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New Way of Marketing Or a Cartel-Like Syndicate?

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New Way of Marketing Or a Cartel-Like Syndicate?

Postby Pavol Almasi on Thu Nov 25, 2010 10:44 am

Yesterday, I came across to Frank Kern's "State of the Internet" video. (just Google it) I am a year behind, since the video was produced in December last year. But it did open my eyes a lot, but probably not in a way Mr Kern hoped for.

There was part, in which Mr. Kern was talking about the new ways of marketing. And one of the point he was stressing was - do not think of a customer as YOUR customer, because he is most than likely to purchase other products from other people. And then he went on to explain, that because of that, you should not try to out-perform and out-smart your competitors, but instead to cooperate with them. Basically, you should SHARE the customer. He explained how he coordinates his product launches with other gurus, so they do not launch their products at the same time, how they cross-sell and promote each others products etc. He called it "Mastermind Syndicate" (or something similar).

He was talking about this as being a new, better way, telling how he made a lot of money this way, that he would otherwise not made, if he was competing with others.

He had over 300 people thanking him for this "great video and advice" right on his blog.

But is it really a better way? Should I not strive to provide more value than my competition? Should I not try to reach the customer in a way, that would give him a real value, thus he would have NO NEED for buying similar products elsewhere?

To me, what Mr Kern and other gurus created is nothing short of a cartel. Instead of competing, they are setting up things to avoid competition between each other. They realize, that average newbie is very likely to reach for the newest shiny program they offer, so they make sure they offer it often. So often in fact, that the newbie gets distracted by the opposing messages "Facebook is dead vs Dominate Facebook etc), as well as the frequency of the releases (so the newbies typically do not even finish any of the programs - to Mr Kern's credit, he encouraged everyone to stop buying anything, if they own a product they did not finish yet), and of course, when they get an email from their favorite gurus, all claiming how this guru-X made a great program - they jump and buy it.

So there you have it, from the mouth of the one of the most popular guru around. And people keep cheering, instead of questioning the tactics. Or maybe I am just missing a point, that could be too. But the way I see it, this type of tactical cooperation will only help to create average, or even below average products. If they do not have to fight for their place in the market, and get support from other gurus (in exchange for support for their products), then the customer will never get a REAL value from just one product.

Don't get me wrong, cooperation is all good, but it should be NATURAL cooperation in order to provide more VALUE. If two gurus come together to create one amazing product, that's a great way to cooperate. But the cooperation for the sole purpose of selling more of my own product and avoiding competition cannot be beneficial for the customer. But I can see how it is beneficial for the gurus.

What do you think?
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Pavol Almasi
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Re: New Way of Marketing Or a Cartel-Like Syndicate?

Postby Dez Futak on Thu Nov 25, 2010 4:47 pm

Very good point Pavol.

I've been noticing that a lot with some of the promotions that went out recently for the excellent offering by Brendon Buchard (Expert's Academy); Frank Kern, Trey Smith, Eban Pagan & a few others were all promo'ing it, offering great bonuses etc.

Frank even offered a $1000 rebate if you weren't happy with Experts Academy, AND his cousin Trey's bonusus AS WELL...

...I'm not saying I don't like getting bonuses by any means, it's just that there does seem to be an aweful lot of back-scratching going on in these economically volatile times.

What say other BN members?

Dez.
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Re: New Way of Marketing Or a Cartel-Like Syndicate?

Postby Adam Taha on Thu Nov 25, 2010 5:23 pm

Pavol wrote:
But is it really a better way? Should I not strive to provide more value than my competition? Should I not try to reach the customer in a way, that would give him a real value, thus he would have NO NEED for buying similar products elsewhere?


"Nothing is new, except one has now reached a higher level of awareness and they are ready to see what has ALREADY been there."

This has been going for years.

That's how some countries do business or large corporate car manufacturing companies work, or even farmers etc.

And..governments.

It's been going for donkey's years mate.

The rich and wealthy know this very well, as they do exactly this, even with properties. They share their customers, launch dates. advertising space.

The outside world may seem the as competiting with each other but to each other, they see that by working together - they can tap into millions than thousands of dollars.

Look in world, in our own communities. It's all over the place if...we are in a state of awareness. Most are not.

Look at partnerships different computer manufacturers work. Same thing.

That's how the top earners been working and we can see it with the emails from different leaders.

When this came out, did Johnathan come out with new? Johnathan and other leaders focused on sending the Alpha Networker campaign to their list, and not promote anything else yet.

However, I stay away when someone says they'll give $1,000 to one who does this and that.

I don't see the quality will go down as it hasn't for many corporare companies we know.

This is the next level of Mastermind Napoleon spoke of. He's way ahead of Eban Pagan. ;)

However, it's great to see such people bring it forward for others to learn.

Nothing is new.

@Dez - I personally don't bother with bonuses. I rather have price discount, or something else than lots of other bonus stuff, which only distracts me from the training I'd invest in.

Adam Taha
Follow the story as I develop an automated marketing system to attract leads, prospects and cash flow http://subtest.attractanymarket.com/
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Re: New Way of Marketing Or a Cartel-Like Syndicate?

Postby Pavol Almasi on Thu Nov 25, 2010 11:40 pm

I am not arguing that this is something that has not been used before, I am just saying, that I don't like it a bit. I can honestly say, that I will never buy a thing from him, or anyone associated with him, because his strategy is not designed to benefit me, but only him.

I think, that this type of "syndicate" is against what customers seek (competitive products), and it also screws the rest of the competition, who is, as he puts it "team B".

I rest my case with this short video - note the phrases like "syndicate is a group of people who deliberately promote each other and endorse each others products", "fear of competition is in the way" and more priceless advice.

So they are going to stay out of each other way, not step on each other toes (so how can you trust their reviews?!?!, and promote whatever the other guys offer, and they will return the favor.
Oh well, no one said making tons of money is easy. Obviously, you need a very strong stomach....

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Re: New Way of Marketing Or a Cartel-Like Syndicate?

Postby Michael B Wilbraham on Fri Nov 26, 2010 2:08 am

I absolutely concur Pavol - it's nothing short of collusion & manipulation. In my country we have a statutory body called the "Competition Board" who are empowered to act, without notice, against companies who are guilty of collusion, particularly with regard to things like price-fixing & production manipulation to create product shortages, which in turn drives the prices up!

If these so-called gooroos were producing such fantastic products, those products would stand alone, stick out from the crowd & have willing buyers rushing to invest in them, without these marketers needing to resort to all sorts of JV tactics to drive sales!

The reason they all ensure they NEVER launch a product at the same as their "mates" is that by everyone launching at different times, they effectively leverage of the "lists" of their mates (using them as JV affiliates) - the "mates" then effectively also get to "win" the all the affiliate prizes on offer for the launch.

Unfortunately - the ignorant masses fall for these tactics in their thousands...great for the marketers!

All in the name of doing good business!

Mmmmm, I sometimes wonder at the ethics :roll:
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Re: New Way of Marketing Or a Cartel-Like Syndicate?

Postby Adam Taha on Fri Nov 26, 2010 10:38 pm

Pavol wrote:I am not arguing that this is something that has not been used before, I am just saying, that I don't like it a bit. I can honestly say, that I will never buy a thing from him, or anyone associated with him, because his strategy is not designed to benefit me, but only him.


Ah ok. Well my friend, I understand what you're saying. I have never bought into guru stuff and the buzz. When we can read between the line, we know what's really going down.

However, those days are coming gradually to a close for a reason.

Most of us, are building a real business, which, if we stopped, the money will keep coming. And we don't shout it.

You know all those cars, houses most professed guru's show?

They are nothing. Having them and owning them is different game altogether. Like one man said to me once..

"Yes, we made 10 million!"
"Mate," I replied, "Don't talk to me about Gross BUT show me NET PROFIT!"

He never showed his face again.

We know, deep down, if we take responsibility for our own decisions, and actions what it takes to succeed. We know it takes skill, work, split testing, and all the stuff most don't want to do because it takes work.

However, there will always be people wanting to be followers due to their own insecurities.

Since you don't like what you see, then you can help others to wake up, learn a specialised skill, and be a real internet marketer. That they stay focused in learning skills and there is no magic bullet. It will take work.

Adam Taha
Follow the story as I develop an automated marketing system to attract leads, prospects and cash flow http://subtest.attractanymarket.com/
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