Advertising and Marketing

Multi-Level Marketing is alive and well in the United States and millions of Americans are involved in these businesses which they run from their home and even buy the products from them selves and for them selves.

Unfortunately all too often a multi-level marketer will embellish their own financial success in the business, as well as the reality of the attrition rates when building their down lines in sales presentations. In fact the Federal Trade Commission (FTC) has identified this as one area where consumers have encountered fraud and misrepresentation.

In an official report from the FTC on proposed rule changes for business opportunities, multi-level marketing companies and Franchises the FTC states;

“Indeed, complaints against pyramid marketing companies consistently ranked among the top 20 injury categories reported in consumer fraud complaints to the Commission.91 For example, during the period 1997 through 2005, pyramid marketing schemes ranked among the top 20 injury levels each year, except in 2003, as follows: State regulators report similar data. For example, a Florida business opportunity regulator noted that in his office, 60% of the written complaints received pertain to pyramid marketing companies. “They last about six months and they’re gone.” James, 20Nov97 Tr at 115-26. The State of Washington also reported a large number of pyramid marketing scheme complaints. See WA Securities, ANPR 117 at 2.”

YEAR RANK INJURY

1997 9th $352,769

1998 5th $1,858,787

1999 10th $2,011,012

2000 4th $12,632,132

2001 10th $10,685,083

2002 18th $9,685,722

2003 (not in top 20)

2004 18th $2,264,112

2005 17th $3,347,443

Well we can certainly see why authorities are worried about MLM Multi-level marketing companies and home based pyramid-marketing schemes. These new proposed rule changes may in fact address these issues, but no one is certain that the misrepresentation will stop. If you own an MLM business perhaps you might wish to comment at the FTC about this upcoming proposed rule change? Consider all this in 2006.

Lance Winslow

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Tags: ftc, Multi-level Marketing, Possible Fraud, proposed rules, Pyramid Marketing Companies, regulations

Having been in the Franchising Industry and set up franchised units in 23-states and 4 nations, which did business in 450 cities and 110 major markets, we learned early on that once we had set up the initial marketing “Bonzai and Blitz” mission that most of our franchised outlet’s business came from word of mouth, not on-going advertising.

This is why I have always said that you should; Fire Your Marketing Consultant, as most of your on-going business will come from Word of Mouth. Now then many of the most disreputable marketing consultants who write three or more books on Marketing will call this true observation into question. They will tell you that referrals and word of mouth business is not what brings in the majority of your clientele and that you must buy their books, tapes, go to seminars and even hire these scoundrels as consultants? Not so.

Oh they say things like; “I would be skeptical of Word of Mouth and its benefits to your business; you must market and advertise if you want to maximize your potential”

Look I hate to brag, well, actually now that I am retired and could care less what anyone else thinks, I guess bragging does not bother me too much; but we literally creamed our competition in every friggin market and laid them out for the count and we rarely advertised at all. We asked for referrals and we had people following our service units around town, honking to pull us over and give us accounts or business on the spot. So, let me tell you anyone who says that; word of mouth is not all it is cracked up to be is full of horse dung. Consider all this in 2006.

Lance Winslow

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Tags: Fire Your Marketing Consultant, Most Business Comes from Word of Mouth

You start by thinking that when exhibiting at a show, to market direct to the public or to trade, you will more than likely be stood within metres of your competition. If you were not exhibiting though, then your competitors will be there anyway so this point should not in anyway affect your decision to exhibit.

- In terms of actual exhibiting, you know that you are dealing with a targeted market at exhibitions, with the people who do walk through the door; clearly people have chosen to attend such an event. This would suggest that they have some involvement or genuine interest with regards to your field.

- If you have a genuinely good product, exhibitions also give you a very good sales environment on which to push for new business. What can be very important is getting your sales area perfect. Choosing the right exhibition stand design and the right spot will all affect how well you do.

Exhibitions are also fantastic for doing live demonstrations and for companies who for example, sell portable pop-up display stands, using an exhibitor’s exhibition, to demonstrate this pop-up banner is the perfect opportunity. The product being sold becomes more tangible for the potential customer and the sales job potentially becomes easier.

This type of direct marketing can also be considered by some people to be quite positive in that people who want to be sold to, are the ones being targeted this way. No junk email, no cold calling. This type of direct selling can be considered a positive way of connecting with future customers and the relationship from the beginning tends to be one which is built on more familiarity and understanding, with both parties having met face-to-face from the beginning.

In terms of sales leads and actual sales, percentages can be high, due to high number of quality visitors at these exhibitions. Someone attending the London Caravans Exhibition in Excel exhibition centre for example, are likely to have a serious interest in caravans and similar products. You can potentially make more leads in a 2 or 3 exhibition than you might in a few weeks worth of cold calling.

Having an exhibition stand at an event will cost a certain amount but the cost offset against the number of sales leads can mean that it is a worthwhile venture. Try it once!

http://www.clipdisplay.com

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Tags: B2B, business, direct, displays, events, exhibition, exhibitions, Marketing, stands