I Have A Headache
Read More: I just finished reading Melanie Milletics article on Old School vs. New School. With all the different opinions I read daily, it's enough to give me a headache sometimes. Melanie makes some very good points, but I have to take issue with part of its premise...
I come from a background in running my own brick and mortar business and spent 15 years building contacts and relationships in an effort to build my business. I think it goes without saying that ALL business ultimately comes down to relationship building. Even huge organizations with thousands of employees, like AT&T for example, have to eventually rely on their ability to make that "one" customer happy. You can have all the websites and all the voicemail menu systems in the world, but at the end, the person on the other end needs to be dealt with one-on-one.
In fact, I would argue that because we have all become so "isolated" from other people, relying on tv, radio, internet, and cell phones for most of our human interaction these day, there is a HUGE opportunity for those of us who are willing to reach out and lend that helping hand - the human touch will never be replaced. Those of us who understand that and can help guide others through the endless maze of junk information out there, especially online, are the ones who will be successful in the coming months and years.
Have said all of that, I have to say that I still have a big problem with the "old school" MLM methods and techniques that are still taught as an effective way to build a business. Let's be honest - the purpose of a business may be to make the customer's life better, but the reason the business exists in the first place is to help the business owner's life - most people start their business to make money. People can't survive on encouragement and warm feelings alone - a business owner simply cannot justify the time and effort it takes to build a home business using old school MLM methods, relying on the measely income produced in the early stages of traditional MLM businesses.
I've personally built a brick and mortar business from almost nothing to several million dollars a year in sales in less than 5 years. I tried building an MLM using old school methods and got almost nowhere after 2 years, countless hours, and thousands of dollars spent. Can it be done? - sure. Is it worthwhile, based on my experience, giving all the other ways to succeed out there today? - NO, not in my opinion. Making money does NOT have to be that difficult. And, let me tell you something - for most of the successful people I know, it's not.
Attraction marketing makes so much more sense for so many reasons - I'm not going to explain all the theory, as it's well explained in Magnetic Sponsoring. But let me make this comparison - for many years I sold new roofs to homeowners. How long do you think I would've stayed in business by making a list of everyone I know and calling them to see if they needed a new roof? How many of, say those 150 people, would've actually needed one? Of those, how many would've bought one? Then what - start asking people I meet at soccer games if they need a new roof? Oh, and then try to convince them to look at my brochure, after they just told me they don't even own a house? This sounds ridiculous, but this is what the industry basically teaches.
On the other hand, wouldn't it make much more sense to place an ad in the local yellow pages, an attractive add which showcases our professionalism - so that, when people are looking for a new roof, they could CHOOSE to call us. Wouldn't it be better to establish a business location, hire a professional secretary, purchase some quality vehicles, all to POSITION the company as respectible and trustworthy? Of course it makes more sense this way.
In the end, the way you choose to build your business, online/offline, old school/new school, is a decision you're going to have to make. The best advice I can give, as someone who's been doing this for a long time, is don't take too long to decide - if something isn't working, change it NOW. Remember, time is more valuable than money - you can always make more money, but time wasted can never be re-captured.
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Comments: 14 
About the Author: Tom Melvin
Member Since: 07/09/2008
I'm a Distributor For:: CarbonCopyPRO
Industry: Consulting
Primary Web Site: http://www.TomMelvin.com
There's a simple cure for that headache
Few people in network marketing who bandy around the term "New School Network Marketing" are aware that the term is actually the intellectual property of Kim Klaver, and she's talking about something VERY different from what they mean.
So they leave themselves open to legal action in misusing the term to mean prospecting with new technology and Web 2.0 techniques.
You can read what Kim's referring to in this manifesto (free download): http://changethis.com/39.05.FriendsLies
John Counsel
It all boils down to
People are desperate to make money. Especially in economic times like this. When person is surfing the web in blind though, and gets overwhelmed by the obstacles that are facing them in current life, such as an over=due bill, debt crisis, or what ever the case may be. They get this feeling, as somebody is explaing to them though a video about "riches online", that person begins seeing a brighter light. A 60 watt bulb burns in their mind, planting the seed and watching it grow into a dollar tree.
When it all comes down to marketing and manipulating this sudden flash of awe, they become so mixed up that they feel, lied to, cheated, and scamed. They begin not caring, and even bashing the company. Just like a real job.
They may send emails spaming folks till their fingers cramp, but they will never earn a dollar.
When it comes down to new or old methods of marketing. I believe the older methods are more effective.
Get them on the phone,as qustions, you'll get the answers you want, and can now move in a certain direction.
The only difference I see between new age methods as to the old, are that technology is serving it's purpose more at this time, than any other time before. We now have most of the U.S. populations on Computers in the home, or on the Internet at some point in their day. We now have auto responders and organization tools to do most of our work for us.
I really burn a whole in a persons mind, and gets them to think that, if they hand over money, they will become rich without having to do anything.
When I first started, it truely is more work than you think, but nowdays I have enough time to write a comment as long as this one.
Thank you Old Marketing Techniques
It all works when it's right for you
It's funny, my own company has a very strong retail product and while we are not a party plan, I have spent hours lately researching party plan companies to see what they do, and how they do it. I want to offer this type of training and coaching to those on my team who WANT to retail and keep that easy, immediate cash rolling in.
And, I am no party expert so I'm in learning more.
Party plan companies grow very solid businesses by starting with that warm market list, booking home shows and expanding their contact list through the guests of their friends and contacts.
And, they use that as a strong recruiting platform in their businesses. It's really quite fascinating and different than some experiences in more traditional "Network Marketing."
I think the reason for this is that the distributor hoting the party is immediately modeling for the "prospects" how to do the business; the simplicity of the business; and anyone who can do simple math can see the amount of money being made on an hourly basis.
Many people would jump at the chance to work 6-9 hours a week, and earn $67 - 75 an hour.
This is what a party plan company can do, and so it makes the prospecting and sponsoring process a little more simple because it's not theory.
With network marketing, we offer the "promise" of part time/full time incomes, but no one actually SEES us earning that income, pocketing that money right then and there.
While I have built both ways, online and offline, I personally prefer the online methods, and yet recognize that it can be a slower way to build; and a more "technical" way to build, which slows some down.
I am also embracing the value in the home party/retail model as well, and learning to factor that into my own network marketing business, for those who want to do that.
And, in today's economy, I am finding many more people receptive to the idea of "partying for a living!" With the right product; the right price point; and the right personality, this can breathe some life into "old School" methods!
EXPECT Success!
Jackie Ulmer
How about just being 'In School?'
Well said Jackie! I think a lot of it comes down to which tools are available to us and how good the team training is. Some say 'Fire your upline!' I say 'well it depends who they are!' I certainly wouldn't fire mine and he's not an online guru.
It's funny this should arrive in my inbox today because I did a post on my blog about this very subject this morning. You can check it out here if you'd like to read why I'm not old school, new school but just 'in school.' http://budurl.com/dqgd
Old School, New School
As long as you're in school, you're in business!
people have a missconception between...
...attraction marketing and "new school network marketing"
some people believe that new school network marketing is about pestering people in modern ways.
meeek! - error...
attraction marketing strategies can be developed in more traditional ways like face to face prospection and specially phone calls.
Its not about 2.0 stuff nor even the internet
The point is WHO STARTS THE CONVERSATION.
My invitation for the reader is:
Try to define and separate clearly this two concepts in your mind:
- attraction marketing as a philosophy and a mindset, that can be used with older or newer sets of tools.
- internet marketing and social media marketing as a newer set of tools that can be used either with a good or bad philosophy.
hope this helps the reader to put his head in place :)
Alejandro Amo - Internet Marketing Coach
Can't compare apple to oranges.
Tom Quote: "But let me make this comparison - for many years I sold new roofs to homeowners. How long do you think I would've stayed in business by making a list of everyone I know and calling them to see if they needed a new roof? How many of, say those 150 people, would've actually needed one? Of those, how many would've bought one? Then what - start asking people I meet at soccer games if they need a new roof? Oh, and then try to convince them to look at my brochure, after they just told me they don't even own a house? This sounds ridiculous, but this is what the industry basically teaches."
Question for you:
How much more successful would you have been if you would have offered the original homeowner a percentage of any job they referred your way?
Then you could have compared apples to apples although in a tougher opportunity than most.
To your success,
Joyce Penner
The Truth at last
Tom, you have put in words the thoughts I have had for years. Good on you mate. This should save many people years of frustration.
Tom you should send a copy of this to ALL the MLM companys. The one's that reply, are the one's that may be worthwhile looking at. The others will just keep on scamming people.
Cure for headache - drink some nice green tea...
Tom,
How could I not comment on a post that is meant to be in disagreement with me - but ultimately just ads value to the discussion?
I am an Internet Network Marketer. I have been building a massive list for years and most of my business is done online. But as I mature in my understanding of Network Marketing and really observe the top earners in our industry, including my mentors, I see that they are indeed making a fortune offline. With proper training their new people are too- and not the small profits you experienced either. We are talking thousands, and walking away with nice shiny black BMWs within a month or two - using offline 'old school' methods.
The people that I bring on board now are well aware of this. I tell them that yes, I am very capable of showing them how to generate their leads online, and I will - BUT, that activity is to be done after hours, when phone calls can't be made.
Working online, using 'attraction marketing' methods takes TIME to ramp up. There is a technological learning curve, and then a time of 'seed planting' before the harvest.
People don't get on the bus online and start earning immediately, lets get real!
But I can help them get paid on Monday by sharing what we have with the people they know and enrolling some customers...
If I was silly, I wouldn't share with them the proven offline system our company has in place to profit quickly. I'd tell them it wasn't worth the struggle and maybe tell them your story (sorry!). But I'd much rather point them to the hundreds of videos we have of people who have used the simple offline system and made good money quickly.
Don't judge a method of building an MLM on your limited experience. Its faulty logic.
The roof example doesnt really work either. Direct Sales is by definition person to person without a storefront.
Where's Todd Falcone, Art Jonak, Randy Gage when I need em?
If you aren't exposing your new recruits to all the different methods of building their business, you are doing them a disservice.
No, their friends and family may not be entrepreneurs - we are a peculiar lot - but, they can easily be customers.
That is, assuming you are working with a company that has real products that are priced well...
That's another topic altogether.
In the end its all out Massive Action. I don't care how you generate a lead - online or off - if you don't know how to connect on a human level you get no where.
All the expertise in online marketing means nothing in MLM if you don't know what to say to your leads, or how to train someone who does get started.
Melanie Milletics
How you Generating Leads isn't the problem...
I think everyone above has written great comments and insights... My conclusion is that all the methods of lead generation work online/offline/warm market etc..
HOWEVER...
You won't be able to convert any of these leads into customers or business partners if you don't know how to communicate, and don't do it with the right intention...
Tom hit the nail on the head, the intention of business is making people's lives better, to the degree you do that is the degree of success you'll have...
So no matter how you generate the lead its lead with the person, their needs and wants... and if its your product that can help make their life better or your business present it to them.. with THEIR intentions at heart NOT YOURS!...
All lead gen methods work and all have pros and cons...
- Online lead gen
- Party plan
- Warm market (GREAT MARKET FOR CUSTOMERS as melanie mentions)
- ads/flyers etc.
However if you don't know how to communicate effectively and build relaitonships all the leads are a waste of time and money..
I suggest start investing in your communication knowledge first then finding people to talk to and converting them is the easy part..
My two cents.. just a guy from oz..
Attraction Marketing vs Old School
I do not think it has it should be the Old ways vs the New ways.
I have notice that even with Attraction Marketing you still need some of the old school ways.
It's Like Tom says you still need that personal touch of the human being reaching out to lend that help hand.
And even with the net, that personal call or dinner meeting will always increase your closing percentage.
Thank You
Jerry Harris
Stars like Melanie Milletics are coming full circle..
What a great topic this is. I commented on your blog last week Melanie that you seem to have come full circle and are back to basics.
This is interesting for me because I went full on into online attraction marketing a couple of years ago and have really gained some amazing knowledge, created my own online system etc.
However because I work with a company that is in its launch period (like you now Melanie) I understood that it would be nuts not to let people we know have the chance to join our business.
The big problem as I see it is that many people get turned off regular warm market or expanding their warm market because they join a team that does not have a system or excellent tools and training in place. It doesn't mean that warm market doesn't work though right?
It just means it doesn't work when done badly. (Few things do!)
Randy Gage is my upline Melanie so I have been very aware of what duplicates and what doesn't.
Having said that I do the majority of my business online BUT a new person will take many months to develop the skills I have .. Far easier to show them how to get the message out to their network and key contacts with effective business tools. That is how I made my first big cheque after all..
About the roofing biz Tom. A great MLM has a consumable product that everyone can afford and reorder on a monthly basis, and most people can benefit from. A roof doesn't fall into that category which is I imagine why there are no MLM Roof companies! (Lol a little humour goes a long way..)
Your in success
Rachel Henke
wow wow wow
What a hot topic brothers and sisters.
All of you have great points, it's exactly like looking at a sphere from different angels, up, down, right, left, front, back, the sides, close, far, inside out, etc.... Each one is equally important.
And each individual will perceive things about it in different ways.
Some will like it, some won't, some will love it and some will feel disgusted by it, it's perfectly normal and perfectly human, that's what we are at the end, HUMANS or at least we hope most of us are,lol.
Not all Network Marketing businesses have consumable products which you HAVE TO re-order at monthly bases.
Some network marketing businesses, requires you to purchase any of their products which could have NO-expiry date or long term expiry date (e.g. 30 years). It could decide to purchase just one product for yourself in a lifetime and give you the endless potential of endless earnings, depending on how much time and effort you put into your business alone with the help and support of both your up-lines and down-lines. Any additional product you may chose to buy, is not forced on you, the choice is completely yours and in both cases you can keep on earning money for-ever, you put a beneficiary name and your loved ones will start doing the business and earn money after you're gone, and they do NOT have to purchase ANY additional product.
The products could vary in price from 500 USD up to 13'000 USD and more if someone chooses to, or choses to earn more money.
My up-line earned 26'000 USD last week, this was his earning in one single week and he never done anything online, his network of people doing ALL OFF-line for him and for themselves mainly.
He has over 36'000 people in his organization in just 4 years of being in this business.
And some of you are equally earning lost of money on-line, some people might buy and start immediately just by clicking at your home page and start doing business with you exactly as I did, although were very doubtful about it, yet told myself just to give it a shut. I just started to learn how to do it online, and will soon be equally successful online as I am offline.
Others, won't join in even if you knew them for very long time, fully trust you and even saw all the earnings you are making on weekly basis.
There is absolutely nothing wrong in trying to earn more money by finding new or additional ways.
And lastly I wish to agree with Tom Melvin on his last sentence
"if something isn't working, change it NOW. Remember, time is more valuable than money - you can always make more money, but time wasted can never be re-captured".
God bless,
with love and light
J.P
skype: john.pierre.chalouhi
www.jeanpierrechalouhi.com
Re
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