Before we begin, it's important to reiterate that the Direct Sales model itself isn't responsible for the 98% failure rate and horrible reputation; it is the way the business is practiced. The basic business model, person-to-person marketing of services and products, is proven and solid. Instead, corrupt, unrealistic, unsustainable and in some cases fraudulent practices are the cause of the industry's woes, wreaking havoc and unfairly creating the perception that the business model itself is flawed.
While there are many problems with the industry's current business processes and practices, our research identified what we call the Three Fatal Flaws:
Fatal Flaw #1: LEAD WITH GREED - Focusing on money first and setting misleading, outlandish and unrealistic income expectations.
Fatal Flaw #2: HYPE AND DISAPPOINTMENT - Over-promising and under-delivering: It's easy and everyone can do it; mansions, fancy cars, free time, world travel, fire your boss, become wealthy in only 2 to 4 years. In reality, 98% who try, fail - leaving a trail of bitterness, betrayal, humiliation and anger.
Fatal Flaw #3: SYSTEMS DON'T WORK - Just follow a one-size-fits-all duplicatable system, talk to enough people and you'll be rich; don't ask questions, surrender to the system and do as we say; buy our motivational materials and attend rallies to prove your commitment. No legitimate and successful business in the world works this way and it's the biggest reason that people fail.
We will describe each fatal flaw in more detail in upcoming blog posts. Then, we will shift focus to design of the New Paradigm, the prototype for a higher-purpose venture that uplifts and empowers people, community and planet.
For now, think about your own experience with the industry. How have the Three Fatal Flaws affected you? What would you do differently? What do you suggest as solutions and/or alternatives?