Here’s something more to validate the “No promises. No Problems” approach we’ve been hammering on in this blog. See also “I know who’s giving us the bad rap”
The New York Times headlines this today (PDF here in case):
Why Short Sellers Want to Crash the Tupperware Party
Here’s from the piece:
“When the Federal Trade Commission proposed new rules this spring for multilevel marketers — businesses best known for commercials that promise riches selling herbal supplements and beauty supplies — it drew howls of protest. Tupperware party-givers, diet pill vendors and knife salesmen sent the agency more than 15,000 letters complaining that the proposed rules would undo a $30-billion-a-year industry.”
The article reports that short stock sellers are now an ally with the FTC – the short sellers are “betting that the stocks of multilevel marketing companies will decline when the new rules, which have received little public attention, go into effect.” (They have not yet – KK.)
The new rules “would require companies to tell potential recruits how many sales representatives have failed to earn more than their start-up costs…”
“If companies have to tell recruits that the average income is only $1,400 instead of the $50,000 advertised on their Web site, or that the average salesman only lasts two months, a lot fewer people are going to sign up,” said Mimi Sokolowski, an analyst with Sidoti & Company who follows Tupperware Brands, Nu Skin Enterprises and other publicly traded multilevel marketing companies.”
She ads – “if the proposed rules pass without modification, recruitment in the United States could fall by as much as 40 percent.” (Chances are good the rules will be modified a bit – KK.)
The story uses Pre-Paid Legal as an example of short seller enthusiasm (although they mention Avon, Tupperware, NuSkin, Herbalife, Mannatech, USANA Health Sciences and Medifast.)
“Under the rules, Pre-Paid Legal would have to tell prospects that fewer than a quarter of its sales representatives sold more than one insurance plan in 2005, something it disclosed to investors in a filing with the S.E.C. While Pre-Paid’s Web site tells prospects that if they “market just five memberships per week, you’ll receive $500 per week!” very few representatives have consistently sold five memberships a week.”
Promises are killing our business. Because they aren’t true. It is NOT easy to make money doing this or any other business of one’s own. Plus we don’t know for sure how a product will affect someone else, do we?
We don’t need the promises. Stories of what happened for you or others? Yes. Dreams? Yes. Promises? No.
There are ways to excite people about the business AND the products you love without ever making a promise about what they’ll do for someone else. Check out If my product’s so Great, how come I can’t Sell It? or the So You Want to Be a Networker? CD program.
Or come with us to Network Marketing Central where people hang out who strive NOT to make promises they can’t keep – and still excite others about the possibilities.
P.S.If you know any companies or trainers who show reps how to sell WITHOUT making promises they can’t keep about the income a prospect can make, or without promises about what the product will do for someone else let me know, with a link to the sites that demonstrate that. I’ll be happy to give them a plug.
Great article. I wrote about this exact same thing at my website http://www.MommyRoxy.com
Network Marketing is called NetWORK marketing, not NetFREE, not NetGETSOMETHINGFORNOTHING, not NetLAZY. It takes work. It can be done, but I don’t want to bring anyone into my business that is not fully aware of the fact that they can’t get something for nothing.
At Mentoring For Free, we teach people that there must be a proven system in place. Create relationships with people and TELL THEM THE TRUTH. That is the only way to go.
These companies who make false promises and tell people they can sign up, do next to nothing and get paid are all hurting this industry. We need to band together and show people how real network marketers do it.
Just keep beating the drum and the word will spread.
Roxanne
Here is a recent weblog entry by someone trying a network marketing product (company info removed):
“I just made a huge purchase today, and I’m hoping that it’d be worth it. My friend Lorraine was raving about how [–], this new drink offered by [–], is creating waves, positive feedbacks from consumers, and most important of all, how it improved her overall health. Her eyes don’t hurt anymore ( given her delicate eyes ), and she is not as stressed as she is. Well, of course, being the salesperson she is, she knew my weak and soft spot-she told me that it would really make your skin soft and smooth. . . . I was determined to give it a shot – for a span of one month to see the effects on me. Will it make me sleep better? Will it make my skin less dull and tired? Stress is too much to bear that I’m willing to try anything to make myself feel better. For a whopping $150.00 for 2 250 ml bottles, this better work!”
Talk about some promises!
— Walter, from Appleton, WI
Kim:
So does anyone really think that the proposed legislation is going to “protect the public”? I don’t think so.
There will always be people looking for the “fast buck” with promises of the quick fix. And there will always be people with some money and a dream that will part with their hard earned bucks for a promise of a quick fix.
I’m now an advocate for the No Promises, No Problems mantra.
It’s a matter of business ethic.
And you cannot legislate ethics. If there comes a time in the near future that all NWM companies adopt this moto then and only then will the public truely be safe.
The public will then be able to hear the promises and false claims and hopefully run the other way.
Create A Great Day
I concur completely. People did it to me and even though I hated it, I went out and did the same thing because a very dear friend of mine lent me product to try and I loved it. I jumped in with both feet because of the promises.
I was with a company that made me the promises. I put my heart and soul into it. I went to the meetings, got on the calls, and did the trainings. Only to hear about the stuff and to hear how I would surely make a gazillion dollars in very short order. Upline said it was a sure thing.
I spent a small fortune on the stuff and spent countless hours away from home (and my kids) because I just had to try harder. I had to somehow learn how to approach everyone in skin and hair, and hair is optional, and to tell them how much they would love my stuff. I made my list of 100 names and called them all. I was told to keep calling because the statistics say that most sales are made during that 4th phone call. I was told that if it’s to be it’s up to me blah, blah, blah. Well, it sure was.
I had to find out for myself that I needed to make a move. Many have moved before and many will move again. My point is I wanted to love that company forever and ever till death did we part, but just like my first marriage… I had not done my homework. For the love of God, do the homework! You will be so glad you did. Get my free gift to anyone who is ready to do some homework at http://www.MammaLisa.com
Wow,
Great post Kim! It’s funny when you hear those kinds of promises how easy it is to believe them because we want so badly to.
A few years ago I joined a company because the lady I signed up under told me she made lots of money , and she did… but she was one of the very few. And of course there was a company before that.. my favorite… who sat me and my ex down to ask us about our dream car, house, vacations and tell us how they could be ours if we just did what they do… big promise we said no to! lol
I have to agree with this business approach, that is exactly how I run my business. No promises. I wish all businesses were run truthfully. Even when a team member shares with me their ideas of ad copy or something like that, I am quick to point out that they can or cannot make an income or health claim. I will not let that pass by me without saying something because it ruins the industry.