Marketing Or Advertising, Which Will You Choose

So many times, as a new business owner, I wish I had understood the difference between advertising and marketing. I am sure many people have a different definition of these words. Let’s explore this topic for today’s article.

Wikipedia defines advertising this way: Advertising is a form of communication intended to persuade its viewers, readers or listeners to take some action. It usually includes the name of a product or service and how that product or service could benefit the consumer, to persuade potential customers to purchase or to consume that particular brand. I think that pretty well sums up what we think of as advertising. We are all very familiar with it in all of its forms. TV, radio, print, billboard, word of mouth, and direct mail just to name a few. Now let’s look at Wikipedia’s definition of marketing. Marketing is used to create the customer, to keep the customer and to satisfy the customer. You can also market using TV, radio, print, billboard, word of mouth, and direct mail; so what is the difference. I believe that ROI or return on investment is the greatest difference. Anybody can advertise but few can market. Let me give you some examples.

1. How often do you get your oil changed? Why every 3,000 miles? Your owner’s manual says every 5,000. Quick lube places have set themselves up as an expert. When they say every 3,000 miles we believe them.

2. How often do you have your teeth cleaned? When do you schedule the appointment? Dentists have done this better than any service provider I know. They make you feel stupid if you do not schedule your next appointment 6 months from your last. And you schedule it before you leave the office. Brilliant. Continued business and the customer thinks it was their idea.

3. One more “So Easy a Caveman can do It” The slogan for Geico is powerful stuff.

So anyone can throw money at advertising but few take the time and effort to market themselves or their product. Here are some simple tips to help you as you learn to market.

1. Learn from other people, life is too short to learn it all. Find smart and successful people in this area and copy what they are doing.

2. Learn some copywriting skills. Dan Kennedy is a superb writer and will help you greatly to read his books.

3. Test, test, test. Do two or three ads and measure the results of each.

4. Keep great records of every piece of marketing you use. Know which ones work and which ones do not.

5. Be patient, this is not a quick process and there is no magic bullet. Keep fine tuning your ads until you reach the greatest returns on your investment.

6. Do not be afraid to pay for help. PICK WISELY. Many will take your money and provide poor returns. There are some very good companies. Just do your homework before ordering.

Taking these steps can help your budget decrease as your return increases.

Direct Sales Versus the MLM Business Model

A brief word about MLM

Regardless of your qualifications, MLM or Multi-Level Marketing companies offer business ownership opportunities to almost anyone who is willing to make a small investment in them. Most MLM companies offer certain benefits such as the ability to build a huge down-line and create a residual income. Additionally, MLM companies typically sell a wide variety of products to families and friends such as health supplements, household products, and vitamins to name a few.

What do we mean by direct sales?

Direct sales is a phrase that oftentimes referred to as multi-level marketing in that it is a channel for the distribution of retail products and services. The text book definition of direct sales is “the direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs” (Advertising and Promotion: An Integrated Marketing Communications Perspective by George and Michael Belch).

In the simplest of terms, direct selling can be defined as the marketing and selling of products directly to the consumer and away from a land-based retail location. In other words, you go to the customer – they don’t come to you. One-on-one demonstrations and other contact arrangements are the primary ways in which direct sales are conducted. Although a large percentage of direct sales companies employ some type of MLM compensation plan there are a few differences that distinguish one from the other.

The differences between each

Direct selling is about as straightforward a sales method as you can possibly imagine. The bottom line is that you have continually got to be selling in order to earn money. With MLM, you earn money by virtue of direct sales but you also earn residual income by virtue of that huge down-line that you have built. Direct selling also involves cold calling or going door-to-door to sell your products whereas MLM involves calling on people you know such as family and friends as well as benefiting from your downline doing the same thing.

Both sales models can be conducted online as well as offline but the principles remain the same in both venues as they do in the paragraph above. Most individuals are not really salespeople at heart. When this is the case, you will benefit more from engaging in MLM versus direct sales. In direct sales, you only have yourself to rely on for an income whereas you have a downline to help add to your earnings when you sell for an MLM company.

Another one of the key differences between direct sales, MLM, and other business ventures is the size of investment and the necessity to stock a product inventory. In the standard business venue, you need a number of things such as:

• a business acumen
• financial stability
• a larger amount of investment capital
• previous business experience
• product inventory

Although the above is not a hard and fast rule, the same does not hold true with direct selling and MLM. When you open your own land-based small business, you are going to have a considerably larger investment than if you were to get involved in either of these selling techniques. Just make sure that you do your homework before you decide on any business venture so that you do not throw your hard-earned money away.

MLM Network Marketing Prospecting – Five Step Sponsoring

Lots of “Sponsoring Systems” leave little room for individuality or your personal creativity. Here’s one that gives you the systematic structure you can lean on–yet it’s an open structure, which you can make your own and do your own way. It’s a proven mlm network marketing prospecting system.

No matter what company you’re associated with… no matter what product or service you’re offering… whether your orientation is product, opportunity, personal growth or whatever–this system will work for you. The reason it is so versatile is that it is based on universal principles of human nature, expressed in conversation–because that is the essence of the interviewing / sponsoring process.

Let’s jump into it.

Step 1: Establish Relationship

    Obvious? Good. But this is one area where a surprising number of people make life (and sponsoring) much harder than necessary. There are three keys here. One and two: Ask questions, and Listen openly to the answers. And three: Be direct.
    One thing you can’t fake in this business is a genuine interest in people. If you don’t have it, find it–because this really is the people-to-people business.

    The most popular conversation starter in the world is the most-often-asked and least-listened-to: “How are you?” Don’t take no answer for an answer to this one. Pounce gently on a superficial reply by asking, “Really, Sara, how are you?” You can easily continue the conversation by asking things like: “Can you say more about that…? What do you mean…? Why is that…?” etc. One tip: Remember the person’s name–and use it often. It is, for them, the most important word in the language. Write it down, if you’re forgetful. Begin sentences with their name, “Ralph, that’s interesting…” Some call this “building rapport”; others, “priming the pump.” You might say simply, “Making friends.” No matter, it is the required Step One. Focus on them and keep yourself in the background. Keep asking questions. Don’t champ at the bit to move on to “more important things.” Nothing is more important than Establishing Relationship–if for no other reason, because it’s in this initial step that you’ll begin to hear the information you need to know if this person is right for you and your opportunity. Be direct. Don’t evade anything. If asked “Why?” answer straight. We all have a built-in avoidance meter that screams when the truth isn’t being told. And it’s easy to tell the truth when the other person is speaking to a listener who’s really interested in who they are and what they’re up to. And you must be, because you’re asking all those questions.

Step 2: Explore Possibilities

    After you’ve earned the right to continue the conversation by Establishing Relationship, get to what’s most important for them in their lives. This isn’t prying, and if you’ve built up a resource of knowledge, interest and trust in Step One (which is another reason for that Step), you’ll be able to get to the heart of the matter right away.
    What is “the heart of the matter”? Very simply: what your prospect values most in his or her life. Find this out before you ask what they want.

    Many times–most times–we express what we “want” as a positive reversal of what we already have that we don’t want. Most goals are like this: “I want to make a lot of money” (that is: “I am sick and tired of being in debt”); “I want to be slim and trim” (in other words: “I am fat and I don’t want to look this bad anymore”); “I’d like to be in business for myself (because: “I am tired of feeling like a wage slave”). When you get people in touch with what’s really important to them, their goals and wants grow out of that. Touching that essential core is much more powerful than basing your interview on what they don’t want more of in their lives. Possibilities, dreams, aspirations, childhood wishes, genuine wants–these are the things to get to in this step. Take them back to their childhood, get them talking about what they wanted to be and do before “the system” beat it out of them. When you get to people’s possibilities, they’re almost always about great things like freedom, making a difference, empowering and enabling others, making a creative impact on the world… Those are the real, essential desires–and they are what connect most directly and fundamentally with your opportunity. Follow them back to their essence as best you can. “What would it be like if you were that prima ballerina, that statesperson, that millionaire…?” In a real sense, almost everyone is “the right person” for network marketing, because the essential things they value are all available from doing this business successfully. In the next Step, you’ll find this out with the person for real.

Step 3: Reveal Resources

    Here’s where you come in with your opportunity–and link it directly to them and the values they’ve revealed in Step Two. Up to this point, you’ve shared visions of Possibilities–but Possibilities and Opportunity are quite different.
    If Possibilities are dreams just waking up in the morning, Opportunities are Possibilities that are dressed, breakfasted and ready to walk out the door and go to work.

    Possibilities are a wonderful expression of values–but out of what’s possible, what’s truly available? You begin revealing that by letting them know how and why network marketing can be the vehicle for them to accomplish what’s truly important to them. Ask questions to make sure they agree, that that’s true for them. They may doubt it’s possible at first. That’s okay. Let them know that one part of your job is to help them know that it really is possible. You do that by revealing all of their resources.

    Possibilities + Resources = Actual Opportunities.

    John Kalench listed five key questions from his book, Being The Best You Can Be In MLM, that every prospect has in his or her mind:

    1. Is this business SIMPLE?
    2. Is it FUN?
    3. Can I make MONEY doing it?
    4. Will you HELP me to do it?
    5. Is NOW the right time to get involved?

    Network marketing is a system that can enable your prospects to make the most effective use of their resources: Time, energy, effort, talents, character, skills, caring for others, etc. As you explain the business to them, help them discover and plug in their own unique, individual resources. That way you can show them how they will be successful in network marketing, because they have just what it takes to succeed in this business. After you’ve done that, share your experience of your products and your company. Take them from network marketing directly to your particular vehicle. And remember, it is your vehicle. They are not joining Acme MLM Company. They are joining you and your network organization. This is very important. Don’t forget that you yourself, including your experiences with your vehicle and your willingness to serve your prospect, are a key resource. In fact, you are perhaps–in their eyes–the most important resource of all. So, in Step Three, you reveal and connect their resources (time, energy, effort, etc.) and your resources (product, company, training, coaching, team support, etc.) to create a believable alignment. And next…

Step 4: Design Actions

    You’ve got their wants (their goals), and you know the resources they’re bringing to the table, and you know how much time, energy and effort they’re willing to commit to building their business. So, the first point here is a reality check: Here’s your opportunity to make it really real. Let them know exactly what it will take to achieve their goals in the time frame they envision. This step is all about “create and adjust.” Create expectations, then adjust them (if need be) to what’s real. Next, reverse goal-setting. Start with each of their goals and work them back one at a time to a first-step action they can take today or tomorrow. First steps are: Make a list, make a call, sign an application, get X amount worth of inventory, etc. A note about inventory: In the previous Step, you revealed their resources. One of them is money for inventory, i.e., capital to invest in their new business. Now, based on their expectations, you can tailor just the right size inventory they will need to do the business at the level that’s appropriate for their stated–and checked-out-by-you–goals. There’s never a question of inappropriate inventory “loading” when you do this, never a bad feeling because of too little or too much. Also, keep it lower rather than higher. Although some people recommend that you make it a tad too high to keep the pressure on, I do not! That’s manipulation, and it’ll ruin the relationship–if not with you, between the person and him–or herself. It’s easier and more natural to increase the commitment over time because the business is going better than expected, or because it’s easier than they first thought. Going the other way is disappointing–sometimes terminally so.
    Reverse goal-setting is a simple way to trace the goals back, step by step, so that the first step for taking action and second, third, fourth… are clear and, above all, do-able!

    And that’s a key. It also helps you in your coaching role, because you can have a copy of their action plan, which enables you to check in with them and support them in generating and keeping their momentum going.

Last, but not least…

Step 5: “What Could Go Wrong?”

    One thing that absolutely, positively comes along with every goal we ever set is the inevitable breakdown(s) along the way. If you’re aware of them (if not specifically what they are, at least that they are coming), you can get over and through them with far greater ease. What breakdowns should you and your prospect plan for? First and foremost, non-supportive family or friends.
    When people first choose to enter this business, they are “newborns.” They need to be protected, nurtured and provided for. Any attack, no matter how well-meaning, may knock the wind out of your prospects’ sails. Help them out.

    Let them know it could happen. Provide them with some tools to help the potential “attacker” understand the business. CDs, websites, brochures and books that explain network marketing are great. So is a good solid rap on your product and company. Also, make yourself available to talk with any of their advisors. It’s best, but not always possible, to do sponsoring conversations with everybody involved, husband and wife, etc. If that’s not possible, volunteer to speak with them and answer any questions–whenever. Showing their goals and action plan is a beaut! It proves real thought and planning, and that’s very hard to blow away. Also, the very fact that you’re willing to spend time on what could go wrong is a big, big plus. Trust in you will knock away many third-party objections. What else could go wrong? Rejection. Mark Yarnell has a wonderful story of 199 sponsoring failures and only one success–who went on to make him almost $50,000 per month! It’s a good reminder of the truth of networking success. Commitment balances rejection. So does reconnecting the person with their values. In fact, that’s the key to handling breakdowns–refocusing on the vision. It’s where the power is in the whole process. Without doing this, your prospect may get over the difficulty, but it’s iffy at best. When he or she refocuses on the vision they have for getting into the business, it’s darn near a done deal. Also, let this part be a group or team effort. Facing breakdowns all alone is a real struggle. You will build just as much character–and have far more power for positive change–if you and your group have an active “creative brainstorming” session to help each of your people over the tough spots when they occur. Remember Kalench’s key question, “Will they help me do it?” And what a great way to show people how very directly you and yours will be of genuine help.

That’s it. A proven mlm network marketing prospecting system: Five Steps For Sponsoring.

Where’s Their Beef?

Have you noticed something missing from the Five Steps? There are two:

First, no “Handling Objections” section. Why not? Because “objections” are 99 percent a product of a lack of understanding on the part of your prospect. In fact, they are certified, red-flag clues that the Five Steps described above haven’t been completed.

The key to working this system successfully is to reach a point of completion on each Step before moving on to the next. Remember, “completion” is not final. It is simply complete for the moment. Establishing Relationship will continue and deepen for as long as you are in relationship. As people do the business, they will discover resources they didn’t know were available at first. Each Step is ongoing, but each requires a sense of completion before it can give birth to the next.

When completion is achieved in each Step, you have reached an understanding–and from that grows positive belief. Successful completion of each step also generates momentum, which grows geometrically throughout the entire process.

Objections do not come up in this process, because the purpose of the entire Sponsoring Conversation is to see if this is the right opportunity and the prospect is the right person and now is the right time. So it’s not a question of handling objections. It’s questions and answers to discover what’s true for them. A very different ball game.

And by the way, there’s no guarantee that you’ll be able to reach completion of all five Steps in one actual conversation. And there’s no rule that says you have to. One key to reaching completion is to take any imagined time pressure off yourself: In one conversation with a given prospect, it may be more important to spend your entire time establishing a solid Relatedness, and leaving the door open for your next conversation, than to plunge through your agenda before the bell rings.

Other times, the prospect may seem so “in sync” with what you’re offering that one or two of those Steps sail by with barely a nod. Watch out! Even when it feels like “a breeze,” don’t let that blow you off track. Make sure that you do cover each Step, that it’s voiced, shared and complete, so you won’t have to come back later to fill in the blanks and assumptions.

In Closing…
The second thing “missing” is “The Close.” Where is it? It wasn’t even mentioned! That’s because there is none–it’s unnecessary.

You don’t “close”–you open. The point of this process is for your prospects to “close” themselves.

You won’t get through Resources and Opportunities on to Step Four (Action) if they are not in and interested. In fact, you won’t reach completion in any Step if this is not something they genuinely want to do.

MLM Network Marketing Prospecting: Five Step Sponsoring enables people to enroll naturally. Not only do you not have to “sell” them products, you do not have to “sell” them the opportunity, either. If it fits their goals because it is a great way to express their values, they’re in–automatically. Why? Because we will pay them to live and work that way.

It’s more than win-win, it’s win squared.