In the last post I told you that 95% of people fail to make a profit at their small business and went over a very simple 4 step formula, that needs to be put into consistent practice, in order for a small business to succeed. But the most important thing, before any of those 4 steps come into play, is you have to find out what the person you are talking to wants, needs or no longer wants in their life. Then you need to determine if what you have to offer will help them get what they want. So here’s what happened to me recently, and unfortunately, this is by no means an isolated incident. For many people, this is standard operating procedure and some of the reasons people stay in that 95% failure group.

I got a phone message one day from a friend that I hadn’t spoken to in several years. It went something like “I know we haven’t talked in awhile but I’ve got something I want you to look at and wonder if you have time to meet?” Well, you don’t have to be a rocket scientist to know that this friend has something that they want you to buy, join, attend, invest in or something right? But I don’t have a problem with that, I’m a small business owner myself and I understand that you do have to get the word out about what you’re doing. I’ve also learned in the past that having a closed mind can be the most expensive thing I own. Besides, I wanted to reconnect with her so I emailed her and said “Sure, love to see it.”

We met a few days later at a local coffee joint and after some brief small talk, she very enthusiastically launched into why she was so passionate about this new product that she was now drinking with this specific herb in it. Had I heard of this herb? Hmmm, couldn’t say that I had but I was impressed that she had gotten such wonderful health results from her chronic condition after taking this product (whatever it was) for a relatively short time. This went on for a bit until finally, she said, “So I guess you already know what I’m talking about don’t you?”
“No, actually I don’t have a clue.”
“Really, you don’t know?”
“Well, I mean, maybe I do. What is it?”

It was then that she reached into a cooler bag she had next to her and pulled out a bottle of her product. Once I saw the company name on the bottle I recognized it instantly.
“Oh, well of course I’m familiar with __________.”
“I thought you would have known what it was before you saw it.”
“No, I wasn’t familiar with the herb you were talking about. If you had said your company’s name I would have recognized it”
“You’ve heard of the company?”
“Of course, isn’t ____________ your president?”
“Um, I don’t know……maybe.” she smiled, “Is he?”

This was where the conversation changed.

“Yes he is,” I said smiling at her, “I know a lot about your president.”
“You do? How?”
“Because before __________ was your president, he was my company’s vice president.”
“He was?”
“Yep. Now are ________ and Dr. _______ still on your advisory council?”
“Well, I don’t know for sure. How do you know so much about my company?”
“Because network marketing is my profession. I have your company’s website bookmarked on my computer and I periodically check in to see how you guys are doing.”
She was kind of open-mouthed at this point. “Why do you check on my company?”
“Because I’ve been doing network marketing for ten years, it’s how I make my living. I have a lot of companies bookmarked on my computer. I want to know what’s happening in my industry.”

She explained to me that she didn’t know much about the management or structure of the company, she just wanted people to take the product because it had helped her so much. Long story short, she knew nothing about her company’s management team, how her products were manufactured, who her competition was, if my company had a competing product (yes she knew I was involved with another company) or how her company’s compensation plan worked. Yes you read that last one right. She wasn’t real clear on how her company compensated their associates. How we earn commissions is something that I think is extremely important for a prospective business partner of mine to understand before they decide if my company is a good fit for them, but you would be amazed at the number of people in network marketing who cannot tell you how their pay plan works.

She then went on to tell me that I’d be great with this company and that I could work it right along with my present company because they didn’t have competing products (actually, we did). I explained to her that I couldn’t become involved with her company as a business associate for a couple of reasons, and I spent the next 45 minutes training her in how to work her business. Something that her business sponsor apparently forgot to do. Or maybe she was so busy getting people to take the product, she never called and asked for training. Whatever, she’s a friend and I love helping so, there it is. I also told her that, while I couldn’t be in business with her, I would be happy to support her and become a customer of hers.
“You would?”
“Of course, what do I fill out, do you have a customer order form?”
“Oh, I never bring the paperwork with me, I just sign people into the business and let them order what they want.”
“OK, so then do you want to call me?” I said, handing her my card.
“Yeah, I’ll call you and we’ll do it that way.” she said as she handed me her card.

She then gave me a bottle of her product, which she wouldn’t accept any money for, and we left the coffee bar. That was three months ago and she still has never called me back, even after I said I would be a customer of hers. Maybe she was too busy and forgot to get back with me, maybe she wasn’t really interested in a customer. But whatever the reason, she lost one.

I don’t tell you this to make fun of or belittle my friend. I think very highly of her. But this is a classic scenario that is played out over and over in network marketing, and with slight variations, in many traditional small businesses. This is a recipe to guarantee that you stay in the 95% group that doesn’t succeed in their chosen business.

Part 3: what to do to increase your chances for success.