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78: The Problem With MLM Products...

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Manage episode 226273538 series 1523514
Content provided by Steve J Larsen and Steve Larsen: Automated Downline Recruiting. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Steve J Larsen and Steve Larsen: Automated Downline Recruiting or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

ONE OF THE BIGGEST PROBLEMS WITH SELLING YOUR MLM PRODUCT

Frankly, if all MLMs understood this ONE THING, the world will be a lot easier to sell MLM products to.

When I first joined an MLM, I was working my face off. I was doing tons of stuff. I recruited like crazy.

I worked super hard, weeks and weeks and weeks.

Eventually I get my first paycheck in the mail. I'm so excited. I had told my wife, “This is going to be the thing. This is going to be the one. This will be the thing that gets us financial security.”

I was pumped because of everything it could mean for our family. That’s the reason why a lot of people join an MLM.

We had just found out we were expecting our first kid. We were really excited. I was like, “Man, maybe this could pay for all of our medical bills. This would be cool.”

I go to the mailbox to get the letter. I ran back inside to my wife so I can open it in front of her (which I really regret doing).

I opened up the letter and look at the pay stub… $13. I was like, “Oh crap, what did I just get into?”

ISMS TO SELLING YOUR MLM PRODUCT

I'm not throwing rocks at MLM. You understand what I'm saying?

There are some unspoken rules to selling MLM your product. They can be rough. I realized that I needed to learn to play this game a little bit differently.

I love MLM because of the ability to go and create a real, lasting asset.

That's my favorite thing about it. It's a real and it’s lasting. I can keep recruiting people and it's amazing. Personally, I treat it as a back end business. We have these cool automations and systems running, which is awesome. It’s building and growing this asset.

The problem is that the commissions can be razor thin. Especially before you're hitting certain ranks and certain levels. Before your commissions start unlocking and you start getting more commissions on more levels, you're running hard.

This is about five years ago, my little girl just turned five. I realized, “Oh my gosh, I need to play the game a little bit differently than most MLMers play” and frankly, I haven't see anyone else play the game like this.

EVEN IN A DREAM MLM…

Think about this...

Let's say this that you have a $100 product that you sell for your MLM. Let's say you're MLM matches your compensation rate dollar for dollar. Meaning you sell $100 worth of product and that $100 is commissionable. Commissionable revenue.

That’s really outstanding. Not normal for an MLM. On top of that, they’re giving you 30% commission. It's freaking massive level commission. That's exciting.

Let's get real about it for a second.

That means you have the potential of making $30 every time you make a sale. $30. You can't drive many ads with that on Facebook. You can't drive many ads with that ANYWHERE.

Let's say you're selling a supplement on Facebook. Your MLM lets you do that. You’ve got all the green lights, best case scenario.

It takes on average, $100 to $120 in ad spend to acquire a supplement buyer.

You can't even afford to break even on that kind of commission level.

Those kinds of numbers hold true for a lot of things. That means you have to be willing to go beat street and talk to people. I wanted to find ways to talk to more people profitably.

Call me a freaking millennial. I want to have my cake and eat it too.

I was obsessed over that question for so many years... And we did it. We figured out how. I’m going to give you the answer to the question, “How can I profitably drive traffic?”

Did you hear what I just said? Profitably drive traffic.

I can't run ads to my MLM product because it's not profitable so I put things in front of it. I drive ads to that. I create my own stuff.

If MLMs understood this ONE CONCEPT, it would change the entire industry.

PROFITABLY DRIVE TRAFFIC TO YOUR PRODUCT

You can speak to people with several different costs:

  • You could speak to people one on one. That's effective. It's not very efficient though.
  • I can do something like a show or some kind of video or a recording. Every time I speak, lots of people are hearing it. I don't have to talk to each person individually. I just duplicated my time.
  • Or you could speak with ads and increase my speed with ads.

If you're not willing to spend ad money, I get it. You can't do it profitably inside an MLM. I'm going to show you guys how we pull this off.

I'm not into the business of making break even money. I want to be able to make money.

If you’re part of an MLM that doesn’t want you selling your MLM product at a discounted rate or driving ads to it, there are still things you can do.

Instead of selling your MLM product on the front end, you sell it on the backend.

This is what I always teach people to do is in any business. Regardless of whatever you're in; MLM, retail, info, B2B.

When you think about a value ladder, the core business is in the middle or top of the ladder. The front end is what we lead with when it comes to selling your product MLM. You create cool lead-ins that help with conversation. Those are all things that we create on the very front of the value ladder.

It’s not there to make money. The only thing they're meant to do is open up the gate and get people coming in. Then they can see step number two in your value ladder.

When you go start designing your value ladder, I like to create an SLO product. Self-Liquidating Offer.

The most valuable thing someone could ever do is join my down line. That's the top of the ladder. It's the end goal. I can't always lead with that.

PROFITABLY DRIVE TRAFFIC WITHOUT SELLING YOUR MLM PRODUCT

I created all these cool front end products about 5 years ago when my kid was born. It worked really well. I did not lead with, “Come join my thing.” I led with something that allowed me to create a relationship and add value.

I HIGHLY DOUBT your MLM is going to have an issue with you helping other people.

My current MLM lets me sell my product on the internet but I can't profitably drive traffic and ads to it. Not with the commission percentages that an MLM makes on a product.

Let's get real about the numbers here:

Let's say that you're 40% commission on a product. That's really high in MLM, obviously. You're selling a $100 package of supplements. We know that it usually takes $100+ to sell a supplement on the internet.

I need to spend $100 to $120 just to acquire a customer. If I can get my average cart value up to about $180, that's when I can start hitting CPA networks and blow up the internet. How do you do that with the margins that MLMs give you?

With my really extremely high commission inside MLM, I make $40 on $100 product. I only have $40 to acquire a customer. That means I can’t profitably drive traffic or spend money on ads to acquire somebody.

All I do is create a package. If your MLM doesn't allow you to do samples, that's fine. You can make up an info product for $40 to draw people into your value ladder. Then the upsell is, "Hey, come get this product that's amazing, that's $100"

You might only sell to five or six people, but you're doing it PROFITABLY.

WORKING AROUND YOUR MLM’S COMMISSION

If your MLM doesn’t want you to discount the product or drive ads to it, you don’t have to.

By having a front end offer, you increase the perceived value of your MLM product. You solve people’s problems. At the same time, it allows you to spend ads profitably.

Your front end offer doesn’t need to be crazy. Let’s stick with the weight loss product for $100 that you’re getting 40% commission on. Let me give you some really easy ways to make a cool front end product for that:

What are the objections going to be about my weight loss product?

  • I don't know if I should
  • It won’t work for me.
  • What If I'm a good fit?
  • Didn’t the company go through some rough patches?
  • I don’t have the time

Pay attention to those objections, Build a product and a story around those objection. That’s your front end offer. The supplement is really easy to sell on the backend.

I would start interviewing health professionals and ask them, "Look, health professionals, what are some of the pitfalls that people have right now about losing weight?"

It would be super easy to interview 10 of them, bundle it together and sell the interviews. Call it a course, done. Does that make sense?

Another objection was not having enough time. I would go to another health professional and be like, "Hey, health professional. Help me understand the routine that somebody needs to be in in order to lose weight effectively?"

Now, you have a course AND you've got a checklist.

You can sell it for $27. Now you have $27 to acquire a customer to sell that to and pitch them in the back. That's much different than having to spend $180 to acquire a customer.

You might be selling powders, potions, lotions. I don't care what you're selling. That's how the game works.

THE SECRET TO SELLING YOUR MLM PRODUCT PROFITABLY

If you look at the top funnel builders, people who are selling like crazy on the internet, most of them they're doing something like this. It's because you’re just giving them one thing. Then you can pitch them after they buy it. You'll get a higher number of people coming through because they don't feel like you're immediately leading to the sale.

You pitch them afterwards. If they don’t want one thing, then you have a bunch of upsells and downsells.

“You know what, I totally get it if you don't want it. It's kind of expensive. Hey, here's another option. If you don't want this $100 supplement, we actually have this $60 cool thing. When you pair it with that first thing... Hey, here's some studies that come with it as well. It’s normally $100 but you get it for free.” You create that offer out of that.

Are you getting the funnelology behind this? This is the reason why I lead so hard with recruiting. When you think about getting commission, it takes a butt ton of product to make a lot of money.

It's EASIER for me to teach you how to get a lot of people inside your down line and give them these systems at the same time. That's what makes you rich.

My wife was watching somebody online, and they were saying, "I'm so happy about my MLM. I've been in this MLM for three years now. We were able to pay for all of our diapers because of this MLM."

THREE YEARS and all you can afford is freaking diapers?

It's because they're ONLY selling the MLM product. You’ve got to have both.

It's harder to do the recruiting side because you are affecting the behavior and the outlook of the individual. It’s not just buying a one-off product from me.

If I can get you recruiting, OH MY GOSH. The recruiting systems themselves. The product sales side is not that hard to turn on. That's why we lead so hard with recruiting.

  continue reading

131 episodes

Artwork
iconShare
 
Manage episode 226273538 series 1523514
Content provided by Steve J Larsen and Steve Larsen: Automated Downline Recruiting. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Steve J Larsen and Steve Larsen: Automated Downline Recruiting or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

ONE OF THE BIGGEST PROBLEMS WITH SELLING YOUR MLM PRODUCT

Frankly, if all MLMs understood this ONE THING, the world will be a lot easier to sell MLM products to.

When I first joined an MLM, I was working my face off. I was doing tons of stuff. I recruited like crazy.

I worked super hard, weeks and weeks and weeks.

Eventually I get my first paycheck in the mail. I'm so excited. I had told my wife, “This is going to be the thing. This is going to be the one. This will be the thing that gets us financial security.”

I was pumped because of everything it could mean for our family. That’s the reason why a lot of people join an MLM.

We had just found out we were expecting our first kid. We were really excited. I was like, “Man, maybe this could pay for all of our medical bills. This would be cool.”

I go to the mailbox to get the letter. I ran back inside to my wife so I can open it in front of her (which I really regret doing).

I opened up the letter and look at the pay stub… $13. I was like, “Oh crap, what did I just get into?”

ISMS TO SELLING YOUR MLM PRODUCT

I'm not throwing rocks at MLM. You understand what I'm saying?

There are some unspoken rules to selling MLM your product. They can be rough. I realized that I needed to learn to play this game a little bit differently.

I love MLM because of the ability to go and create a real, lasting asset.

That's my favorite thing about it. It's a real and it’s lasting. I can keep recruiting people and it's amazing. Personally, I treat it as a back end business. We have these cool automations and systems running, which is awesome. It’s building and growing this asset.

The problem is that the commissions can be razor thin. Especially before you're hitting certain ranks and certain levels. Before your commissions start unlocking and you start getting more commissions on more levels, you're running hard.

This is about five years ago, my little girl just turned five. I realized, “Oh my gosh, I need to play the game a little bit differently than most MLMers play” and frankly, I haven't see anyone else play the game like this.

EVEN IN A DREAM MLM…

Think about this...

Let's say this that you have a $100 product that you sell for your MLM. Let's say you're MLM matches your compensation rate dollar for dollar. Meaning you sell $100 worth of product and that $100 is commissionable. Commissionable revenue.

That’s really outstanding. Not normal for an MLM. On top of that, they’re giving you 30% commission. It's freaking massive level commission. That's exciting.

Let's get real about it for a second.

That means you have the potential of making $30 every time you make a sale. $30. You can't drive many ads with that on Facebook. You can't drive many ads with that ANYWHERE.

Let's say you're selling a supplement on Facebook. Your MLM lets you do that. You’ve got all the green lights, best case scenario.

It takes on average, $100 to $120 in ad spend to acquire a supplement buyer.

You can't even afford to break even on that kind of commission level.

Those kinds of numbers hold true for a lot of things. That means you have to be willing to go beat street and talk to people. I wanted to find ways to talk to more people profitably.

Call me a freaking millennial. I want to have my cake and eat it too.

I was obsessed over that question for so many years... And we did it. We figured out how. I’m going to give you the answer to the question, “How can I profitably drive traffic?”

Did you hear what I just said? Profitably drive traffic.

I can't run ads to my MLM product because it's not profitable so I put things in front of it. I drive ads to that. I create my own stuff.

If MLMs understood this ONE CONCEPT, it would change the entire industry.

PROFITABLY DRIVE TRAFFIC TO YOUR PRODUCT

You can speak to people with several different costs:

  • You could speak to people one on one. That's effective. It's not very efficient though.
  • I can do something like a show or some kind of video or a recording. Every time I speak, lots of people are hearing it. I don't have to talk to each person individually. I just duplicated my time.
  • Or you could speak with ads and increase my speed with ads.

If you're not willing to spend ad money, I get it. You can't do it profitably inside an MLM. I'm going to show you guys how we pull this off.

I'm not into the business of making break even money. I want to be able to make money.

If you’re part of an MLM that doesn’t want you selling your MLM product at a discounted rate or driving ads to it, there are still things you can do.

Instead of selling your MLM product on the front end, you sell it on the backend.

This is what I always teach people to do is in any business. Regardless of whatever you're in; MLM, retail, info, B2B.

When you think about a value ladder, the core business is in the middle or top of the ladder. The front end is what we lead with when it comes to selling your product MLM. You create cool lead-ins that help with conversation. Those are all things that we create on the very front of the value ladder.

It’s not there to make money. The only thing they're meant to do is open up the gate and get people coming in. Then they can see step number two in your value ladder.

When you go start designing your value ladder, I like to create an SLO product. Self-Liquidating Offer.

The most valuable thing someone could ever do is join my down line. That's the top of the ladder. It's the end goal. I can't always lead with that.

PROFITABLY DRIVE TRAFFIC WITHOUT SELLING YOUR MLM PRODUCT

I created all these cool front end products about 5 years ago when my kid was born. It worked really well. I did not lead with, “Come join my thing.” I led with something that allowed me to create a relationship and add value.

I HIGHLY DOUBT your MLM is going to have an issue with you helping other people.

My current MLM lets me sell my product on the internet but I can't profitably drive traffic and ads to it. Not with the commission percentages that an MLM makes on a product.

Let's get real about the numbers here:

Let's say that you're 40% commission on a product. That's really high in MLM, obviously. You're selling a $100 package of supplements. We know that it usually takes $100+ to sell a supplement on the internet.

I need to spend $100 to $120 just to acquire a customer. If I can get my average cart value up to about $180, that's when I can start hitting CPA networks and blow up the internet. How do you do that with the margins that MLMs give you?

With my really extremely high commission inside MLM, I make $40 on $100 product. I only have $40 to acquire a customer. That means I can’t profitably drive traffic or spend money on ads to acquire somebody.

All I do is create a package. If your MLM doesn't allow you to do samples, that's fine. You can make up an info product for $40 to draw people into your value ladder. Then the upsell is, "Hey, come get this product that's amazing, that's $100"

You might only sell to five or six people, but you're doing it PROFITABLY.

WORKING AROUND YOUR MLM’S COMMISSION

If your MLM doesn’t want you to discount the product or drive ads to it, you don’t have to.

By having a front end offer, you increase the perceived value of your MLM product. You solve people’s problems. At the same time, it allows you to spend ads profitably.

Your front end offer doesn’t need to be crazy. Let’s stick with the weight loss product for $100 that you’re getting 40% commission on. Let me give you some really easy ways to make a cool front end product for that:

What are the objections going to be about my weight loss product?

  • I don't know if I should
  • It won’t work for me.
  • What If I'm a good fit?
  • Didn’t the company go through some rough patches?
  • I don’t have the time

Pay attention to those objections, Build a product and a story around those objection. That’s your front end offer. The supplement is really easy to sell on the backend.

I would start interviewing health professionals and ask them, "Look, health professionals, what are some of the pitfalls that people have right now about losing weight?"

It would be super easy to interview 10 of them, bundle it together and sell the interviews. Call it a course, done. Does that make sense?

Another objection was not having enough time. I would go to another health professional and be like, "Hey, health professional. Help me understand the routine that somebody needs to be in in order to lose weight effectively?"

Now, you have a course AND you've got a checklist.

You can sell it for $27. Now you have $27 to acquire a customer to sell that to and pitch them in the back. That's much different than having to spend $180 to acquire a customer.

You might be selling powders, potions, lotions. I don't care what you're selling. That's how the game works.

THE SECRET TO SELLING YOUR MLM PRODUCT PROFITABLY

If you look at the top funnel builders, people who are selling like crazy on the internet, most of them they're doing something like this. It's because you’re just giving them one thing. Then you can pitch them after they buy it. You'll get a higher number of people coming through because they don't feel like you're immediately leading to the sale.

You pitch them afterwards. If they don’t want one thing, then you have a bunch of upsells and downsells.

“You know what, I totally get it if you don't want it. It's kind of expensive. Hey, here's another option. If you don't want this $100 supplement, we actually have this $60 cool thing. When you pair it with that first thing... Hey, here's some studies that come with it as well. It’s normally $100 but you get it for free.” You create that offer out of that.

Are you getting the funnelology behind this? This is the reason why I lead so hard with recruiting. When you think about getting commission, it takes a butt ton of product to make a lot of money.

It's EASIER for me to teach you how to get a lot of people inside your down line and give them these systems at the same time. That's what makes you rich.

My wife was watching somebody online, and they were saying, "I'm so happy about my MLM. I've been in this MLM for three years now. We were able to pay for all of our diapers because of this MLM."

THREE YEARS and all you can afford is freaking diapers?

It's because they're ONLY selling the MLM product. You’ve got to have both.

It's harder to do the recruiting side because you are affecting the behavior and the outlook of the individual. It’s not just buying a one-off product from me.

If I can get you recruiting, OH MY GOSH. The recruiting systems themselves. The product sales side is not that hard to turn on. That's why we lead so hard with recruiting.

  continue reading

131 episodes

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