Appendix
Effectiveness in Multi-Level Marketing
Master Thesis
Groningen, January 7
th2007
Author:
Matthijs M. Deiman
Student number:
1077139
Faculty of Management and Organization
Department of International Business
Rijksuniversiteit Groningen
First supervisor:
Drs. R.W. de Vries
Second supervisor:
Drs. J.J. Hotho
Company advisor:
Drs. M. Kuiper
Appendix 1: Interviews
To answer the research question and accomplish the research goal interviews have been conducted. Interviews are used to find out what people know, think, feel and want concerning certain topic, persons or happenings (Baarda, 2005: 230). As mentioned in Paragraph 2.8 sixteen semi-structured interviews were conducted. Because of the needed personal and social data, the researcher has chosen to interview each person individually instead of group interviews. Each representative interviewed was told why this interview was taking place, the lengths of the interview and that the interview data would be processed with their privacy guaranteed. The people interviewed were chosen based on their positions and knowledge. Emphasis was put on people who are in the ACN system quite some time. Two TT’s, four ETT’s, six ETL’s and three (all) TC’s in the company JG were interviewed face-to-face. Besides this also a RVP was interviewed by telephone.
Here is the list of representatives interviewed:
TT Deiman ETL Jenkens
TT Poort ETL Rodrigues
ETT Castelein ETL Verheek
ETT De la Rosa ETL Visser
ETT Hardebol TC Beck
ETT Schlootz TC Gerrijts
ETL Gielen TC Mailly
ETL Harsin RVP Dubbeld
Here is the list of topics dealt with in the interviews:
• Background representative: Can you tell me something about your time before ACN? What are you doing now besides ACN?
• Primary Motivation Factors: Why did you start with ACN? Are you doing ACN now for the same reasons as you started? Why did this change?
• Primary Process: What are the activities to make money within the ACN system? • Tasks: What is the task of a TT, ETT, ETL, TC, (RVP)? Are these tasks being done by
people in your up line and down line? And do you think people have the abilities to perform these tasks?
• Communication: What do you think about the level of communication (using model of Covey)? And what about the team spirit? What should be changed?
• General MLM pitfalls: Looking at the pitfalls, which do occur within JG? And why do they occur? What should be done to solve them?
• General Comments: Is there anything you would add looking at the goals I want to achieve with this thesis? Any more comments?
Appendix 2: How to start your own ACN Organization (UK
Version)
Welcome!
People experience a lot of different emotions when they first start building their ACN business, but most of the time they’re excited! They may be more excited than they’ve ever been before. But at the same time, they’re hesitant to move forward. Why? One reason is because they really aren’t sure what to do. No matter what you’ve done in the past, no matter how successful you’ve been, this business is different. This is a new experience for you, and just like getting a new job, you’ll go through a learning curve. You may feel a little awkward at first, but the day will quickly come when it’s all second nature to you! The difference is that, this time, you work for yourself. Learn what you need to learn – do what you need to do.
Keep it Simple:
When you begin talking to people, it’s very important that you keep things simple. If you make things seem complicated or confuse someone, you will only hinder your own growth. When people are confused about becoming a customer or getting involved in the opportunity, they will do absolutely nothing – except wait.
Have Long-Term Thinking:
You will certainly make some mistakes. Don’t worry! Think long-term. Making mistakes is nothing more than an opportunity to learn what does not work. If you have long-term thinking, imagine where you could be in two to five years. You can’t help but become great if you stick with something long enough. Keep in mind that there is no such thing as failure at ACN. You cannot fail if you never quit.
Customer Acquisition:
The foundation of the ACN opportunity is its simplicity. We’re not asking anyone to change their buying habits or try something they don’t need or can’t afford. We’re not asking anyone for money. We simply help people realise value with services they’re going to use anyway -- every day for the rest of their lives, and our customers’ satisfaction is guaranteed.
Apples, Apples, Apples:
When approaching people about ACN’s services or the ACN opportunity, we find that people fall into one of the three following categories:
Red apples: OPEN-MINDED people Green apples: MAYBE people
Rotten apples: CLOSED-MINDED people
People are motivated by different reasons and many will surprise you. Those you think
won’t...will. Those you think will...won’t. Some people have legitimate reasons why they won’t become a customer or get involved with ACN, and that’s okay. But some rotten apples tend to be negative and could be considered “dream stealers.” They are not only opposed to trying the service and/or the opportunity, but they also try to convince you that there is no opportunity for you. Stay away from these people. They will only drain your energy and enthusiasm. Remember, in reality there are no dream stealers. Only you can give up on your dreams.
Don’t Sell – Sort:
The most important thing for you to understand about the ACN opportunity is that we are in the SORTING business, not the selling business! The main difference between successful
representatives and unsuccessful representatives is what they do with their time. Spend 80% of your time sorting for and working with red apples, 20% of your time with green apples, and 0% of your time with the rotten apples. Remember that you can’t change people; you can only offer people an opportunity to change themselves. The minute you recognise that someone is a rotten apple, don’t pursue them. Concentrate on the red apples.
Launching Your
ACN Business
Check box when goal is complete:
Complete an ACN Independent Representative Agreement and submit it to ACN.
To log in for the first time you need your Team ID number which is printed on your
Representative Agreement. Go to MyACN for Representatives log-in page click on the link next to First Time Login and follow the simple instructions.
List everyone you can think of an don’t pre-judge. This is where your customers, representatives and referral will come from.
Date:______________ Time: _______________ Location:_________________
Your goal should be to earn the position of ETT within 30 days. As an ETT, you are eligible to take advantage of Team Customer Acquisition Bonuses (T-CABs).
Call everyone on your list and schedule as many presentations as possible with you and your upline expert.
My First PBR Date/Time:___________________________________
ACN’s Events feature training from the top leaders and Co-Founders. Learn from the best; become the best. This is a MUST!
Enroll yourself as a Team Trainer (TT)
Log into MyACN and change your personal password. Create your warm market list.
Attend a QuickStart Training to learn how to properly launch your business. Set a goal to earn Executive Team Trainer (ETT) right away.
Remember: By focusing on getting to ETT, you will position yourself to take advantage of all the ACN Compensation Plan has to offer.
Schedule your Private Business Reception (PBR) within 3-4 days of you start date. Register for ACN’s upcoming European Training Event
Warm Market Memory Jogger 1. Who is dissatisfied with their job 2. Who is unhappy with their income 3. Who is concerned about the environment 4. Who is money oriented or money motivated 5. Who owns their own business
6. Who enjoys being around high energy people 7. Who quit their job or is out of work
8. Who needs extra money 9. Your friends
10. Your brothers and sisters 11. Your parents
12. Your cousins 13. Your children
14. Your aunts and uncles 15. Your spouse’s relatives 16. Who you went to school with 17. Who works with you
18. Who is retired
19. Who works part-time jobs 20. Who you like the most 21. Who was laid off
22. Who bought a new home 23. Who answers classified ads 24. Who runs personal ads 25. Who gave you a business card 26. Who works at night
27. Who delivers pizza to your home 28. Who sells Avon or Mary-Kay 29. Who sells Tupperware 30. Who wants freedom 31. Who likes team sports 32. Who is a fund-raiser
33. Who watches television often 34. Who works on cars
35. Who likes political campaigns 36. Who are social networkers 37. Who are in the military 38. Who your friends know 39. Your dentists
40. Your doctor 41. Who will help you
42. Who works for the government 43. Who is unemployed
44. Who attends self improvement seminars 45. Who reads self-help books
46. Who reads books on success 47. Your children’s friends’ parents 48. Who was your boss
49. Your parent’s friends
51. Who waits on you at restaurants 52. Who cuts your hair
53. Who does your nails 54. Who does your taxes 55. Who works at your bank
56. Who is on your holiday card list 57. Who is in retail sales
58. Who sells real estate 59. Who are teachers 60. Who services your car 61. Who repairs your house 62. Who is on your Xmas card list 63. Who has children in college 64. Who likes to dance
65. Who sold you your car 66. Who you met at a party 67. Who likes to buy things 68. Who you’ve met on a plane 69. Who does volunteer work 70. Who you like the least 71. Who is in network marketing 72. Who needs a new car
73. Who wants to go on vacation 74. Who works too hard
75. Who was injured at work 76. Who lives in your neighborhood 77. Who is your boss
78. Who delivers your mail 79. Who calls you at home 80. Who calls you at work 81. Who delivers your paper 82. Who handles your gardening 83. Who watches your children 84. Who attends your church 85. Who you met on the street
86. Who you meet through your friends 87. Who was at your wedding?
88. Who sells cosmetics 89. Who bags your groceries 90. Who wants a promotion 91. Who knows a lot of people 92. Who is health conscious 93. Who recycles
94. Who buys bottled water 95. Who knows people abroad 96. Who is wealthy
97. Who has a lot of friends 98. Who exercises regularly
99. Who belongs to the Chamber of Commerce 100. Who you haven’t listed yet
Warm Market List
Remember: List everyone you can think of –
this is where your customers and referrals will come from
.
Name
Phone #
Piqued
PBR
or 2 on
1
2
ndexposure
Enrolled
as a Rep
Enrolled
as a Cust.
1
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Warm Market List
Name
Phone
#
Piqued PBR
or 2
on 1
2
ndexposure
Enrolled
as a Rep
Enrolled as a
Cust.
51
52
53
54
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56
57
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Approaches for Recruiting Pique Interest Approaches:
Approach 1: “Hi, (Their Name). I want to ask you a question. If the money was right, and it would fit into your schedule, would you be open to a business opportunity?” (Be quiet and get a positive response.)
Approach 2: “If there was a way for you to get paid on your own and other people’s bills, would you like to get some information on that?” (Be quiet and get a positive response.)
Approach 3: “Would you be open-minded to hear about a business if it could add to your income without jeopardising or interfering with what you do now?” (Be quiet and get a positive
response.)
Approach 4: “Do you keep your business options open in other areas outside of what you are currently doing?” (Be quiet and get a positive response.)
If you get a positive response:
“Great, I don’t have a lot of time to go into it right now, however I would like to invite you to: (Presentation).”
If they begin asking questions:
“Like I said, I really don’t want to go into it right now, however, it is involved with the one trillion dollar service industry. What is more important is that you see the business the same way I did, so you can see the whole concept. I would like to invite you to: (Presentation).”
“Hi, (Their Name). How are you? Do you have a minute? I would like to get your opinion on something.” (Be quiet and get a positive response.)
“I have recently looked at a business that I am really interested in and would really appreciate it if you would take a look at it. From what I see, the company looks great, but before I jump in, I would really like your opinion on it and see what you think. Who knows, you may end up having some interest as well. Would you do me a personal favor, come take a look at it with me and tell me what you think?” (Be quiet and get a positive response.)
If you get a positive response:
“Great, if you grab a pencil and paper, I will give you the location, time and directions so we can meet, or I can pick you up. Which would you prefer?”
If they begin asking questions...
“Listen, (Their Name). I would really like you to see the business in the same way that I saw it. If I tried to explain it to you second hand, I feel you may not get the full picture and your opinion may not be accurate. When we meet, you will get all the facts and any questions you may have will be answered at that time.”
There are two main approaches you can use when recruiting: • The Pique Interest Approach &
• The Opinion Approach
REMEMBER: Your goal is to sort, not sell! Our advantages with personal contacts are trust and rapport.
Most Common questions When Recruiting
RESPONSE: “The name of the company is ACN. They have been in business since 1993 and have been very successful. Today, ACN is the largest direct marketing telecommunications provider in the world. But more importantly, I would like to invite you to…”
RESPONSE: “The timing is better now than ever before. Even though the company has generated millions of dollars in revenue and helped to create many success stories, ACN only represents less than one-half of one percent of the market. That means that over 99% of the people are still not ACN customers. The good news is that we are in a very unique position. Our company has a proven track record while also being a ground floor opportunity. The industry is so immense and growing so fast; your timing couldn’t be better! What is more important is that you see the whole concept so you can make an educated decision on whether or not this is for you. So I would like to invite you to...”
RESPONSE: “No, pyramids are illegal. With pyramids, people exchange money without products or services being marketed to the customer. Network marketing is a ‘word of mouth’ marketing strategy. In our company, no income is earned unless someone acquires a true customer. What is more important is that you see the whole concept so you can make an educated decision on whether or not this is for you. So, I would like to invite you...”
RESPONSE #1: “Most people are busy. If I can show you how to take advantage of the opportunity without taking up a lot of your time, that would interest you, wouldn’t it? Great! What is more important is that you see the whole concept, so you can make an educated decision on whether or not this is for you. So I would like to invite you...”
RESPONSE #2: “That’s exactly why I thought of you. Imagine getting involved in something that is structured to free up your time! You need to look at this. What is more important is that you see the whole concept, so you can make an educated decision on whether or not this is for you. So I would like to invite you...”
RESPONSE: “That depends on whether or not you get involved, but it won’t cost you anything to look at it. What is more important is that you see the whole concept, so you can make an educated decision on whether or not this is for you. So I would like to invite you...”
RESPONSE #1: “Don’t worry about the £170. It won’t cost you anything to learn more about ACN. What is more important is that you see the whole concept, so you can make an educated decision on whether or not this is for you. So I would like to invite you...”
RESPONSE #2: “That’s exactly why this opportunity is for you. If you can’t afford to do it; you can’t afford not to do it. Imagine never worrying about money again! Ask yourself this question: if you don’t try something that could help you financially, will your current situation ever change? What is more important is that you see the whole concept, so you can make an educated decision on whether or not this is for you. So I would like to invite you...”
QUESTION: “What is the name of your company?”
QUESTION: “How is the timing of the opportunity; is it still on the ground floor?” QUESTION: “Is this a pyramid?”
QUESTION: “What if I’m too busy or have no time?”
QUESTION: “Is this going to cost me anything to get started?” QUESTION: “What if I don’t have £170?”
Private Business Receptions (PBRs) and 3-Way Personal Presentations Goal: Earn ETT ASAP!
You acquire 10 Customer Points & Enroll 2 or more TTs with 6 or more customer points Pique Interest
Sort for Red and Green Apples If they are a red or green apple…
“Great, then you definitely need to meet (upline expert). This person is one of the individuals I’m working with and one of the people leading the expansion of this company.” Invite them to a PBR or 3-Way Presentation.
Inviting to a PBR or 3-Way Presentation Inviting to a PBR:
“(Up-Line/Expert) is coming to my house to explain everything on (date/time). I’m only inviting a few key people over and I want you there!? I have limited seating so I need to know if you can make it!”
Inviting to a 3-Way Presentation:
“Let’s set a mutual time to get together that will work for both us and (Up-Line/Expert) to meet. When is the soonest we can get together?” (wait for a response) “Great, I’ll get in touch with (Up-Line/Expert) and confirm that this time will work and get back with you.”
If they still have questions...
“I’m going to track down (Up-Line/Expert). I’m sure (he/she) will only have a minute or so, however (he/she) will be able to answer any questions you may have. Next time I call I may have (Him/Her) on the phone.”
Purpose:
To help successfully launch your ACN business. Locations for a PBR:
First choice – the home. Second choice – club house, office, meeting room. Locations for a 3-Way Presentation:
Anywhere, any time, any place! (Must be scheduled) “Do you have a minute; I’d like to ask you something?” • Utilize one of the approaches on Page 6
1) Pique Interest Approach 2) Opinion Approach
• Sort for Red and Green apples Red Apples
Interested-Continue Green Apples
Still have questions -Continue Rotten Apples
Not interested - Acquire as a customer REMEMBER:
Customer Acquisition Script
If at any time during the sales process, a prospect indicates they do not want to be an ACN Independent Representative, utilise the script below to enroll them as a customer.
“DO ME A FAVOUR AND GIVE IT A TRY”
“(Their Name), could you do me a HUGE favour and help me out?” (Be quiet and get a positive response.)
“If I could offer you competitive rates on your phone bill, with the same or better quality service than you’re currently using, at no upfront cost or long-term commitment to you whatsoever, would you do me a personal favour, help my business and give it a try?”
(Be quiet and get a positive response.)
If their answer is “YES” Red Apple share the benefits of our service and sign them up! If they have questions Green Apple lean on the relationship and say the following:
“Listen (their name), I just need a few more customers today – it won’t cost you anything to try and if you are dissatisfied for any reason you can always try another company.
So could you please do me a huge favor, help me out and give the service a try?” Most Common Questions When Acquiring Customers
QUESTION: “What is the name of your company?”
RESPONSE: “The name of the company is ACN, one of the fastest growing companies in the United States and Europe. But more importantly, could you do me a huge favour, help me and give the service a try?”
QUESTION: “Why haven’t I ever heard of ACN?”
RESPONSE: “ACN doesn’t spend millions of euros on media advertising like the largest companies do. Instead, ACN passes these advertising savings onto the customer. But more importantly, could you do me a huge favour, help me and give the service a try?”
QUESTION: “Will this cost me anything?”
RESPONSE: “No it won’t cost you a thing to try. But more importantly, could you do me a huge favour, help me and give the service a try?”
QUESTION: “I like what I have. Why would I switch?”
RESPONSE: “I promise you that you will like ACN just as much, if not more, than your current company. But more importantly, could you do me a huge favour, help me and give the service a try?”
QUESTION: “What if I don’t make very many calls?”
RESPONSE: “Since you don’t make very many calls, then being with a different company probably doesn’t matter much. But more importantly, could you do me a huge favour, help me and give the service a try?”
QUESTION: “What are the rates?”
RESPONSE: “What rates are you currently paying?” (If they don’t know, don’t get technical. If they do know, tell them our rates and then say, “I guarantee that ACN’s rates are competitive with any of the other major companies.”) “But more importantly, could you do me a huge favour, help me and give the service a try?”
Always remember… SW SW SW NEXT! Some will – Some won’t – So what…NEXT!
Successful Tips for Building Your Business Mindset makes the difference
• Spend 80% of your time looking for and working with red apples; 20% with green apples and 0% with rotten apples.
• Expect a learning curve and have long-term thinking. Time and effort is all that separates you from success.
Set the Example – Lead; don’t follow! PBRs – Private Business Receptions
• Always confirm your guests the day of, or the day prior to, your PBR.• Keep the room temperature cool.
• Serve simple snacks (soda, chips).
• Have presentation materials ready (handouts, TV, DVD). There is no second chance for a first impression.
• Never interrupt or contradict the presenter. It’s unprofessional and will weaken your credibility. • Have some information available for the interested guests to take home with them (CD-ROM, brochure, etc.).
• After the presentation, schedule your interested guests for an upcoming training. Trainings help build understanding and belief.
• Most importantly…have fun at the meeting. Your guests will appreciate it. Edification!
Generic Edification:
“The individual that I am working with is actually one of the people heading up the expansion in this area. I have so much respect for this person because not only is he/she having tremendous success, but everyone that works with him/her and follows what they are saying is having tremendous success as well. He/she has all the information necessary and I couldn’t think of someone better to explain/train this opportunity to you. His/her goal over the next few years is to help as many people succeed as possible.”
Set Goals
• Urgency and excitement equal OUTSTANDING RESULTS! • Understand sorting vs. selling. (Sort for red and green apples) • Your team will do what you do; not what you say.
• Earn ETT ASAP (create your story). This will inspire others to action. • Action stimulates emotion! Emotion does not stimulate action!
• Create value: People will decide to come to your PBRs based on whether you make it sound important enough.
• Over invite: You will have guests that won’t show up.
• Stay positive: Regardless of how many people show up, remain positive.
Edification: Designed to build up the credibility of someone else such as your upline expert or the presenter. By edifying your presenter and/or upline expert, you are helping to build respect for the presenter and the opportunity. The better you are at edifying your presenter, the better your results will be.
• Training: Set goals to attend as much training as you can. Attend a personal, local, regional or national training. And remember, repetition is the mother of learning.
• Customers: How many are you going to acquire and when?
