Network marketing millionaire and author Pat Petrini has started an important discussion on the need to reinvent the network marketing profession, as it is practiced today.
Through his video series, Reinventing Network Marketing Pat raises some important points for both the company and the distributors to ponder upon.
Read the previous posts:
– What’s Wrong with Network Marketing – and How to Fix It
– Reinventing Network Marketing – Part 2: The P-Word
– Reinventing Network Marketing – Part 3: Marketer-Centric Model & the Boom-Bust Cycle
Watch the Intermission (Part 4) where Pat goes over some resources and examples of companies that got in trouble with the law.
Below is Part 5 – The Suck List: What “Sucks” About Network Marketing
Here are some key points Pat makes in this video:
- Starter kits should not be commission-able.
- “Retail price” is just a gimmick, no one pays it. It’s just to shovel people in as marketers instead of customers.
- Non-competes: companies don’t want you to play in another network marketing company. This is laziness on the company’s part. Your retention strategy should not come from your legal department. A distributorship should be a fair partnership—for as long as it makes sense. If you don’t want your team to get raided, then just work on being better! Be the better option for your team. Trying to enforce non-competes is a waste of resources and time.
- Unclear distinction between customers and distributors: They should both be treated very differently. Customer messaging to customers and marketing messages to marketers.
- Lack of transparency: Secretiveness about what people are earning, for fear that people might learn the truth, is an unhealthy practice. Earnings are always exaggerated. Any sales office in the world has a sales board and everyone’s sales numbers are public. Let’s compete, it’s healthy! Secretiveness is not sustainable…
- Overpriced products – More on this in Part 3: Marketer-Centric Model & the Boom-Bust Cycle
Any other things about network marketing you’d like to change? Join the discussion by posting in comments.
Coming up next: (The final part) What a Marketer Should Look for