The Power Of Systems


How To Get Filthy Rich In Networking -
The Dirty, (But Lucrative), Truth About “Systems” In Our Industry…

I’ve always prided myself on delivering the most valuable content in the industry, which is why I believe so many people subscribe to this newsletter, but the massive projects we’ve been working on lately have prevented me from writing as often as I’d like.

Now that the Community site is up and running, I’ve got some time available and I want to make it up to you.

Over the next few days, I’m going to share some of the most valuable and lucrative lessons I’ve learned in this industry over the past 10 years about building and running duplicatable marketing systems for network marketing… Lessons that eventually allowed me to go from waiting tables, to 7-figures in less than two years.

100% good ol’ fashioned content that’s disgustingly good, so pay attention. What you’re going to learn here this week is completely taboo, never taught, and can make you filthy rich…


My Definition Of A System: "A Procedure Or Process For
Obtaining A Desired Result In A Predictable Manner."

When I think of a system, I think of a machine that produces a predictable result time after time, after time, with little to no variation.

Predictable results are dependent upon consistent variables, logic, and numbers.

People are not machines. We are emotional creatures. Unfortunately, all emotion is illogical, and that emotion brings an element of unpredictability into any system.

This element negates any, and all previous systemization that was in place up until that human intersection point. Once the process reaches the person, the end result becomes unknown, no matter how great the attempts at creating a predictable system.

If you’ve ever ordered a hamburger with no mustard, only to find that your patty is dripping with the yellow condiment as you drive away, you’ve seen the end result of the human element, in what is otherwise, a perfectly mapped-out and coordinated system.

This unpredictability can never be eliminated, but it can be reduced through training, tools, and structured behavioral patterns.

Our end goal with any system is a “duplicated result”.

A successful business in the networking industry is obviously dependent upon a massive group of people, duplicating a marketing process that leads to the desired result, which is a purchase being made.
Unfortunately we have to deal with the fact that 90% of the people in any organization are running their businesses with a 1st grade level education in marketing.

Left to their own devices, these people will fail, and the desired result will not be produced in a predictable consistent manner.

The solution is obviously a “system” that’s been developed by marketing professionals that people can use that will increase their chances of duplicating the desired result to an acceptable level.

This campaign is then “scaled” on a massive level by providing a replicated copy of it to all distributors for a monthly fee.

Ahhhh…. But if it were only that easy. There’s SO MUCH MORE than meets the eye when it comes to creating these little holy grails of duplication which is why so many companies FAIL despite their valiant attempts at putting together a system for their distributors.

None-the-less, some DO succeed and enjoy WILD success, resulting in massive growth and duplication for the primary company, its distributors, and your team.

And if YOU happen to be the person who owns the system, you may suddenly find yourself making more money, faster than you’ve ever made it in your life.


Study The Past To Find The Secrets To Success.

Most of you have already heard about the MLM System Formula course that we’re making available to 15 people this week at an 80% discount. (Click here to learn how you could be one of them).

Well in that course, I spend a large amount of time dissecting six of the most successful systems to ever hit this industry with the understanding that if you can find the common reasons for success that each of them share, and the common reasons for their eventual demise, you can duplicate their results with your system and avoid the failure.

For example, one of the systems I dissect is Sea Silver. I’m not going to reveal everything that made this system run so well in this email, but here are a few nuggets…

Sea Silver is a liquid nutrition product that was brought to the market around 2002.

The company sputtered along until it was discovered by Brett Rademacher, a leader in the industry with a deep background in direct response marketing.

In 2003, Brett helped launch the Sea Silver Radio Co-op which generated incredible momentum within the company, taking them from several hundred thousand dollars in sales per month, to over $20,000,000 PER MONTH.

Here’s a look at Sea Silvers website traffic stats from Alexa. You can see the explosion of activity from 2003 to 2004. A gradual downward trend continues until mid 2004 when it drops to nothing.

 
alexa.jpg

There are three forces in play here…

1: Brett and his team created a fantastic, duplicatable marketing system with their radio co-op which is what caused the spike in activity and sales.

2: We have the eventual demise of the company brought on by the FTC for false claims made in these radio ads.

3: And in between these two events, we run into the gradual decline in the system’s effectiveness due to the “Law Of Diminishing Returns” which is what I want to talk about right now.

Last week, I told you about an interesting thread that was started on the Advanced Training Forum at MagneticSponsoring.com. Here’s the link to the discussion…

Another Paradigm Shift In Network Marketing

The primary question was regarding the recent proliferation of  “We’ll do all the work for you”, systems.

Here Is The Response I Posted…

The fact is, nothing has changed, and it never will because we're not talking about marketing systems or technology here, we're talking about human social dynamics, and the 80/20 Rule.

There is only 1 kind of person who will ever make money in network marketing: The Leaders who make up the 10%-20% group.

"We'll do it for you" systems will always explode into the market place with a bang because they appeal to 80%-90% of the population who are simply employees pretending to be entrepreneurs.

You see, every decision a person makes is designed to avoid pain or acquire pleasure.

"We'll do it for you" systems appeal to both aspects: They allow someone to avoid the pain of learning new skill sets, and acquire the pleasure of having everything provided to them without effort.

And honestly, everything would be just fine if it weren't for one pesky little problem called the "Law Of Diminishing Returns"

Every MARKETING campaign eventually falters because of this law.

If a system is effective and producing results, it will attract more people. As more people join, the exposure of the system continues to increase. As that happens, the most targeted prospect pools become saturated and lead costs increase. This causes people to expand their marketing to less targeted groups, which leads to fewer leads and a higher costs. The "returns start to diminish".

This happened with Dead Doctor's Don't Lie. This happened with the XanGo 3-Step Plan. This happened with the Sea Silver Radio Program. This happened with Herbalife. This happened with LLI. It will happen to Ty's system and it will happen to Jay's as well.

Eventually, the campaign becomes so widely known and saturated, that it can't sustain itself, and that's when the little guys at the bottom leave for the next shiny thing and your group disappears from the bottom up.

I'll prove it... Name ONE system that was released just 2-3 years ago that's still going like gang-busters today?

THERE ISN'T ONE!

Remember this... "The Faster It POPS, The Faster It DROPS!"

So if you know that's coming, what do you do?
You've got to build your organization based on the product or YOU as a leader, and not the system. Why?

If people join your company or group because of the marketing system, they will leave as soon as the system results start to diminish, (which WILL happen).

If they joined because of your relationship with them, or the product first, and THEN plug into a system, they will stay as loyal product users, keeping your organization and paycheck intact.

Remember, you can beat saturation and the law of diminishing returns by practicing Magnetic Sponsoring and marketing YOU.

There's only one of you in the entire world so you really don't have any competition at all. All you have to focus on is getting YOU and your story in front of as many people as you can and you can build any business you want.

Now that brings us back to the beginning of point...

The only people in this industry who make money are the leaders. In the case of the "We'll do it for you" systems, who do you thinks really making the money here? The leaders who CREATED and run the system of course.

So my point is this...

The "age of personal branding and Magnetic Sponsoring" will NEVER die because that's the ONLY TIMELESS way to truly build a real and lasting business.

The "new paradigm shift" towards "We'll do it for you" systems isn't a shift at all. It's just a recycled marketing pitch that's been used for DECADES which is designed to appeal to the 80% crowd who will never do the work to become a real business owner.

Instead of teaching people how to fish, they are just selling the first to them by the boatload which is a very lucrative approach for any marketing leader to take. It's just important to realize what's happens to all systems and the decide which group of people you want to be in...

Do you want to be one of the leaders providing the fish or one of the guys buying them?

If you want to be the guys providing and selling the fish to the market, stay tuned because that’s what we’re going to talk about next time!

- Mike Dillard

P.S. If you want to learn how to explode your downline and make a ton of money in the process, make sure you take advantage of this offer and apply for one of the 15 copies of the yet-to-be-released, “MLM System Formula” I’ve made available at an 80% discount.
Applications are due by Wednesday so click here for the details!

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About the Author: Tim Erway

 
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What's This?

Member Since: 07/19/2007

Company: Magnetic Sponsoring, LLC

Industry: Publishing

Primary Web Site: http://timerway.com

Comments



Coach, Trainer, Speaker

Mike,

Thank you for the truth. It is all about YOU INC !

Warren Wandling (not verified) — Thu, 10/18/2007 - 1:01pm

So if the System Continues to Evolve... Does it still end up wit

If we as leaders continue to tweak, evolve and change our marketing systems to meet today's new environment, do we continue to see diminishing returns.

I would guess not. Rather, as we continue to evolve our marketing systems, as leaders, we provide the "new" tools to our team so they can produce positive results.

Of course, "do everything" solutions don't or at least not for long, so it puts the "work" back into network marketing.

But the "work" is so much easier, more fun and less stressful - is it really work :)

Love you approach

Tex

Tex Gshwandtner — Thu, 10/18/2007 - 1:03pm
MLM-Mary (not verified) — Thu, 10/18/2007 - 3:28pm

Very informative. A realty check.

Rupeni Navunisaravi — Thu, 10/18/2007 - 3:41pm

Great At Home Income Opportunities For You!

I'm really new to this but I am learning fast who makes the $$$$$.
It's not the little fish, you may become an affiliate and not see a dime although lots of sales are being made of your advertising.
>:( >:( I'm trying something to see how it goes and thats a varity
of different webpages directed at different topics that might be of interest to the ordinary person and promoting links on them. It's the only thing I've had a little success with. I plan on doing a site on Schoolbus Humor which I think will draw some in and also one on the stages of a baseball player from family experiences in
palying from The T-Ball Stage through to College Ball and maybe even to the Pros. My advise to anyone looking for an instant income is please please look out for the SCAMS. THey are all getting RICH of off YOU.

Cory (not verified) — Thu, 10/18/2007 - 3:42pm

Great article, thanks for the post!

That was a very insightful article. Tbe law of diminishing returns was something I never thought about in relation to network marketing. Thanks for the post!

Michelle L. Green (not verified) — Thu, 10/18/2007 - 4:38pm

Great article

It's fascinating to see how network marketing works, however, it's the same for tradional business. Do you remember when Microsoft leveled off, then picked up again, it happens everywhere, even Donald Trump hits a low point. But I believe as Mike has done for years, is be consistent with whatever you are doing, and be honest. I have watched John Zenes for years, just to see how his system of calling people and contacting people have moved him from a 20k position to 100k position in 3 years. I believe consistency works. Systems come and go, but remember things work at different times because people are in different places in their lives.

One thing that I have seen is the people who gets the exposure does the best, so there are many contributing factors to the success of many network marketers. I like Mike because he attempts to present honest view points without the fluff and stuff.

I would like to address fictitious names, if we had a traditional businnes, we wouldn't call ourselves cooljim, or getrich Bob, so why do we do that in network marketing. Okay, I know I am going off the subject, but I thought I would bring it up.

Thanks Mike

Keep them coming

Derrick

Derrick (not verified) — Thu, 10/18/2007 - 8:06pm

Systems versus Leaders

Yeah systems are great to get you started and teach you as a new person the skill sets required to make you a Great Leader. You need to develop a Personality that will attract the people you are seeking to work with YOU! It's Being UNIQUE, standing out from the crowd and not being a just another "White Washed Brick in The Wall" ;D that will build your business. Go on close your eyes and think about the people that stand out in the world today.. are they a boring white brick in the wall? or are they Standout? So find a Unique style that suits you and your business and then go Build yourself a BRAND....[b]Standout YOU[/b] :D

Axel Henriksen — Thu, 10/18/2007 - 10:19pm

Importance of Good and Ongoing Self Education

Thanks for another informative article Mike. To follow on then, to be a good leader and beat the law of diminishing returns, requires ongoing personal development and education. If this is not done we cannot become or retain our uniqueness and therefore attract and keep our customers. Which is why I plug in to hear "good stuff" from you! x

ZoeMarshall (not verified) — Sat, 10/20/2007 - 5:15am

True facts!

I've been around many years. Most recently a victim of diminishing returns with a business that was going gangbusters for the first couple of years.... and I got in on the downside of the Herbalife curve. I'm growing again by being picky about who I affiliate with and Magnetic Sponsoring is tops on the list! I bring value to the marketplace and provide information for people and have found that ya gotta be real or foget it! Not RIIIICHH yet. But that's not the thing, the main thing that is. Thanks for the great info.

Gregory Montijo (not verified) — Sat, 10/20/2007 - 5:14pm

Its Sad, But The Reallity is...

That we live in a fast paced world, and people are always looking for the quick way out. The Only time that I had success online was when I put my self out there, as a leader, and when I delivered valuable information.This article is great and It brings you back to the old school techniques that never fail..

thanks Mike, Because of your system I am Here

YouIncMarketing (not verified) — Sun, 10/21/2007 - 10:28pm

Thanks

Network Marketing is new to me on a personal level...heard about, saw friends in it but ...it wasn't for me .............I have now seen the light......network marketing is the only way .........I am in the learning stage of everything .....but I will work it out and I will make it work, Thanks to Mike who is showing me how .....

Thanks Mike

Sandy Hobley — Mon, 10/22/2007 - 12:02am

Great companies reinvent

It's interesting to see the traffic stats discussed above. What I've seen in the industry is the ability of the few long-term "great" companies have the ability to reinvent themselves (either product, system or both) every so often which then spikes the sales again. Most companies that "make it" pop once and as you say the faster the pop the harder the drop. However, the handfull of great companies find a way to reinvent. This holds true for traditional business models as well as MLM.

Make it a great day!
Chris

Chris Janssen — Tue, 10/30/2007 - 9:46pm

An excellent article

I wanted to express my gratitude for a "tell it like it is" approach. I work with an organization like this Professional Networkers in 4Life Research, and I appreciate the similarities between what you do and what they do.
Charlie Spath
cspath4life

Charles Spath — Tue, 11/27/2007 - 6:43pm

Magnetic Sponsoring is a system. Market a provided lead capture page. Pre-written email campaigns go out. You have a prospect and some cash with the e-books get sold.

But Magnetic Sponsoring also leads a person forward to learn how to fish for themselves. MLM Traffic Formula, this site... empower others to find their own way of using the same principles that made Magnetic Sponsoring work.

So there is nothing wrong with the idea of canning and offering a system, such as Magnetic Sponsoring has done. It's important to understand the difference between a system that empowers others to grow, and the one that promises to be the end all.

The end all doesn't exist, as this article points out very clearly. But the system that empowers, like Magnetic Sponsoring, is certainly helpful, even if it also will not last forever in an ever-changing marketplace.

Mike Klingler — Tue, 11/27/2007 - 7:44pm

Totally agree,

Plus, in case it hasn't been said, "do it for you" systems will only attract the lazy. You'll end up babysitting the people you sponsor and/or they'll move on to the next big thing.

Brenda Svoboda — Thu, 12/06/2007 - 11:40am