Showing posts with label Lead Generation. Show all posts
Showing posts with label Lead Generation. Show all posts

Friday, November 05, 2010

The Get Rich Quick Mentality Sucks!

It came as no surprise to me to find that if you type the word Kleeneze into Google, the second suggested option in their drop-down list is Kleeneze scam.

Why?

Because, as my first business lecturer told us, a satisfied customer will tell a couple of people, a dissatisfied customer will tell a dozen. Upgrade that to the Internet version and it's closer to a satisfied customer will tell their social network, a dissastified customer will tell their social network and then go on to conduct flame wars on every forum and review site that dares to mention the product.

The amount of hatred and bile directed at Kleeneze, Avon etc. is truly disheartening; you'd think people were nicer than their internet personae indicate.

But note:

This bile isn't spewing from dissatisfied Kleeneze customers. The pyroclastic flow ready to engulf the wary new distributor erupts from ex-distributors, many of whom appear to have distinctly distorted views of how to run their own business. There are complaints about fees needing to be paid to use various services, shipping costs needing to be paid if orders are under a certain amount, admin charges being applied in some cases. All of which, it has to be said, are covered in the manuals you get in your starter pack as well as online on the distributor site. Do these people not read any small print?

Part of the reason for the "bitter ex-distributor syndrome" has to be due to poorly-trained apprentice distributors not winnowing out applicants who are either tyre-kickers, lazy or who really just want an employer prepared to pay them better than minimum wage for no real effort. Those applicants would not make it in their own business; heck, they couldn't cope with fixed-price leaflet delivery work either.

In my previous network marketing company, my sponsor was a lovely lady who should never have been recruited into the industry. She would spend a fortune to avoid going out and talking to others about her own business opportunity, and then complained when she wasn't getting value for money for the few leads that came her way. All she really wanted was a work-from-home job from a "real" employer, who paid her PAYE.

Kleeneze is a business first and foremost. A Kleeneze distributorship is also a business, first and foremost. Sure, it's an opportunity. But opportunities are not treasure troves waiting for the taking. First you mine the gold ore, then you refine it, then you wear it or sell it on. Treasure troves only exist in fairy tales.

Let's face reality. According to US statistics, 30% of small businesses fail in the first 2 years; by the 5th year only 50% have survived. According to UK reports at least 33% of startups fail within 2 years; one BBC report had it closer to 80% since the credit crunch hit.

The most common reasons for business failure include poor planning, lack of customers, poor market research, rising fixed costs (overheads, employee costs, fuel, etc.) and failure to obtain sufficient financing to grow the business.

The initial startup costs for a business should not be underestimated either. As well as whatever is required in the way of business setup costs (IT, tools, vehicles, office/workshop rental), a new startup owner needs to consider how they are going to cover their own basic costs (food, clothing, bills, personal expenditure etc.) until the business makes a profit. When I attended a business startup course, the advice was to pare down my personal outgoings to a bare minimum, and then calculate the costs for 3 years to see how much I needed in reserve before I started my own full-time enterprise. As a single parent with a mortgage and no other financial support, I needed a minimum of £60,000! Couples need to ensure that they can survive on one income for 3 years before both work in the business full-time.

Take a look at the available opportunities out there. Be sceptical, do your due diligence and do your own calculations regarding projected income and expenditure. Then make a decision. But don't whinge if you don't make that million in the first few years.

Monday, August 02, 2010

Day 1 - Starting slowly

Today was a classic example of life getting in the way of planning.

I got home today to find I'd received 4 large boxes, all rather heavy. Catalogues weigh a lot, collectively. I cleared a space in the living room and got on with creating my catalogue packs.

Two and a half hours later, I'd done 100 packs, it was past 9 pm and I'd forgotten to eat anything...

I'd also listened to the DVD and CD in my official starter pack, so I was still fired up at the end of all that activity.

I still have another 100 catalogues to bag up, but I will deliver what I have tomorrow night.

In the mean time, all new Kleeneze distributors need the following AT THE START before they can be serious about their business:
  1.  Day slips - these tell the customer when you will collect the catalogues. They are not supplied by Kleeneze, you need to make your own or buy them from one of the printers supplying Kleeneze stationery.
  2. Recruitment advert slips - self explanatory, advertise to your customers that you are trying to build a team. These are not supplied by Kleeneze.
  3. A paper trimmer. A lot easier/safer to use than a craft knife for trimming your own day slips.
  4. LOTS of name and address labels with name, address, contact number and Kleeneze number. If you've got 200+ catalogues, the 650 that Kleeneze send you barely cover the 200 x 3 catalogues they send out at the same time. Again, try Able Label or one of the printers that supplies basic labels if you don't want to print your own.
  5. A laser printer - essential if you're going to print your own day slips. Don't bother with an inkjet - head for Argos or other similar shops and work out the cost savings over a year.

Sunday, August 01, 2010

Day 0 - Preparing the Ground

Having committed myself to actually sticking to a 90 day plan, I decided to organise myself a bit more.

First step - put up the new lockable postbox, so that my mail is in one place. That'll cut down the frantic hunting around the house for the latest repository created by my offspring. I've found 3 week old "pay now or else" bills behind the TV before now...

Second step - tidy the office. Easier said than done, as it's seen as a dumping ground for things that my eldest son doesn't want. Filed a lot of paperwork by the simple expedient of shoving it into a cupboard and closing the door. I'm obviously not that organised yet.

Third step - rough out the 90 day plan.

Of course, the simplest solution would be to map out identical blocks of time on every week day. However, this is the real world and as a single parent with a full-time job, not to mention full-time parenting, identical blocks of time is not an option.

So, I have set targets for both retail and recruitment lead generation. I will be keeping a record of planned activity, actual activity and results and I'll update it here on a weekly basis for the next 13 weeks.

Weekly Targets:

200 catalogues out, 3 times a week.
500 recruitment invites, door to door. 200 of those are going out with the catalogues.
10 clubs/organisations contacted with the suggestion of fund-raising parties based on the Christmas catalogue.

I'm bursting with energy and really looking forward to my first day of action. Here's to eventual success.



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Saturday, July 31, 2010

90 Day Plan Preparation

A 90 day plan has to be one of the simplest concepts in running your business. It's also one of the hardest to get right.

At first sight, there's no problem. You decide you want to run your own business. You start investigating options. You choose your preferred route to success. You attend some pre-business start up training, followed by some business training. And that's when the trouble starts.


As part of that business training, you get told that there are several key factors to your future success:

  1. You need to be passionate. That's OK, I wouldn't be investing time and money in seed money and training if I wasn't passionate, you say.
  2. You need to be organised. Not a problem, you assure yourself. It won't take long to tidy up a corner of the dining room/bedroom/attic. I've got my stapler, I've got my binders, I have a phone - how difficult can this be?
  3. You need to have a plan. I've got a plan, you say, smiling to yourself. I'm going to do this business brilliantly, I'm going to make loads of money and I'm going to be a great success.

At that point, you've just joined Walter Mitty in WonderfulMe Land and killed off any chance of succeeding.

Let's face it, if achieving financial freedom was that easy, there would be no poverty in this world.

Success = commitment + focus + persistent action

You need all three parts to build a solid foundation. Focus gets you zeroed in on your target. Commitment binds you to a course of action that will enable you to achieve your goals. But without the persistent action, there will be no long-term achievement.

So, you need that plan, it needs to be simple, and you need to stick with it.

All too often, we come away from training meetings with our ears ringing with MLM mantra. The one I personally feel does the most damage is this classic:

Massive Action = Massive Results

Poorly applied (because nobody's thought to tell the poor noob how to do so), that mantra is responsible for more failed businesses than I care to think.

Let's break it down, shall we? Action = Results. We all know that. But who defines "Massive"? You? Your upline? Your family?

So the new distributor/representative/sacrificial lamb listens to the various speakers at the training meeting and decides they need to:
  1. Buy into the business at the highest level possible, regardless of personal cost.
  2. Buy huge amounts of lead generation material OR spend a fortune on leads.
  3. Scattergun leaflets around the neighbourhood, spam their friends and family and fill up the garage with unsold products.

This leap into action usually means that on day 1, they do whatever they've been advised to do - say, deliver 500 leaflets, phone 10 relatives/friends, place 5 adverts in various papers.

By day 7, they're down to putting out 200 leaflets per night, there's no relatives left who'll answer the phone and the 5 adverts were obviously a waste of time because nobody called.

By day 14, they're not putting out leaflets any more, their friends are avoiding them at social events and they are scared they'll never shift that stock.

By day 28, it's meeting time again and they get encouraged to stick at it for another 4 weeks.

I know of people who've spent more than £15,000 trying to build their business like this. They all gave up, or the money gave out. Either way, it means the dream died.

So why on earth am I giving this whole Network Marketing concept another go? I must be mad, right?  

Wrong.

Just because there's a wrong way of following instructions, doesn't mean that those instructions don't have meaning and value. Just because some uplines seem more concerned with their own profits than helping you build a solid foundation for your business, does not mean all sponsors are corrupt, money-grabbing villains.

Each of us bears responsibility for our own actions. That includes the responsibility for performing a sanity check on what you've just planned for your business, buoyed as you are by the adrenalin rush of attending a really good business training. Your upline is not responsible for your business. You are.

Network Marketing is a People Business. As such, you are an ambassador for both your retail business and your team building. If you waste huge amounts of money on poorly targeted lead generation, don't follow up, don't build rapport with your customers by regularly calling/delivering catalogues/providing product - then that is what your team will copy, regardless of how many passionate members of their upline try to coach them differently.

To succeed in this sort of business, we all need to listen, learn, apply. We need to set SMART goals, not dreams. We need to plan and then stick to that plan. And we need to have an underlying mission statement for our business growth.

My business growth mantra is:

To build a Kleeneze team that is completely self-financing from retail sales.

In other words, after my initial investment of £171 for 200 catalogues, my distributor kit and a large Kleeneze-badged catapuller, all business growth will be funded by my retail profits.

Any lead-generation activity will be financed on that basis. I will start off with low-cost or no-cost promotions and move forward from there. I'll let you all know how it goes.