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The Network Marketing Revolution: Why Emerging Direct Sales Companies are Redefining the Industry
- 10-16-2008
- Categorized in: Network Marketing
The world of network marketing is undergoing a radical, positive
transformation. I've been investigating half a dozen network marketing
companies over the last twelve months, and while I haven't been
surprised by the usual disappointing suspects (Zrii, Monavie, etc.),
I've also found something rather startling: A new wave of emerging
network marketing companies that bring a new level of integrity, vision
and product quality to the network marketing industry.
As you'll see here, this new wave of network marketing companies shatters the myths commonly associated with old-school direct sales. Even more interestingly, the social implications of these new companies are nothing less than groundbreaking. I'll explain why as we explore their influence on issues like corporations vs. the People, the decentralization of power, the "anti-Wal-Mart effect," the future of money and even the mainstream acceptance of natural health products.
I'll discuss each of these topics in this review, and I'll offer short reviews on several emerging direct sales companies I'm looking at right now.
I've seen Herbalife, the Amways and the Monavies. I've been hit up by dozens of companies over the years, each hoping for me to publicize their products. But time and time again, I was disappointed by their formulations (too much filler), their integrity (too much "get rich quick" hype) or their product claims (this cures everything!).
This went on for a number of years until I met John Easterling of the Amazon Herb Company, who challenged my outmoded views of direct sales companies. As I quickly came to learn (see my full review below), the Amazon Herb Company shattered the myths I once held about direct sales companies being populated by self-centered, ill-informed pushers of overpriced products. In fact, I was delighted to find Amazon Herb Company distributors to be remarkably well-informed, generous, compassionate and committed to the healing arts.
To this day, in fact, some of the most impressive people I've ever met are those I met in the Amazon Herb Company (and I'm not even a distributor, but I did give a lot of volunteer speeches for the organization).
This experience broke me free from the outdated, limiting beliefs I had once held about direct sales companies. The Amazon Herb Company demonstrated to me that with proper leadership, integrity and a genuine commitment to product quality, a direct sales company can be far more effective at putting lifesaving products into the hands of people than any other distribution model.
In fact, I came to quickly realize that the structure of such companies is irrelevant to their nature. Direct sales can be outstanding or disappointing, just like any other company, regardless of its sales model. For example, I'll bet you can think of lousy retailers (K-Mart comes to mind) as well as impressive retailers (VitaCost, for example). The character of the company counts more than its distribution model.
In addition to that important realization, I also came to understand that the direct sales distribution model is, in many ways, far superior to traditional retail store distribution models (I'll explain why in a bit).
At the same time, these three companies are commercially VERY successful!
How can that be? If their products are made largely with non-impressive filler juices, how can these companies be so commercially successful? What do they have that makes people want to keep buying (and drinking) their products?
The answer, of course, is found in their compensation plans.
Let me describe it this way: Almost everyone wants to get something for nothing. Most people who join network marketing companies want to earn a fortune without having to expend any real effort in the process (or at least the minimum effort required).
In a binary tree compensation plan (like the one offered by Monavie), people who join the company hoping to get rich without any effort may begin to see new distributors appearing underneath them, in their binary tree "downline." Over time, this binary tree of distributors can become quite large, and the larger it gets, the more money the "self-centered" distributor could earn. But here's the catch: They won't earn a dime unless they personally enroll two people themselves.
In time, the self-centered distributor begins to see their binary tree growing, and they realize they are now missing out on money they could be collecting! All they have to do to start collecting that money is personally enroll two (or more) people, and then they qualify to start receiving commissions on their binary tree downline... even on some of the people they didn't enroll themselves!
Naturally, when this person enrolls two new distributors, those distributors get placed somewhere beneath them in the binary tree, potentially underneath other distributors who are now suddenly seeing people appear underneath them, too. And they, of course, start thinking the same thing: Gee, if I just enroll a couple of people, I could be getting PAID on all this!
In this clever way, a binary tree compensation plan motivates a typical "self-centered" distributor to act in their own self interest by enrolling two (or more) people. This action, of course, simultaneously serves the interest of the entire organization, including others in the binary tree, due to its spillover effect.
Because of this binary tree structure, enrollment goes viral, and success becomes infectious. Rather than each person being on their own, fighting over enrollment candidates, the binary tree structure encourages people to work together as a team. One person's success spills over to the success of the next person. The whole thing goes viral quite rapidly, resulting in not just explosive commercial growth, but also a more friendly teamwork attitude among distributors. (It's not without some level of bickering, of course, but that happens in any organization...)
In a sense, Monavie is a commercial success because it's aligned with human nature: It leverages each individual's self-interest and fear of "missing out" on money they could be getting right now. Monavie works because it's in each distributor's interest to enroll a couple of people, even when they are only thinking of themselves!
This is what has allowed Monavie to become a $1 billion company, in my opinion.
You might wonder (as I did), what would happen if someone combined the brilliance of the Monavie compensation plan with an honest, high-potency, no-compromises product. Precisely such a company has just been recently launched, by the way. I'll review them later in this story.
Continued....
As you'll see here, this new wave of network marketing companies shatters the myths commonly associated with old-school direct sales. Even more interestingly, the social implications of these new companies are nothing less than groundbreaking. I'll explain why as we explore their influence on issues like corporations vs. the People, the decentralization of power, the "anti-Wal-Mart effect," the future of money and even the mainstream acceptance of natural health products.
I'll discuss each of these topics in this review, and I'll offer short reviews on several emerging direct sales companies I'm looking at right now.
A healthy dose of skepticism is in order
But first, let me start where you might be starting right now: Network marketing companies? Are you kidding me? My first thought was the same skepticism you might be feeling right now.I've seen Herbalife, the Amways and the Monavies. I've been hit up by dozens of companies over the years, each hoping for me to publicize their products. But time and time again, I was disappointed by their formulations (too much filler), their integrity (too much "get rich quick" hype) or their product claims (this cures everything!).
This went on for a number of years until I met John Easterling of the Amazon Herb Company, who challenged my outmoded views of direct sales companies. As I quickly came to learn (see my full review below), the Amazon Herb Company shattered the myths I once held about direct sales companies being populated by self-centered, ill-informed pushers of overpriced products. In fact, I was delighted to find Amazon Herb Company distributors to be remarkably well-informed, generous, compassionate and committed to the healing arts.
To this day, in fact, some of the most impressive people I've ever met are those I met in the Amazon Herb Company (and I'm not even a distributor, but I did give a lot of volunteer speeches for the organization).
This experience broke me free from the outdated, limiting beliefs I had once held about direct sales companies. The Amazon Herb Company demonstrated to me that with proper leadership, integrity and a genuine commitment to product quality, a direct sales company can be far more effective at putting lifesaving products into the hands of people than any other distribution model.
In fact, I came to quickly realize that the structure of such companies is irrelevant to their nature. Direct sales can be outstanding or disappointing, just like any other company, regardless of its sales model. For example, I'll bet you can think of lousy retailers (K-Mart comes to mind) as well as impressive retailers (VitaCost, for example). The character of the company counts more than its distribution model.
In addition to that important realization, I also came to understand that the direct sales distribution model is, in many ways, far superior to traditional retail store distribution models (I'll explain why in a bit).
Monavie, Xango and Zrii
Most of the attention in the direct sales space over the last few years has been garnered by Monavie, Xango and Zrii. I've already written about Zrii, which I personally consider to be a deceptively-marketed, "junk juice" product associated with a false guru. Any time a network marketing company goes to great lengths to actually hide their list of ingredients, that's a sign of deception, if you ask me.At the same time, these three companies are commercially VERY successful!
How can that be? If their products are made largely with non-impressive filler juices, how can these companies be so commercially successful? What do they have that makes people want to keep buying (and drinking) their products?
The answer, of course, is found in their compensation plans.
Lousy products, brilliant compensation plans
Despite offering unimpressive products, these three companies have become very commercially successful. Monavie is perhaps the best example of this, so I'll focus on its compensation plan here. The brilliance of the Monavie plan is that it's a binary compensation plan that leverages teamwork and self-interest to create a cascading, viral marketing wave of interest from consumers.Let me describe it this way: Almost everyone wants to get something for nothing. Most people who join network marketing companies want to earn a fortune without having to expend any real effort in the process (or at least the minimum effort required).
In a binary tree compensation plan (like the one offered by Monavie), people who join the company hoping to get rich without any effort may begin to see new distributors appearing underneath them, in their binary tree "downline." Over time, this binary tree of distributors can become quite large, and the larger it gets, the more money the "self-centered" distributor could earn. But here's the catch: They won't earn a dime unless they personally enroll two people themselves.
In time, the self-centered distributor begins to see their binary tree growing, and they realize they are now missing out on money they could be collecting! All they have to do to start collecting that money is personally enroll two (or more) people, and then they qualify to start receiving commissions on their binary tree downline... even on some of the people they didn't enroll themselves!
Naturally, when this person enrolls two new distributors, those distributors get placed somewhere beneath them in the binary tree, potentially underneath other distributors who are now suddenly seeing people appear underneath them, too. And they, of course, start thinking the same thing: Gee, if I just enroll a couple of people, I could be getting PAID on all this!
In this clever way, a binary tree compensation plan motivates a typical "self-centered" distributor to act in their own self interest by enrolling two (or more) people. This action, of course, simultaneously serves the interest of the entire organization, including others in the binary tree, due to its spillover effect.
Because of this binary tree structure, enrollment goes viral, and success becomes infectious. Rather than each person being on their own, fighting over enrollment candidates, the binary tree structure encourages people to work together as a team. One person's success spills over to the success of the next person. The whole thing goes viral quite rapidly, resulting in not just explosive commercial growth, but also a more friendly teamwork attitude among distributors. (It's not without some level of bickering, of course, but that happens in any organization...)
The real root of Monavie's commercial success
This is, above all else, what has made Monavie a commercial success (in my opinion). The product is practically irrelevant. What made Monavie is the compensation plan, and how it leverages basic human psychology to amplify its viral success.In a sense, Monavie is a commercial success because it's aligned with human nature: It leverages each individual's self-interest and fear of "missing out" on money they could be getting right now. Monavie works because it's in each distributor's interest to enroll a couple of people, even when they are only thinking of themselves!
This is what has allowed Monavie to become a $1 billion company, in my opinion.
You might wonder (as I did), what would happen if someone combined the brilliance of the Monavie compensation plan with an honest, high-potency, no-compromises product. Precisely such a company has just been recently launched, by the way. I'll review them later in this story.
Continued....
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The Aim of Public Education is Not to Spread Enligtenment at All; It is Simply to Reduce as Many Individuals as Possible to the Same Safe Level, to Breed a Standard Citizenry, to Put Down Dissent and Originality. ~ HL Mencken |
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The Cure for Health Care and Indigenous Power is to Remove the AMA and FDA, and Unleash the Power and Creativity of the Free Market. Many People Have Been Brainwashed into Thinking the State Protects Them. The Truth is the Exact Opposite. ~ Morris Fishbein |
|
You may find links that lead to
interesting information, or there
may be links to undesirable sites.
If you find any of these undesirables,
PLEASE let us know the URLs so
we can block them from our campaign. |