Leadership Training: Lesson 5
Know Your Opportunity!
In this lesson, and the next one, we will continue with our theme of knowing your company. The next two principles that we will cover are:
1. Know Your Opportunity; and
2. Know Your Compensation Plan
Know Your Opportunity
Nature's Sunshine Products began as a family business in 1972, when the Hughes family - Gene, Kristine and Pauline - started encapsulating herbs and selling them to health food stores in Provo, Utah and the surrounding areas. In 1974, the Hughes family decided to use the network marketing approach for their rapidly growing business. They chose to use network marketing (also known as "multilevel marketing") because it provided some advantages that were considered essential for an herbal company like Nature's Sunshine. Of those advantages, I believe that the following three are particularly noteworthy:
1. Customers would be better served by independent distributors who, when it came time to offer health advice, would not be hindered by the legal restrictions that are imposed on a manufacturing facility. In other words, Nature's Sunshine could not legally offer health advice, such as which herbs to use for which conditions. But independent distributors could offer this kind of advice and could therefore provide a much-needed service that was not being offered anywhere else.
2. The Hughes had noticed that word-of-mouth "advertising," such as personal stories and testimonials, were a natural in the herbal business. It became obvious that this was the most powerful way for promoting herbal products. Network marketing, by its very nature, was the perfect way to encourage and reward this type of promotion. Rather than spend money on regional and national advertising campaigns, the Hughes decided to pay that money to distributors, in the form of generous incentives and bonuses, to reward them for promoting the products to potential customers on a one-on-one basis, while continuing to provide personal service both before and after the sale.
3. Network marketing allowed distributors to go into business for themselves, rather than work as an employee for a large company. But at the same time Nature's Sunshine could provide the essential resources and services that only a large company could provide, such as quality control, thereby allowing distributors to combine the advantages of both self-employment and a large company.
The business model proved to be extremely successful, and Nature's Sunshine became one of the world's largest manufacturers of herbal products, with subsidiaries in Canada, Mexico, Japan, the United Kingdom, Australia, and many other countries throughout Central and South America, Europe and Asia.
Network marketing obviously worked well in the 70's, 80's and 90's, but one might ask what kind of potential it offers new distributors in the new millennium? That question was thoroughly answered in an excellent article that appeared recently in Networking Times. The following is a short outline of the article. If you find this intriguing, I suggest that you read the entire article, which you will find reprinted on my web site at: http://www.theherbspecialist.com/opportunity_full.html.
The Coming Network Marketing Boom!
Eight Reasons Why You Are in For the Ride of Your Life
By Leonard Clements
“Network marketing is exploding all around the world!”
“Fortune 500 companies are going MLM….”
“More millionaires will be made in network marketing than in any other business….”
“Network marketing is reaching critical mass!”
“Network marketing is achieving momentum—now!”
“Network marketing is the wave of the future—you better get in today!”
For the first time in history there are solid, logical, verifiable reasons for you to believe in a forthcoming network marketing boom. Eight reasons, in fact—any one of which could result in a significant expansion of network marketing in the U.S. alone over the next few years. And these eight factors will soon be coming together to create a “perfect storm”—the convergence of powerful economic, demographic and psychological factors all hitting at the exact same time and place.
Finally, you and I can honestly make the claim that there really IS a “network marketing explosion” on the horizon. It absolutely will happen, and here’s why:
The Eight Reasons
#1: The Economy. What’s bad economic news to most people is good news to network marketers. And there’s a lot of “good news” today.
#2: Demographics. Not only is the pool of eligible prospects increasing at unprecedented levels, but that segment of society most ready, willing and able to pursue network marketing is also exploding.
#3: Wall Street. Securities investors look for companies and industries that are about to rise up fast, and they are looking closely at network marketing right now.
#4: Supply and Demand. The greatest inhibitor of our industry’s growth the last few years has been a huge supply-side glut of networking opportunities. That’s already changed.
#5: New Blood. Our entire industry is about to go into momentum for the same reason individual networking companies enter momentum: a massive influx of folks who’ve never been in network marketing before.
#6: Positive Media Exposure. If the mainstream media could only find a way to make money from this typically non-advertising industry, would they have a much greater incentive to promote the positive side? Yes, they would. They’ve found a way.
#7: Federal Regulation. I know it sounds scary; it’s not. In fact, more and better laws will be the #1 legitimizing catalyst to the network marketing explosion.
Last, and certainly not least:
#8 Current Trends. The current, positive and powerful growth trends of the network marketing industry itself.
Interesting? Exciting? You bet!
The article continues, explaining each of the eight reasons in great detail. View the complete article reprinted on my web site at http://www.theherbspecialist.com/opportunity_full.html.
Wishing You the Best in Health and Prosperity!
Dr. Duane Weed, MS, DC, LAc
For your convenience, the previous lessons from this series can be accessed from the menu below:
1 Welcome and Introduction 2 Quality is the Difference 3 Service Sets You Apart 4 Know Your Company
To sign up as an Nature's Sunshine member or distributor: Click Here to Start Shopping» Signing up is easy. All you have to do is order $40 worth of Nature's Sunshine products at member prices and request the membership option at checkout. Get a FREE one-year membership ($40 value) and FREE shipping on your second order when you purchase at least $40 (at direct cost) in products directly from NSP. (The above sign up is for U.S. residents only. If you live outside the U.S. click here. )
Want your own NSP web site? For a very reasonable monthly fee, NSP will provide you with your own distributor web site (just like the one you will see when you click on the "Start Shopping" link above, which goes to my NSP web site.) With an NSP distributor web site you won't have to stock products, accept credit cards, or ship orders. NSP will do it all for you when your customers place their orders using your NSP web site, and you will get full credit for all sales and sign-ups placed on your web site!