Network Marketing — Good or Bad?

A reader recently asked, “Dan, what do you think of the concept of network marketing if the product is great and the training is exceptional?”

Well let me ask you this.  If I told you the new Ferrari 612 Scaglietti has exceptional safety features, rollover ratings, great re-sale value, above average fuel efficiency and sells for only $312,088 – would you run out and buy one?   Obviously there are other considerations, such as your driving interests and financial position, as there are in this reader’s question.  The primary issue is not is it a great company, with a great product and exceptional training – but rather, is the business model itself a “fit” for you?

If you are a natural cheerleader, always breaking the silence in the elevator, schmoozing at parties, inviting 40 friends over for a good time, and won first prize in your college debate class then you are probably a candidate for network marketing.  On the other hand, if you are reticent and shy, preferring to work with ideas rather than people and you get nauseous at the idea of standing up as a first time visitor in a new church, then this business model would be a total flop for you.  It doesn’t matter how great the products and the training are – it’s not a match.

You may be somewhere in between these two extremes, but the critical issue always is to choose a business model that “fits” what you already know about yourself.  Incidentally, I hope it’s a “fit” for you to grab this new Ferrari. 

Happy Birthday — Hula Hoop

The Hula Hoop turns 50 this year – at least as we know it.  Actually, hoops were used as toys, being pushed along with sticks over 3,000 years ago in Egypt.  Native Americans used hoops as a target for teaching accuracy in hunting.  But then in 1957 Richard Knerr and Arthur Melin of Wham-O started marketing a lightweight plastic version of the Hula Hoop.  They sold over 100 million from January to October of 1958 at $1.98 each. 

Knerr and Melin were not able to patent the Hula Hoop as it had been around for many years.  All they did was make it out of a new material and then market it well.  Which highlights a very important point.  I see people stuck in the “patenting” process – wasting time and money on what may be an insignificant part of their success. 

Keep in mind, most people put too much emphasis on developing their product or idea, and not enough on Marketing.  If you have a new invention:

2% of your challenge – Protecting your Idea (Patent, Trademark, Copyright)

8% of your challenge – Is it a valid idea or product?

90% of your challenge – What is your Marketing Plan?

Most people spend too much initial time, energy and money protecting their idea rather than selling or marketing it.

Knerr and Melin did trademark the name Hula Hoop® and that became the recognized and requested name around the world.  What could you do with your idea – what could you do to tap into the viral power of the masses?  Remember the Pet Rock; the Frisbee?

Here’s more on Inventions and Patents