If you talk to 100 people, 99.9 of them will tell you they’ve never sold product retail to Mom. Why?

It’s because:

1. Products are too expensive.

2. You don’t feel right making money off Mom.

What’s the answer?

You must have value-priced products that you’re not ashamed of. The problem in network marketing is, companies have such massive overhead, they have to charge tremendous prices for their products in order to pay a commission.

When that happens, you cannot sell to Mom retail, because you know the price is way too high. So you’re always selling wholesale - and probably, not just to Mom. Most people can’t sell MLM products retail to anybody!

If your payplan is all about wholesale - in other words, it’s “recruit, recruit, recruit” - where is your retail profit?

If you’re in a business opportunity and it’s always about “recruit”, new blood, new blood, new blood … it’s called Vampire Network Marketing. You need to ask yourself whether you can have long-term success in a business where nobody sells products retail.

Hint: there’s a real logical answer to this question.

We Appreciate You
Michael & Linda Dlouhy
Call 1-352-799-8779 (anytime)
Get my FREE ebook: Success In 10 Steps
“Be A Mentor With A Servant’s Heart!”

Is retailing product a true network marketing opportunity?

On this planet, the lifeblood of any company is retail sales to the end consumer. Think about this, Business models drive the behavior in the field.

Would you agree with me that every product - doesn’t matter what it is - a bottle of water, a coke or Pepsi, an aspirin, a vitamin, a liquid nutritional drink - it could be any product out here … if the quality and quantity of all the ingredients, are exactly the same, I ask people, “Would you agree with me that the wholesale manufacturing cost of any product is within pennies of each other?”

And the answer I get is, “Absolutely, no question about it, that is true.”

Now here’s where the problem comes in.

Marketing The Product To The End Consumer

Let me you a story. Companies A, B and C, these are real companies in real life. Company A hired a doctor to formulate the best vitamin product on the planet - and they did. it’s something you can take all at once. It doesn’t interact with any of the other ingredients. Works great. That company is marketing that product. They are a fairly large company, publicly traded.

Another company comes along and what’s so funny about the story is the COO, the bean counter for the first company, sold his piece of the pie and became a distributor with company B.

company B has a binary compensation plan. Now the first company is a stairstep break away comp plan, second company is a binary. So A is the stairstep, B is the binary. And the binary plan is just one left, one right.

Now, that guy said “Whoa! We had this great product with company A … now we want it with company B. So they go and hire the doctor away from company A to formulate them the best product.

And I would ask you another question. When you are a publicly traded company, you are not spending your money. You are spending investors’ money. So when you put that dot, the comma, the zero on a check, does it really matter to you? Does it really matter where you put it? Absolutely not, it is not your money. It’s like you shopping with my credit card.

So they hired the doctor. What that cost, I have no idea. But they told the doctor, “Make us the best vitamin product!” And he said, “Well … they’ve already got it in company A. But we could take that same formula and I could increase everything one gram.

So He Added One More Gram of Stuff To The Stuff

So every capsule of THEIR new stuff had one more gram in it. Great, no problem, So they created that product.

Now, company C came along, The founder of the company said, “Whoa! Company A, company B, they have got a great product. It’s not patented. Don’t need the doctor. Four manufacturing companies make the identical product. All I need to do is get the formula, take it to our manufacturer, see if they can improve it.”

So they did. So they took the same formula and added to it, improved the formula.

Now, here is the reality, I am going to give you the retail sales price on all 3 company’s products.

Company A: $114 retail
Company B: $104 retail
Company C: $39.95 retail

But Isn’t The Wholesale Cost Identical?

Now, you agreed with me that the wholesale manufacturing cost of any product is within pennies. So why the big spread? If you joined Company B, I know for fact that you can buy that product at the super duper low wholesale price of 79.95.

Now, you got to ask yourself this question, since Company B’s wholesale price is double the retail price of company C. why the big difference? Well, first, you need to understand that the business model drives the behavior in the field. In company A and B, the business model promotes the behavior of recruit, recruit, recruit, recruit, recruit. Why? Because normal mortals will not pay that kind of money for product.

They’ll only buy the product to be in the business. So that business model creates the behavior of recruit, recruit, recruit. Now, company C, because it’s $39.95 retail, that creates a behavior of retail, retail, retail. And you can prove it with these numbers.

To make $10,000 a month on the residual auto ship volume in Company A, you need 1400 – 1600 people. Company B, you need 2200 – 2400 people, Company C … you need less than 400 people. Same product. Same people you are selling to. So the big question is, can average part time people ever build a group of 2400? Or can they build a group of 400 easier? Think about that.

So The Business Model Drives The Behavior In the Field. Always!

Why is your product so expensive? Here’s why, the company need a big, big, big, big, big building. It’s so comical. They say, “Oh, we’re debt free.”Yeah. They’re debt-free off the backs of the distributors, they stole the compensation plan to build the big building. Doesn’t help the reps at all.

Think about this for a second. Companies A, B and C, and the breakage … that’s all profits that they make out of you, the distributor. Breakage is the difference between the wholesale cost and the retail cost, that mark-up from 39.95 retail to the 79.95 wholesale. That pays for the big building, the company jet, pays for all that.

A few years back, a prepaid phone card company charged $2 or $3 a minute for prepaid phone calls. You bought a prepaid phone card back then for a dollar a minute. But these were collector’s cards. (”If you don’t scratch the back of the card off, and don’t use the time, it makes it more valuable.”)

So this plastic card, which cost maybe 25 cents to create, was selling for $2 a minute. And the company convinced the people not to scratch it off, so they never had to pay for the phone time.

Isn’t that amazing? It’s no wonder network marketing gets a bad name.

One way to build your business is to sell products at retail. And to do that, you must join a company with value-priced products. It’s important that you look around to find that. Don’t settle for a company that charges 2 or 3 times the product value. Consumers are smart. You will always struggle to build with that company.

We Appreciate You
Michael & Linda Dlouhy
Call 1-352-799-8779 (anytime)
Get my FREE ebook: Success In 10 Steps
“Be A Mentor With A Servant’s Heart!”

If you’ve been in network marketing very long, you’ve run into plenty of prospects who are totally focused on ONLY joining a company where they can sell a product they love.

I tell them, “Look. We have 30 products. You don’t have to use them all. You don’t even have to like them all. Matter of fact, we have a Woman’s Formula that helps balance out the hormones. Guess what? I don’t use the product. I don’t use that one. My wife does. She loves it. We’ve got hundreds of women who buy that product. They love it. I don’t have to use it.”

And That Makes Them Realize How Stupid It Is …

… that they have to love the product. Right there. And if it’s a woman … guess what? Our company has a Men’s Formula! It’s for the prostate.

And last time you checked, you didn’t have a prostate, because you’re a girl. But guess what? I’ve got a lot of guys that buy that product.

Another one I’ll talk about is our product that helps balance blood-sugar. I ask them, “Do you know anyone who has hypoglycemia, diabetes, low blood sugar, a sugar problem?”

“Yeah.”

“Great. Do you think that person would like to know about a product that’s all-natural, it’s been proven to help re-build the pancreas, and will help them to use less insulin, and maybe even get them off of insulin?”

“Oh, yeah!”

You Don’t Have To Have Diabetes To Sell the Product, Do You?

Make it so ridiculous, they get it. I’m telling you, this is magic. People will come to you and they’re totally focused on finding a product that THEY love.

But that is NOT the way to build a long-term, successful, profitable business. When I hear that, I’ll tell them, “Well, then, go get diabetes. Go get diabetes, and this stuff will help you fix it. OK?

And of course, they laugh. It’s a ridiculous solution. But it makes them realize that the attitude that they MUST love the product is also ridiculous.

To get them into your company, tell them why YOU joined. Why did you join this company, this team, this sponsor.

I did a call the other day with a lady who is married to a heart surgeon. If I told you what they have to pay in insurance for him to stay in that business, it would blow your mind. Basically, he’s working for the insurance company.

So they need another income. They have to get something going. The first thing she said was, “Well, I’ll have to try the products first to see if I like them.”

And I went right into the Women’s Formula. I went right into diabetes. And I asked her,

“Do you have diabetes?”

She said, “No.”

I told her, “Well, you don’t have to go and get diabetes to sell a bunch of this product.”

And she got it. She joined on the spot. She figured she’d just try the product but instead, she got the idea. Now she’s in the business.

Do I ask people to join? Do I push them? Do I twist their arm? Do I say, “Get in now and you’ll be rich by Tuesday?”

No. I present the case for my company & our team. The prospect makes their own decision. Mostly, they ASK if they can join. It comes from THEM. How could anything be more powerful?

Sometimes you just have to make them beg.
Michael & Linda Dlouhy
Call 1-352-799-8779 (anytime)
Get my FREE ebook: Success In 10 Steps
“Be A Mentor With A Servant’s Heart!”

If your #1 network marketing product is not remarkable, you are invisible.

You need a product people will buy even with no compensation plan. Otherwise, it will take way too much work for anyone to build your business.

I get calls from people who tell me they’re searching for a product that truly inspires them. And that is exactly the wrong way to set yourself up for a long-term successful network marketing business.

Instead, search to find a mob of people raving about a product … THEN

Fall in Love With THAT Product!

Be a passionate advocate for it. Find a product with a HUGE market and fall in love with it.

Some people love to work for companies with a product that fits their self-image … but they can’t make a dime on it.

Do yourself a favor. Focus on the people. Focus on the market. Use Google. Search & compare products. Find something that a ton of people are excited about. Choose a product that everyone else wants.

And then, as you build your people, let them know the wisdom of doing the same thing.

Let me give you an example.

When People Are Excited About a Product, They Run To The Marketplace!

I ask this question of people all the time:

“Do you know anybody who is a diabetic, or who has a blood-sugar disorder?” Never once has anyone told me, “No.”

So my next question to them is, “Do you think that person would like to know about a product that’s all natural, that costs less than $20, that has been proven to help rebuild the pancreas, and can possibly reduce or eliminate their need for insulin?”

The answer is always “Yes,” and they are very excited about that.

And that person YOU know who has a blood-sugar disorder … do you think they may know 10 people who’d like the same information? THAT is the kind of excitement you can create with a hot, sizzle product that has people feelling the difference in days, not weeks or months.

Another example - back in the heyday of Excel long distance service, non-network marketers took the product to the market. We were all paying 40 cents a minute for long distance back then. When Excel started reselling long distance, you paid 30 cents a minute. And if you had your friends & family on it, you got it for 15 cents a minute.

So non-network marketers took that product to the marketplace. They didn’t care whether there was a compensation plan. It was obviously a huge  improvement over the 40 cents a minute that everybody was paying.

So do yourself a favor. Find yourself a product that already has a huge market, and then fall in love with THAT product. Your business will almost build itself.

We Appreciate You
Michael & Linda Dlouhy
Call 1-352-799-8779 (anytime)
Get my FREE ebook: Success In 10 Steps
“Be A Mentor With A Servant’s Heart!”