be using because it offers a financial or health benefit. I now just buy it from myself at half the cost rather than buying it from a store at a huge markup. I make back my investment almost instantly. It's starting to make sense.

But wait, there's more good news. I can work out of my home and take advantage of the numerous tax breaks enjoyed by home-based businesses. I don't need to dress up, so now I've saved hundreds of dollars that I spend annually on business attire. So, I now instantly own a profitable business. And if I'm worried about how fast my MLM business will take to produce actual income...I can still work my full-time job. Sweet!

Next, I learn how to market my MLM business without cramming it down people's throats. I work the numbers and eventually peak their curiosity enough to get them to look at the opportunity. If they agree to start their own MLM business, then I get paid a commission on the product they purchase...as does the people above me. That's good ol' profit sharing...just like the big oil companies.

THE MIS-CONCEPTION
HALT! This is where most people get hung up. "You mean someone else is going to make money if I buy the product? That's not fair!"

So, "genius", what happens when you buy something from Wal-mart? You pay for a product, plus the cost of marketing, insurance, payroll, and more. And, you just aren't paying Wal-mart - you are paying the manufacturer, warehouse and distributor - all the way up the line. Wait...here's something else that you don't realize. When you tell your neighbor, friend, relative or co-worker about that great new toothpaste, laundry detergent, nutritional supplement or make-up, guess who's NOT getting paid? YOU! You just became a free advertisement! You DON'T get a paycheck. Now, THAT'S NOT FAIR!

TIME TO RECONSIDER?
This past couple of weeks, I've really started thinking about my own financial situation. I've started looking at MLM opportunities. Yes, that's opportunities - plural. There are no pie-in-the-sky expectations of reaching millionaire status in 60 days. But, let's just say that in addition to my current business, BTK & Associates, I conservatively generate $10,000 the first year and that doubles each year thereafter. In five years, that's $160,000. In 10 years, when I retire at age 55, that's a little more than $5,000,000 (a five with six zeroes behind it) per year.

NOW COMES THE I-FACTOR
The "I" is for Internet. Back in the day, once I had worked my way through my Rolodex, I was done, tapped out. I maybe showed "The Plan" to fifteen of my 200 or so contacts. But with the Internet, more and more companies are using MLM business models to a sell product while creating millionaires in their wake. The number of people now generating residual income is staggering. People are adding other people they don't even know to their "downlines" via the Internet nearly every day.

WANT TO JOIN ME AND MY FAMILY IN BELIZE?
I consider myself to be pretty darn good at marketing and sales. I know some pretty average people who, in less than a year, are generating $100,000 with little effort and time. And there are so many LEGITIMATE MLM and "affiliate" opportunities available, that, unless you are a recluse, you can't not succeed.

If you would like to learn how you can generate additional residual income for you and your family, email me at brian@btkmarketing.com. I'll even help you set up your first business that doesn't even require an investment on your part but will generate a 30 percent residual income the first year!

I promise that if you join me now, we will all vacation together in Belize in January of 2009. See you there!

Michael Phelps Teaches Golden Marketing Lesson from Beijing

(Photo by Donald Miralle, Getty Images)

As the world watches Michael Phelps collect gold medallions and shatter world records at the 2008 Beijing Olympics, I had one of those "Aha!" moments as he was collecting his 10th Olympic medal on Monday night, August 11, 2008.

Michael Phelps followed the same superstitious ritual he has gone through prior to each swimming event the past several years. He listened to his Rap music, removed his ear buds, took off his jacket, climbed up on the block and flapped his arms like a gigantic bald eagle about to swoop down on an unsuspecting meal.

But it was how he managed this particular race, just like all the others, that gave me a take-away that I can immediately apply to my business as well as my clients'.

Tense Moments
Phelps left the block, effortlessly motored himself under water and suddenly emerged on the surface somewhere in the middle of the pack. As we watched, my wife stated what I was thinking, "He's not leading. The guy in lane one is." Right on cue, as if he heard my wife and millions of other viewers gasp in unison, the announcer reassured. "Oh, but he knows exactly where he his and where his competitors are."

Aha! That's it. Here is a guy not only swimming to be the most-decorated Olympian in history, but he's also teaching a valuable marketing lesson at the same time. Phelp's course syllabus might read something like:

Do you know where your competition is? You've worked too
hard to let your competitions take the lead and increase it's market share. In this course you'll
learn how to monitor your competition, get to know their strengths and weakness, and implement both a proactive and reactive marketing strategy to help you reach for the gold in your business and personal lives.

Practical Application
I am currently working on a competitive intelligence project for a client in. Like Michael Phelps, this business has been working hard for the past twenty years is truly a champion in its industry. But, a sagging economy combined with some emerging technological challenges has put a recent drag on the business. My client wants to know where the competitors are. Where do they excel? Where do they fall short? What are the opportunities and threats that can help or hurt their business? Are we truly a leader or is someone else threatening our existence? These are all valid and important questions for any business to ask every single day.

Michael Phelps teaches us that you don't necessarily need to pull up and look at your competitors. He keeps kicking and pulling water with each stroke. He's focused. Most importantly, he keeps his head down and concentrates on the task at hand. But, he is instinctively aware of his competition. He's done his homework and due diligence. He's watched endless hours of video on each competitor and himself and he's replayed his races time and time again inside his head.

Game On
In your business, you need to keep your head down and move forward. But, equally as important, you need to understand your competition and environment. Review their website. Acquire their brochures. Be on the lookout for their advertising and scrutinize it as if it were your own. Monitor their pricing strategies. Once you know where your competition is, you'll be better poised to know when to save your energy and when to turn up the heat. At the end of each race, you'll find yourself breaking all kinds of records and standing atop the podium.

BTK & Associates can coach your business to victory conduct Competitive Intelligence. You'll learn who your competition is both in your market space and geographically. You gain confidence knowing that you can make the necessary adjustments to grown your market share and be a leader in your market.

For more information on how BTK & Associates can help your business stand out in a crowd, visit www.btkmarketing.com, email me at brian@btkmarketing.com, or call 317.696.6734.

Who's Really Driving Your Marketing Strategy?

Are you letting your website designer, printing company, video company, freelance graphic designer or another niche marketing specialist commandeer your marketing efforts? If so, this might be the reason your sales are sluggish.

Scratching My Head
I'm a strong proponent of business networking. I attend a few business networking events each week. I can't help but chuckle inside and roll my eyes when I hear some young guy or girl who just started a web design company talk about sitting down with you and helping you with your "overall marketing strategy". I always walk away from those meetings scratching my head and seething a little bit.

"C'mon! Are you kidding me?" This is like going to the discount tire store to have a flat tire patched and having them tell you..."For $49.95 we can run a comprehensive diagnosis on your car and tell you how to optimize it's performance for better gas mileage." What are they going to sell you? Yep, you guessed it. Tires! They are going to sell you the newest tires rated for better road wear which means, of course, better mileage.

The Need for a Broader Diagnosis
Wouldn't you take your car back to the service center where you purchased it? Or, like me, you might have an independent automotive service center that has the training and experience to be able to provide a comprehensive diagnosis. My service center is qualified to look at the engine, transmission, suspension, fuel lines, electrical system, tires and more. I have the confidence in their years of experience and training. They make recommendations, tell me what repairs I need to make now...and later. They give me options and charge me a fair price.

The same goes for doctors. I have a family doctor that I depend on to review my overall health. He then makes recommendations for me to see various specialists whether that be for a sinus problem, ear infection, knee pain, allergies...etc. He refers me to someone with a more narrow focus. I wouldn't go see a orthopedic specialist for treatment if I was having chest pain.

Your Benefit or Theirs?
So, back to the question - who's driving your marketing. Your web designer? A video production company? Your advertising sales rep at the local newspaper? The quick printer down the street? If so, who's interest do you think they ultimately have in mind? Yours? No. They are in business to make money for their company.

There are some exceptions to the rules...but you've got to dig deep and ask lots of questions. But, one key questions you need to ask is, "Other than your company, who would you recommend to help me develop a comprehensive marketing strategy?" If they respond with ANY other answer than a recommendation for a marketing consultant, an advertising/marketing agency or a small business advocacy group such as the SBA, SCORE or Chamber of Commerce, turn and run for the hills.

Seeing The Big Picture
Now, you might be asking..."But aren't you in business to make money?" Absolutely. But, as your marketing "service center" or "physician". I'm going to get to know you and your business. I'm going to ask the right questions, take the pulse of your business, poke around until I find where it hurts and then, I'm going to recommend a plan to nurse your business back to good health. Then...I'll bring in the necessary specialists. In the end, my goal is to help you make more money so that you'll continue to partner with me so that I, too, make more money.

I have relationships with some of the best "specialists" in the industry. And, if you already have a preferred vendor, I'll be happy to meet with them to determine if they would make a good marketing partner. If not, I'll recommend one that will get the job done.

As a business owner, you owe it to yourself and your business to develop and implement a comprehensive marketing plan. This plan may mean diversifying your marketing portfolio across a number of strategies including the Internet, direct mail, sales collateral, print advertising, special events and more. This means working with a qualified consultant or an agency that sees the "big picture" and can build an overall strategy and make recommendations that will help your business grow and prosper.

If you are interested in a comprehensive diagnosis of your marketing efforts, I encourage you to visit my website at www.btkmarketing.com, email me at brian@btkmarketing.com or call me at 317.696.6734.