New Markets and Trends Merge Into Record-Shattering Success For Seasoned Entrepreneur
Markethive.com Founder and CEO, entrepreneur, and innovator Tom Prendergast was recently quoted to say, “With the advent of a real Market Network (i.e. Markethive) and an emerging, real customer centric network marketing company (i.e. Valentus), even I was surprised at the ease of building a new empire in this industry”.
In one of his recent online training conferences, Tom explained the evolution of his contrarian philosophy and how he arrived at his present success-maverick by saying:
“I have been an advocate for ending the business practices of buying and selling leads, spam emailing, spam faxes, telemarketing, pop-up ads, billboard ads, and the whole practice known as outbound marketing.”
“In the old days, before the internet came into its prime, these practices worked somewhat but over recent years they have become less and less effective and more and more resented by the general public. I should know because I’ve been using and watching the growth of the internet since its very early days going back to 1991.”
Even before the advent of the internet, Tom was a creative and competitive marketer, running his own ad agency in Silicon Valley and deeply involved in the emerging technology of that time. Within just a few years of that time, Tom was introduced to Network Marketing and he found it very fascinating that anyone with some skill and determination could have a reasonable chance to build a livable income on the internet.
This realization nurtured his empathetic support of struggling prodigies, up and coming entrepreneurs, and anyone who had greater dreams than the typical job afforded them. Tom says, “Although I was aware of buying mailing lists for my ad agency in the 80’s, I was not aware of that technique being used by MLMers to call people supposedly interested in a business opportunity.”
Tom remembers how, much to his shock, he found that most MLM industry leaders of that time who had large followings would tell those they recruited into their pyramid schemes to buy these leads and cold-call them.
Note: keep in mind that these people had very small or nonexistent spheres of influence… especially if they had already been in a network marketing company before.
Tom says, “My instincts told me this was a bad idea and a serious mistake. But these “leaders” promoted this technique because they had no other real options, ability, or intentions to help these people who had just enrolled into one of their deals which always turned out to be just another ‘Hopes and Dreams’ bait-and-switch game.”
This mind-set was painfully illustrated to Tom in a relationship with a friend of his at the time (let’s call him ‘David’) who had a talk show, had published several books, had a strong sphere of influence, had just joined a newly launched MLM deal, and was conducting a teleconference call with all his new recruits.
On that call, David told all the 1000’s of listeners to go to his friend John (i.e. David’s friend) and buy the leads (jwhich John’s company had alledgedly pre-interviewed) for approximately $199 per 100 leads.
Tom remembers his experience with no great joy:
“This was the mid-1990’s. I bought 100 of these leads, costing me $1000, and called them all… and the results were as follows: 80% insults, 15% hang-ups, and the rest ‘no answer’. Not one of the people I talked to remembered any interview. And the rejection level was as high as it gets.”
Tom soon realized that this was an experience that would eliminate anybody new to MLM from any further interest in it…or at least from ‘buying leads’. This is the kind of rejection only ‘boiler room’ telemarketers and well-seasoned sales people can long endure and it is immediate and certain Death to the average person excited about pursuing their dream by working their new MLM opportunity… regardless of how much they like the product.
Two Powerful New Concepts In Internet Business
As the internet seeps into the fabric of global and local business, the evolution of technology and thinking always brings new opportunities for those perceptive enough to see it. Two fairly new concepts are generating a lot of interest for opportunity seekers.
Those two new concepts are (1) Customer Centricity and (2) Inbound Marketing. Think of them like a brother and sister, i.e. different but related and mutually supportive.
Tom believes that Amazon.com is the best current example of customer centricity. Very few people see any connection between Amazon and the MLM industry but Tom has been advocating that MLM companies become customer centric for many years. Since a company’s distributors are, in one sense, their ‘customers’, it only makes sense that MLM companies would treat their Distributors very well…but Tom says most don’t.
Tom says, “Less than 1% of MLM industry leaders understand customer centricity and the other 99% are uninterested in it. These companies continue their traditional modus operandi of selling ‘Hopes & Dreams’ wrapped extravagantly in thinly disguised pyramid schemes with overpriced products which rarely do what they are claimed to do and which are difficult if not impossible to the average person to retail.”
This is like running a car without oil for an extended period of time: it might appear to work for a while but when the engine starts smoking, as we see in the MLM industry now, you know it’s too late.
There have, however, been a few MLM companies which made a weak effort to become customer centric. One of these companies, Trivita, abandoned their customer centric efforts when new management was ‘turned by the dark side’ and that decision is destroying the company as commissions have been cut several times during the last three years, dissension is widespread within Distributor ranks, and an accelerating exodus ‘for the door’ if discernible at all levels.
The second company which tried to be customer centric is Beachbody. Beachbody offered a form of Distributor Acquisition based primarily on infomercials (as did Trivita) but the effectiveness of that method of advertising is plummeting dramatically because of falling viewership of traditional cable and ‘dish’ TV networks.
Bottom line… both these companies are in serious trouble.
Tom says that he doesn’t think most companies in the MLM industry are too big to change… even if they wanted to (which very few do). But, those who do chose to embrace this new Customer Centric paradigm must follow these guidelines:
The company focus first on the needs of the customer. Not the Distributor.
Distributors must be able to successfully retail their products at a profit, irrespective of the business opportunity, to retail customers and/or on ecommerce platforms like eBay, Amazon, Craigslist, etc.
A virtual warehouse supporting the distributor by allowing them to purchase in bulk for greater savings while the inventory is kept at the company until the distributor or a customer needs it drop shipped.
The availability of cooperative advertising partnerships which allow the distributor to partner with the company and/or other distributors to share in generated customers and/or recruits at a reduced cost. This has been done by a few companies and it does work.
Other modern technology that should be brought into play are 800 ph# platforms, self-replicated ecommerce site for Amazon, eBay, etc., shopping carts for 3rd level distributors domains, and social media marketing apps which enable easy selling and purchasing on social markets.
‘Good enough’ isn’t good enough anymore. With the marketplace awash in innovation and technology, i.e. innovation which does put the customer right in the center of the equation, yet almost none of it being used my MLM companies… it’s no wonder that most of them are dying on the vine while others fall flat on their faces after their expensive, Hollywood style launches.
It takes a lot more than a slightly attractive website, a celebrity spokesperson, a few halfway decent videos, and a cute infographic for the company comp plan to ensure company success today.
It is only a matter of time before a young, bold, tech and marketing savvy entrepreneur launches the first true customer centric MLM company similar to the above-mentioned guidelines. Tom and the community members at Markethive believe that when somebody does launch such a company the world will quake, the swamps will empty and the first truly multi-trillion MLM enterprise will rise to stand equally with other successful trailblazers like Facebook, Google, PayPal, etc.
Such a company will use Inbound Marketing rather than Outbound Marketing techniques.
Old school MLM marketing is almost totally ‘outbound’ marketing oriented. Successful MLM companies must use Inbound Marketing. The difference is that ‘outbound’ marketing is hunting´´ for customers and recruits whereas ‘inbound’ marketing attracts´´ customers and recruits.
The Market Network – The New Leading Edge Of Digital Business and Society
But if there is anything else (and there is!), a magical new catalyst, in the digital world… it’s the Market Network.
What is the Market Network?
Let’s put it in perspective first:
First there was direct selling, then there was direct selling companies, then there was MLM companies with their deceptively alluring, misapplied, and ultimately corrupting element of recruiting, then…there was the internet.
The internet and particularly Facebook and Youtube, had a profound affect on business, marketing, and even the MLM industry. But it only went as far as social media.
There is something else and this is exactly what Markethive is… the first fully functional Marketing Network because it combines the three elements of a Market Network:
A social community united around a shared theme (e.g. entrepreneurship)
An organic virtual marketplace´´ of buyers and sellers.
SaaS (Software as a service to facilitate transactions among the community).
The marketplace is a place for transactions among community members. Examples are eBay, Etsy, Uber, and LendingClub.
Networks provide the social element, i.e. a person’s identity, and allows everybody to communicate everybody else. Think Facebook, Twitter, and LinkedIn.
The SaaS is software, e.g. the proprietary functionality freely available to all Markethive members and which Markethive can use to allow its members to form Market Networks with companies like Valentus and possibly in the future…others.
Tom says, “The amazing embodiment of these concepts is what we see today with the joint venturing between Dave Jordan’s Valentus company and an elite group of Markethive community members. Markethive was created for a time such as this.”
Does anybody remember, “Build it and they will come”?
It’s been built and they’re here.
Tom told his Valentus Team members recently, “Valentus has experienced record growth in record time and by all indications is about to enter ‘Momentum’. Only with a company like Valentus could I have reached the levels I have in record-breaking time. And we haven’t fired the “main guns” of our most powerful Markethive technology yet. You ain’t seen nothing yet!”
Tom credits much of his success to Valentus’s foundational, weightloss coffee product. People respond well to our unique question, “Who do you know who likes coffee and would like to lose some weight?” The fact that the product is priced to sell well even at retail is just an extra.”
The bottom line here is that Valentus’s explosive growth is because it’s a real business founded on a basic principle of of Business 101: “Buy low and sell high!”
Tom told his group, “I give credit for the record-breaking growth of my little Valentus distributorship to the unique and timely partnership between Markethive and Valentus. Indeed Inbound Marketing and the first fully functional Market Network has found the first truly customer centric company in the MLM industry and I know that others who join our unique team will experience similar success if they work hard.”
If this article finds you the least bit excited or even curious, we invite you to find out more about this trends and the opportunities they present for you. Sign up for these two corporations at the below address.
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Markethive Developer and Case Study Writer