I thought I would conduct a poll concerning successful marketing campaigns by business owners. I don't have polling software here so let's just keep the topic open for comment and answer the following questions (please answer as specific as possible):
1) Type of Industry
2) Specific Media form of Advertisement (Internet or classifieds is not specific enough)
3) Special Fonts or Graphics used
4) Target Market
5) Length of Advertisement
6) Peak performance from advertisement campaign
7) Break Even Point (# of sales dollars vs. advertisement dollars spent)
Any other relevant information you think is significant. Data will be compiled and presented after a reasonable amount of time and responses.
Sunday, January 4, 2009
Multi Level Marketing, Scams and Frauds
I hate multi-level marketing. One reader had thought the below mentioned business opportunity was MLM, but it's not; as a result I decided to write a little bit about MLM.
Why does MLM ususally ROT? Unless you're there at the inception of the product or service, your opportunity to realistically make significant income is non-existant. There is always the exception, but you eventually reach a point of market saturation so you have to constantly look to expand your markets. This is something many if not all Global Business Entities engage in. Look at the results - the CEOs and major shareholders reap the benefits but not the people involved in the lower levels. It doesn't disqualify it as a scam or a bad product, but then again, if their product didn't take off, then it would be considered a scam.
Looking at real life scenarios... you can work for say, Amway and make money. I knew people who got involved in early on and made several hundred thousand dollars in a short period of time but that eventually exhausted itself. Same with Shaklee. That's not to say you still can't make serious money, but it's ALOT harder now than it was in years past. BTW, these companies make some fine products but they weren't for me. Sales jobs often present themselves as having unlimited income potential, as well, but realistically, you're going to top out at some point, even with residual income coming from downline sales.
A friend of mine is a salesman by profession. He sold everything from cosmetics, to food products, to energy. He always got burnt out. Why? Well, for alot of reasons, but one of the main factors were shifting market trends, market saturation and unrealistic expectations. I would say this to people who want to get involved in a business such as MLM that it's fine if you go in with your eyes open - just have realistic expectations and make sure the customer gets a decent product or service for his or her money. Which brings me to another upcoming potential business that people might want to get involved in. I am still researching this company, but it's definately in the MLM scope of things, involving a product that will soon be hitting the stores and will be bought by the Kosher Consumer. The hechsher is pending and I am trying to see if it's what it's cracked up to be. I guestimate that from a business end of things, it will be good to get in as a reseller for the the first 1-2 years after which, forget about it other than consuming it after you buy it from the store. As with most businesses - it's a matter of timing and when you get in and out of it. I will update readers about this when I am satisfied it will be successful. Until then, please no inquiries about this particular product.
One last bit about FRAUDS. I find it very fascinating what people consider frauds. People jump into businesses not knowing anything about the industry and refuse to educate themselves or devote themselves to it and then decry it as a FRAUD and a SCAM. So stupid. These same people, though will often hold in highest regard professions such as law and financial advisement, without qualification. I know some wonderful attorneys in various fields of law and I know MAJOR scam artist lawyers who go for the kill in Personal Injury Cases and push for settlements so far beyond what is fair and just and they hurt society as a whole. People curse them out, but RUN to them if given the opportunity to make a buck, consequences be damned. Not to mention that they SWOON over how rich they are, what fancy houses they are and how could they possibly marry their kids into their family.
I used to work on Wall Street (Series 7) for a particular group, during the big market run-up of the late 80's and early 90s. The P/E ratios were really starting to skyrocket. The entire industry as a whole was a concerted effort to defraud the investors of as much money as possible, in my opinion. This was especially so concerning many of the market makers in the industry, but that's another topic. I left that industry because I would go home feeling dirty and I knew it just wasn't an ethical position for me to be involved in. The same can be said of the Real Estate and Mortgage Industries but that's at least more pure market than stocks in many cases - THOUGH, local markets were often particularly manipulated by RE brokers who had cornered those niche markets.
The moral of the story, I suppose, is to go into a particular business at the right time and place, invest your energy and money wisely and be educated and educate your customers and recruitees as thoroughly as possible. Oh, and don't let Naysayers bring you down!
Why does MLM ususally ROT? Unless you're there at the inception of the product or service, your opportunity to realistically make significant income is non-existant. There is always the exception, but you eventually reach a point of market saturation so you have to constantly look to expand your markets. This is something many if not all Global Business Entities engage in. Look at the results - the CEOs and major shareholders reap the benefits but not the people involved in the lower levels. It doesn't disqualify it as a scam or a bad product, but then again, if their product didn't take off, then it would be considered a scam.
Looking at real life scenarios... you can work for say, Amway and make money. I knew people who got involved in early on and made several hundred thousand dollars in a short period of time but that eventually exhausted itself. Same with Shaklee. That's not to say you still can't make serious money, but it's ALOT harder now than it was in years past. BTW, these companies make some fine products but they weren't for me. Sales jobs often present themselves as having unlimited income potential, as well, but realistically, you're going to top out at some point, even with residual income coming from downline sales.
A friend of mine is a salesman by profession. He sold everything from cosmetics, to food products, to energy. He always got burnt out. Why? Well, for alot of reasons, but one of the main factors were shifting market trends, market saturation and unrealistic expectations. I would say this to people who want to get involved in a business such as MLM that it's fine if you go in with your eyes open - just have realistic expectations and make sure the customer gets a decent product or service for his or her money. Which brings me to another upcoming potential business that people might want to get involved in. I am still researching this company, but it's definately in the MLM scope of things, involving a product that will soon be hitting the stores and will be bought by the Kosher Consumer. The hechsher is pending and I am trying to see if it's what it's cracked up to be. I guestimate that from a business end of things, it will be good to get in as a reseller for the the first 1-2 years after which, forget about it other than consuming it after you buy it from the store. As with most businesses - it's a matter of timing and when you get in and out of it. I will update readers about this when I am satisfied it will be successful. Until then, please no inquiries about this particular product.
One last bit about FRAUDS. I find it very fascinating what people consider frauds. People jump into businesses not knowing anything about the industry and refuse to educate themselves or devote themselves to it and then decry it as a FRAUD and a SCAM. So stupid. These same people, though will often hold in highest regard professions such as law and financial advisement, without qualification. I know some wonderful attorneys in various fields of law and I know MAJOR scam artist lawyers who go for the kill in Personal Injury Cases and push for settlements so far beyond what is fair and just and they hurt society as a whole. People curse them out, but RUN to them if given the opportunity to make a buck, consequences be damned. Not to mention that they SWOON over how rich they are, what fancy houses they are and how could they possibly marry their kids into their family.
I used to work on Wall Street (Series 7) for a particular group, during the big market run-up of the late 80's and early 90s. The P/E ratios were really starting to skyrocket. The entire industry as a whole was a concerted effort to defraud the investors of as much money as possible, in my opinion. This was especially so concerning many of the market makers in the industry, but that's another topic. I left that industry because I would go home feeling dirty and I knew it just wasn't an ethical position for me to be involved in. The same can be said of the Real Estate and Mortgage Industries but that's at least more pure market than stocks in many cases - THOUGH, local markets were often particularly manipulated by RE brokers who had cornered those niche markets.
The moral of the story, I suppose, is to go into a particular business at the right time and place, invest your energy and money wisely and be educated and educate your customers and recruitees as thoroughly as possible. Oh, and don't let Naysayers bring you down!
Subscribe to:
Posts (Atom)
