Web 2.0 and Network Marketing: Moving from Buggy Whips to Whatever’s “Next”:

In the 1991 film “Other People’s Money,” actor Danny DeVito plays a memorable role as “Larry The Liquidator,” a ruthlessly opportunistic corporate raider who threatens to take over the family owned New England Wire and Cable business.

As Larry is in the process of taking over Gregory Peck’s business at the stockholder’s meeting, the character delivers the following gem about losing market share in a shrinking market:

“You know, at one time there must’ve been dozens of companies making buggy whips. And I’ll bet the last company around was the one that made the best goddamn buggy whip you ever saw. Now how would you have liked to have been a stockholder in that company? You invested in a business and this business is dead. Lets have the intelligence, lets have the decency to sign the death certificate, collect the insurance, and invest in something with a future.”

To use DeVito’s example in “Other People’s Money,” the modern automobile supplied the death knell to the horse-and-buggy industry.  And to extend the analogy even further, the same can be said for the evolution of the Internet over the last 15 years.  Many observers have separated the Internet revolution into two distinctive parts – the horse-and-buggy early days (web 1.0) and the technologically superior modern automobile (web 2.0)

So what is Web 2.0?  The phrase “web 2.0″ itself is a chameleon of a concept, taking on a new meaning and appearance to each group that attempts to describe it.  For some, it describes the business revolution in the computer industry “caused by the Internet as platform.”  According to Wikipedia, Web 2.0 is a “trend in World Wide Web technology, and web design, a second generation of web-based communities and hosted services such as social-networking sites, wikis, blogs, and folksonomies, which aim to facilitate creativity, collaboration, and sharing among users. For IBM social-networking analyst Dario de Judicibus,  web 2.0 describes “ a knowledge-oriented environment where human interactions generate content that is published, managed and used through network applications in a service-oriented architecture.”
At its core, it describes the evolution of the Internet over time.  A web 2.0 model is simply using new techniques and approaches to solve old problems.  Like the maturation of a boy to man and the move from horse-and-buggy to automobile, web 2.0 is simply the next step in a process.

So how does a web 2.0 approach apply to the word of network marketing?  One of the lynchpins of the web 2.0 model is the effectiveness of user-defined social marketing websites.  Here are just a few examples of a web 2.0 approach you can use to expand your network marketing business.

·    Social networking sites like Facebook, LinkedIn and MySpace
·    Content sharing and link submission websites like Squidoo, Pownce, Magnolia, Delicious, Furl, Mahalo, Digg, StumbleUpon and Spurl
·    Blogging websites like Squarespace, WordPress or Blogger
·    File sharing sites like YouTube, Flickr, Limewire and I-Tunes

Remember, the goal in using these websites (and this type of technology, in general) is ultimately about expanding your network, … and not about spending all of your time in front of a computer screen in the warm glow of an Internet trance.

In the end game, the success and failure of your MLM career may hinge on your ability to adapt to a changing marketplace.  You must decide whether you want to dig in your heels and resist change … or move with the times.

Keep your MLM approach fluid.  By incorporating social marketing and a web 2.0 approach into your business model, you are not only evolving your business but the network marketing industry as well.  Ultimately, you have to embrace the technology or the technology will pass you by.  Be a leader and a follower.  Don’t be a buggy whip maker in a time of automobiles.

Kate: Someday, we’ll smarten up, change some laws, and put you out of business
Larry The Liquidator: You can change all the laws you want. You can’t stop the game. I’ll still be here. I adapt

If you’re looking for ‘how-to’ guides for incorporating web 2.0 into your network marketing business, check out the free site The Renegade University

By David Gignilliat

For NetworkMarketingUncut.Com

Have you ever bought a piece of furniture from Swedish superstore IKEA? You should. They’re durable, practical, contemporary and stylish. They’re also quite affordable and have great resale value on Craigslist and at yard sales.

But there’s a bit of a catch. You have to build it from scratch. First, you have to lug it from the store, find your car in some labyrinthine mall parking lot and then carry it awkwardly from your car to inside your home.

And that’s the easy part.

Next, you’ve got to open up all the vacuum-sealed bags and make sure you have all the little parts. Are you sure you have enough of the three-quarter inch wood dowels? Now you have to build the darn thing. I hope you’re good with complicated pictures and spatial relations. You might want to brush up on your Swedish too. For those of you that aren’t quite Harry Handyman, putting everything together might take a great deal of time and patience. Eventually, though, you figure it out and have a nice piece of furniture to show for it.

The moral of the story is that though you got yourself a great piece of furniture, it ended being a little harder than you thought it would be. You actually had to invest some of your time and effort. It was worth it though, wasn’t it?

Many MLM companies make it seem as if all you have to do is show up (or even wake up) and you’ll be making six figures in just a few months.

If it were that easy, why would your parent company even need you, though? Surely your initiation fee is not enough to pay their bills.

The fact of the matter is that you still have to work. And work hard. Many MLM companies are hopeful that new recruits will have some early sales success to motivate them in their critical first months in the business This is so you overlook the “hey, this is hard work” component of the equation.

If you’re just getting started out in network marketing, you need to believe the hype and buy into the dream … To a certain extent. You need to be excited about your product so that you convey that enthusiasm to your potential customers. But be wary of company’s that promise to do all the work for you. If all you have to do is step in and make money, you need to ask your recruiter some tough questions. Look before you leap and know what you’re getting into before you start.

You and your IKEA bed will thank you later as you enjoy the deep slumber that comes from knowing that you are well on your way to a successful career in network marketing.

By David Gignilliat

So You Think You’re The Next American (MLM) Idol?

There’s not a day that goes by in the network marketing industry when a square peg doesn’t try to jam itself into a round hole. Someone latches onto the MLM dream and maybe they really shouldn’t. They’re not bad people. They will go on to lead fulfilling successful lives in some other profession. And they will raise happy families and be good citizens. But for whatever reason, network marketing is not a good fit for them.

Human nature is a tough thing to overcome. We like to think that we can do anything we set our minds to, that obstacles are merely new challenges and opportunities in disguise. But sometimes we bite off a little more than we can chew. The Greeks called it hubris, or excessive pride. And it’s the very same type of conceit that causes good people to throw themselves in front of Simon, Randy and Paula on American Idol. You know, the chosen ones who brought you She bangs, she bangs … and You are My Brother. And they actually think they are going to win.

One of the biggest misconceptions about network marketing is that everyone can do it. And do it successfully. Sure, there’s the occasional MLM sales “natural” that can walk right in to the network marketing industry and start producing right away. This is the exception, however, and not the rule.

Just like in American Idol, people flock to this profession for the “Hollywood” dream. Some walk in with high hopes, but fall flat on their face, get laughed at by America, and wonder what happened.

But others succeed beyond their wildest dreams.

If you’re trained properly, and are willing to make a serious commitment to your career in network marketing, you’ll be just fine.

You too can be the next American MLM Idol.

By David Gignilliat

It’s Only Sharing…

“Hey there college buddy/lifelong friend/long-lost uncle. It’s David Gignilliat. What’s up?

… Remember that time in third grade when you split your pants on the playground? Yeah, that was awesome.

… How’s Jenna and the kids? Are you still working at Acme Widgets?

<This brand of small talk can usually go on for a few more minutes until …>

… I know I haven’t spoken to you in years, but I thought I’d give you a call/drop you a line/say ‘hello’/see how things are going. While I have you on the phone/staring at your e-mail, I’d like to share with you a business opportunity that’s been …”

At some network marketing companies, your training manual might include a sample conversation starter just like this one. It’s merely a laid-back way to approach your natural market with your business opportunity. You may even be instructed to send a pre-approach letter to your 500 closest acquaintances to warm things up before you make this call. Or you might even role-play these interactions with your sponsor or training manager to make them sound more natural.

Don’t get me wrong. Tapping your natural market is an excellent way to start growing your MLM business. These are people that know you already and they may want to use your services, … and just not know it yet. They may even be able to refer you to more people that you can share a business opportunity with.

But what’s all this sharing about, really? Sharing is a concept that has dominated MLM sales for years. It’s a way of gently re-packaging the truth to obscure how your products and your opportunity are distributed to others. Despite sounding easy, the fact remains that it’s still sales, and you still must have solid fundamentals to be successful. The idea that you don’t really have to sell anything but simply share your idea/concept/business opportunity with others is one of the great fallacies of network marketing. Yet somehow the Pollyanna fantasy of singing folk songs in endless fields of swirly-whirly candy canes … and just sharing a business opportunity with others nudges its way into our MLM mindset.

So what does a “share” really get you anyway? Yes, you may get a warm fuzzy feeling that you are growing your business. But most likely you’re not. In reality, you’re deluding yourself with a bunch of feel-good contacts that will likely never result in a successful business. This is because a warm market will never supply you with the amount of people you need to make it big in MLM. It makes the “business” seem easy when you first start, but eventually your warm market runs dry. At this point some people go to desperate measures to salvage their business, passing out flyers on car windshields, cold calling strangers, searching malls for prospects, etc. But for more then 95% of networks marketers, eventually all your “sharing” gets you is a failed business.

Now don’t get me wrong, word of mouth and referrals will always be a powerful tool for salespeople in the network marketing industry, but it’s most effective when the referrals and buzz come to you. By sharing an opportunity with others, yes, you are engaging in a “word of mouth” approach, but not in the true sense of the phrase. When you hear an opinion from someone who has nothing to gain or lose from saying it, that’s word of mouth. The “word of mouth” technique taught to you in MLM, — namely, your recommendation with strings attached — is tainted. You want people to choose you and your opportunity. By disguising a sales pitch as “word of mouth” you not only reinforce unprofessional business techniques, you also risk permanently damaging your relationship with anyone you try this approach on.

Don’t just expect your friends and family to buy from you or join a business based on your recommendation, just because you’re you. For practice, you should pretend that they are a complete stranger and they do not know anything about you, your product or your business.

Or pretend that you are a salesman. Because you are.

Once you’ve accepted this, you can start to learn the real way to make network marketing work.

Check out Magnetic Sponsoring or The Renegade System for more information.

By David Gignilliat

So, What is The Deal With Those Network Marketers? Buy, Sell, Upline, Downline. I Just Don’t Get It!

Unlikely MLM Advice from Seinfeld Star George Costanza

Remember the Seinfeld episode where George has an epiphany and learns that everything he has ever been taught is wrong, that every intuition and inclination he has ever felt has lead him in the wrong direction.

George: It’s not working, Jerry. It’s just not working.

Jerry : What is it that isn’t working?

George : Why did it all turn out like this for me? I had so much promise. I was personable, I was bright. Oh, maybe not academically speaking, but … I was perceptive. I always know when someone’s uncomfortable at a party. It became very clear to me sitting out there today, that every decision I’ve ever made, in my entire life, has been wrong. My life is the opposite of everything I want it to be. Every instinct I have, in every aspect of life, be it something to wear, something to eat … It’s all been wrong.

( A waitress comes up to George)

Waitress : Tuna on toast, coleslaw, cup of coffee.

George : Yeah. No, no, no, wait a minute, I always have tuna on toast. Nothing’s ever worked out for me with tuna on toast. I want the complete opposite of on toast. Chicken salad, on rye, untoasted … and a cup of tea.

Elaine : Well, there’s no telling what can happen from this.

Jerry : You know chicken salad is not the opposite of tuna, salmon is the opposite of tuna, ‘cos salmon swim against the current, and the tuna swim with it.

George : Good for the tuna.

( A blonde looks at George )

Elaine : Ah, George, you know, that woman just looked at you.

George : So what? What am I supposed to do?

Elaine : Go talk to her.

George : Elaine, bald men, with no jobs, and no money, who live with their parents, don’t approach strange women.

Jerry : Well here’s your chance to try the opposite. Instead of tuna salad and being intimidated by women, chicken salad and going right up to them.

George : Yeah, I should do the opposite, I should.

Jerry : If every instinct you have is wrong, then the opposite would have to be right.

George : Yes, I will do the opposite. I used to sit here and do nothing, and regret it for the rest of the day, so now I will do the opposite, and I will do something!

( He goes over to the woman )

George : Excuse me, I couldn’t help but notice that you were looking in my direction.

Victoria : Oh, yes I was, you just ordered the same exact lunch as me.

(George takes a deep breath )

George : My name is George. I’m unemployed and I live with my parents.

Victoria : I’m Victoria. Hi.

Good work, George. This would have been a great step forward if you were a network marketer. You have taken the first step toward un-learning years of irrelevant instruction and experience.

At one point in time, every network marketer gets sold on the dream.

“You, yes you, can be making six figures in a year. No, you don’t have to have any professional experience in this industry. And yes, you can do this all from the comfort of your own home. Just by following a few simple steps, you too can make …”

Blah. Blah. Blah.

OK, it’s not all hogwash and smoke-and-mirrors. Yes, new people still succeed in the network marketing industry. All the time. It’s still a crucial part of MLM process to recruit new people to the industry.

Common sense tells us to follow in the paths of others. Ancient Chinese proverb tells us that to know the road ahead, we should ask those coming back. Robert Frost tells us that two roads often diverge in the woods and to take the one less traveled.

But sometimes, it is just as effective to shed all the common sense and conventional wisdom and cut your own path.

Whether you’re new to MLM or have been doing it for years, you’ve probably sat in bed at 3:00 a.m. staring at the ceiling and asked yourself the “why am I doing this?” questions.

Isn’t there a better (and more efficient) use of my time? Why I am banging my head against the wall and not getting the results I expected? Why am I taking direction from someone that not successful in this industry? Or is everyone else successful but me?

Over the course of the next several weeks, this blog will explores some of the most pervasive lies in network, … and help to de-bunk them. Some may be the exact opposite of what you’ve been taught. And what you’ve put in to practice over the years.

All we ask is that you let go for a few minutes, fight your MLM intuition and find your inner Costanza.

George : My name is George. I’m unemployed and I live with my parents.

By David Gignilliat & Nate DeLucca

The world of network marketing used to be so simple. Friends, family, neighbors, strangers. 10-second speeches, 2 minute conversations. Everyone’s a prospect. Always be closing.

Good times.

Then, Al Gore invented the Internet and everything changed. The technology revolution of the early 1990s put a personal computer in every home. The efficiency and affordability of 24-7 Internet access knocked down many obstacles that had hindered MLM professionals in the past. Instead of chasing every prospect within three feet, you could anonymously cast your net wider. Much, much wider. All from the comfort of your own home. And in your pajamas no less.

For those of you yet to venture into the online world of network marketing, let me highlight a few basic concepts:

• Access to everyone, all over the world, all the time: You don’t have to be in network marketing long to know that the more you get your message to people, the better your business will be. Now imagine you have a friend that will spread your product or opportunity message for you, 24 hours a day. Not only that, but this friend will travel almost anywhere on the planet and talk to an unlimited amount of people, all at once. This friend never gets tired and will work until you tell it to stop. Sounds great doesn’t it? Well, meet the Internet. No longer do you have to confine yourself to your town or state or circle of friends. Using basic programs, you can communicate with “opportunities” all over the world, eliminating postage, mileage and saving your valuable time in the process. How wise does using the 3-foot rule seem when you have the entire world within your reach?

• Leverage your time: Talking to the amount of random people it takes to create a successful downline one by one is similar to finding a program to watch on television without a remote. Getting up every couple minutes to change the channel, then sitting down only to find out the show isn’t what you had hoped. So it’s back up to find another one. All that extra effort repeatedly wasted on randomly searching for a potential fit. The Internet is the new-age remote control that lets you not only quickly and efficiently browse through channels, but also search menus by topic to narrow down your search. No more flipping to a channel, watching it for a moment, and deciding if it looks interesting. Jump to the stations you know you’ll be interested in. Cutting out this unnecessary motion is a short cut to a better business.

• You don’t have to have a rock star personality to be effective in your network marketing business: Every company has a “natural,” a one-man wrecking crew that can create sales and opportunities anywhere they go. Handsome, charming and effortlessly persuasive, they seem to find business even when they’re not looking, … at the grocery store, the dry cleaners or even in line at the DMV. They are the network marketing all-stars that make the kind of money everyone thinks they are going to make when they step into this business. If you’re this guy already, life is good. Most of us, however, are not. The good news is the Internet has leveled the playing field for the shrinking violets of MLM, rewarding the shy and soft-spoken. Yes, you still have to meet people, but an effective Internet based communication platform and a sound online marketing strategy can overcome many a personality deficit. Even people without personalities can apply themselves and succeed. So leave the grocery stores and the dry cleaners to people trying to buy groceries and look nice. Use the Internet to shine your personality.

• The Internet can not supply everything: Despite the advantages of the Internet, it can not provide everything for your business. Even if your airtight e-mail marketing campaign is generating lead after qualified lead, you still have to follow through at some point and connect with another human being. The best systems in the world can create a downline for you without you doing any more then paying a few bucks and clicking a few keys, but without personal interaction, it wont last. There is nothing keeping anyone under you from jumping ship at a moments notice. A lot of us in the business are after long-term income. Yes, we want it as fast as possible, but using completely automated systems to build your downline in record time cuts out the main ingredient for stability. A personal relationship with other people. People show commitment to other people they know much more then random names on a computer screen. If someone has the choice of reading a manual or having me show them step by step how to build a business, and we get to the same result, what do you think they’d rather try? Which one do you think they’re more willing to stick to?

Recognize the Internet for what it is – a powerful, necessary tool. It can replace some tools, and do the work of multiple others. But keep in mind that it should be just one of several tools you should have in your marketing toolbelt.

They say the best way to kill 2 hours is to go online for 5 minutes.

I’ve personally validated the comment more times then I can count. Many, many nights have started out promising, with intentions of researching better ways to use online methods to enhance my MLM business (websites, landing pages, PPC, articles, blogs, sales letters, ezines), only to find myself 4 hours later in Instant Message conversations with all of my friends, up to date on all the sports and celebrity gossip, and watching youtube clips of tv shows I’ve seen countless times already. My night ends with nothing accomplished, and the same tasks on my to-do list.

This is the cycle I spent months in, until…

I learned to analyze myself, and find out what I was doing that was wasting time. The biggest thing for me was learning not to get side tracked. The first way I’d get side tracked was from the distractions like Instant Messenger, personal emails, news and sports articles, general stuff like this. Once I dedicated a set time for these types of activities, it was no longer a distraction. The second way was from things I thought were relevant to my business. This include reading about every online lead generating system out there, inquiring about adwords and a million other advertising techniques, designing my website or blog, writing articles, brainstorming, reading, etc. These activities seem like they are relevant, but they are what’s known as administrative activities. It’s not that they aren’t important, it’s just that they have their own time and place. They should not take the bulk of your time.

I’ve heard countless times that 80% of your time should be spent doing what is most important to you in the business. For me and most people, that means talking to prospects to build your business. Think about that, 80% of the time you need to be talking to people you think would be interested in your business. This was a complete contradiction to what I thought before. Before I’d spend a month reading up on and putting together a website that never really worked well, thinking that it would solve the leads and prospect aspect of my business, then more time thinking of something else to do… before I knew it, months had gone by and I was no further along then when I started because I never talked to anyone or talked to the wrong kind of people. Like I’ve said before, if it isn’t producing results, find out what to change and change it.

Now, I keep my administrative stuff to a minimum. I picked the way I want to run my business, and I’m putting it in action. It’s not the most perfect way, and I still read and research, but I do it as quickly and efficiently as possible and only after I’ve “consulted” my prospects for the day. My administrative stuff is more of an after thought, but because I’m smart and efficient about it, it ends up funding the lead prospecting aspect. My advice to you if your going down this road is…

Don’t wait until you have the perfect administrative system in place to start building your downline, do it as you go.

The profits will catch up, and the more substantial money (a downline) will already be in place when it does.

So now when you go online, keep it smart and simple. Don’t sit down and think, maybe I’ll try and build a website today if you’ve never tried before. Have actual steps and set goals, and don’t lose focus. Don’t be afraid to take advice from people who have been there before. Adjust your actions along the way as need be, but always reflect to see if you spending your time the most efficient way possible.

Prospecting 101 Lesson 1 - Everyone is Not a Prospect

Edited by David Gignilliat

If you want to annoy your friends, frustrate your family, lose all of your confidence and fail miserably at your network marketing business, adopt the mantra that “everyone’s a prospect.” If prospecting everyone that gets within three feet of you is only marketing strategy, be prepared to join the 97% of network marketers that quit the industry without making a profit.

The phrase ‘everyone’s a prospect’ has been the lynchpin of MLM lead generation techniques for decades. But is there any truth to it? Ask the millions of aspiring entrepreneurs who have tried and failed. They will tell you, without fail, it’s not for lack of “presentations,” “pitches” or “contacts.” Often, it’s simply because they’re trying to sell to an audience that just doesn’t care. Your company has spent millions on market research and knows exactly how many people you need to talk to get someone interested and how many of them it takes to get a prospect signed up. Your managers will tell you repeatedly that it’s just a numbers game, but the amount of rejection you personally have to endure is both demoralizing and unnecessary.

Does the strategy actually work for anyone? Yes. For these rare Johnny Appleseeds that make it work, they’ll tell you it’s just a matter of putting your head down, trusting the numbers game and staying the course. For most of us, however, this “shotgun” approach will be our first step toward quitting the business. It’s the contradiction of it all that starts to get to each of us. You’re frustrated and desperately want people to sign up for a great opportunity where they “can make money just by talking to people,” … while you can’t seem to make it work simply by talking to people. People tend to sour quickly on the business after an endless loop of no’s and go running in the opposite direction. It’s not the business itself that repels them, it’s the work required to convert these “prospects” into to sales that drives them away.

Ultimately, your customer has to be in a mindset to want to buy something from you. The more expensive your product or service, the more your customer will have to be thinking about it already and better yet, taking steps of their own. Even though your business makes perfect sense to you, everyone else probably doesn’t see it that way. Try convincing someone to move to Australia. Unless they’ve been thinking about it on their own already, it is crazy to suggest it to them without warning. You can give a prospect all the reasons in the world to say “yes,” but if they have no desire to do it, an avalanche of features and benefits will do little to change their mind.

So what should your motto be? “Everyone that asks you about your business or product is a prospect.” And how do you make people ask you about your project? By positioning yourself as someone that can provide others with something they want. Instead of broadcasting your perfect, polished message to thousands of complete strangers who don’t care, you must learn how to get yourself in front of those who truly want to hear what you have to say.

In short, find the people who already want to move to Australia. If you can do this successfully, you just may be able to afford to visit them there someday.

One of the best things a network marketer can learn to do is to leverage his or her time and effort. This applies to many different areas of our home business, from the network marketing company itself, to using other people’s products (with their permission), and lastly by taking people’s advice and expertise as to not start from scratch every time.

Let’s first talk about the network marketing company itself. I’m not too aware of the other companies that are out there, but I’m pretty sure I found a good one. The company I’m in has these perks: you get paid on a downline to infinity (so everyone under you making sales and qualifying prospects makes you money equally), the money is residual (so once you build a downline that pays you say $1500 a week, it will continue to do so for the rest of your life, as long as you stay in the business) and you only need to have about 10-15 costumers a month. Now lets tie this into leverage. For anyone in MLM, the idea of getting paid off of everyone else is somewhat common. No exception with my company. But the fact that some people have to continually earn their checks over and over is a little ridiculous. This fact is so important, because with me, I spend time now building a business that pays me over and over and over again without any more effort on my part. That’s the kind of leverage I’m after, the most effective return on my hour of work.

Setting up a process that repeatedly pays you(residual income) is one example. Another example of leverage is using other people’s efforts whenever you can to your own advantage. A great example of this is the renegade system. You buy the ebook once and have unlimited access to their landing pages and system. This is a huge deal, because they put thousands of hours testing and tweaking something that you can get paid for using without having to do any of the hard work. Eventually you can make even more money by making systems that can help people in the same way you’re being helped, but for anyone starting out, it’s makes a lot of sense to leverage other people’s work to benefit yourself.

And finally, leverage your precious time by reading and taking advice from people who have been there and mastered what you’re learning. Once you get into the whole world of online advertising and business building, you can get lost in the sea of new material. I’ve wasted so many hours trying to figure things out on my own, when I could have spent a little time and sometimes and little money and jumped directly to the end result I was hoping for. Sometimes it comes in the shape of a book from an expert (which I used to learn about blogs), sometimes it’s a video tutorial (how I learned to use an auto-responder). Each of these tools saved me days and days of reading to get me to exactly the end result I was looking for. Then there’s the free support you get when you sign up for a lot of the online tools I’ve mentioned before. I’ve tried godaddy, hostgator, aweber, and countless others and found out that they have amazing support staff that will practically teach you anything you could want to know. Manuals and video tutorials can be ok, but talking to someone that knows exactly what to tell you is even better. So if you’re trying these programs out, don’t waste time trying to guess, have a plan, take advantage of the help and use the most direct route you can to get there.