MLM Success is Your Key to Escape the Rat Race!
A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.
Henry Ford
Founder, Ford Motor Company
Once you agree upon the price you and your family must pay for success, it enables you to ignore the minor hurts, the opponent’s pressure, and the temporary failures.
Vince Lombardi
American Football Coach
If you are involved in internet or network marketing, chances are that you have heard the buzz surrounding the Numis Network. Many network marketers are taking a serious look at this opportunity, which, for the first time, combines coin collecting with the power of multi-level marketing. Since there is a wealth of information on the internet regarding the company leadership, its compensation plan, and such, I will restrict this review to providing some caveats for interested prospects.
The Product
My major issue with Numis Network is the product, particularly their “flagship coin,” the American Silver Eagle. I cannot justify spending so much money for this coin. Typically, the price you pay for a coin depends upon the spot price of the metal’s content, plus the spread, plus any premium added. As of this article’s publication, the spot price of silver is $16.95 per troy ounce. Many American coin dealers charge $1-$2 over the spot, so you can expect to pay under $20 for a one-ounce coin as long as you don’t have to pay a premium. Premium is the term given to the price one pays beyond the coin’s intrinsic value, and can range anywhere from a few dollars to hundreds of thousands of dollars.
So why does Numis Network charge $125 plus tax plus shipping for one troy ounce when a savvy collector can buy one troy ounce for a fraction of the cost? Let’s explore the answer to this question by examining some phrases that are published on the company’s website.
“Numismatic coins are legal tender coins”
True enough — but only at their face value! This means that, since the American Silver Eagle has a face value of one dollar, ONE DOLLAR is the highest value of debt that it can service legally. But the content of the silver in the coin is worth $16.95 per troy ounce, so if you use it for legal tender, you are losing about $18 worth of value per coin. This is why silver coins aren’t in general circulation now. It makes no sense to me to pay $125 plus tax plus shipping for a coin if my intention is to use it for legal tender.
“The value of these collectible coins is based not only on their precious metal content, but also on rarity, collector demand, and their actual condition.”
My issue here is in the classification of “numismatic.” Numismatic coins have a greater value than others, due to their historic relevance or rarity. Thusly, numismatic coins are deemed “special” and fetch a higher price than other coins. True numismatic coin collectors pay a premium for rare or historic coins because their rarity and/or historic relevance make them more valuable as a collector’s item.
There are many numismatists that do not consider the American Silver Eagle a truly numismatic coin. The American Silver Eagle, in general, is neither rare nor historically relevant. In fact, it is the most widely collected coin in American history because it is so easy to find. There are hundreds of millions of them in the world, both graded and ungraded. Furthermore, these coins were not in the pockets of any great pharaohs or caesars, and none of the founding fathers carried them across the Delaware, so they lack the historical relevance to command such a high premium.
As to “their actual condition,” the vast majority of American Silver Eagles are in very good condition due to the fact that they are not in circulation. Therefore, they are not enduring the normal wear and tear of a coin that goes from a pocket to a purse to a cash register drawer, and so on. Does encasing these babies in a plastic cover make them worth $100+ over the spot price?
“By purchasing and accumulating graded, silver and gold numismatic coins, you too can Create Wealth, Collect Wealth, and Preserve Wealth.”
Many of us have heard financial gurus state that gold and silver coins are a great hedge against inflation and the falling value of the dollar. Again, I agree with this statement. But one troy ounce of silver (which is the approximate silver content of the American Silver Eagle) is worth $16.95 on the spot market. That means that if I purchase the Numis Network’s “flagship coin” every month, I am paying a $100+ premium just to own one troy ounce. In this case, the spot price of silver would have to appreciate approximately 650% just for me to break even! Could this massive appreciation happen in my lifetime? Absolutely. But that’s a highly speculative play and quite risky. Haven’t we learned our lesson in speculation from the recent housing market debacle?
Although inflation is generally great for coin appreciation, deflation (as typically occurs in times of depression or steep recession) is horrible for numismatic coin values. As the extension of credit continues to contract, the old adage “cash is king” becomes even more pronounced. Numismatic coins, like $2000 suits, become luxury items, as Americans can no longer justify the high premiums. What’s going to happen to the income from a downline that can no longer afford the $125+ coin auto-ship because the reps need their cash to pay bills?
Supply and Demand
One of my greatest apprehensions regarding the Numis Network opportunity is its ability to satisfy the demand of buyers. Silver is a consumable metal (meaning once it’s used, it cannot be re-used) that has many industrial applications. We use silver in everything electronic, from computers to mobile phones and beyond. Does the company really have enough product to meet the growing demand of auto-ship orders? Will there come a time when the coins have to be rationed, and if so, what will that do to a Numis Network rep’s ability to market and recruit?
What’s Missing?
What the Numis Network opportunity is missing is a product that allows a true coin investor like myself to realize additional profits using the power of network marketing. The difference between numismatic coin collectors and coin investors is this: Numismatic coin collectors are motivated by the history and rarity of the coin, so they are willing to pay what coin investors deem outlandish premiums for their products. Numismatic collectors would probably continue to acquire coins even if the spot price of the precious metals began to depreciate. Conversely, coin investors are motivated by profits. Coin investors would scale back or stop acquiring precious metals if the trend in the spot price suddenly dropped. They are looking to buy low and sell high, and their exit strategies are assembled before they buy. The lower the spread, markup, or margin, the more room is available to make money. In other words, the closer you get to paying the spot price of the metal, the higher potential exists for profit when you sell.
Numis Network does not offer gold or silver products with low or no markup. All of the products advertised on their website contain huge premiums factored into the spread, making it difficult to actually make money with just the coin. If the company were to offer 1-oz. silver bars, or silver rounds like Prospectors, this would be a fantastic opportunity. I can walk into any coin dealer in America and pick up 5 to 6 1-oz. silver bars for the same price that Numis Network sells ONE American Silver Eagle. I typically like to realize a 25-50% return on my investments, so assuming that I can purchase for about $20 per ounce, on the low end, the spot price of silver would only have to appreciate to $24 in order for me to hit my target. However, if I buy the “flagship coin,” the spot price of silver would have to appreciate all the way up to $130 per ounce just to break even. It doesn’t even take an über-savvy investor to see which one is a better choice if your goal is to make money, store value, or hedge against inflation.
Now, I can get the cost of my American Silver Eagles lowered by joining the Numis Network and recruiting a large downline. That way, as my organization expands, the profits I earn from the efforts of others will offset the cost of my auto-ship. But there is so much margin built into just the “flagship” product that I would have to recruit massive amounts of folks just to afford one of these coins. And since I believe this coin is over-priced, I probably would not be very good at convincing others to join.
In conclusion, the Numis Network, as a network marketing organization, seems to be a solid company. The leadership team combines top network marketing insiders with a leading expert in the numismatic field. The compensation plan is outstanding, enhancing the familiar binary system with some additional ways for distributors to maximize their earnings potential. Members can also elect to take the company’s training courses on numismatic coins, which can help distributors with their marketing strategies. And although I have declined several opportunities to join, there is money to be made here, especially if you have been properly trained to market yourself and your business. And as always, don’t just take my word for it…take it for checking.
“The most important weapon in the hands of the oppressor is the mind of the oppressed.”
Steve Biko
Slain South African Human Rights Activist
So you’ve decided to take the plunge into internet prospecting. Great idea…if you know what you’re doing. Here’s some advice that will help you avoid looking like an amateur to your new prospects.
MLM Success Tip #1: Lead with Value, Not Your Business Opportunity or Affiliate Programs
Whenever I begin internet marketing orientation with former face-to-face marketers, they almost always object to this philosophy. After all, we’re all on the internet essentially to sign up distributors or make affiliate commissions for our business, and for some of us, leading with our MLM company is what has worked thus far. But your new target market (current or former network marketers) doesn’t care about the particulars of your primary business; and many of them are already involved with the same affiliate companies you’re with. In fact, your spiel about compensation plans and product lines are a huge turn-off. What these people are asking themselves is: “Does this person have what it takes to help me become a major player, or is this person an amateur just trying to make a sale?” Don’t be an amateur. Lead with the value you are bringing to the table rather than your opportunity.
MLM Success Tip #2: Make Connections and Say “No” to Spam!
Every time I receive a Facebook friend request with a link to an income opportunity, I think, “Amateur.” When sending out friend requests on social networking sites, don’t lead with your site links or your affiliate information. Your goal in sending out friend requests is to make a connection with the person. Remember: With face-to-face, you’re taking advantage of relationships you’ve already built. With the internet, you must first build these relationships and create trust before you can effectively sell anything. Spamming your would-be prospects this way is annoying, and not a good way to build a list or create a loyal following. This MLM success tip applies to networking forums as well.
MLM Success Tip #3: Leading With Your Company’s Replicated Website
Now, don’t misunderstand me here. I use my MLM company’s replicated website, as I find it very useful for signing up new prospects over the internet. But I do not lead with it…rather, I lead with my company and my expertise as a business owner and an authority on how to escape the Rat Race. Internet network marketing is a different game than face-to-face network marketing. The folks you encounter on the internet are looking for uniqueness and leadership, not copy-cats. This is the crux of the personal branding philosophy, and it is why I recommend to my down line that they each set up their own unique blog in addition to their company-replicated site. But check with your MLM company’s guidelines to ensure that you do not violate their terms of service before you create your blog.
MLM Success Tip #4: Using a Free Blog
Nothing screams “amateur” more than an internet network marketer using a free blog. I’ve seen free blogs (like Blogger, WordPress.com, and Tumblr) put to great use as family reunion websites, following a friend on their journey to adopt a Guatemalan toddler, or keeping abreast of a happy couple’s upcoming nuptials (and all their related activities). But a free blog is not conducive to effective internet marketing. For one thing, self-hosted blogs are far superior in terms of SEO (search engine optimization – which determines how easily people can find your blog when performing an internet search). For another thing, many affiliate programs require you to have your own website in order to be accepted into their program. Additionally, a free blog is akin to a company-replicated website in terms of personal branding. And, perhaps, most importantly, a free blog tells your prospects that you don’t take your business seriously, or that you are unwilling to make a monetary commitment to your enterprise. If you want to be considered a leader in this industry, buy a domain name and host your own blog. It’s not that expensive, it’s just not FREE!
Making the transition from face-to-face marketing to internet marketing can be tricky, to say the least. But by avoiding or correcting the self-sabotaging behaviors listed above, your transition can be smooth and steady rather than rough and jagged. And as usual, don’t just take my word for it…take it for checking!
Network marketing is one of the easiest business systems to master. But with so many Americans making the journey into the network marketing industry, what can an ambitious MLMer do to remain in front of the competition? The formula is quite simple: Understand what the competition is doing and do more. Here are five MLM success tips that are easy to implement and produce results.
MLM Success Tip #1: Prospect from both your warm and cold markets
The average network marketer is prospecting from their warm market only. But true MLM Success involves prospecting from both your warm and cold market. Your warm market is a finite group, and unless you’ve got a rolodex of 10,000 warm prospects or more, your warm market list is inadequate to build a strong and robust down line. There are many different ways to prospect from your cold market, so make sure you do your research to determine the best strategies before engaging yourself.
MLM Success Tip #2: Know Your Target Audience
The average network marketer knows only one way to prospect and it goes something like this: Call up every person you’ve ever said “hello” to and lead with the product. Now, this approach may work well with your warm market, which consists largely of people who are not already engaged in a network marketing business. But your cold market prospects, which are basically strangers who are probably already signed up with an MLM company, are not going to go for this. In this case, in order to convert these folks, you must learn how to lead with YOU.
MLM Success Tip #3: Monetize Your List
The average network marketer funds their business with personal, after-tax dollars, or personal credit. From their marketing materials, to the cost of travel, to their monthly auto-ship expense, most network marketers are literally coming out of their own pockets (sometimes to the tune of $1000 per month or more!) to pay these expenses. The top producers who have created true MLM Success use a funded proposal system to monetize their prospect list so that they get paid whether they sponsor distributors or not.
MLM Success Tip #4: Conduct Business Using an Appropriate Entity
The average network marketer signs up as an individual or a husband and wife. Besides providing few opportunities for personal branding, doing business in this form can expose you to lawsuit liability. Additionally, there are very few tax benefits for network marketers who choose to do business this way. Fortunately, this situation can be easily changed by creating a corporation, a limited liability company, or a limited partnership. Don’t go out and build a down line that’s kicking off $150,000 annually, only to lose it in a lawsuit. (And trust me, you CAN lose it this way!) And since I am neither a lawyer, nor an accountant, make sure that you consult with competent legal and tax planning professionals for help in this area.
MLM Success Tip #5: Make Use of Article and Video Marketing
Most network marketers are missing out on the infinite lead generation opportunities that are created through article and video marketing. This strategy is so incredibly easy to use when you have a well-thought and complete plan of attack. You could begin by writing articles that are relevant to network marketing as a whole, or articles that address specific aspects of the industry. You could also create videos that promote the article and then syndicate that content online. Consider this: If you were to write one article daily for the next 90 days, and then publish this content once a week, after 3 months, you would have enough articles and videos for almost two years! And proper exposure of your content would be tremendously instrumental in generating targeted leads for your business…virtually EFFORTLESSLY. But it doesn’t stop there. These articles and videos remain online forever. That means that your one-time effort produces results ad infinitum. How’s that for “residual?”
These success strategies have helped me as well as my team members build our organization, and they translate extremely well for any MLM company. But, as usual, don’t just take my word for it…take it for checking!
