HOW TO WIN MORE AND BETTER CUSTOMERS: DO IT LIKE BERNIE

A few years ago there was a comedy movie called "Weekend With Bernie". Bernie has died, but his friends, for reasons of their own, have dressed him up to look as if he's alive. In one scene a very dead Bernie 'negotiates' with a car salesman. Bernie beats the saleman down by thousands of dollars, simply by saying nothing while the salesman keeps on talking. At the end, the salesman congratulates Bernie on being one of the toughest men he's ever had to negotiate with!

It's a comedy, of course, but there's a lot of truth in that scene. Good sales people know that there are times when they need to keep their mouths firmly closed. This can sometimes be an excellent tactic to use in negotiating prices, as per Bernie's experience. But there is another time too when listening is better than talking: when we are getting to know a prospect and building their trust.

Skilled sales people know that it's critical to get to understand their prospect and what makes them tick before trying to sell anything. By doing so they more readily win the trust of their prospect; but even more importantly, they know what is important to the prospect and what part of their sales offering is going to be of most value to them. As a result, 'selling' turns into 'helping', and the operation becomes a win-win for both parties.

Most of us in network marketing are not really skilled sales people, and we have in our minds the idea that selling means 'closing', which in turn means getting people to buy something they don't really want. Consequently we tend to do it all wrong, and often feel pretty uncomfortable in the process.

We tend to gush forth with masses of information about our product range, our company, our business opportunity or our compensation plan, without the slightest idea of whether all or any of this information is really of interest to the prospect If we do this, we are taking pot luck on the outcome. and nine times out of ten we'll get it wrong. Little wonder that we don't convert too many of our prospects into customers...

The professional way is to take as long as necessary to get to know the prospect, their background, their interests and their needs. Just about everyone enjoys talking about themselves, so by listening rather than talking we're actually likely to make genuine friends out of our prospects.

Once we understand the needs of our prospect, it becomes very easy to decide how best our offerings can address those needs and present accordingly. If we put ourselves in the shoes of our prospect, we can readily understand that the prospect now has two excellent reasons to buy from us. Firstly, we are offering something he or she needs. Secondly, they're buying from someone they trust as a friend. Suddenly the probability of conversion becomes VERY much greater and things are much more pleasant for everyone.

None of us wants to be like Bernie - dead, that is. However if we could all listen to our prospects like Bernie, and then THINK before talking, we'd be much more likely to be successful network marketers.

SIX REASONS WHY WE SHOULD ESTABLISH A NETWORK MARKETING BUSINESS

My recent blogs have centered on questions to ask before deciding whether to set up a network marketing business, and because of this I might have given the impression that I was trying to discourage people from setting up this type of business. Far from it: rather I wanted to point out some of the key things that need to be done if a new business is to have a reasonable chance of success.

In truth I'm very excited about network marketing and the opportunities it offers. I've listed below six excellent reasons for starting up a network marketing business.

1. It offers everyone the opportunity to run their own business. So many of us have the dream of running our own business, and network marketing provides a great vehicle to allow us to do so. As my previous blogs have stressed, a network marketing business is much like any other business, and needs to be run carefully, just like any other business. But if successful your network marketing business can grow to the point where you can leave your job and make your business your career - that's a great thing to aim for!

2. Because of the way networking marketing operates, your business usually comes complete with a whole set of front- and back-office systems already in place for you to use. In his famous book, 'The E-Myth Revisited', Michael Gerber correctly pointed out that every successful business which works with other people needs to have a set of documented systems and procedures in place for those people to follow. Most of us lack the knowledge, experience or time to do this. Gerber, and Robert Kiyosaki, both point out that it is one of the great strengths of network marketing that the supplier company typically provides these systems for us ready to use. This is a very big plus.

3. Network marketing has the potential to be extremely profitable. Many millionaires have been created through network marketing, and there are many more yet to emerge. Many thousands more have made an excellent living out of network marketing. If you start your business right, as set out in my previous blogs, there is really no reason why you can't make a great deal of money.

4. It's fun. Running a successful business nearly always is fun, and network marketing is more fun than most. We get to meet and work with some really fine people, and in fact we ourselves get to choose who those people will be. Few other businesses offer this opportunity for enjoyment.

5. It's exciting and deeply satisfying. Provided you're successful, you'll find network marketing particularly exciting. It combines sales and marketing with a number of other skills (such as teaching others). Together they allow us to develop both our expertise and our personalities. With network marketing you're very unlikely to get stuck 'in a rut'.

6. The best is yet to come. Network marketing is continually developing, not only in terms of the product range which is available to market, but also in term of its use of technology. There is no doubt that the development of Web 2.0, for instance, will deliver enormous future opportunities to expand the horizons of network marketing. I have first-hand knowledge of this, because I am aware of one such massive and unique new opportunity which will almost certainly hit the market in the next two or three weeks. I promise to tweet and blog about it as soon as it comes through, so that my readers will have the first opportunity to take advantage of it. Please keep following me over the nest 2 to 3 weeks.


Yes, there are at least 6 good reasons to set up a network marketing business. and I'm sure there are many. many more. In fact we all probably have our own additional and very good personal reasons for doing so.

Make no mistake about it, network marketing is here to stay, and will get bigger and bigger over time. And all of us, no matter what our previous backgrounds, have the opportunity to participate in this enormous growth.

SIX KEY QUESTIONS TO ASK BEFORE YOU SET UP A NETWORK MARKETING BUSINESS

"If you don't know where you're going, any road will take you there" - old saying.


As we come to the end of this series of blogs, it's time to review all six of the key questions. They were:

1. Do you have products which you believe in?

2. Is there a market for your products?

3. Do you have a Marketing Plan?

4. Can you see a long term future?

5. Are you willing to invest adequate finance?

6. Are you willing to invest enough time?

Each of these questions is discussed in more detail in my earlier blogs, immediately below this one. Please carefully consider each one and answer them as honestly as you can. They are important questions, and they need to be addressed by anyone going into ANY kind of business - they certainly don't just apply to Network Marketing.

I hope, after careful consideration, you can answer "yes" to each of them. If so, you are ready to go into business, and you are well prepared. I believe you have a very good chance of success.

The overall statistics regarding the success rate of new businesses can be quite depressing; but remember that most people starting out in business have never considered questions such as the six listed above. Most haven't really figured out exactly where they want to go, and the old saying quoted earlier definitely applies to them:

"If you don't know where you're going, any road will take you there."

If you have considered all six questions and can honestly answer "yes" to each, you know exactly where you're going and you're on the correct road to get you there. Those statistics are far less likely to apply to you.

I wish you all the very best and hope that you will really enjoy your involvement in this remarkably exciting Network Marketing industry.

SIX KEY QUESTIONS TO ASK BEFORE YOU SET UP A NETWORK MARKETING BUSINESS

6. Are you willing to Invest Enough of Your Time?

It's a truism that you shouldn't treat your network marketing business as a hobby - very few hobbies make money. And if you're intending to operate any business it requires personal commitment, just as it requires financial commitment.

The personal commitment required in any business is twofold:

(a) willingness to put aside enough time to make the business successful; and

(b) determination to consistently put in that time.


Putting Aside Enough Time

Make no mistake about it, the most successful network marketers put in lots of time to keep their businesses growing. This doesn't imply that you should give up your day job in favor of your new business; far from it, but certainly you need to assess how many nights each week you're willing to put aside. Obviously, the more time you can put into it the better.

Later, if your business really does take off profitably, you may well decide to give up your day job and put all your time into your own business. When that happens, you know you're going in the right direction.

The important thing in the short term is to develop a plan of the work you want to carry out each week (eg meetings, training sessions, administrative work, etc). You should then assess the amount of time you need to spend in order to complete that work.

Are you prepared to commit that much time? It will almost certainly mean skipping other social activities, and will involve a signifiacnt sacrific for you and your family.


Consistent Use of Your Time

Probably the worst mistake you can make is to work at your new business with enormous enthusiasm for a few weeks and then find that, for whatever reason, you can no longer maintain that level of work. If you make that mistake you will almost certainly fail.

If you are sure you want to set up your new business, decide now to maintain your personal commitment. It will almost certainly take some years, so be prepared to apply your time consistently for some years!


So before you decide to go ahead with your network marketing business, ask your yourself: are you willing to put aside the necessary time to make it successful, and are you prepared to sacrifice that amount of time regularly and consistently, probably for some years to come?

If you are willing to do so, you have successfully steered your way through question number 6. You are obviously taking your new business seriously, and I wish you every success!

SIX KEY QUESTIONS TO ASK BEFORE YOU SET UP A NETWORK MARKETING BUSINESS

5. Are You Willing to Invest Adequate Finances?

All businesses require financing, and your network marketing business will be no exception. Underfinanced businesses are generally unsuccessful, and again your network marketing business will be no exception.

The good news is that, compared with most businesses, network marketing businesses typically require a comparatively small amount of financial investment. Shops require expensive stock, equipment and staff, etc; a franchise business typically requires a sizeable (perhaps $100,000 plus) up-front payment, plus stock, equipment and staff, etc; a network marketing business on the other hand generally requires only a small up-front payment, a fairly small investment in stock and equipment, and no staffing costs.

Because the amount of investment required is so small, many would-be network marketers fail to take it seriously. This is a big mistake, since it leads to an underfinanced business and probable failure.

The costs involved in setting up your network marketing business will vary depending on the particular requirements of your supplier company - and will be larger again if you have more than one supplier company as discussed in question 4. Typically they will include costs such as:

- a start up fee
- stock
- web site(s)
- marketing equipment
- business cards and stationery

Before you make the final decision to go into business, make sure that you compile a thorough estimate of both the up-front costs and on-going costs which will be required in order to operate an effective business. Then confirm that you have access to the required funds AND are willing to use them.

If - and only if - you can give a positive answer to these questions, you are ready to proceed to the sixth and final question.

SIX KEY QUESTIONS TO ASK BEFORE YOU SET UP A NETWORK MARKETING BUSINESS

4. Can You See a Long Term Future?

On the surface this may seem a 'nothing' question, but in reality it is an important one to ask - are you confident that your business has a long term future?

Although it has had some spectacular successes, the Network Marketing industry has also had a large number of spectacular failures. Realistically, of all the many NM-companies operating today, the vast majority probably won't be operating in 10 years' time.

It's important therefore to assess as carefully as possible the future of any company you intend to align with. That company will in effect become your supplier, and any business needs to have reliable suppliers if they want to stay in business.

Why do Network Marketing companies fail? There are a number of reasons, but the most likely causes are:

(a) Lack of market traction. Their products may be insufficiently attractive to the market. They may be too similar to other, already established products. Or they may even have been on the market too long and are losing their appeal (all products go through a cycle of growth, maturity and contraction - some just take longer than others). It is therefore unwise to depend too much on a new and unproven company, and in the case of longer-established companies a close look at the future of their products is in order.

(b) Lack of financial or organisational stability. I've actually seen network marketing companies which were so successful that they couldn't cope with the growth they generated, and went out of business! It's not always easy to get a good picture of the stability of a company, but a very close look at the management of the company is definitely in order and strongly recommended. Do the directors have a good track record? What is their past history?

(c) Lack of integrity. If your supplier ever decides to move away from the network marketing distribution model and transfer its allegiance to retail distribution, you clearly are not going to have a long-term relationship. This has been known to happen in the past, and it will doubtless happen in the future. It's hard to predict, of course, but again a good close look at the track record of the current directors is strongly recommended. Even then, if ownership of the company should ever change hands, problems could emerge over time.


These are just a few of the things you should consider. The future is always difficult to assess, but it's important to do the best you can. Very often as 'distributors' we tend to look upon our supplier company almost as a parent which can do no wrong. We soak up their marketing hype and we put our complete faith in them. This is very unwise. Remember again that your responsibility is to run your own business, not that of your supplier, and act and judge accordingly.

One possible way to ensure that your business stays in business is to work with more than one network marketing company. This may sound like heresy to some, but it makes good sense to hedge your business bets. Not too many shops sell only one product or product range. I would never recommend signing up with multiple companies offering similar products - to me that would be unethical - but offering two or more completely different types of products from different suppliers could be a very attractive option.

It's certainly an option worth considering. After all, you do want a long term future, don't you?

SIX KEY QUESTIONS TO ASK BEFORE YOU SET UP A NETWORK MARKETING BUSINESS

3. Do You Have a Marketing Plan?

If you're happy that you have the right products and that there's a market for them, there is one more very important question to ask on the marketing side: do you have a Marketing Plan? Being satisfied that a market exists for your products is important, but then you need to work out how you're going to reach that market. It is not a good idea to go into a new business without seriously considering this.

Network Marketing companies will tell you that the way to do this is to make a list of your relatives and friends, who you will then proceed to sign up. There's nothing wrong with doing this of course, and it might even succeed - if you're lucky enough to have the right kind of relatives and friends.... But even if you do, you'll run out of friends and relatives before too long. You're also likely to experience some rejection from your friends and relatives, and in many cases this has prompted network marketers to give up their business in disillusionment.

So your Marketing Plan needs to go a little deeper if you want to be successful. After all, IBM and McDonalds didn't succeed just by selling to their relatives and friends, and I don't even know of any shops which have been successful simply by selling to friends and relatives. Why should our business be any different?

In developing a Marketing Plan you should address at least the following questions:

* What is my target market?

* How big is the market?

* What market share can I reasonably aim at? (ie my sales and marketing goals)

* How will I reach the market and achieve that level of market share?

There are many ways to reach your market, and approaching your friends and relatives may well be one of them. Different businesses use a number of sales and marketing techniques to reach their market, including such things as:

- media
- other advertising
- sales representatives
- web sites (but remember that they only work if you can get people to go to your site)
- emails
- other forms of internet marketing
- sales letters
- sponsorships
- business cards

Apart from not-for-profit organizations, every business exists for only one purpose: to make profits. Hence every business needs to make sales. And please be assured that Network Marketing businesses are no exception. Every business needs to have a Marketing Plan which the owners are reasonably confident in. Never forget the old saying: "if you don't know where you're going, any road will take you there".... Without a Marketing Plan your business will probably go nowhere - and almost certainly it will go in the wrong direction!

So before you decide to go ahead with your network marketing business, please make sure you have a Marketing Plan which sets out you marketing goals and how you'll get there. And please make sure that you are confident that the Plan will work...