Wednesday, December 31, 2008

Is it more important to get sales or sales-people?

Ultimately a lot of sites offer you a business opportunity. That's fine, but what are they selling? I see this time and time again, another company with a lucrative chance at making hundreds, thousands or millions of dollars (potentially, of course), but when you start to really look at the site, there is little to no information on the products or services available. This does not make any logical sense, unless you evaluate their business model.

It'll cost you $295 or so for the materials to "get started" and work with/for them. What if you have your own personal business going and are just looking what they are selling? That's where the problems really start and the relationship can snow-ball.

In my previous post I wrote a lot about how those portal sites work, and how they make a lot of their income. While I personally think some of it is very misleading, it does work. What also works is getting people overly excited and motivated to help you build your business, because like you, they are ambitious and wish to be financially successful; but at what cost?

It's a risk for both parties. If you are selling something and want to get more out there, finding someone who is motivated but not necessarily experienced is a good way to get them to pay you upfront for the time and money lost trying to get them started to help you out. From a newbie perspective, it's a good chance to pair up with someone who is doing well and really try your hand at making some serious money. Unfortunately, they tend to all quote the "95% of businesses fail". I would like to elaborate on that: most fail because they don't know what they are doing to begin with.

When scoping out your potential partnership (or whatever terminology you want to use), you should understand what they are effectively selling. Find out how many other individuals are also partnered with this person. They may not have the time to devote to coaching you and being an effective leader if they have too many people working for or with them already. If you are new, you'll need all the attention you can get if you really are new to this. On the flip-side, you can bet that the reason a lot of these people are so successful is because they have so many people working for them and have paid a gracious sum to just be associated with them. Understand the churn, too; as most of these friendly faces you may run into come and go every month. Don't believe the rhetoric that they didn't try enough, not everyone is cut out for sales. Ask yourself that question before you go into anything: "can I see myself doing this?"

We can all see ourselves rich and powerful, it's a great fantasy to the majority of people (unless you are already rich and powerful). Keep to that bottom line of really understanding your role in that partnership and what value you can bring. Understand at the same time, being new, with no experience isn't really a value at all, and that cost you pay to "partner" is really like an insurance policy with a 95% you'll not make it. You'll find two camps, those who are really good at selling whatever product it is they promote and standby, and others who are very good with their leadership and organizational skills to get people to envy and want to be like them; but it doesn't mean they are going to put in that extra mile to turn you into one of their peers. This is something you will have to discover on your own.

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