Sunday, June 8, 2008

STEP 3: THE RESISTANCE

Given all these compelling reasons for network marketing, there are many who are sceptical, cautious and negative about this business system. Below are some of the typical objections that are prevalent and limiting the understanding and acceptance of this powerful 21st century business opportunity.

1. “It’s a pyramid scheme." A pyramid scheme is typically a get-quick-rich-scheme, they have a few common similarities: a) Claim that it is very easy and uplines will grow your network for you. b) Commission payout is via headcount recruitment and not through products and services. c) There is no or poorly defined refund policy. d) Prices are not standardized over multiple levels. E.g. your sponsor may be buying at a lower price than they are selling you. e) They are not registered with local DSA (Direct Selling Association). f) There is very little scientific or credible third party substantiation of their product and service claims. And because of these concerns, many people have been disillusioned by the promise of great wealth and dramatic product benefits. It is understandable that almost 95% of the population have a misunderstanding of network marketing.


However, there are many that are very successful, legitamate and approved by the DSA. Look for 3rd party references, such as, DSA, Publically Listed (NYSE), Consumer Association of Singapore (CASE) and the World Federation of Direct Selling Associations who endorse them.

2. “It’s already a saturated market.” This is a common misunderstanding of most people and it is quite true. However, consider this. There are over 30 insurance companies in Malaysia selling insurance to approx. 26 million people. And most people will own 2-3 policies over their lifetime if not more. However, the insurance companies are growing bigger than ever. Taking that point of view, saturation doesn’t seem to be a concern for them. Consider another scenario. Almost every house hold has 1-2 televisions already, but, there doesn’t seem to be a slowdown in television sales.

The good news about a saturated market is that it is good news for a strong and outstanding company, only then, will it stand out amongst the crowd. Furthermore, if there is a global network marketing company which extends outside your present country into other new markets and countries, and allows you to seamlessly connect with them, then the market keeps getting bigger and bigger. Saturation is really then a myth. Continue reading to find out more about such a company.


3. “I don’t like selling.” If we had a bad experience in the past of how a salesperson pressured us to buy something we didn’t want, we will typically assume that we do not want to be in that position (salesperson) as well. However, I’m sure you have met a great salesperson that you really enjoyed buying from and continue to want their service.

Selling is what we do every day and every moment. For example, we have to sell ourselves to our boss each day to promote or increase our salary, we have to sell to our children to do their homework and clean up their room, we have to sell our idea to our team members to gain support. Selling is very much communicating your vision to a friend such that they take action for themselves.

In short, business is about selling a solution that makes people’s lives better. And instead of selling, share something good that you have tried and let them buy it from the company. And through honest sharing of facts, scientific clinical studies, personal testimonials and credical and reliable 3rd Party references customers and friends build long term relationships and trust.

4. “The products are very expensive.” This is certainly the case if we compared it to something that was not of equivalent value and benefit. An orange is definitely cheaper than a branded durian. If one was to analyse the product ingredients and services, and compare them to what is available from retail outlets, one would see a big difference in cost. Did you know that a typical well known retail outlet will take 25-35% from the total sales price? And, did you know that about 15-20% of sales goes to advertising and payment of super stars and celebrities? And most important, after international, regional and national level exporters and importers take their percentage of the sales, the ingredient cost that ultimately reaches the consumer usage is only 0.01- 3% (!) In some network marketing companies, there are no retail outlets, no advertising, no international, regional and national level exporters and importers, so most of the cost and benefit will be passed to consumers using the product and good friends who are distributors of the product. I’m sure you wouldn’t know the sales promoter or salesperson as well as you know your friends of whom you have trusted for so long and have now introduced you a better quality product. Network marketing when understood presents one of the most ethical business models in the market today.


5. “I don’t want to lose my friends & family.” This is often the case when new people who join this growing business are not properly trained and guided to recruit and share the products or opportunity. In addition to the other typical objections already presented, most people already have misunderstood this business and therefore automatically do not give these newbie’s a chance to present this business. In network marketing and tradition business, professionalism and integrity is the key to long term sustained growth and expansion. Through tools such as this educational brochure and a more professional business approach, more and more people are seeing network marketing in a totally different light. If a person, totally believes in themselves and this industry to create wealth for their family, it is only noble that they share it with people they love and appreciate as well. The concept of making a difference everyday is something that is close to each of us, so why not help someone be free of financial and time stress and have more time with their family? Would it be something we all would want for each other anyway?

6. “I heard that you have to keep huge inventory or stock up.” There are some business plans who require large investments or stock up to enjoy certain levels of savings and position/title. However, this is not necessary the case for all network marketing companies. There are people who may immediately see the incredible potential of network marketing and may start the business in a large way. However, network marketing is for anyone who wants to change their life and work hard to create residual and exponential wealth. And for that to happen, there are no requirements to keep inventory or keep stock. But if you have a keen business sense and a vision to grow this business, it would make sense to have available popular products that people would want to take home and use right away. Again, keeping inventory and stocking up is NOT a requirement at all to do the business. Remember to ask me how to do it right the way?

7. “It’s time consuming and I’m too busy.” This is true for some and it depends on one thing and one thing only. A decision. If most people are already busy, then they may need to review their position in the Cashflow Quadrant (Explained earlier) and understand if that is how they want to continue living their life or would they want to consider escaping the rat race. Ask any successful leader or even an oak tree how they became so tall and strong. And they will tell you lots and lots of hard work and time. There is nothing that is easy, remember, anything easy is typically sleazy. However, network marketing is the only business where you create more time as you invest more time in it. However, time spent at work (working for others) creates less and less time for you in the future. The more people you enrol and become leaders, the less time you need to spend on the business itself. You may not understand this right now, but if a mechanical engineer, after working for 10 years can create the same income per month while investing 15-20 hours a week in a well known New York Stock Exchange listed network marketing company in 4 years part time, then in terms of time, that would be rather efficient, right? Squeezing 10 years full time into 4 years part time is simply amazing and 100% possible!


8. “There is a high attrition rate.” In any business, attrition is high. Just ask your local commerce office for the statistics. For every 100 businesses, only 5 will still be around after 10 years, yet there are thousands of people going into business each day (!) In any case, there are about 90% attrition rate in network marketing as an industry. And there are a multitude of reasons for this to happen and for people to just quit the business. Most will quit during the first year of the business, when everyone jumps on board without realising the investments in time and education needed. Some will quit because they have different priorities and requirements in life. Some will quit because they didn’t know (and was not trained or guided) how to handle objections. Some will quit because their friends and family laughed at them for dreaming and wanting more. Some quit because the company, products or plan didn’t live up to their expectations. Some quit because of the team that they were in. As you can see, there are a million reasons to quit. Since everyone has a different background, experience and exposure, why some quit and yet why so many still succeed is all different. Therefore, their reasons to quit may be the reason why you will succeed. That’s why there is an opportunity still! But do you want to find out?




9. “I can’t take rejection.” This is almost the root of most people’s fear, the fear of being rejected. But if we stop to think about rejection, although it may hurt at first, but all that rejection really is, is a feedback from others that we don’t really like and thus we take it personally. If we start to understand what are the common objections people have of network marketing (through proper coaching and training) and professionally help them see it differently that they may accept it, then we can actually reduce it or avoid it. Who wouldn’t want time and financial freedom? Almost everyone would want it, but yet because they don’t understand how network marketing can help them achieve it, most people will rather reject it first. Rejection is a natural process, not everyone will want to go with you to see a particular movie, is that a rejection as well? If everyone were to accept networking marketing business and join it, it will no longer be a ‘best kept secret’ anymore (!) Find a coach and learn the steps educate others the right way.
10. “What if I fail?” If business is something that you are looking to do, then network marketing is the most forgiving business out there. Failing in a restaurant business may probably set you back USD25,000 or more. But in network marketing, you don’t actually fail. You carry no inventory, no overhead or lease any office, you have no employees or legal fees, and you have virtually no capital risk (!) And since you can always start again (per the individual network marketing company’s policies) you actually get better and better as you go along. There is no failure in network marketing if you continue to be consistent and learn from each lesson, whether it was a good one or bad one. And that is why network marketing strengthens you mentally and develops your persistence and perseverance at the same time. Constantly believing in yourself that you will succeed leaves no room for failure(!)






Now that you have understood most of the common objections of network marketing, are you READY to know which one network marketing company matches your values and principles, while meeting all the advantages discussed earlier to create a exponential, franchise based, passive income business?