Wednesday, March 11, 2009

Why I Don't Sell Lotions, Potions...

...Powders, Pills, Vitamins, Minerals,
Herbs, Nutraceuticals, Juices and other
"So-called" MLM Consumable Products
....by Rich Cox, 37 year MLM Professional

About once per week I get a call from a well meaning MLM "pitchmeister" touting the latest and greatest new product and company that is going to become the hottest thing ever to hit the MLM industry. Invariably this call touts a product that will do everything but grow hair on a billiard ball! Being personally follicley challenged (bald) I have been awaiting, to no avail, for just such a product for over 30 years... and I'm STILL waiting! Of course the dream product is one that you and your MLM company have that absolutely no other company has to offer the world. It is globally patented and backed by a multi-billionaire owner. So, what's the big deal?    Just find one of these "dream companies with the dream consumable product" that everyone needs and can't live without... and everyone gets rich! I've never personally found such dream company or product but let me tell you what I HAVE found.

For the past 37 years I have worked with a handful of companies and have built, with the help of some tremendously talented people, some very large business organizations. Three of these companies are still in business. For a variety of reasons I no longer market these company's products. One of the downlines of which I was one of the "sparks" to get started developed into over 1,000,000 distributors and has created multiple billions in sales over the past 18 years. Another downline which I began in 1994 developed into nearly 500,000 associates which have sold or consumed
nearly one billion dollars of products over past 15 years. Approximately one in five of all its sales force and 20% of its annual volume, which today is nearly 400 million, grew out of the 28 people which I originally sponsored. Within the past 4 and 1/2 years I was a partner and business consultant involved with another marketing company that over the past 9 years has sold hundreds of millions in health related consumable products.  Two years ago I walked away from this latest highly touted company and
products to sell a small line of non-consumable products. I'd like to offer you some of the reasons why.

First of all I'd like to share some of the little discussed realities of working with and building networks to sell the kinds of consumable lines of products mentioned in my header.

1. Virtually every product in the marketplace offered by MLM companies is not completely proprietary, although in a few cases there may be some patents attached to them. Most can be easily "knocked off" by someone selling a product that is nearly as good or can accomplish the same thing as the one you are offering. This happens almost every day in the real world of marketing. If your product is REALLY "hot" it gets duplicated, usually by someone selling it cheaper than the one you're selling. Just look in almost any health food store and see what they have compared to your 
company's products.

2. The typical MLM consumable product sells for $25 to $50 per bottle, jar, package, etc. Most companies require a minimum monthly order to stay "qualified" to receive commissions and bonuses. Generally this amounts to about 100 in BV or PV that may cost you MORE than $100 to stay "qualified." Keeping people (customers OR associates) ordering these products on a consistent basis month after month is nearly impossible. The "half life" of most consumers is less than 3 months... associates and distributors 6 months. You've got to keep recruiting faster than people can quit...
something few people can successfully do.

3. Most of these companies which sell the type of products described  above are basically "wholesale buying clubs" with little to no emphasis on RETAIL sales. Because the wholesale/retail price differential is generally about 25-30% and, given the fact that most MLM products are perceived to be "overpriced" to begin with, most distributors sign up their customers as wholesale product users. Show me one national or international sales and marketing company where their sales reps can stay in business selling 98% + of its products WHOLESALE that can can stay in business?
Generally these companies and their sales reps go broke! 90% + of all network marketing (MLM) companies and their rank and file distributors go broke or out of business within the first 12-18 months! It is a nonsustainable business model in a high percentage of cases.

4. Since most products are priced with such a low wholesale/retail price differential the typical earnings per retail customer is minimal...$5 to 10 per item. And since most customers sign up to purchase "wholesale" the profitability per item is far less, generally in the neighborhood of 7-10% on all personally sponsored and "downline" sales. Since the average distributor enrolls 1.8 people you've got to have multiple hundreds or thousands of customers/and or associates to earn any significant money.
Of course we've all heard the "Just get 5 who get 5 who get 5 and you could get rich!" Since there are only one in thousands who can do this over any sustained period of time (by personal observation and downline analysis), you're lucky to receive a check for $30-50 per month.

5. What one continues to see held up are the "poster children" who are the "exceptions" that defied all odds and became big winners in one of the above-described scenarios. The "average" distributor in one of these downlines almost invariably gives up the dream of making lots of money OR goes into a fallback position of consuming your product until something "hotter" comes along.

6. Since only about 2% of the North American population does or has done any kind of MLM program the so-called "heavy hitters" are almost always recycled from other programs which went stale and they now  become "pitchmeisters" for the latest greatest "be all end all" deals. They manage to get some of their followers to join them and the process repeats itself over and over again.

So where does all this leave me? Well, I'm currently happily involved with a company out of Reno, Nevada called Ionways,LLC. They market a line of patented and proprietary water machines called "ionizers." The parent manufacturing company (EmcoTech) is the largest and arguably the best manufacturer of this kind of equipment anywhere to be found in the world. Although there are a number of "assemblers" of this type of equipment, there are few actual manufacturers, especially with the research and development capabilities of EmcoTech. They are a 25+year old company with estimated monthly sales of around 50,000 units. All but a few
thousand  of these units produced monthly are sold to Asian markets. An estimated one in five Japanese households have such a unit. One in eight Korean households are estimated to own one of these kinds of water units.

Ionways water ionizers sell from $1,395 to 2,645. Our flagship product, our over-the-counter Athena, comprises the bulk of our ionizer sales. This unit sells for $2,095 and I believe is the best ionizer on the market today, dollar for dollar and ounce for ounce of water produced. There are machines that sell for $500 to $5,000 or more that cannot come close to producing the quality of water for the guaranteed 5 year warranty period and/or the estimated life expectancy of the unit (10-20 years). I will gladly
provide another document produced by good friend and Ionways Executive, Patricia Peak, that goes into a line for line comparison between Ionways ionizer equipment and the other units in the market place.

So I'd like to add just a few last words on perhaps THE most important part of this article... what makes selling Ionways water ionizers better than the so-called "consumable health and personal care product lines" mentioned above? Let me list just a few.

1. It's EASY to get into a conversation with people about water! Everyone seems to be buzzing about water in some form or fashion. Just check the newspaper and almost every week there is some kind of article on water! 

2. Bottled water is a 15 BILLION dollar annual business and growing. Tap waters are known for their chemical pollutants even containing prescription drugs that find their way into people's homes through their water supply! Distilled and reverse osmosis filtered water are "acidic" and lead to more health challenges in many cases than they help prevent! The same "acidic" properties are found in most bottled waters... check them out! I HAVE! Oh yes... Bottled waters cost more than gasoline when compared
gallon for gallon... one I tested cost more than $15 per gallon!!

3. Ionways water ionizers produce what I call the "Healthiest Water in the World" or as another has dubbed it, "Nature's Best Water," for pennies per gallon over the lifetime of the unit. It is the best tasting water I've ever drank too! Sweet and incredibly hydrating!

4. To earn money one can enroll in Ionways for $79 plus shipping costs of about $7 which give you a media kit and access to a replicated website to which you can refer retail customers and potential distributors.

5. On each Athena sale you can earn $200 to $350 ($700 per machine if you are pro-pack qualified ... a relatively easy thing to do). Selling one ionizer is virtually as easy as selling a $50 bottle of pills... and a WHOLE LOT MORE PROFITABLE!

6. Commissions and bonuses totaling approximately $1,000 per machine are paid out to the selling Associate and the upline on each and every machine.

7. Ionways is the most lucrative direct sales/MLM program I have ever been involved with. It doesn't take hundreds or thousands of downline distributors or associates to earn significant monthly income. Sell one unit and you can earn more than most people do in an entire YEAR of selling lotions, potions, powders and pills, etc.

8. No one has to purchase a unit to participate in Ionways, the most lucrative of all selling opportunities with which I've ever been involved! I have one Associate who earned nearly $5,000 who didn't own a machine but went to work telling everyone he knew about this amazing equipment! (He now owns one our machines!).

9. Ionways alkaline ionized water equipment has been THE most important health discovery of my lifetime! The water has totally changed my life in EVERY aspect. I was dying of congestive heart failure and in and out of ER more times than I could count. Today my health is better than it has been in years and I can't thank Ionways or the people who introduced me to this technology enough for all it has meant to me.

In closing I would like the opportunity to speak with each and every person possible about this most amazing equipment and opportunity.

For more information please contact Greg Clowminzer at 760-930-9604. Please take the time to check out this water ionizer equipment. It could save your life and those you love and cherish most.

Click here and receive you FREE eBook filled with 15 pages of fascinating information concerning the incredible health benefits of alkalizing your body and drinking alkaline water. 

No comments: