June 27th, 2007

What Network Marketers Can Learn From The Walmart Business Model

By Michael Dlouhy

What is the lifeblood of ANY business?

Answer: Product movement to the end consumer.

Have you read Sam Walton’s autobiography? His vision, the business model he pioneered, was brilliant. Walton started Walmart & Sam’s Club. He said, “We will be the largest retailer in the world.” And he achieved this goal because he found a way to move product to the end consumer at the cheapest price. How did he do that?

Walton said, “Do people care when they buy their groceries whether there’s an acoustical tile ceiling, or if they see roof rafters and white bar joists?” The answer: They don’t care. So he invented a business model where you have shelves with cases and cases and cases of soda pop.

In the evening, they bring that stuff down & fill the shelves. They stock the warehouse for ALL the manufacturing companies, saving those companies a TON of money.

Every Other Retailer Was Left In The Dust

He built massive warehouses around the world. Then he talked to Scott Tissues, Hershey’s, Johnson & Johnson, Levi’s, all these companies: “Hey! Don’t build expensive warehouses all over the place. Ship your products to MY warehouses, I’ll store it. As we sell it, I’ll pay you.”

So when they scan that bar code, Scott Tissues knows Walmart sold 73 cases of paper towels today. The system tracks that sale. At the end of each day, Walmart sends each vendor the money.

Other retail outlets don’t have the space – or the vision – to make that offer to suppliers. Instead, they buy the stuff in smaller quantity, store it in the back, and move it to the front as needed. There’s no tall, tall, tall ceiling with products stacked way up above you. That’s the way it’s always been done. But that’s not how Walmart does it.

Why Customers Choose Walmart

So Walmart & Sam’s Club pay less for identical products than other retail outlets. And they can pass the savings on to consumers, attracting throngs of buyers to their stores.

How does Sam Walton make money with Sam’s Club? Off the membership. Again, that and the warehousing of products allow them to sell at a very low price. It’s in the business model. Whoever figures how to move product to consumers at the best price, wins. Sam Walton proved that point.

How did he do it? He cut the overhead for all those companies, his product suppliers!

How does this apply in network marketing? Look at every company, every compensation plan. Let’s say every company pays out 50% of retail to reps. Each product, no matter the cost, they pay 50% commission.

You can only cut the pie so many ways. If you pay 50% commission on $79.95, or 50% commission on the identical product at $39.95. Do you think a $39.95 product makes it much easier to sell twice as much or 3 times as much?

Cut the overhead, and you have a better chance to sell that product. You’re not just competing against other network marketing products. You’re competing against Sam’s Club & Walmart, too. Your business model better let you make a good offer to the consumer, or you’ll never succeed.

Whatever network marketing company finds a way to move the product to the end consumer at the best price, wins. And that’s definitely who you want to build your future with.

Your friends for life,

Michael and Linda Dlouhy
“Be a mentor with a servant’s heart!”
1-352-799-8779 Call anytime.
Success In 10 Steps

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Posted in Marketing your MLM business, MLM Sponsoring system, MLM Company leadership, MLM Business Models | No Comments
June 25th, 2007

MLM Success - How To Visualize

By Michael Dlouhy

You’ve seen this line before:

“Whatever the mind of man can conceive and believe, man can achieve.”

This proposition has been proven time and time and time again throughout history.

How could David possibly beat Goliath? No way! I guarantee you, he saw it in his mind first, then did it.

How could one guy - Michael Dell - sell more computers than Big Blue, IBM, the greatest US company of the 20th Century? Do you think he had a picture? Do you think he had a vision to follow as he built Dell Computer?

How could that bunch of college amateurs on the U.S. hockey team at the 1980 Winter Olympics ever beat the Soviet team of professionals who had been playing together 10 or 15 years … a team considered better than any of the pro teams in the U.S. or Canada? How could that possibly happen? Do you think someone had a picture? Do you think it all began with a visualization somewhere?

I guarantee you it did.

As you listen in on our daily Mentoring For Free phone calls, you’ll hear stories of many people who are finally achieving what they wanted in life. Every one of them has a picture.

How do you think Ebay got started? Somebody wondered, “Hey - what about an online flea market?”

So create the picture of what you want in extraordinary detail. Write it all down, every little bit of it. Then taste it, smell it, hear it, touch it, see it. Once you have all the details filling in all your senses, you won’t need but 3 or 4 minutes a day to put yourself in that full-sensory replica of exactly what you will achieve. The more you experience it, the closer you will get to achievement.

That is how great successes have always begun. You can read more about how to create your best “success pictures” in my ebook, “Success In 10 Steps.” It’s a free download. Just copy that model. It works.

Your friends for life,

Michael and Linda Dlouhy
“Be a mentor with a servant’s heart!”
1-352-799-8779
Success In 10 Steps

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June 22nd, 2007

MLM Success - Your Race Against Time

By Michael Dlouhy

I read yesterday that gas is heading for $6 a gallon.

Holy mackeral. Does that tell you anything about the MLM success you’d like?

A lot of people think that with a secure job and a secure salary, they’re playing it safe, reducing their risk in life.

These are just 3 of literally thousands of variables that you have no answer for when you work for someone else.

Not to mention your income is always limited because your employer will ALWAYS take the lion’s share of the income you generate.

There’s been more change in the business world in the past 10 years than in the previous 100 years combined. You are in a race against time to protect yourself and your family from unpredictable coming changes in the work-a-day world that you may not like …

… AND to achieve those dreams of MLM success you’ve had for so long.

It’s critical that you act with urgency to put control of your future and your family’s future in YOUR hands. That’s what you’ll learn in Success In 10 Steps, and we will support you with all our hearts.

Your friends for life,

Michael and Linda Dlouhy
“Be a mentor with a servant’s heart!”
1-352-799-8779
Success In 10 Steps

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June 4th, 2007

MLM Responsibility - How Do YOU React?

By Michael Dlouhy

People get mixed up about their responsibility in their life.

You are NOT responsible for what other people do. Sometimes someone does something that harms you and you think, “I shouldn’t have let that happen.”

Not true. You are not responsible. If you try to claim responsibility for something that is not in your power to control, then you actually diminish your ability to control your life. Why? Because deep inside, you know such actions are out of your control. And if you make yourself responsible for something that is out of your control, then you are walking down a losing road.

You ARE 100% responsible for how you react to what other people do. You don’t have to be “done in” by anything anybody else does. It is your decision what you focus on. So how you react is always your choice. If you choose to react as a victim, then once again, you are walking down a losing road. The correct choice is to learn from your mistake and put yourself in a position where YOU are in control of the situation, never a victim. This may take some thought, but the solution is always there.

You are NOT responsible for bad things that happen in your life. You ARE 100% responsible for how you react to the bad things that happen.

Your friends for life,

Michael & Linda Dlouhy
1-352-799-8779 Call anytime.
“Be a mentor with a servant’s heart!”
Success In 10 Steps

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