- This post ONLY applies to health and fitness professionals who are attempting to BUILD THEIR OWN BRAND
- This mostly has to do with supplements — but might apply to other products and services you market and sell to your clients.
- Listen, I don’t care who your marketing guru is … or the advantages of “passive income.” And, the “quick money.”
- Believe me, I’ve heard it all. Convenience… quality… scope of practice… blah… blah… blah… I don’t question the QUALITY of MLM products. They could be excellent.
- It has EVERYTHING to do with YOUR COMMITMENT to YOUR BRAND. Translated: = YOUR COMMITMENT to YOUR BUSINESS.
A RANT ABOUT YOUR BUSINESS…
This may be a bit of a rant… but it’s so IMPORTANT for entrepreneurs to understand the MLM Model and NOT be duped into diluting their own brands, losing profits, and giving away client contact information.
So, once again, I want to pound this marketing nugget into your marketing consciousness….
MLMs Put YOUR COMMITMENT
to the TEST
- If you’re being talked into an MLM, then, the person doing the talking is probably receiving an override – $$$. Prove it to yourself… just ASK him/her. He/She is NOT COMMITTED to YOUR BRAND.
- MLMs are all about recruitment of more sales reps and more sales volume. MLMs are NOT COMMITTED to YOUR BRAND… they are deeply COMMITTED to THEIR BRAND.
- If an MLM requires your client’s contact information (your most precious asset), then YOU are NOT COMMITTED to YOUR BUSINESS.
MLMs and their recruiters will NEVER, EVER tell you about the advantages of:
- higher profit margins
- protected price points
- increased brand loyalty
- product exclusivity
…when you offer your own private-labeled, branded products.
They are not really interested in your COMMITMENT to YOUR BRAND, BUSINESS and long-term growth.
They are much more interested in their own brand, business and long-term growth… through your efforts!
Here’s What Else You Should Know
- MLMs and Affiliate programs offer lower profit margins. Usually between 15-25% as opposed to 80-100% with your own brand.
- Their products are available everywhere and to everyone. Often your own members become recruiters within your own facility.
- You end up building their brand as opposed to building up and creating loyalty to YOUR OWN BRAND.
- You give up your most precious asset – your membership/client contact list including emails, addresses, phone, etc. (THIS IS CRAZY!)
- Autoship programs often turn into a messy situation with customers getting “stockpiled” ultimately blaming YOU!
- MLMs and Affiliates eventually no longer need you since they already possess your member/client list!
The Numbers Tell the Story!
Just take a look at a typical single supplement purchase below with the exact same retail pricing. Look at the difference in profit margins. Now, multiply it by 100! Would you rather make $6,800 or $2,799..?
It’s Easy to Sell Against MLM Products
If you are selling MLM products… and I am your competitor... I would USE that information to sell AGAINST you.
I could easily make the argument to a new prospect that I have researched the industry for the absolute best formulations before putting my own name on them.
That’s because I care about providing my clients/members with the absolute best products and services available.
And that you, as well as all other competitors who market MLM products, are too cheap to invest in an inventory of super-high quality formulations.
That you sell a brand that is marketed to every Tom, Dick and Harry that walks the planet.
That this is a reflection of your business practices and the type of services they can expect from you!
At the end of the day, I will get the client as well as the repeat sales of supplements. Every time!
IT’S NOT ABOUT QUALITY…
IT’S ABOUT BUSINESS AND BRANDING
Let me be perfectly clear. I believe most products from MLMs or Affiliate Programs are solid. This rant is NOT about the quality of the products or formulas.
What I object to is the PROFIT MODEL for YOU — especially if you intend to GROW and BUILD a profitable BRAND and business.
Commitment Vs. Convenience
If you are selling supplements via MLM or Affiliate Commission programs, then, you have NOT taken the time to really think this through.
Instead, you are demonstrating your preference for CONVENIENCE over your COMMITMENT to build YOUR BRAND/BUSINESS.
It’s is a poor business decision in so many ways. Read the bullets again. Beyond the money, even the non-tangible impact of MLMs and/or Affiliate programs is ultimately a MONEY LEAK.
And, if your sales and marketing consultant is pointing you toward a specific MLM or Affiliate commission program, then ask him/her if they get a commission or override from your sales or recruitment.
I’d be willing to bet on it!