In my last post, I provided insight on creating excellent sales tools for your network marketing organization. While we’re on the subject, it’s important to address a common pitfall regarding those tools: how to provide them to your organization.
First, they should be offered to your organization at your cost. Your goal must be to avoid regulatory problems while earning tremendous income through the legitimate movement of company products to end consumers. You might be tempted to profit from sales tools, but that’s the dinosaur approach.
The big money in today’s networking arena results from product movement and not from the movement of sales aids. In the old days of MLM success, leaders would consistently earn more money from tapes, books, and brochures than the actual movement of company products. That was fair and it still is. It’s called free enterprise. But in today’s world everyone knows that an audio can be dubbed for a quarter and many folks consider it offensive that their uplines would sell a tape for ten times that amount. It’s not unethical or immoral. It’s simply stupid and greedy.
It’s important to keep in mind that the essence of network marketing has always been the process of recruiting a large organization to move a significant amount of products or services to the largest possible number of people. Those leaders who figure out the best and most inexpensive way for folks to do that, will ultimately achieve the most wealth. Some would argue that any leader who creates a great tool deserves to profit dramatically. I agree. It’s a question of whether that leader feels better about profiting from his organization’s success or at their expense. Either your people will appreciate your efforts to provide them with low-cost tools, or they will resent your willingness to profit from their sales and purchases.
It’s also very important to keep this simple concept in mind; a leader is someone who demonstrates what is possible. If your actions imply that the way to prosper in MLM is to create sales tool profits through exorbitant pricing, that’s what your people will plan to do. Pretty soon, all your best people will be focused on generating side money rather than product movement. There are some phenomenal distributors in MLM who have left our industry in order to pursue a career in lead generation systems,
recruiting tools and consulting. That’s everyone’s loss. No one ends up sadder than the dynasty builder who has lost the vision of passive residual income.