Posted by JuJuan Buford @JSBUFORD
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Direct Selling Industry. Nick Loper. Entrepreneurship.
I listened to a podcast recently by Side Hustle Nation’s Nick Loper regarding the legitimacy or to be more accurate the viability of the direct selling, or what many refer to as the multi-level marketing industry. As I listened to his monologue I found myself working through two sets of emotions. The first being the desire to eviscerate what have become all too familiar ill-informed refrains and generalizations regarding the industry. The second, sheer excitement at the fodder this episode provided for training, clarification of purpose and goals, and how to properly distance ourselves from the real criticisms Loper was leveling.
Some may argue why elevate Loper’s commentary, or illuminate the pitfalls and shortcomings of starting a direct selling business? Wouldn’t it be bad for business? And I humbly submit to them, that as entrepreneurs we are compensated for our ability to solve problems, overcome challenges, and be the answer to people's problems, not avoid them. You have to be able to eat criticism like Skittles.
And yes, I do ardently believe the moment you begin to give mental recognition to failure in any business endeavor you’re involved in, you might as well stick a fork in your dreams. However, I also believe you should be aware of why others have failed, and what pitfalls you’d be better served sidestepping.
The reason why I decided to share what would normally be an intra-organizational message publicly, is because I adamantly believe at the end of the day, regardless of the business model, there are some universal laws and understandings that entrepreneurial success is predicated upon. And that the content that follows could be useful to entrepreneurs in general. In other words, there is some marketing content associated with my direct selling venture of choice - SmallBiz - and I encourage you to eat the fruit, and spit out the seeds.
A MORE EFFECTIVE PROSPECTING METHOD
You Receive a Call from a Friend Out the Blue, Trying to Sale You Oil, Pottery, Mascara, or Super Juice
I agree, this is a common mistake almost everyone has made in business at one point of time or another, not just in the direct selling industry. You’re on 10! about a business that you believe is going to liberate you from unfavorable circumstances that are coloring your life, help a lot of people, and ultimately change the world for the better. And so you accost people at coffee shops and networking events with your business cards and various marketing artifacts. And you jump on the phone and literally empty your innards on everyone who will listen.
Imagine sitting at a coffee shop, quietly reading a book, trying to de-escalate from a long day, and an acquaintance sits across the table from you, helps themselves to your muffin, sips some of your latte, spills a bunch of sales materials all over the table, and divulges everything they think they know about their product. Mind you, all this transpires without even bothering to ask whether the product actually meets a need that is top of mind. Not a good look, right? Can you imagine if a stranger did the same?
What is the correct approach? If you’re going to invite people you know to learn about what you’re doing, be civilized about it. Be up front and inform them that you’ve just started a new business venture that you’re excited about, and it may or may not before them. And that’s ok. Politely, invite them to learn what you’re doing, and if they know of anyone that could benefit you’d appreciate their feedback. Follow up at the time set by the person. Ask for referrals. If they are interested in what you're cooking, most people will raise their hands, and communicate that they’d like another bite of the apple.
At the end of the day, the goal is to educate people about your business and your service offerings; in a manner that is comfortable for them, and acquire referrals to parties who would be inclined to learn more. Here is a simple, somewhat dated example of what a proper invitation sounds like: http://bit.ly/8stepexposureprocess.
ENTREPRENEURSHIP IS A VERB
Kelly, the Beach Body Rep, with an MBA & Former College Athlete Who Still Has to Work Exceptionally Hard At It.
Do people drink the Kool Aid? Yep. It’s fair to say that most people nowadays would no doubt be enthralled with the idea of being their own boss, working from home, conducting transactions around the world from their IPAD, while the Secret is being broadcasted in the background, monies falling from the sky like manna. As a result of social media, it is much easier for people to get caught up with the images of entrepreneurial success and the accompanying accouterments: the cars, clothes, foodie picks, vacations, the life of leisure, and yes, more foodie picks of steak and eggs.
The bottom line is most people fail to treat their businesses like businesses, especially in the direct selling industry, and yes it is primarily due to the low cost of entry. When you invest in a direct selling franchise like system, in many respects it’s no different than buying a McDonald’s, Subway, State Farm agency, Quiznos, Chem-Dry, Jani-King, etc., etc., You are buying a system, and you need to be willing to learn that system: become familiar with the tools at your disposal, attend training opportunities, and allow yourself to be mentored by those who are enjoying success in your industry.
Sadly, newly minted entrepreneurs generally don’t adopt this approach. Most invest in their bucket of toys or watch a couple YouTube videos, and take off like a fighter jet, only to slam into a nearby tree. Most do not seek mentoring from those who may have already transversed the treacherous territory ahead of them; the worst offenders of this common sense rule actually seek advice from family and friends who have not enjoyed success as entrepreneurs.
Most fail to continually educate themselves about their new trade, craft, and or, are so focused on working in their business (their next sale), they fail to grasp the import creating and implementing systemic approaches to promoting their business, scheduling presentations, onboarding clients, and acquiring repeat customers and referrals. Gasp!
This has levels to it.
ENTREPRENEURSHIP IS THE ACCEPTANCE OF GREATER ACCOUNTABILITY & SERVICE
If you are the CEO of a publicly traded corporation, your bosses are your shareholders. In a LLC the other members, your investors, and your clients are your boss. Anyone who’s financial welfare is tied to your success or who you’ve accepted responsibility for the care take of is your boss. In other words, get your head right. At its essence, entrepreneurship is about solving an unmet need. It’s about being of service: albeit at a profit.
There are still more levels to this topic.
Easy is relative. And that’s why I would recommend most should ease into any type of entrepreneurial endeavor. Most don’t understand the COR (cost of revenue) associated with their chosen business endeavor. If you’re working at a job most fail to understand that all of the infrastructure - the utilities, marketing artifacts, insurance and bonding requirements, the accounting department, human resource professionals, the comfortable seats, the water fountains, raw materials, etc.,etc., - they are enjoying has to be paid for.
And it had to be paid for at great expense by someone who was very, very motivated.
How much self-motivation is required to be successful in business? If you haven’t eaten in 4 days, and your stomach is touching your back, and your children’s stomach is touching their backs, you’ll be way more inclined to run down a grown adult buck - antlers (people’s opinions, rejection, learning the required skills, learning the system, reading) be damned. You’ll do what you have to do. As opposed to someone who is enjoying a relative degree of comfort, whatever that means to them. If you listen to most entrepreneurs’ origination stories, it’s no coincidence that most of us are born of pain and our tenacity tempered by a willingness to endure what others won’t.
And this is why it’s so absolutely important that you define your WHY or your loco-motive. In other words your reasons for being successful have to be big enough or palpable enough to spur you on even when the inevitable pain starts, and your excuses start flowing freely. This, I’d argue is the #1 or #2 reason for most entrepreneurs’ failures regardless of industry. You need to be clear about the price you’re willing to pay, to step into the ring, and walk out with your hand raised high. If you are unable to assess the costs, seek the expertise of those who have paid the price and won at the game your playing.
COLD CALLING. NOT HAVING ENOUGH PEOPLE TO TALK TO. IT’S YOUR PUNISHMENT FOR NOT ASKING FOR REFERRALS.
Unless you have a systematic way of keeping your network growing, once you’ve exhausted your warm friends and family, your dead in the water. If you aren’t a natural marketer or sales person. You quit.
My academic background was in English, Sociology, & African Studies. Like a lot of young men in Detroit, I worked at Foot Locker, Imperial Sports, Art Van Furniture, and waited on tables for spending money, and at times manage a subsistence lifestyle. I excelled, but didn’t break any records at that stage of my life.
What was I best at? Being a community activist, and I’m talking about more than just holding a picket sign. We took over buildings, introduced monetary consequences into the equation, became very effective at making the kind of noise that couldn’t be smothered by a random media campaign. We specialized in causing problems and tearing sh&% up.... moral victories weren’t of much use to us.
In other words, I was not a natural born entrepreneur or salesperson. I’m not a natural born leader. I’m not married to a particular product, service, or company. What I am devoted to is equipping myself with the tools to help people; more specifically helping entrepreneurs level up. I believe it’s one of the greatest forms of empowerment. It’s freedom.
Here’s the thing, no matter how ripe the market may be for our services, not everyone is going to want a bite of the apple. And that is why we teach as an organization that our primary job responsibilities as SmallBiz & LegalShield entrepreneurs are to simply perform the following tasks on a daily basis, depending on your schedule. These are your KPIs (key performance indicators) or RGAs (revenue generating activities) that matter the most.
1. What are you doing on a daily basis to make sure the market is aware of your services. In other words, commit to the exposure process. USING TOOLS.
https://www.teamnewhorizonsblog.com/2017/07/nmpro-163-exposure-to-exposure.html
http://www.teamnewhorizonsblog.com/2017/08/8-step-process-for-invitations-exposures.html
https://www.teamnewhorizonsblog.com/2016/10/exposure-methods-by-theresa-aucoin-using-former-legalshield-name-.html
2. Introduce your services to potential clients. In other words invite guests to hear presentations dispensing 100% of the information. Study the presentations. Find your voice. USING TOOLS.
Understand our Value Proposition - http://bit.ly/4truthsaboutourcompany
Study the Best Presentations - http://bit.ly/bizmodelperfected
Our Cause is Noble - http://bit.ly/ourcauseisnoble
Career Overview by John Hoffman - http://bit.ly/embarkuponanewcareer
3. If you're not acquiring referrals, you're not doing it right. In other words if you’re cold calling frequently, or running out of people to talk to, it’s your punishment for not asking for referrals.
Referrals Webinar - http://bit.ly/doubleourincomebuildyourbusinessreferrals
THE R3 SYSTEM - https://www.shieldnation.com/r3system
4. Create Happy Members/Clients
- Make sure members download the app
- Make sure your members call the law firm for the primary reason why they enrolled. Follow up with them and make sure their needs are met.
- Make sure members complete their estate planning questionnaire
- Make sure members access Membership Perks
The majority of entrepreneurs are far from spectacular.
They’re not particularly gifted.
They're just better informed and trained better than everyone else.
5. Visit the ShieldNation Onboarding Training Site - https://www.shieldnation.com/b2bonboarding - and explore the curriculum one training at a time. You will need to register; set up a username and password to access the training site in its entirety.
THERE ARE BAD ACTORS IN EVERY INDUSTRY
You’re only making a percentage of each sale, and the product has to be marked up, to share with the upline, the company, you. It’s tough to compete in an environment like that. It makes commodity types of products harder to sell.
Loper is 100% correct in his assessment. However, the COR (cost of revenue) has to be accounted for in every product or service sold. There are no free lunches. In other words, this criticism is probably the least applicable to our business as SmallBiz & LegalShield entrepreneurs.
However, what Loper is speaking to is the primary reason why I’ve avoided product, wholesale type business models in the direct selling industry. Let’s face it. The only way you can justify selling lotions, potions, mascara, pots and pans, or coffee at a higher price than can be found on the market is to attach some mysticism to it. The special ingredient, magic pill, super magic berry, elixir element to it. Sorry, I have to be able to look at myself in the mirror at night.
Here are some truths about our company. There is nothing magical or sexy about our services. Our services are just very useful, and important.
- Nearly 90% of U.S. & Canadian citizens do not have any form of legal protection.
- The American Bar Association has repeatedly issued reports stating that 50% of households are dealing with a legal situation that is negatively impacting people in the form of stress, time lost, or monies being spent as the very moment.
- 60% of households would be interested in purchasing affordable legal protection
- 30% will make an immediate buying decision
- Add in human resource, tax & accounting, marketing, intellectual property, and legal issues inherent to doing business, and it’s easy to see why our company continues to flourish.
Now, while our services may not be sexy so to speak, our compensation plan certainly is. We’re compensated up to 48% of premium & and an 18% trail on the back end. Our services are priced to move, our retention is 80%, and in the B2B division of LegalShield enrolling a 1,000 members is par for the course. What does this mean practically speaking to YOU…. you can expect for every 1000 members (average premium of $50.00), to earn approximately $60,000 in residual (annually recurring) income.
IMPORTANT SIDE NOTES….. REAL COMPANIES DO REAL THINGS. AND LANDMINES TO AVOID
Notice, I’ve not mentioned recruiting one time (I think) in this entire dissertation. My entire focus has been on the education of the market about our services, and creating happy customers. And I’ve done so on purpose. The bottom line is if we weren’t offering a viable product or service, meeting an actual need, we wouldn’t be in business. We’re not a fad. We’re addressing a real issue, and dominating a real market category.
Recruiting talent allows us to create leverage, just as in any other business, but recruiting in and of itself does not put one red cent in our pockets. Matter of fact, taking on a bad recruit is a time and money suck of epic proportions. It’s akin to taking on a bad employee. In other words, this part of Loper’s critique should fall on deaf ears regarding our company.
Refusal to Follow a System
I don’t want to be redundant here. But, understand, when you become a SmallBiz entrepreneur, you’ve made a decision to implement a proven system that has resulted in over 600+ families that have earned 6 & 7 figures from home. Meaning they are actually financially independent of a job. Who would you rather be.
#1) Working your a$$ off to earn 100k or 1 million dollars, only to have to work just as hard tomorrow as you did yesterday. Or person
#2) Who follows the system, the business model, respects it, and earns $60,000 or $500k whether they roll out of bed or not tomorrow?
#3) Nope, the aforementioned income examples are not guaranteed. Neither is your job. If you still believe in job security, you might as well believe in the toothfairy.
Not Continuing Personal & Professional Development & Participating in Peer Groups of Success
Entrepreneurship is not easy. And yes, the juice is worth the squeeze. But it’s not easy. You’re going to have to work, and I’m good with that. I don’t mind hard work, I just want something to show for it. Being an entrepreneur requires that you see what others call problems as opportunities to solve first. And being the first to offer a digestible, effective solution. Entrepreneurship requires that you be a constant learner. If you’re not committed to habitual growth and learning, how do you expect to be able to stay valuable in an environment that is constantly evolving and changing?
You need to plug into the calls, be about reading recommended content, attending events with your business partners, and be social with those who are leveling up as entrepreneurs like you. Being an entrepreneur requires a willingness to swim upstream against the currents of what everybody else is doing. Buffet shares frequently, if you see everyone running to invest in something, do the opposite and you’ll be right most of the time. But fighting human nature is easier said than done. Get around people who are swimming swiftly against the current, borrow from their enthusiasm, faith, belief, skills, know how, experience, successes, learning opportunities, and tenacity, when you lack these things yourself.
As always, I celebrate your success in advance!
#entrepreneurshipisempowerment
JuJuan Buford is a Detroit native, entrepreneur, business development professional, public speaker, and writer dedicated to helping families, entrepreneurs, and business owners establish thriving enterprises, achieve financial independence, and build lives of satisfaction.
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