I recently did a MLM company review on a new company called Family IQ that has been causing quite a stir in the MLM industry.
From my in depth Family IQ Review you already know all the general facts about the company, the product, and the lucrative Top Tier compensation plan, so now I want to review the marketing approach and sales funnel that most distributors receive when they join Family IQ.
Will the Family IQ marketing system work for you?
Can this fairly simple sales funnel and lead generation approach really stand up to the claims of master distributor Rod Stinson who supposedly uses several simple marketing approaches and a recorded tele-seminar to generate an average of $70,710 a month in income with Family IQ?
Now it’s no secret in the network marketing industry that top earners in most companies routinely pull in staggering amount of money in monthly commissions, sometimes hitting one hundred thousand and more, with some even reaching mid six figures in monthly income.
“Beam me up Scottie”…. I have stumbled into a parallel universe.
Hey we all know that there are stellar performers in every industry and company, you know, those are the people we all admire and hate at the same time.
They seem to be nice people but it’s those gaudy $87,000 monthly commission checks that just seem unfair!
However what most people really want to know is, can they do it, can they duplicate whatever success strategy is being used by the top earners so that they have a chance at the golden ring.
Well this is where the rubber meets the road, I could talk a long time about this issue and the reasons why some make it in network marketing and most fail but that’s for another article. See my recent blog post, MLM Success – The MLM 7 Figure Business Plan? What’s That?
I will tell you that the single biggest reason that most people fail in MLM (other than lack of motivation and focus) is because of what I refer to as “Lead Poverty”.
They just don’t understand marketing and how to generate leads so they keep dragging out their “warm market list” every time they go into a new MLM and badgering the same group of people until they finally join the “NFL” which means “No Friends Left”.
To succeed in MLM you have to understand a basic marketing principle called “The Law Of Large Numbers”, which tells you that success is numbers related. That means if you put a product in front of a large enough group of leads, you will have lots of sales.
It’s an input/output equation, the more leads you have, the more sales you have, and the more profit you have.
So how do you escape from Lead Poverty and embrace the Law of Large Numbers?
The bottom line is that with a constant high volume lead flow, you can’t miss.
So let’s review the specific marketing and lead generation approaches that the Family IQ marketing system uses.
The Family IQ “Funnel Marketing System”
This is the core of the marketing approach and is a recorded webinar or teleseminar that features Master Distributor Rod Stinson doing an hour long opportunity presentation in which he goes over the concept of direct response marketing, talks about Family IQ & their Top Tier compensation plan, and shows his proof that the system works by featuring several photos of his dining room table covered in $1000 cashier’s checks.
Now the Family IQ teleseminar is actually a pretty powerful video that really does the heaving lifting for the distributor. Although I feel it’s probably a little long, but it gets the job done and hits the prospect at the very beginning of the presentation with the huge income potential and then keeps hammering home the point.
That is of course the beauty of the Top Tier MLM business model, you get the normal huge income potential of the long term residual income once you build a large group, but you also get big bucks up front.
This presentation comes in the form of a replicated website that each new Family IQ rep receives that includes a hosted capture page with an opt in form, a video presentation, a basic autoresponder with automatic follow up letters already written and in place, and a back office with a simple lead and contact manager.
This system is great for a new distributor since its all set up, and requires no technical knowledge on the part of the new rep. It’s pretty much plug and play.
The Family IQ “Lead Generation Prospecting Software”
Now this is one of the core parts of Rods Family IQ marketing funnel presentation which he mentions several times in the teleseminar as he talks about being able to generate thousands of free targeted lead daily to power your business.
Now of course this hits home with lots of prospects since the single biggest problem of a distributor in the MLM industry is in fact generating leads and finding prospects, but the question is does this software really work?
Well the answer is yes, I have actually had quite a bit of experience with software such as this and it does in fact do what it claims to do, that is to generate leads.
This is actually a software program you buy at a discount and download to your computer. Once its setup you can direct it to use its search functions to scour the internet to find different classes of potentially interested opportunity seekers for the Family IQ business. The software then extracts a leads name and phone number from internet websites, online adverting portals like Craig’s list, or online classified advertising directories.
Generally the biggest target market for these scrapers are going after people who are already in network marketing. This is easily done by just using any MLM company name as a keyword in the software and then pulling the names and phone numbers of distributors off of their company replicated websites.
Since in today’s market everyone who joins a MLM usually gets a company replicated website it’s no problem to find lots of leads.
Now two questions occur when using this type of a lead source and they relate to lead quality and to saturation.
If someone is already a distributor for another network marketing company what are the chances that they will be interested in a different MLM such as Family IQ?
Actually this is probably one of the best classes of leads you can go after since it’s a very targeted market. We already know this type of lead likes and believes in network marketing since they already are or were in the industry. So there are no long conversations trying to explain how MLM works, they already believe.
Also since the MLM industry is so transitional and attrition rates run 50% to 70% or more, its more than likely that most of your leads are either not happy with their success so far, have already dropped out, or may even be looking for a new deal as we speak.
On the saturation issue, the question is that if you have a several thousand Family IQ distributors all using the same software won’t they just be recycling the same leads or run the chance of actually running out of this type of lead?
Well to answer this question you just have to take a step back and look at the big picture.
Estimates of how many MLM companies are in the world currently range from 1500 to 5000 companies and the number fluctuates daily since so may fail every year and so many new ones start up.
Big network marketing companies such as NuSkin, Herbalife, Amway, MonaVie and many others have millions of distributors each, and if we even conservatively estimate that an average network marketing company has 10,000 distributors then you could have as many as 50 million distributors out there as Family IQ prospects.
Well I guess you probably are not going to run out of leads any time soon.
Now you have leads, what do you do with them?
Well that’s the next part of the Family IQ sales funnel system, once you have the leads, now you have to get the leads to the Family IQ replicated teleseminar that Rod Stinson does so they can view the information and decide if they want to join.
Now the beauty of a using a high volume automated lead funnel system for Family IQ, is that once your prospect views the presentation, they will either be pretty much ready to go, or they won’t be interested, there really is no in between when you are using a high volume approach, they either see it or they don’t.
The two main approaches that the Family IQ system uses to get your leads to the teleseminar are a direct phone approach called Dial & Ditch or an automated approach called Voice Broadcasting.
Dial and Ditch for Family IQ leads
With this approach you will use one of 2 scripts that you will download from Rod’s Family IQ training website and then you will actually call the phone numbers with the intention of leaving a short sizzle message on the prospects voice mail designed to get them interested enough in Family IQ to go to your replicated teleseminar website and opt in to view the presentation. That’s the Dial part. I taught this same approach years ago to my downline but at the time we called the approach “Phone Drops” and it really does work.
Now the ditch part is that if someone actually answers the phone you just hang up. Now since most new reps are usually nervous about directly talking to prospects since they don’t know what to say, the idea of not actually having to talk to anyone appeals to them and so they like this approach.
Now the one downside of this approach is that it takes time to do all those dials but the upside is that it’s free. My advice for anyone who feels confident on the phone is not to do the ditch part but to actually talk to the prospect on the other end of the line and use the same script.
I mean you are already spending the time to do the dial so why not use the time effectively and actually talk to your live prospects. Since you will be building rapport with your prospect by doing a live conversation your conversion ratio from lead to Family IQ distributor is going to be much higher.
Voice Broadcasting For Family IQ
Now this is the automated way to use your Family IQ scrapper leads. Voice broadcasting is a form of telemarketing that uses a web based autodialer to deliver the same short sizzle message you were using in the dial and ditch approach but does it for you. You just set up an account with a voice broadcast service such as iBuzzPro, record your phone message, upload your lead list to the website, push the start button and boom! The automated system can deliver your Family IQ sizzle message to thousands of prospects in about 20 min or less.
Voice broadcasting works, I have taught and used this marketing approach for years and have recruited hundreds of distributors using it. Response rates average from 1% to 5% depending on your message and several other factors but if you have some good training and coaching on using this type of system it a killer approach.
You can setup a voice broadcast in about 20 min, it really takes no technical skills, and once you trigger the broadcast you will have leads flowing in that have listened to your message and are highly interested within 30 min.
Its fast, efficient, and cheap. The prices vary widely on voice broadcasting from as little as 1.4 cents per connected call to as much as 25 cents or more per connected call. The systems with no setup fee charge more per call and the systems that are the cheapest to operate charge a setup fee of a few hundred dollars upfront.
My preference is to keep operating costs down and to use systems like iBuzzpro which was specifically designed for the direct marketers. Another benefit for customers who subscribe to the ibuzz system is that they also have the availability of buying professionally scrapped leads for as little as $99 for 25,000 MLM leads if you don’t want to mess around with scraping the leads yourself.
Two things to note here are that generally this type of telemarketing is regulated by the by way of what is called the National Do Not Call list and more recently by legislation that limited the use of these systems to call only consumers who have actually opted in to receive these calls, or business to business sales. The good news is that when you pull a lead off of the internet from a distributors MLM company website, that qualifies as a business listing since they are using that phone to receive calls about their MLM business.
Ezine advertising for Family IQ
This is another approach Rod’s Family IQ marketing system gives some training on, and of course it works. Ezines are the online equivalent of magazines and take many forms, ranging from newsletters to article directories, and many offer free or paid advertising where you can get an ad in front of thousands or millions of potential prospects and then redirect that traffic to your replicated website for Family IQ.
One again this approach works well, I have taught and used online advertising for years and of course today that’s where the traffic is, online. With a little coaching on copywriting a good ad, you can generate lots of leads to power your Family IQ business.
Postcards Marketing for Family IQ
This tried and true marketing approach is also included in the Family IQ marketing training by Rod Stinson. Postcards or direct mail have been an effective marketing approach for years, but recently since more and more marketers have switched to online approaches there has been a drop in direct mail which actually makes it more effective than it used to be. Its costs more but it can also be done in small batches to control cost.
So in conclusion and I can speak with some authority on this, these approaches that Family IQ uses do work. The only secret here is to actually do them, do them consistently, keep track of your numbers and adjust as you go.
Most MLM distributors are very inconsistent with their MLM lead generation efforts and so even if they use a great marketing approach, if they don’t get instant results they throw up their hands and quit.
Over the last 24 years I have spent in the network marketing industry they key to my success was the result of just a few critical factors, learning the Law of Large Numbers, high volume lead generation, and using effective sales funnels. It gave me the edge to master becoming a 7 figure earner in the industry.
Now of course these same Family IQ marketing strategies can be used pretty much to build any company, however when you combine and effective high volume sales funnel approach with a powerful Top Tier MLM compensation plan like Family IQ has, it give you the ability to create some real magic (and income) pretty quickly.
There are other Top Tier companies of course who use similar strategies to build and get members into profit quickly such as Secret Success Machine, where many members boast incomes of anywhere from $10,000 a week to over $40,000 or more a week.
Using this type of a sales funnel system with a Top Tier program like Family IQ can give you the edge you need to get to those $10,000 monthly checks you have been waiting for.
Then once you have mastered this approach, you can then take it to the next level by learning how to use online lead generation strategies and really start tapping the big numbers that have the ability to get you to the 7 figure MLM success ballgame.
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