7 Days, 7 Insider MLM Secrets – Day 6

by louabbott on July 2, 2010

They say “Timing is Everything.”

Here’s what you absolutely need to know about timing – and I will bet that no one has ever told it to you, even if you have been around this industry for 25 years!

(I am happy you are still reading and following along!)

Timing in life is always important. It is no different when starting any kind of business, including a network marketing business. Most of the talk about timing when it comes to Network Marketing, though, is pure hype. That’s the nice word for it, anyway.

We have all seen come-ons like this…

Get in on the Ground Floor! Join Now!

How early do you want to be?

You can be first!

Pre-Launch Starts NOW!

Good Grief!

Here’s the “Theory”

A chart like the one below can be found on many web sites for companies and their representatives who are endeavoring to provide evidence that the “timing” to join their particular venture is perfect.

hypothetical chart of MLM company growth“They” state, as if it were both common and inevitable, that network marketing companies follow a predictable pattern of growth in sales like the pattern illustrated in the chart. The premise is that most companies will grow slowly in the beginning until they reach a magic moment when enough people accept the company’s products and business model that they reach a “critical mass.”

Then, according to the theory, the sales will “explode” into “momentum” that will make everyone who got in at the right time rich with a minimum of effort.

One expert claims that his studies reveal that the magical “critical mass” is reached at about $50 million in annual sales.

Baloney! It may have happened that way once or twice. But the truth is, most MLMs never even get off the ground floor much less make it to $50 million in sales. In most cases, the next “floor” was ten feet under the ground! And, sad to say, buried along with the company, are many people’s dreams and last dollar.

Frankly, even if it happened just like they say and momentum explodes, it still doesn’t mean your business will.  You have to have a team, know how to lead them, and use the excitement to your advantage.

The “Saturation” Myth

Another reason that you will hear for joining a new “ground floor” company is what I call the “saturation myth.” The argument is that after a company has been around more than a few years, there will be too many distributors and not enough customers to be able to build a substantial business and a large, leveraged income.

While that makes perfect sense in theory, in the real world, it has never happened! Even if we were to consider the biggest, best known MLM of all time, one that reportedly reached $7 billion per year in annual global revenues, it never “saturated” the market – not in the U.S. or anywhere else. Contrast that size with Proctor & Gamble’s revenues and you will get the point. P&G still grows most years with $68 billion in annual revenues. (See: http://www.hoovers.com/procter-&-gamble/–ID__11211–/free-co-factsheet.xhtml )

Most MLM companies stop growing long before they reach even $1 billion in annual sales revenues, usually long before they even reach one tenth of that amount. The cause is never “saturation.” I wouldn’t give a moment’s thought to that concern. There are many other factors that stop growth long before market saturation can happen. Many of them are mentioned in my Special Report.

In the case of at least one of the largest MLMs, it was because they ruined their name. They ruined their reputation mostly by using alienating business practices and “ambush” inviting techniques. So much so, that perhaps more than any other company, ever, if you even mentioned the name of the company, people would hold up crossed fingers and run for shelter.

Timing – When Good? When Bad?

Let’s make this very, very simple.

When is the timing bad? It’s when a company stops growing or goes out of business right after you join. That’s bad timing. And it happens a lot.

When is your timing good? When a company grows well for years or decades to come after you join.

The reasons for this may be obvious, so suffice it to say that “growth multiplies and magnifies” your effort. It is much easier to build a network when your company is growing. A positive spirit prevails which is contagious. When people see others growing, building and achieving success, they believe in the process and participate with enthusiasm.

On the other hand, when growth stops (at least for more than a very brief period of time), the malignant cancer of negativity can begin to spread unchecked. People start losing confidence in the company, the industry, and themselves.

To compound the difficulties, that is often also the time when company management starts to implement changes to try to “fix” the problems. Very often, their efforts actually accomplish the opposite, and the changes aggravate the problem. Change is rarely popular, even when it may be the right thing to do.

So, I want to reemphasize that by “Timing,” I do not mean getting in “on the ground floor” or at just the right moment before some theoretical “momentum” “explodes” the company sales right off the growth chart.  All of that is baseless hype.

By my comments in Critical Factor #1 on Day 3, you know that the best advice I can give is to stay as far away from “ground floor” hyped companies as you can (unless in rarest of instances, as I talked about it Day 3, you have the strongest of evidence that the track records of the new owners are impeccably strong in running companies and in Network Marketing). Because most never grow well for many years after you join. Many never grow at all! Not that it is always bad to join a newer company, I might, an extremely small “might,” be tempted if ALL of the other of The 12 Critical Success Factors™* are evident in very strong measure.

It is simply a fallacious assumption that a company’s timing is good because they are new. (Of course, that is completely true with pyramid schemes – but we aren’t talking about pyramid schemes here. We are talking about real, legal, respectable business.)

So, I know the question you are now asking…

“How can I possibly tell if a company is going to grow after I join?”  “I don’t have a crystal ball!”

The fact is, you can never know for sure.

But you can, and indeed you should, put the odds in your favor.

How? By using good common business sense. If a company has been growing for years – without interruption – your odds are the highest that they have a model that really works long-term, a model that has found market acceptance, a management team that knows what it is doing and knows how to sustain growth.

So once again, you need to go back to our “Critical Success Factor” #1 and look at the company’s track record!

Frankly, the longer the period of sustained growth that a company has demonstrated (talk is cheap), the more likely you will be joining a long-term successful company and be able to really build a Truly Money-Making, Reliable, Long-Term, Leveraged, Residual Income Producing, Network Marketing Opportunity.

Next…

Day 7 – The top three reasons why most participants in the MLM industry fail, even if they work very hard.

If that is (was) you, (it certainly was me in the past), you will learn the exact reason why it is probably not your fault, the exact ways the deck is stacked against you, and exactly what you can do to turn it around.

“See you” tomorrow, our last day of this 7-Day series.

I would welcome your comment below about what you have enjoyed or benefited from thus far.

Sincerely,

Lou Abbott's signature
Founder of the new…
MLM-theWholeTruth.com for people who want to know the up-to-date, whole truth about MLM

*P.S.  By the way, the only place you can get The 12 Critical Success Factors™ is in our whole Special Report, MLM The Whole Truth, available only at …

MLM-theWholeTruth.com/12sfoffer.shtml

Have we given you enough good information for free to earn your business yet?

Welcome to Day 6They say “Timing is Everything.”

Here’s what you absolutely need to know about timing – and I will bet that no one has ever told it to you, even if you have been around the industry for 25 years!

Dear ~Contact.FirstName~,

I am happy you are following along!

Timing in life is always important. It is no different when starting any kind of business, including a network marketing business. Most of the talk about timing when it comes to Network Marketing, though, is pure hype. That’s the nice word for it, anyway.

We have all seen come-ons like this…

Get in on the Ground Floor! Join Now!

How early do you want to be?

You can be first!

Pre-Launch Starts NOW!

Good Grief!

Here’s the “Theory”

A chart like the one below can be found on many web sites for companies and their representatives who are endeavoring to provide evidence that the “timing” to join their particular venture is perfect.


“They” state, as if it were both common and inevitable, that network marketing companies follow a predictable pattern of growth in sales like the pattern illustrated in the chart. The premise is that most companies will grow slowly in the beginning until they reach a magic moment when enough people accept the company’s products and business model that they reach a “critical mass.”

Then, according to the theory, the sales will “explode” into “momentum” that will make everyone who got in at the right time rich with a minimum of effort.

One expert claims that his studies reveal that the magical “critical mass” is reached at about $50 million in annual sales.

Baloney! It may have happened that way once or twice. But the truth is, most MLMs never even get off the ground floor much less make it to $50 million in sales. In most cases, the next “floor” was ten feet under the ground! And, sad to say, buried along with the company, are many people’s dreams and last dollar.

The “Saturation” Myth

Another reason that you will hear for joining a new “ground floor” company is what I call the “saturation myth.” The argument is that after a company has been around more than a few years, there will be too many distributors and not enough customers to be able to build a substantial business and a large, leveraged income.

While that makes perfect sense in theory, in the real world, it has never happened! Even if we were to consider the biggest, best known MLM of all time, one that reportedly reached $7 billion per year in annual global revenues, it never “saturated” the market – not in the U.S. or anywhere else. Contrast that size with Proctor & Gamble’s revenues and you will get the point. P&G still grows most years with $68 billion in annual revenues. (See: http://www.hoovers.com/procter-&-gamble/–ID__11211–/free-co-factsheet.xhtml )

Most MLM companies stop growing long before they reach even $1 billion in annual sales revenues, usually long before they even reach one tenth of that amount. The cause is never “saturation.” I wouldn’t give a moment’s thought to that concern. There are many other factors that stop growth long before market saturation can happen. Many of them are mentioned in my Special Report.

In the case of at least one of the largest MLMs, it was because they ruined their name. They ruined their reputation mostly by using alienating business practices and “ambush” inviting techniques. So much so, that perhaps more than any other company, ever, if you even mentioned the name of the company, people would hold up crossed fingers and run for shelter.

Timing – When Good? When Bad?

Let’s make this very, very simple.

When is the timing bad? It’s when a company stops growing or goes out of business right after you join. That’s bad timing. And it happens a lot.

When is your timing good? When a company grows well for years or decades to come after you join.

The reasons for this may be obvious, so suffice it to say that “growth multiplies and magnifies” your effort. It is much easier to build a network when your company is growing. A positive spirit prevails which is contagious. When people see others growing, building and achieving success, they believe in the process and participate with enthusiasm.

On the other hand, when growth stops (at least for more than a very brief period of time), the malignant cancer of negativity can begin to spread unchecked. People start losing their confidence in the company, the industry, and themselves.

To compound the difficulties, that is often also the time when company management starts to implement changes to try to “fix” the problems. Very often, their efforts actually accomplish the opposite, and the changes aggravate the problem. Change is rarely popular, even when it may be the right thing to do.

So, I want to reemphasize that by “Timing,” I do not mean getting in “on the ground floor” or at just the right moment before some theoretical “momentum” “explodes” the company sales right off the growth chart.  All of that is baseless hype.

By my comments in Critical Factor #1 on Day 3, you know that the best advice I can give is to stay as far away from “ground floor” hyped companies as you can. Because most never grow well for many years after you join. Many never grow at all! Not that it is always bad to join a newer company, I might, an extremely small “might,” be tempted if ALL of the other of The 12 Critical Success Factors™* are evident in very strong measure.

It is simply a fallacious assumption that a company’s timing is good because they are new. (Of course, that is completely true with pyramid schemes – but we aren’t talking about pyramid schemes here. We are talking about real, legal, respectable business.)

So, I know the question you are now asking…

“How can I possibly tell if a company is going to grow after I join?”  “I don’t have a crystal ball!”

The fact is, you can never know for sure.

But you can, and indeed you should, put the odds in your favor.

How? By using good common business sense. If a company has been growing for years – without interruption – your odds are the highest that they have a model that really works long-term, a model that has found market acceptance, a management team that knows what it is doing and knows how to sustain growth.

So once again, you need to go back to our “Critical Success Factor” #1 and look at the company’s track record!

Frankly, the longer the period of sustained growth that a company has demonstrated (talk is cheap), the more likely you will be joining a long-term successful company and be able to really build a Truly Money-Making, Reliable, Long-Term, Leveraged, Residual Income Producing, Network Marketing Opportunity.

Next…

Day 7 – The top three reasons why most participants in the MLM industry fail, even if they work very hard.

If that is (was) you, (it certainly was me in the past), you will learn the exact reason why it is probably not your fault, the exact ways the deck is stacked against you, and exactly what you can do to turn it around.

“See you” day after tomorrow, our last day of this 7-Day series.   I would welcome your comment about what you have enjoyed or benefited from thus far.

Sincerely,


Founder of the new…
www.MLM-theWholeTruth.com for people who want to know the up-to-date, whole truth about MLM

*P.S.  By the way, the only place you can get the The 12 Critical Success Factors™ is in our whole Special Report, MLM The Whole Truth, available only at …

Have we given you enough good information for free to earn your business yet?

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{ 7 comments… read them below or add one }

Chris Windley June 10, 2014 at 5:40 am Thumb up 0 Thumb down 0

Dear Lou, I am really enjoying your emails and your experience, logic and common sense. Thank you. Regards, Chris.

Reply

Nancy December 16, 2012 at 1:05 am Thumb up 0 Thumb down 0

Hi Lou,
I am really enjoying all you wisdom and appreciate all your years of research. We recently joined Ocean Avenue, my Aunt introduced it to me but we are really having second thoughts about it…A lot of thing you say to watch our for, like coming in on the ground floor and pre-launch were used to influence us to sign up. I would appreciate knowing what your opinion of Ocean Avenue is.

Respectfully,
Nancy

Reply

Kathy August 10, 2012 at 8:17 am Thumb up 0 Thumb down 0

I worked in marketing right out of college and worked my way up the corporate ladder until my second child was born. I have been a stay-at-home mom for 14 years now. Now that my children are older, I want to start working my brain again. I am very interested in network marketing so that I can stay home. My best decision has been to subscribe to Lou’s emails and study MLM success. Before I invest in ANY company, I need to learn how to promote and build a team.

Reply

louabbott August 10, 2012 at 9:04 am Thumb up 0 Thumb down 0

You are wise, Kathy.

Reply

Lazarus Araeb September 15, 2011 at 7:59 am Thumb up 0 Thumb down 0

Yes this is really uplifting information Lou. I am living in Africa is your company available in african countries

Reply

gdlank@yahoo.com April 25, 2011 at 10:41 pm Thumb up 0 Thumb down 0

Couldn’t wait for my emails so I came right to the source! Everything you’ve written hits home with many of us who were in MLM companies long ago and got burnt, or burnt-out. While looking for some of those old companies, 3 have gone out of business and 2 others are still limping along.

If anyone is interested in joining any network marketing, direct sales or MLM company – their first stop before buying anything, going to any meeting or listening to any ‘referral’ is come here and get on the mailing list. Lou is giving you an education like no other – it keeps you from failing before you start.
Gina

Reply

Emanuele July 13, 2010 at 8:05 am Thumb up 0 Thumb down 0

Does someone of you speak Italian?

Reply

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