“2010 State Of The Industry Address by Daren C. Falter.”
2010-2011 State-of-the-Industry
By Daren C. Falter
Every time I revise this book I like to keep my readers informed of the latest considerations and concerns associated with network marketing right now and what to watch for over the next few years. I have made a life long study of top network marketing companies and their founders. Here’s the latest.
What’s Going Wrong in MLM TODAY?
Though my hat goes off to all of mega successful network marketing companies, and they deserve the respect and admiration of the world for what they’ve accomplished, many of these companies have made some fundamental mistakes in recent years, and even recent months.
One Product Focus OVERKILL
The reasons companies have focused on one product or one product line during their first several months or even years, is so they can laser focus their company message, simplify their brand, and streamline the recruiting process. It has proven to be a successful strategy more than once. Even though a single product focus has contributed to the initial mega success of several of the super fruit juice companies, it can also have its drawbacks.
Focusing on one product or one product line for too long can be a mistake. Companies must constantly create and recreate momentum through the strategic launch of new “solutions” to the market’s “problems”. Find out if the company you’re considering is planning to constantly introduce new brands, new sub-brands, new product lines, and new improvements on existing product to help the company extend their momentum growth into the future.
One Ingredient Focus OVERKILL
Related to the one product focus is the “one ingredient” focus. So many companies responsible for popularizing a specific ingredient like “tea tree oil” or “aloe vera” or “noni fruit” tend to deify that particular ingredient to the level that that one ingredient becomes their “secret sauce”. If it works in nutritional supplements, it must also work great in skin care, shampoo, and in tanning products. Once they start putting it into their laundry detergent, we know the company is a little carried away. So many companies paint themselves into a corner using a single ingredient to the point of total overkill. Now I’m not saying this strategy doesn’t work. Several companies have proven this strategy to be quite successful. However, when you follow this model, you must also face the consequences.
If the company survives and goes on to generate momentum, these one ingredient companies or “secret sauce” companies tend to follow a pattern of substantial momentum growth, and then a drastic leveling off. Companies who level off in the US will either do an aggressive push in international markets to keep momentum alive, or they’ll fall backwards and lose most of their distributor base to another company that is featuring a new and exciting flag ship product or a new super ingredient. This is a cycle that you must avoid at all cost. Try to find a company that will not become trapped once the novelty of their “secret sauce” wears off and the marketplace is wondering what’s next. Your company must have a long term plan.
Too Many Products, Too Soon
Now as I mentioned, holding onto the one product approach for too long without diversifying into other products can disrupt momentum. However, the opposite is also true. Companies trying to please everyone by having every product under the sun, especially at launch, can also fail to establish a compelling brand. Companies that have too many products in the beginning will destroy the power of their product launch by watering down their focus, and diluting their brand. Top companies avoid this pitfall by always applying a powerful branding strategy to every new product launch and keeping a laser focus on fewer, better brands.
Legal Compliance
In today’s MLM environment, nothing can kill a company’s momentum like getting in deep trouble with the FDA or FTC. Companies who have trouble controlling their distributor’s use of income claims or health benefits claims are at risk of being shut down. Better to be safe than sorry. Many of my top 30 picks for 2010 have problems with blatant violations of federal law and local laws. If companies react quickly to these warnings, they can save the company, but generally it will still affect momentum growth. Top companies plan to work with government agencies, not against them, to provide accurate and truthful information about the company and its products without crossing the line with unnecessary hype and unlawful claims.
What Went Wrong?
Some of these companies had everything going for them and more and then they just dropped the ball, forgetting some of the fundamentals that got them there. Hiring the wrong company executives, drastically altering the compensation plan, outsourcing jobs that effect company culture and direction, and not staying abreast of what’s going on in the industry. These are just a few of the ways companies can (and constantly do) drop the ball and flatten out. Select a company committed to surrounding itself with the industry’s most competent experts. Never trust a management team that lets ego or apathy get in the way of progress.
It’s Up To You
Its your job as an educated network marketer to stay committed to remaining more informed than your competitors. Continually surround yourselves with individuals who are leading experts in their areas of knowledge and experience. Pay attention to everything happening around you. Network marketing is not your hobby, its your career. You are a professional network marketer. Never forget to play your part, and you’ll always put yourself in a position to make the best choices.
What is Happening in MLM Today, and What Isn’t
Thought he SuperFruit Juice companies have dominated the industry over the past seven to ten years, today’s MLM needs more than “just another juice”. As I take the current pulse of the industry, I’m hearing from too many leaders the phrase “if it’s another juice company, I’m not interested.” That’s not to say that the juices wouldn’t still work as a great flagship product. But from a marketing perspective, a company that is really going to compete in today market needs something more than the next functional beverage. Keep that in mind as you’re searching for a product with potential.
What’s Going RIGHT?
Ok, enough of the negatives, now let’s take a lesson from those companies and individuals who are experiencing record growth and duplication. Again, this is from company evaluation and selection perspective, not a training and support angle (That’s another book for another time).
Liquid is Still It
I don’t want to pick on functional beverages or juices too much because from every indication that I’ve seen and experienced, liquid products are still in. The masses have spoken, and they’ve spoken loud and clear. People want to DRINK their nutrition. Most liquid nutritional products are still out performing other delivery systems three to one (pills, tablets, gels, powders). Most people prefer to pull their nutritional supplement from the refrigerator rather than the cupboard. Most refrigerators are opened 5-20 times more than the cupboard each day, so it’s easier to remember your supplements when they’re in the door of the refrigerator. So don’t count liquid out.
WOW Factor
Today’s market needs a product with a “WOW” factor, not just another juice, pill, potion, or lotion. Look for a company that will introduce the next TREND in consumer products and create a tidal wave of interest and excitement that will impact the globe. Remember, if you want to select the company that is the best, you must be willing to look at all the rest!
Subject to Review and Change
You may have followed my criteria for evaluating a top network marketing company. You may have selected one of my top picks for network marketing today. Please keep this in mind: no program is perfect. In fact, I discovered concerns associated with every single company in network marketing today, including the companies listed among my top picks. I recommend that if you are considering any of these companies, please do your homework. The names on my top companies list can change quickly. First of all, make sure you are looking at a current copy of this book or look at my updated list of companies at my blog, http://www.networkmarketingreview.com. If the company you are researching did not make my list, please proceed with extreme caution. Don’t be foolish in selecting a company.
I’m the first to admit that the companies I have selected for my clients and the companies I have selected to personally build are not the only games in town. To be listed among the top companies in network marketing is an accomplishment, considering the fact that few companies survive more than three years. However, even if a company did make the list, there is still a considerable amount of risk attached to each opportunity. We will continue to see companies in the top one hundred go out of business every year.
If a company is less than three years old, the company is still at great risk of going out of business. If the company is over thirty years old and financially strong, the company should stay around but the momentum phase may be so advanced that the opportunity is not as great as it once was in your state or country. If a company is not listed among the top thirty, my advice is to proceed with extreme caution. For legal purposes, I will not mention names of companies I have strong reservations about, but be careful. I don’t want your first or next experience in network marketing to be your worst.
Daren Falter
About the Author
Daren C. Falter is the author of the network marketing industry-wide best seller How to Select a Network Marketing Company. Daren has been a consultant to the network marketing industry for over 12 years and a student and participant for over 20 years. Daren has built downline organizations into the tens of thousands of distributors with several different companies. Daren is a popular convention speaker and trainer. You can visit Daren online at his blog at www.networkmarketingreview.com. You can also order Daren’s best-selling MLM book at www.networkmarketingbook.com.
Daren recently launched a new network marketing company, Yoli, Inc., near Salt Lake City, Utah. Daren and his four partners are excited to introduced the worlds most nutritious beverage using patented BlastCap™ Technology. For more information about Blast Cap Technology, Blast Caps, or Yoli, visit Yoli at www.prelaunchinsider.com.
Copyright ©2009 DC Falter Marketing, Inc. ALL RIGHTS RESERVED
Daren Falter will be launching a new company called Yoli. We will be introducing an incredible new nutritional formula in the form of a delicious functional beverage using Mikel Anderson’s patented Blast Cap Technology. The founders of Yoli are Robby Fender, Daren Falter, Rick Eisele, Corey Citron, and Michael Prichard. To find out more about Yoli Blast Cap Technology, visit www.prelaunchinsider.com
Kingsley Ennis is one of the few “hand selected” FOUNDING DISTRIBUTORS that are helping to launch this new company … and you can join him and one of the fastest growing teams in all of Yoli at the very beginning of this great network marketing adventure!
With a background in the Seminar Industry and 12 years of Noteworthy Success in Network Marketing Kingsley is the Author of “Split Second Marketing” & “Your Extreme Advantage”. You can listen to them FREE at www.usahomebusinessexperts.com
QUESTIONS ABOUT YOLI? Email kingsley@goyoli.com or call 717-303-5710.
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