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Tip Sheet Seventeen: The Money is in the List (... or is it?)

One of the things that I often read about Online Network Marketing is the need for Network Marketers to develop a list.

One such example of others driving this strategy is here:

"I get a lot of questions from people about what the real secret is to building a network marketing business online.

And my answer is always the same:

"The money is in the list."

Of course, there IS a little more to it than that...

But when you get right to it, success in this business always has and always will come down to one main thing:

Building a list of prospects who know you, trust you, and want to receive information from you.

This puts you in a position to simply "send" an email any time you want offering them your products or opportunity and receive a flood of orders in return.

Bottom line: It is the truest source of automated income there is. Period.

Building your list is by far the first and most important thing you need to do to make money and it is without a doubt the ONE thing that all successful marketers have in common.

About a week ago I asked all of my subscribers to fill out a one question survey about what their biggest obstacle was.

5,789 people answered and the most common response was:

"I JUST CAN'T SEEM TO GET STARTED!"

If you were one of these people, you're not alone. And you're in luck.

A couple nights ago my good friend xxxxxxxxxx hosted a very special webinar specifically designed to help people build their first big list online - without spending any money.

On this call xxxxxxxxxx shared the exact blueprint he used to build his very first list of 1,172 prospects in 3 days as a total "newbie."

This call turned out to be one of our hottest topics ever and so xxxxxxxxxx decided to turn it into a comprehensive, 3-part "list building" class.

If you don't have any experience marketing on the internet, this is a must-attend class for you.

In fact, the strategies that he'll be sharing with you are how many well-known marketers who you're probably familiar with got their first "big break" online.

Here's what else you'll learn:

**9 different proven types of "lead magnets" that attract prospects online

**How to leverage your time and effortlessly build relationships with your list through email

**The difference between buying leads and "building a list" and why most network marketers are wasting every dime they have doing it completely backwards

**How to add 300 quality prospects to your list every day (emphasis on QUALITY because a big list of people who doesn't buy anything from you is worthless)

**The best places to find large pools of prospects online (once you know where to look, it's literally like shooting fish in a barrel)

**How to generate fresh sales and sign ups daily without spending any money on advertising or learning complicated search engine tactics

**How to get PAID just to expose your opportunity to the people on your list, even if they don't join (it's not what you think)

...Plus, xxxxxxxxxx will walk you through the exact process he used to help 72 beginners generate their first list within 2 weeks of starting online!

If you're serious about wanting to add more QUALITY buyers to your list, you'll want to sit in on this entire class.

I really mean it when I say these techniques are 100% free (ie - they don't cost anything) and they're simple to use.

End of example ad…

As this Tip Sheet Series is designed for Advanced MLM Thinking, let's discuss the need for List Building in a little more detail.

Let's for a second identify the different market structures between buying and selling Organisations and People.

At its most basic, trade drives our economy, as it does Network Marketing and MLM.

Big Brands

The most common form of trade is with the big brands like this:

The relationship between Buyer and Seller is likely to be lots of Stores and lots of Customers on a global basis.

Here buyers such as you and I, go to the Stores and Malls to buy the goods and services we need.

These stores usually promote their Special offers over a loud speaker system in store or via flyers and brochures distributed in store or through peoples' letter boxes at home. In addition, people with Accounts at these Stores often get solicited mail in the shape of Store Card Statements with Special Offers and notifications of forthcoming Sales etc.

Store like Wal-Mart and Marks & Spencer's have a very recognised brand as well as a massive customer footprint. In addition they'll have a good 'List (Customer) Management System which is NOT purely designed for gaining new Customers.

Lesser High Street Brands

The next type of outlet is the lesser brands.

The footprint here is likely to be fewer stores, maybe even one outlet offering their goods and services to either a local or regional customer base. These lesser brands may reside on the High Street, Mall.

These outlets would be competing on their specific niche, and would have a fairly finite number of customers that travel to them.

These types of Company would usually be less sophisticated and not have any Customer gathering process, instead relying on local advertising or locality to draw in customers.

Over time, these Stores would gain a loyal following and so remain in business; however in these difficult times we've all seen many stores like this go out of business.

Here in the UK, big names such as Woolworths, Adams, Zavvi, Principles have either closed completely or substantially reduced the number of shops open. More so, there have been thousands of small, independent retailers that have simply shut up shop and disappeared.

Although there would be some minimal use of List Building and Customer Retention through Direct Mail, many of these organisations would rely on through the door trade to keep them open.

Luckily (or unluckily depending on your viewpoint) much of this trade has switched to the large retailers such as Tesco's to fill the void.

Major Online Brands

The next type of outlet worth considering is the major Online Brand. Amazon would immediately spring to mind here.

Amazon has taken the Internet to its heart and developed a highly sophisticated model built on its Brand.

Now that Amazon has established itself as a Online Seller, much of its trade comes from people who buy directly from them.

That said, Amazon does offer and Affiliate Program, and people with high traffic sites can develop a significant income from this avenue.

Niche Online Websites

The next area to look at is the specialist online mall. There are literally thousands, of specialist Companies here, offering niche products via the Internet to Customers globally as it is highly lucrative with low overheads.

Some of these Companies do not even make the products, rather they have some level of exclusivity to sell or they compete with other traditional outlets.

In the main, these Businesses also have a direct relationship with their Customer and build or incorporate ever more sophisticated Internet Marketing strategies to find more customers.

It's here that Search Engine Optimisation is key, to ensure that the site is highly placed in the rankings so that when people search for a specific keyword that site will list top.

Companies such as these will be using email marketing to stay in touch with their clientele as their survival will be based on repeat sales.

In the above 4 example's what usually happens is, either of the following:

In the preceding Business Process Diagram, you'll see that the Traditional Business Model is built upon a Brand and/or its Marketing Activity attracting Customers who then swap their money for the goods and services on sale. Here, in the majority of cases, all profits go to the Seller. Importantly the motivation for the transaction is buying the product or service on sale.

The MLM/Network Marketing Business Model

Once more in the preceding Business Process Diagram, we've laid out the MLM Business Model.

Now, you'll note that the Brand and Marketing Activity to attract Customers is undertaken by individual Distributors, who then swap their money for the goods and services on sale.

A major difference though is that all profits are SHARED between the Business and QUALIFIED DISTRIBUTORS.

And VERY IMPORTANTLY the motivation for the transaction is in many cases more biased towards the MONEY MAKING OPPORTUNITY than it is having an initial need for the product or service on sale.

As the burden of MARKETING now falls on the INDIVIDUAL DISTRIBUTOR who only makes money when they've successfully SOLD to 3rd party consumers or other DISTRIBUTORS, it's important now for DISTRIBUTORS to FIND A WAY to develop their downline that is:

So, in the case of MLM:

1. The BRAND DOES NOT PULL THE BUYER to the SELLER
2. MARKETING ACTIVITY PULLS POTENTIAL BDISTRIBUTORS to the SPONSOR FIRST AND THEN TO THE SELLER

So what now?

The question on every Distributors' mind is… how to build a thriving, growing Business of Distributors who want to continue taking product or using the service over the medium and long term.

Going back to the very beginning of this Advanced Thinking Tip Sheet, List Building has been quoted to be the best way of capitalising on a hungry audience willing to buy on a regular basis. Remember what was said:

"The money is in the list."

Of course, there IS a little more to it than that...

But when you get right to it, success in this business always has and always will come down to one main thing:

Building a list of prospects who know you, trust you, and want to receive information from you.

This puts you in a position to simply "send" an email any time you want offering them your products or opportunity and receive a flood of orders in return.

Bottom line: It is the truest source of automated income there is. Period.

Building your list is by far the first and most important thing you need to do to make money and it is without a doubt the ONE thing that all successful marketers have in common.

Does is mean therefore, that TO BE SUCCESSFUL every one of the active 30 million MLM Distributors in our Industry has to develop their own list?

Moreover, should every Network Marketer follow this advice and starts to build a list, will this help convert their prospects to paying customers and long term Distributors?

Does having a list really drive behaviour?

Will it also ensure repeat purchase of product on the back of having a list of prospects that know you; trust you, and want to receive information from you?

What happens if the list owner has made the wrong decision and joined a Company that is over-priced or poor at customer service?

Is List Building just a gesture that doesn't really address the key issues surrounding robust downline development and retention?

Now…

Of course, there's no doubt that having a List Building Capability provides a Distributor with more people to talk to, but surely:

1. List building as promoted earlier cannot ensure the prospect joins a reputable Business Opportunity?
2. Nor shorten the signup process?
3. Nor reduce downline attrition?
4. Nor provide MLM performance transparency?

Bear in mind now, that our MLM Market comprises 30 million active Network Marketers searching out for ways to become profitable whilst promoting any one of the 500 or more different MLM Opportunities available.

From an Advanced MLM Thinking perspective List Building can only really be a useful business building process if it were a part of a coordinated business building approach.

Enjoy our collaborative approach to MLM business building: