* The Internet Marketing Reporter *

* Issue #46 *

Member of the eZine Publishers Association
*** always email netiquette complied ***

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Launch Date: May 23, 2001
Last # of subscribers: 4137
Present # of subscribers: 4143

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Thought of the Day 

Everybody knows good counsel except him that has need of it."
- German Proverb 

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CONTENTS 

Article: CATOR TO MEDIOCRITY OR INSPIRE GREATNESS... THAT IS THE QUESTION
Special For IMR's Subscribers (to lose weight)

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CATOR TO MEDIOCRITY OR INSPIRE GREATNESS... THAT IS THE QUESTION

By Dale Calvert
 
In the early eighties I heard a MLM training cassette by Dr. Jeffery Morrison that I will never forget. Dr. Morrison was speaking about the questions you receive after an opportunity meeting. He talked about people who come up to you with a very serious look and ask the question, "How much does the A V E R A G E person make in your business?" Dr. Morrison's reply, "Nothing, zero, not a dime, average people don’t make above average income!"

Never is that statement truer than in today's network marketing environment. Let's face the facts! 1999 was probably the worst year over all for this Industry since its conception!

However with great adversity comes great opportunity. The naive want to blame the economy, or worse, their upline, company, products, marketing plan, or leadership. The reality is it is not 1993 anymore! The market place has changed drastically in the past few years. To not recognize that change and blame is ignorant, and offers no solutions to the real problem.

What is the real problem? We will discuss that in a minute, but first lets look at just a few of the reasons the market has changed. To produce in any market you must first understand the market.

In the past five years the entire American/Canadian population has been BOMBARDED with opportunities. Opportunities have become a dime a dozen.

Consider these facts:

Millions upon millions of people have been exposed to our industry in the past 5 years. Virtually everyone has been involved in a network marketing program or has a close friend or family member who has. Far too often they have observe the predictable cycle.

Ignorance on Fire for 90 days or so followed by a garage full of something they don't need and can't sell. Followed by the attitude of "If first I don't succeed, fix the blame quick", and they badmouth the company, their sponsor and everything to do with the industry.

Good people who have never joined this fabulous industry sit back and watch this cycle occur with a few friends and love ones and make the decision that they don't want to personally ever go through that. You really can’t blame them for having those feelings. It takes a very skilled, value focused communicator to break down those type of barriers, which leads my to my second point.

People don't communicate with each other. The world is becoming quicker, we seem to be living at a faster and faster pace each year. The ability to really care (value focused) about our fellow human beings seems to be dwindling. The "what is in it for ME", attitude seems to be growing in people daily. Most people today never communicate with their own neighbors, or even know their names!

In network marketing you truly can have everything in life you want , if you help enough other people get what they want. Helping others must be a true, heart felt desire. It is not something you can fake. You either have it or you don't. If you have it people are still skeptical, but it you don’t have it, people feel it. Barriers can only be broken down when you truly care about others. Unfortunately we are becoming a society more and more of people who are only concerned about themselves. The pool of good, honest, hard working, caring individuals is dwindling.

The Credibility Factor. Network marketing has always been built around what we call a "Center of Influence" or "Mr. or Mrs. High Credibility". People of influence within a community can explode any given MLM program. After all leadership is influence.

Because or corporate relocations, and the fast pace of life, the number of people within any given community with a high credibility factor diminishes each year. There are a lot less Mr. & Mrs. Credibility within any given community than there were five years ago.

Many of the people that do exist have already put their credibility on the line and joined A MLM program. Unfortunately in many cases it was the WRONG COMPANY. The company went out of business, and they have made the conscious decision to never try that again.
 
Cable TV Success Gurus aren't helping.
 
Only a few short years ago we received the big three networks piped into our home and that was it. With the evolution of cable TV and the Satellite Dish, came the evolution of the late night success gurus. Don Lapre, Brad Richdale, Carlton Sheets, John Polk, Tony Robins, and the list goes on and on and on and on.

First of all let me say that I think the majority of these people are sincere, honest, and believe in their products and services. I have personally purchased all of the above programs and dozens more. I buy everything I see on late night TV. I am always looking for one good idea or concept that I can implement into the systems and programs that we teach. My point is not that these people are crooks! My point is that in the last five years these infomercial gurus have bombarded the public helping to perpetuate the mind set that "Opportunities are a dime a dozen". Does that make sense? I hope I have communicated my point well enough. The numbers have changed. Five years ago when you handed someone a video or audiotape with information about a home based business opportunity they would go home and watch video, or listen to the tape. They were curious. In today's market place the average person has the attitude "what MLM deal are you promoting?"

This is a very important fact.

To not understand or ignore this FACT is MLM suicide. With the market penetration of "Dead Doctors Don't Lie" and many other recruiting tapes that hit the market place in 1993 - 1997, this attitude is very prevalent in today's market place. (If you would like to get a deep understanding of this concept, you can order my cassette "Why you can’t Build a Network Marketing Company Mailing Cassettes". This cassette is available here.)  The bottom line here is that it simply takes more numbers today to equal the same results that you could expect in 1993-1995, which leads me back to the real problem, (I prefer the word challenge) in today's marketplace. I told you I would reveal the real problem so here it is:

RECRUITING IS DOWN in virtually every company within the entire network marketing industry.

Why? Because we have not yet realized that the market place has changed. We are trying to do the same number of exposures to the same number of prospects that we did in 1993 & 1994 with the same results. The Marketplace has changed making that impossible. I have watched this trend develop over the past three or four years. We have done everything with in our power to help our organization produce under these conditions. In the good old days all you needed was a good videotape, a powerful opportunity meeting, desire and work ethic to build an empire.
 
Targeted recruiting programs, implemented correctly can help you in today's market place.

In the last three years we have introduced many new prospecting and recruiting programs. Games, as we call them, to help our people get in front of specific, targeted prospects. We have introduced recruiting programs designed specifically for Work at Home Moms, Chiropractors, Small Business Owners, Ministers, and Network Marketers. We had plans of introducing specific recruiting programs designed at other target markets such as insurance sales people, real estate professionals, truck drivers, and restaurant workers. Our philosophy is people can identify better with their peers more than people they see on a generic video. If I am a restaurant worker I would much rather hear the success stories of other restaurant workers than I would of people with unrelated backgrounds.

We have proven that highly targeted and customized recruiting tools will work IF you have field leadership who understands the tools, understands the purpose of the tools, and will provide strong directional leadership to their organization on how and when to implement the tools.

Without leadership doing their job, this philosophy WILL NOT WORK!

We have organizations that have prospered and progressed with these recruiting tools, because of strong directional leadership from their uplines. We have other organization that received no direction, or even wrong direction and it hurt their business. If you decide to develop highly targeted recruiting programs for your organization there are two important pitfalls that you and your existing leadership must guard against.

(#1 Pitfall to Avoid) Never leave the Basics

Human nature is when a new recruiting program or tool is introduced for everyone to abandon what they are doing and focus on the new program. As a leader, it is your responsibility to make certain that your people always stay focused on the basics. That is one of the reasons that most companies today have voice mail systems, which enable you to set up group codes. This type of system enables you to provide specific direction and support to your downline organizations on a monthly, weekly, or daily basis if necessary. It is your responsibility to make sure your organization isn't running around like a chicken with their head cut off. When was the last time your organization heard from you?

As most of you know I am an advocate of warm market recruiting, and retailing to recruit.

The process is simple: Retail a product; Provide good customer service & develop a satisfied customer; Expose the business to the satisfied customer & sponsor them. Lead guide and direct them step by step for at least the first 90 days. Help them expose (Blitz) their warm market using the proper tools. I am warning you from experience. If you ever allow your organization to leave the basics, then you must face the consequences for your lack of directional leadership.
 
(#2 Pitfall to Avoid) Help your organization establish an Advertising Budget and Stick to it!

We have all heard the saying, early to bed, early to rise, work like heck and advertise. This business is no different. I believe as business people we ALL need to have an advertising budget and STICK TO IT! Where should our advertising budget come from? I have said many times "you spend your profits from your retail sales to advertise your business, NOT YOUR GROCERY MONEY!" This is one of the reasons that I feel having a hot product that the average person can take to the market place, RETAIL, and create cash profits, is so critical for the long term success of your business! (I talk about this concept in depth on the audio cassette "The Secret to Network Marketing Success", also available here.)  As leaders, it is our responsibility to make certain that our people don’t leave the basics, and get so excited about a new recruiting program that they forget their advertising budget and pull out their credit card with visions of instant success. This is a recipe for disaster. Unfortunately some upline leadership choose to not warn their distributors of this pitfall. Who knows why? Lack of understanding, greed, desire for personal gain, I don't really Know! As upline leaders it is our responsibility to insure that our people establish an advertising budget and STICK TO IT! Never, never, never, under any circumstances should we encourage them to use their credit card for more advertising. Their advertising budget can increase only when their retail sales, and override checks increase, period. You don't build this business by throwing money at it.

ONE FINAL WORD OF WARNING. If you decide to implement targeted recruiting tools to your organization, you must make sure that you have competent, value focused leadership within your organization to implement the programs and guard their organization against the pitfalls. If you don't, people will leave the basics, spend too much money, and in trying to help many people, a few will end up getting hurt. Unfortunately your leadership won't blame themselves, YOU WILL GET THE BLAME! I have said all of that to simply say this: THE TREND TOWARD MEDIOCRITY IS ALIVE AND WELL WITHIN THIS INDUSTRY. EVEN IN COMPANIES AND DISTRIBUTOR ORGANIZATIONS THAT SHOULD NO BETTER!

When you quit inspiring people to grow, learn, develop and become all they can become, and start catering your marketing plan, systems, and advertising efforts to the mediocrity of people you can guarantee lack of growth. In today's market place recruiting is difficult enough. Creating an expectance of mediocrity is certainly not the answer! You see this trend more today in MLM advertising campaigns than ever before. The "you sit back, do nothing , get rich, and we will do all the work for you message" is everywhere!

You have many leaders all over this industry, in every single company, that have seen their checks drop by a few thousand dollars per month over the past couple of years. However with in each one of the companies you also have a small number of leaders who have seen their income increase. Same company, same marketing plan, same products, what is the difference?

Leaders with growth have recognized that the market place has changed, and have realized that they had to take responsibility and learn how to be productive within the new marketplace. Unfortunately most distributors leaders are still working with a 1993/94 mindset. The days of throwing mud on the wall and see what sticks are basically over. It takes a lot more mud, and must of us don't drive dump trucks!

Until people understand that their job doesn't end after they have sponsored a new distributor, it is only just beginning, there will continue to be frustrations. We have to become very good at blitzing warm markets and working hand in hand with that new distributor. It goes back to being value focused and understanding that people don't care how much we know until they know how much we care! It is taking responsibility for the success of a new distributor the first 90 days and doing everything you possibly can to get them off to a quick start. In today's market place the value of a new distributor has increased 500% we must recognize this and treat them accordingly. Many leaders are setting back looking at their organizations. They are thinking about all the distributors that they have had over the past three or four years that have come and gone. They have their calculators out, punching in numbers and trying to figure out how much money they could be making if all those people hadn't quit. They then try to figure out ways to change the marketing plans, products, or company tools and literature so they can hold on to what they have. (Survival Focused, Not Value Focused) This is ridiculous, we are not living in some dream world. It has recently come quite apparent to me that it is hard for survival focused people to make value focused decisions.

YOU MUST UNDERSTAND THIS REALITY! According to all the documentation I have ever seen, 90% of the people who join a network marketing organization don't last 1 year! Over 50% don't last 90 days!

Dale if this is true, then why would anybody attempt to build an organization? Because one person can turn into thousands of distributors and tens of thousands dollars in monthly income! Reality, most of the heavy hitters in this industry make 90% of their income from three lines or less!

THIS NEXT REALITY IS THE MOST IMPORTANT POINT YOU WILL READ IN THIS NEWSLETTER.
Average people come and go in this industry continuously. It is like a revolving door. It is just THE WAY IT IS! You have groups of people joining, and groups of people quitting every month! Some people never even get started, they peak when they sign the application. The secret is keeping people in for 90 days, and YOU HELPING THEM be productive. From the people coming and going there will be a small number of good honest, hard working, ethical people who have a true work ethic, desire, and are teachable. Those are the people you will build your business with. Not the average Joe's or what I call the 70%ers. The average Joe's will join your organization, hang around for awhile, and hopefully lead you to some one good before they quit.
 
(A side note, but very important. The majority of heavy hitters who have been sponsored into this industry were sponsored by people who are no longer within this industry!) The average Joe's serve their purpose. We need to love these people, respect these people as fellow human beings.

DON'T BE NAIVE ENOUGH TO THINK THEY ARE GOING TO HANG AROUND EVERY MONTH AND ORDER PRODUCT JUST SO Y O U CAN BUILD Y O U R PAYCHECK!

REALITY: Most people at age 65 in this country end up with a minis net worth! You, network marketing, or me IS NOT GOING TO CHANGE THAT! My mentor, Jim Burke taught me many years ago, "The name of the game is sorting through people." It always has been and it always will be! We have to go through enough numbers to find our two or three key people each year that we can build an organization around. Ladies and gentleman, like it or not, that is just the way it is! THE PROBLEM IN THIS INDUSTRY FOR THE PAST COUPLE OF YEARS IS THAT BECAUSE THE MARKET PLACE HAS CHANGED, WE HAVE MORE PEOPLE LEAVING THE BACK DOOR THAN ENTERING THE FRONT DOOR!

Therefore we have less people to sort through to find our two good leaders for the year! When organizations and individual leaders figure out how to cost effectively go through more numbers, to recruit more people, to find their two good leaders for the year, then long term stable growth will occur. Until that happens, any change in product lines, marketing plans, etc is only a short term solution at best!

The fundamental problem within this industry right now is simply this. The competent, well trained distributor must be able to go to the marketplace work consistently and cost effectively enough to recruit 4-8 new distributors each month, and then have the ability to lead guide and direct those new distributors for the first 90 days they are in the program! The organizations, distributors, and companies who recognize this and learn to master recruiting in the new market place will thrive over the next five years. Those who don't, who stay stuck in the mindset of 1993/94 are going to have a tough road ahead of them. I truly believe that you will see more significant change in our industry over the next five years than the previous 50 years combined. I for one am extremely excited about the future of this industry. The entire industry is in transition right now, which means major opportunity in the future. I am trying to prepare for the future, while learning from the past.

I believe that the Internet will play a very significant role in the future of this industry. That is one reason that later this month I am attending the "Billion Dollar Internet Strategy Summit" in Los Angeles. I am going to spend 5 days with 12 people who have created multi-million dollar businesses on the Internet in the past couple of years. When it is all said and done this trip will cost about $10,000 out of my pocket. The seminar alone is $7,000. Somebody ask me the other day why I would spend so much cash on something like this. I learned along time ago "That a wise man learns from his own mistakes, but a really wise man learns from the mistakes of others." I am going to learn from their mistakes, and besides, "You never ask what it cost, you always ask what is it worth?"

I am preparing for an exciting future and I hope each one of you are doing the same.

Dale Calvert

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Other resources from Dale Calvert ...

Where The MLM Pros Are Going (primary program)
http://pros.bourget-marketing-international.com  

MLM Training Club (support program)
http://club.bourget-marketing-international.com  

Web Cash Leads (support program)
http://wcl.bourget-marketing-international.com 

The Website your Upline hopes you never find! 
http://mlmbombshell.bourget-marketing-international.com 

1% of MLM associates are getting Rich. Learn how! 
http://shotatsuccess.bourget-marketing-international.com 

The Success Principle the Internet has Stolen
http://stolensuccess.bourget-marketing-international.com  

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