Delegation Marketing
The fatality rate of the home business is about ninety nine percent. One out of every business will survive five years, with the same statistics following on through the next five years. These statistics are not just for home business they apply to all businesses. So how do you protect yourself against these negative stats? In this article we will address how to make sure that you are not a casualty of the negativity's that abound within the home business industry.
In running a home business one of the vital ingredients is the ability to delegate all functions. The home business owner has two choices, one you can run the business from the "bottom up" or two you can run the business from the "top down". In addressing the home business industry in general it is possible to see why such a huge failure rate exist. When anyone mentions the home business industry the first thing that comes to mind is multi-level marketing or network marketing. Most people feel that in running a home business it has to be a MLM or Network Marketing business. This is not the case, a home business can be any type presented in different forms. MLM is not just the home business model, but most people think that when they follow this model they are running a true home business. Before the MLM industry took off, home businesses were mail order businesses, people working on electronics from their garage, or other businesses that were promoted where the home business owner was an actual employee in their own business. This is why they never grow to the point of returning huge incomes.
The reason for the failure of most home businesses is people feel that the home business has to be the MLM or Network Marketing model, which is a model that is structured for success only for the people who actually create the MLM or Network Marketing Company. People who follow this model after the initial set up is created will usually fail. The complete model, after the initial company launch, is designed to treat everyone as a salesperson. To the MLM model the people who are called home business owners are really sales people for the MLM business. The home business owners are taught to be employees in their own businesses. Unless you are instructed to set up a specific business entity, you are not a home business owner. This model is called a duplication model, that is designed to duplicate others who only stay in the home business for a short period of time.
When setting up a home business you must start with a business structure that positions you as the CEO right from the beginning. The business plan must be a "top down" plan that has you at the top and then all systems, plans, and tasks must be delegated to others in your organization. This is called a Delegation Management or Marketing Strategy. When you begin your home business with the CEO mentality, right from the beginning you are positioned to run your home business correctly from the inception.
Lets discuss why the duplication model fails. When you look at the MLM, or Network Marketing structure it is clear to see that everyone below the owner is nothing but a salesperson, but the marketing strategy is to tell potential sales people that they are home business owners. By telling people that they are self employed and running their own business they will get people to accept the failure responsibility. If the business fails then the finger can be pointed to the MLM salesperson because they have accepted it.
When people think that they are running their own business they will spend their own money to sell the product for someone else. Within the mindset of being a home business owner comes a certian "aura" of being in your own business and telling others that they can run their own business. The marketing strategy of the MLM owners is to get the people they sell this "opportunity" to believe that these people can follow the same model as the people who started the business. In theory this might be realistic, but in reality in doesn't work because there is not enough money to go around and the people duplicating the model will burn out or get tired of spending their hard earned money to try to get sales for someone else.
Carrying this scenario out further an individual [Lets call this person you.] purchases a MLM or Network Marketing business and listens to the salesperson who is selling the business opportunity to you unknowing that the MLM salesperson, that is giving you advice on how to set up your home business, really has no formal business training. That they are telling you what the person above them told them. If you look up the line you will see that many of the people above the salesperson, who is selling you the home business opportunity, are no longer in the home business or are off to the next best business opportunity. You end up duplicating failure! The reason for this is the hype. When the original MLM was set up the original marketers realized that if they told you that you could make millions, just like they were, in their business you think that's for me. What is not told you is that making money requires a solid business plan and marketing strategy. Their marketing strategy is to market to you and tell you that you can make millions. They also capitalize on the many people who write about running a home business and making lots of money. They play on your desire for riches and realize that you will not stay in the business. They know how much you are worth and that when you leave they get to keep your portion of the sales. Usually you have to continue to pay your money to get what little you have earned. At some point in time you will get tired of spending your money.
Delegation Marketing and Management
What works?- Have a CEO mentality. Build your business understanding that you are going to find people to run your business. You should never be an employee in your home business. Find people to do the jobs for you, and have them work on incentive so you don't create a payroll. Many large business build their businesses with people working on incentive.
- Build your business from the "Top Down" not "Bottom Up". Have a good plan in place and execute the plan. You must have an attitude of delegation not duplication. Never and I mean never duplicate someone else's business model!
- Get a Mentor-You should find a mentor and listen to them. There are business models out there that provide product and mentoring included in the package. If you lack the creativity to find a product you can use companies that provide product and mentoring at the same time and for the same price. Beware of "Sheep's in wolf's clothing". Get a mentor that has the credentials to teach you. Do not listen to a person who is calling themselves a mentor, that does not have a success of running a home business.
- Get a good product. You also have to have a product that is wanted by others. Not just another vitamin or ebook that gives no value to others. If you are selling these types of products than you are spinning your wheels and taking advantage of the public. Sell a product that gives an eternal rate of return. what is eternal rate of return? When you sell a product make sure that it has benefits down through generations. How many people will be touched by your product when it is sold only once. Will it impact others in a multitude of ways?
- Take on a product that pays well find a product that has the wealth to spread around. Higher priced products are easier to sell than the cheaper products. Unless you are a major multi-national company, and have world wide distribution, you will be fooling yourself into thinking that you will make money. You will spend more than you make. The rule of thumb is that it cost $200 to acquire a client so if you are selling a $200 product you don't even break even unless you get the full $200. If you are selling a MLM product that cost $20 per month how much do you make. This is called Return on Investment [ROI] and will cause you to go broke. Make sure that your product is a higher priced product and far exceeds the $200 acquisition cost.
If you would like to find out more about running a home business here are some more sites that you can go to for information.
http://10kweekhomebusiness.com
http://delegationmanagement.com
http://homebusinessduediligence.com
If you would like a personal consultation go to the sign-up form on the 10K Week Home Business site and fill it out. One of my staff will contact you and explain how you can build a successful home business.
I hope that this article has been informative. If you want further information please call 610-280-7000 and ask for Rachel Coleman. She will schedule you to visit with one of our associates who will explain our mentoring process and how it will help you create and run a successful home business.
Dr. Raymond Jewell
Host, Financial Freedom Radio.info
610-280-7000
--
Raymond Jewell PhD
610-637-4884
Skype: rbjewell
No comments:
Post a Comment