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[Steven Johnson Contribution Level: 2]

I get called out on this one by BIG network marketers.

Regularly.

Having TOO MANY MLM company relationships. I hear words like "dilution" and "distraction" - even my favorite "gift Illness" which I've carried with me (undiagnosed) for 40 years: "Attention Deficit Disorder"

So, I figured it was time to explain my long-term strategic thinking.

We operate in an environment of many, many companies and programs. It seems a new one arrives every 8 hours or so. Of late, more are arriving with household names attached. A multiple-relationship network marketing model is, by definition, a choice. Many (perhaps even most) are involved in the industry because someone showed them what they were doing, and they just joined, without so much as a glance at the rest of the industry. Not exactly what they teach at Harvard Business School, I'll wager.

IF you are to entertain and then maintain multiple networking company relationships, you need a house. A what? A house for your business. You wouldn't operate a hardware store without a building, would you? Or a law or accounting firm? They all have houses. A professional location clients can come and transact business. Perhaps largely because network marketers are involved with just one company relationship, they neglect to build their own house, relying almost exclusively on company-replicated web sites or upline team sites for their information, training, recruiting funnel, etc. To me, this is unacceptable. Zero control, for one thing. Pathetic or even non-existent branding of you for another.

The second component of your model is the first of three network marketing company "archetypes" (I won't name names in this article). This is arguably the most important of the three. In my view, you must have a B2B product or service you can offer to other businesses. I call this archetype the "shovel seller" component of your business. Instead of mining for the gold you are selling shovels to the gold miners. Universal demand. International reach. Cross-industry penetration.

Why is a shovel seller component so important, you ask? For one deceptively simple reason: it gives you almost KINGMAKING power to recruit other network marketers - including those in the same venture you are in regardless of their line of sponsorship. Imagine this for a moment. You are sitting in an auditorium, enjoying your company's annual YACDAPS event (you know, the "yet another corporate dog and pony show" circus where you get to press flesh with the company muckety-mucks who haven't a CLUE about marketing?) You are sitting right next to your buddy from across the country, who you see at these events, and call once a year, or go golfing with if he/she is in town for a function. Now, imagine that you have, in your possession, that shovel seller component that they need, and know they need it, and you drop a hint that you have it. This is what I call S.O.I.L. - short for Sphere Of Influence LEVERAGE. Just let your imagination run wild for a moment.

The third part of my model is obvious to many, but leaves others scratching their collective heads. Wellness. Fully 70 per cent of the networking business is wellness. Ask yourself why. Then get your butt into a wellness business. Make it a good one. If you can't get your brain and your evangelistic attitude around the product, don't do it! Move on. Wellness is the largest component of the network marketing profession because it's:

a. repeat business - month after month for years, even decades
b. personal - nutrition or personal care or both
c. habit-forming (did you eat a brand-new dish for dinner last night? no? same deal!)
d. off-the-charts as far as the public radar with the aging of the human population (read Gray Dawn by Peter G. Peterson of the Blackstone Group for perspective)

The fourth and final part of my model combines two really powerful assets in one. The first is what many in the biz refer to as a TTO or Top Tier Opportunity. Definitions vary, but suffice it to say that these cost more, produce higher commissions, and require more skill, assets, and patience to arrive at success. Why add a TTO to your model? The most important reason is that you will encounter hitters in your career. Movers and shakers. People with money and influence. Some of them will be in a hurry to succeed. If you do NOT have a TTO to offer them a means to achieve 5 figures (even high 5 figures) monthly in short order, they will wander down the street. No way I'm letting the hitters get away. I looked around to see what sort of TTO's were available and chose one in the self-improvement niche. Why? Because if you are in the business of organization-building, and team development, and you know you are going to need to develop yourself as well, then why give your money (and your team's money) away to the likes of J. Rohn, A. Robbins, J. Abraham, et al when you can adopt it as part of your business model and create a huge revenue stream from it?

Steven W. Johnson
Professional Direct Networker
The Ardvark Group, Inc.

[David Frey Contribution Level: 2]

Well, Steven, I say...knock yourself out and good luck.

The number one killer of solo entrepreneurial efforts
is lack of focus.

When you're working more than one opportunity, by
its very nature, you lack focus.

I do have a friend who runs the same model as you do.
He's moderately successful. But his advantage is that he
owns a lead generation company and so he generates hundreds
to thousands of leads a day.

He can throw a lot of spaghetti against the wall to see what
sticks.

It's just my humble, one-man opinion, that you're not only
doing yourself a disservice, but you're doing a disservice
to the people you bring into the business.

David Frey
MLMcoachTV.com

[Steven Johnson Contribution Level: 2]

Yep, bring on the BIG networkers! Especially the ones who make GIGANTIC MONEY outside the MLM biz! (I rest my case)

I can't remember a hardware store with just ONE type of hammer

Or a restaurant with one entree it offers patrons...

And yet, the drumbeat in the industry is to throw your whole effort and soul into one basket. Isn't there some BROMIDE that covers that mistake? about eggs or something? (snickering)

clarification: I am not advocating this approach for everyone, and certainly not my entire team! That would be foolhardy, as David suggests. I'm saying I want the option, not that I always (or even regularly) exercise it.

[David Frey Contribution Level: 2]

Your example of a restaurant or hardware store are kinda ridiculous.

Building a network marketing business is an entirely different animal
than building a restaurant or hardware store. It's ridiculous to compare
the two.

Imagine where Richard Branson would be if HE were the sole CEO
of all his companies. Probably no where.

Imagine if Bill Gates personally ran all the divisions of his company.
How big would his company be today. Uh, not very big.

Now imagine a single person trying to...

1. market
2. recruit
3. follow up
4. sign up
5. jumpstart
and...
6. mentor

...groups of people into not one, but two different companies.

Most people can't even do one company!

Not to mention that 90% of all network marketers are working
their opportunities part time.

Anyway, it's opinion that working multiple MLM opportunities
as a solo entrepreneur is a recipe for failure.

David Frey
www.MLMcoachTV.com

P.S. If you had employees and a team helping you, that's a
different story. But for the solo entrepreneur it doesn't work.

[Steven Johnson Contribution Level: 2]

Ol Abe Maslow comes to mind in this discussion.

If all you have is a hammer...

http://en.wikipedia.org/wiki/Law_of_the_instrument

If I'm in a "gender-biased" model (mary kay comes to mind), how do I then reach out to the opposite gender?

If, similarly, I'm in geographically-limited operation, say ONLY North America, how do I shift gears and get my business expanded beyond North America? Am I supposed to just WAIT?

I totally agree that if I'm building using MY FATHER'S MLM TACTICS (local, belly-to-belly, meetings, one-on-ones, parties) that multiple company relationships could be a disaster (ok, my father would never go near a mlm, but you get the connotative reference)

I'm not talking about any of that. I'm talking about direct networking. ie. using classic Internet Marketing tactics, strategies and tools to build both online and off, where scripts, and systems, and lead funnels can be automated, and where TARGET MARKETING thanks to forum, article and social marketing on sites like this one radically increases people's chances for success.

If you perceive your role (as I do) as not just one of information marketer, prospector and closer, but one of MATCHMAKER - helping people connect their interests and skills with a relationship that is a good fit - and not automatically assuming one size fits all, then your solution is coming from a different mindset than is the conventional wisdom in the industry.

[David King Contribution Level: 1]

Great post steve, I would say that It just depends on the person.

Most people need to start off in one but as they "get it" they can and should join more to grow and not be limited in their mlm career as a whole. All the time heavy hitters just change companies overnight because of a better opportunity, I would say it's smart to be in multiple to maximize the work on all your efforts as a whole.

You look at amway for example... they started with pots and knives and kitchen utensils. Household items and how the company has a ton of products and have evolved into a health company.

The company has a ton of products and does real well but I would rather be in 2 of 3 network marketing companies that specialized in those products and diversified my risk in case one of the companies goes out of business.

I hope to meet rich devos again someday and get to chat with him, he is truly the godfather of MLM and could give a lot of great insight i'm sure.

Thanks for the post!

[David King Contribution Level: 1]

Great post steve, I would say that It just depends on the person.

Most people need to start off in one but as they "get it" they can and should join more to grow and not be limited in their mlm career as a whole. All the time heavy hitters just change companies overnight because of a better opportunity, I would say it's smart to be in multiple to maximize the work on all your efforts as a whole.

You look at amway for example... they started with pots and knives and kitchen utensils. Household items and how the company has a ton of products and have evolved into a health company.

The company has a ton of products and does real well but I would rather be in 2 of 3 network marketing companies that specialized in those products and diversified my risk in case one of the companies goes out of business.

I hope to meet rich devos again someday and get to chat with him, he is truly the godfather of MLM and could give a lot of great insight i'm sure.

Thanks for the post!

David King

http://Davidbeking.com
http://twitter.com/davidbeking

[David Frey Contribution Level: 2]

I know I'm like a fish out of water here, but all you guys are assuming that you
can build a large, ever growing, healthy network marketing organization with
only autoresponders, online videos, discussion forums, email marketing etc.

The problem with discussion forums is that there are a lot people who express
their OPINIONS without any real experience.

Please show me someone who has built a 10,000 plus team in a TRADITIONAL
MLM company like, Isagenix, Monavie, Herbal Life, Xango etc. using 100%
purely online tools. (i.e. never picking up the phone or meeting people in person)

And on a purely practical level, If my team were to find out that I was promoting
another MLM opportunity, I would see my attrition rate skyrocket.

It's like watching the CEO of a public say to their employees that their company is
in great health all the while they're selling off millions of shares of stock. The
employees would probably not put much belief in their leader and many would
start looking for other jobs.

Anyway, this is just my opinion (based in a LOT of fact and experience)

David Frey
www.MLMcoachTV.com

[Steven Johnson Contribution Level: 2]

I don't recall saying anything about using EXCLUSIVELY online tools. The net just gets them on the phone, or into text chat or VOIP conversations and TARGETS the ones ready to pounce rather than try to pump up some local prospect who doesn't know twitter from a part at the local hardware store...

I spend as much "face time" with my prospects as any conventional networker - I just don't get them to the table in the traditional way. If it weren't for the net, how would I be building my business on 5 continents at once?

[Richard Bravo Company: Life Force International Contribution Level: 9]

.
I see your point Steven and agree with most of it, conceptually speaking.

As an affiliate marketer I am not in one exclusive market or niche.
My business runs the gamut from dog grooming supplies to human grooming supplies.
All of them simultaneously.

In my mlm business I represent 3 companies/product offerings.
They compliment each other quite well, but are as different as alpacas are to acorns.

Diversity is a quintessential component to business.
I think anyone would be hard pressed to give an example of a business has only one product on the shelf.

Every burger joint in the world sells fries and shakes.
Every tire store in the country sells brake pads and shocks.
Every optometrist sells eyeglass cases and mini screwdriver sets.

Even if the market segments do not give way for overlap as in those examples, there is still room for an entrepreneur to capitalize. I sell just as many Forex trading accounts as I do acai berry weight loss trials (almost ). But you get the point.

And there is almost always a complimentary product offering I can provide on the back end at a later time. Actually, 99% of the time, if there isn't, I'm not in the market to begin with.

Because that gives way to customer base deterioration.
If all I have is a steady stream of "one time offers" that's not a business... that's just a sales job.

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