In case you haven’t heard yet, The Donald purchased a MLM/Network Marketing company. So what does Mr. Trump know about running a successful MLM company? Nothing!
Dear Mr. Trump, it is too important for you to succeed/not screw things up in our industry for me to remain silent and let your deal just happen. Well, let it happen without me throwing in my two cents. I want you to win big.
First, put your name on it. Network Marketers are traditionally a bunch of Rodney Dangerfield’s. Everyone thinks when they participate in MLM “they don’t get no respect!” For the most part, they’re right. They hear “pyramid scheme” far more than they hear “thank you for the opportunity.” Donald Trump is a credible and potentially powerful name in the Network Marketing industry. Provided you don’t blow it.
Products…I understand you have purchased a company that makes custom nutritionals for your customers. Big, Big mistake if you choose to continue down that path. The last thing you need in a day and age of the FDA big brother is a bunch of MLMers running around playing doctor. Nutritionals are good, custom nutritionals is a guaranteed failure. Have a good company build you a nutritional product line with custom formulas and great packaging. Price them higher than anyone else in the industry. Price and perceived quality are synonymous. Don’t build any products that people will make claims that they cure something….the FDA will make your life hell.
Compensation…never, never, never pay out more than 45%. You are going to have a cost of goods sold in the 15%-18% range, you simply won’t have enough money to stay open long term paying out 55% or more. Distributors love to say “we pay out more than anyone.” However when it comes to running a company, distributors are dumb. Also, look at a unilevel with a multi-tiered bonus pool or a binary. Do not launch a matrix. The last thing you want to do is change your comp plan in mid-stream.
Cash…Bring enough cash to survive growing your MLM company. We have had a few big shots start companies in our industry. They don’t love MLM, they think it will make them rich from day one. If you are willing to deal with a little pain, get the heck away from our industry. We don’t need another big name know it all sticking his mug in where it don’t belong.
Location, Location, Location…stay out of New York. Go to Dallas, Texas. Abundance of trained people available and good corporate types from our industry hang around there.
The Suits…Hire experienced people to run your company. You need MLM experience.
Ok, bud, I think you get the idea. This is a great industry that you can make even greater. But unless you do it right from the start, you’re going to fail. That’s bad for all of us that love it like I do. So just do it right.