Breaking Down MLM Barriers

Breaking Down MLM Barriers Let’s look at the FACTS so we can use them to address concerns 1/7/12 - Marty Harger

Common Barriers, Objections & Challenges About the MLM Industry • Which of these have been said to YOU? 1. 2. 3. 4.

“Network Marketing is not a legitimate business” “That’s not one of those pyramid schemes is it?” “I tried it and it doesn’t work” “I don’t want to ‘sell’ anything, so no thanks”

#1 - “Network Marketing is not a legitimate business” ---oh really? Let’s explore the facts…

Legitimate Business Models Business -to –Business (B2B) Example: manufacturing, service industry Primary form of marketing/promotion to make a sale = Sales Reps, trade advertising

Business -to –Consumer (B2C) Example: retail stores, online businesses, service industry, finance industry Primary form of marketing/promotion to make a sale = Major advertising media, Store front, sales representatives

Consumer-to –Consumer (C2C) = DIRECT SELLING Also known as Multi-Level or Network Marketing Example: doTERRA! Avon, NuSkin, Silpada, Tupperware Primary form of marketing/promotion to make a sale = in-person sales, parties Monies used for advertising in other models is redirected to commission payments.

What is the “Direct Selling” Industry? • Direct Selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location. Other terms are “Network Marketing” or “Multi-Level Marketing” • These products and services are marketed to customers by independent salespeople. Depending on the company, the salespeople may be called distributors, representatives, consultants or various other titles. • Products are sold primarily through in-home product demonstrations, parties and one-on-one selling.

MLM/Direct Selling Industry IS a Major Economic Force

$117 billion sales worldwide

Industry Leaders Avon ($9 billion) Amway ($6 billion est.) Mary Kay ($3 billion est.) Herbalife ($2 billion) Tupperware ($1.8 billion) Nu Skin ($1 billion)

“At this particular time in history, when traditional business offers so little security, network distribution is literally the last bastion of free enterprise. It’s a system in which common people can invest a small sum and, through sheer tenacity and determination, rise to staggering levels of financial reward and personal freedom. It’s a field devoid of the pitfalls of traditional business: payroll, employee benefit costs, advertising, overhead, bookkeeping, and accounts receivable.” ---Mark Yarnell, Your First Year in Network Marketing

Why doTERRA? Why Now? • “Entrepreneurial fever has been kicking into high gear, because when the economy slows down, entrepreneurial activity heats up. In fact, entrepreneurs flourish in down times.”

• “Network marketing is a real-world business school for people who want to learn the realworld skills on an entrepreneur, rather than the skills of an employee.”

Robert Kiyosaki, The Business of the 21st Century

When someone says“Is this one of those network marketing companies?” RESPOND: “Yes it IS, and I am so GLAD it is! If these oils were only available in a retail store, you wouldn’t learn anything about what makes them different, how to best use them or hear about the health-changing experiences others have had. This way you can touch them, smell them and learn about them!”

Direct Selling allows a product experience that might be rejected or avoided with other channels • “This also explains why direct selling (person-toperson versus television-to-person or store-toperson) is often the best way to explain a new product or service that challenges an established belief. When most people are confronted with such a challenge, they simply change the channel or continue to walk down the aisle – something that politeness prevents when listening to a friends or acquaintance.” ---Paul Zane Pilzner, The Wellness Revolution

Main Reasons for Becoming An IPC/Distributor or Direct Sales Representative • 36% - Additional income • 31% - It's your business and making money through direct sales in important to you

• 29% - Discount/wholesale/free products • 4% - Other

doTERRA offers everyone a legitimate business opportunity to earn an income sharing effective, natural essential oils that are changing lives around the world!

#2 - “That’s not one of those pyramid schemes, is it?” ---no! Let’s explore the facts…

What is a “Pyramid Scheme”? • Direct Selling/MLM is NOT a “Pyramid Scheme”! • Pyramid Schemes are illegal and monitored by the Federal Trade Commission • Payment or commission based on the recruitment of individuals and not on the sale of product. • Promise of sky-high return on investment over short time for doing nothing other than recruiting others. • No refund for goods or services. • Large entry fees to cover paying others already involved

What’s the Difference? • Network Marketing – FTC says this is a legitimate way to sell goods and services through distributors – Distributor is entitled to receive commissions on sales of products and services sold, and sometimes for recruiting other distributors. – Model is used today by many companies including online companies who offer “affiliate” programs

• Pyramid Scheme – ILLEGAL!! Different focus, similar structure – Reward members for recruiting new distributors, and generally overlook the marketing and selling of merchandise.

• Ponzi Scheme – ILLEGAL! – Promoter collects payments from a stream of people, promising them all a high rate of return – “rob Peter to pay Paul” (Bernie Madoff)

doTERRA is structured as a Multi-Level-Marketing company, not a Pyramid Scheme.

#3 - “I tried doing it and it doesn’t work” ---hmmm. Why not? And can that be overcome?

Did They Get “Burned” in the Past? • Hollow Promises/Past Disappointments: – “No work required, massive income, zero risk” – “HUGE INCOME - $10,000 in 1st month!” – “Downline built FOR you…guaranteed!” – “YOU CAN EARN CASH DAILY”

• Be HONEST with your own experience or experience you can share with an upline’s help...paint a realistic picture. Be trustworthy. • This business DOES require effort and time!

How is Network Marketing different than other forms of distribution? • Network marketing income is a direct result of the amount of wholesale products and/or services purchased in your organization. • Understand how long were they involved, what type of product, what did they do, what training received? • Assess if this person has what it takes to succeed on their own in your network marketing business?

Top 10 Characteristics of Network Marketers…They are: 1. Dreamers 2. Don’t “Try”, They Commit 3. Teachable 4. Have STEAM (Salespeople who are Trainers, Enthusiastic, positive Attitude and desire to earn Money) 5. Builders

6. ‘Good’ Finders 7. Always Present 8. Motivated 9. Persistent and Patient 10. Have a Heart

Does this describe the person you are talking to?

doTERRA works VERY well for people who are committed to building a business with oils and best for those with these characteristics.

#4 - “I don’t want to sell anything” ---don’t you do this already in life? Take a look…

“Sharing” vs “Selling” with doTERRA Here are some examples of “sharing” • Telling a friend about a great restaurant • Recommending a movie • Suggesting a competent physician • Giving directions to a new store you like • Offering a SAMPLE and INFORMATION to help them feel better

With doTERRA – we provide an experience for others by SHARING the oils/products. We let people make their OWN choices. We don’t “sell” them on anything! We share our passion and conviction about the products and what they do.

Why is Breaking Down MLM Barriers Worth Your Time to Listen & Explain? “I came to realize that while personal success is fulfilling, it’s much more fulfilling when you can help many others create their own success as well.” Robert Kiyosaki, The Business of the 21st Century

Great MLM Reference Books • • • • • • • •

Network Marketing for Dummies – Zig Ziglar and John P Hayes, PhD Your First Year in Network Marketing – Mark Yarnell and Rene Reid Yarnell Making the First Circle Work – Randy Gage The Business of the 21st Century – Robert T Kiyosaki The Wellness Revolution – Paul Zane Pilzner Learning the Business – Michael S Clouse Brilliant Compensation – Tim Sales Essential Oils Business Book – Christina Calisto-Winslow

Wishing YOU Great Success with your doTERRA business in 2012!