The Graph
There are three recognized types of Network Marketing companies.
A. Early Death: 90% of the companies fail within the first 2 years. Why?
Gimmick product
Inexperienced management
No $
B. "Turtle Companies" – Slow Growth
EXAMPLE: Tupperware, Mary Kay Cosmetics
They experience a regular, steady growth over a long period of time. 10-12% increase/year. They make billions and are successful but they have a major disadvantage:
You have to SELL products/keep inventory
That’s not where we want to be.
C. Exponentially Growing Companies
Examples: NuSkin, Nikken, Herbalife, Sunrider
All successful companies, producing high number of millionaires, but the timing is the key.
[Draw graph of exponentially growing companies and show the three phases: birth, dramatic growth, plateau]
9. What are the necessary parameters for this type of company to succeed?
ASK THE AUDIENCE – encourage participation
Answers:
Product: breakthrough, first to market, in a growing market
Financial backing, Management (experienced!), leadership
Timing
Method/System
Business/compensation Plan
10. Agel has met these 5 critereon in the following ways:
1. The Agel products are part of a growing market: the wellness industry.
- 60% of Americans take vitamins
- This industry generates $300 billion/year.
- It is predicted that by 2010, more than 1 trillion dollars—that’s 12 zeros.
The need for vitamins is unchallenged: there is no doubt. This is a fact endorsed by the FDA.
Why do we need vitamins?
Our fruits and vegetables are sprayed with pesticides, we eat unbalanced meals including junk food, we breathe polluted air and some of us smoke.
We have a real need to take vitamins.
Unfortunately, the process of taking vitamins is not seen in a very positive light by many.
- Capsules and powders: negative experience for the consumer, smell bad, less than 30% absorption rate.