Well you may or may not have heard of Regeneca International a new MLM company with some rather unique products.
Of course in the world of MLM success, having a “Wow” product can make a huge difference in your growth curve but I am struggling to really classify this as a Wow product. Now it defiantly has a Wow effect but it’s probably better classified as well?
Well anyway, Regeneca is a new company in the Network Marketing industry that according to its website specializes in Health and wellness products.
Regeneca has apparently done some shifting in their product business model since most of the products they list on their website no longer appear to exist anymore.
They appear to have decided to focus on one product in particular called Regenerect, a Natural Male Erectile Stimulant.
So how are they going to do product demos?
Carefully I would think.
Well it’s going to make for some interesting opportunity meetings when they ask for testimonials don’t you think?
Sorry I couldn’t restrain myself.
Company founders Matt Nicosia and Adam Vincent Gilmer appear to have some solid business background, and I certainly recognize Sherri Sharman who is on their team as having considerable network marketing experience.
Now just as a side note here, in January of 2011 Regeneca International did merge with a publically traded corporation called Ethos Environmental, Inc. and all the current directors resigned and Matt Nicosia and crew took control.
It appears from the information that Regeneca wanted to be a publically traded company so they bought a shell corporation.
This is an interesting trend I have seen with startup MLM companies over the last 2 years, it’s kind of hedging your bets from a business standpoint since you can grow your distributor base and also get distributors to invest in your company at the same time. So Regeneca is obviously covering all the bases.
So if Regeneca hits the mark from a business standpoint the owners not only have a powerful cash flow business but also an asset that can be spun off and sold.
Regeneca’s Marketing System
Now other than the product, Regeneca does have a very interesting business model which is trying to combine “direct response marketing” through infomercials with the world of MLM.
The Regeneca business model is actually brilliant, it combines an infomercial marketing approach to generate customer leads and use that to overcome one of the biggest problems in the world of Network Marketing, having a bunch of distributors who have no idea of how to generate leads.
Now we know infomercial marketing is effective in selling just about anything, however it is generally a one time sale and once a customer buys they are gone.
However if you use a large MLM distributor network to actually field the calls, make the sales, and develop a relationship with those customers, then you may be able to generate a long term cash flow from repeat sales.
Once again great theory but it has been tried several times in the world of network marketing and it just has not been successful. I can think of at least 5 companies in the last 5 years who tried it and never really pulled it off.
Now of course that doesn’t mean that this time it won’t work for Regeneca, I tend to think that with the right mix it could be a winner.
Now we know that male enhancement products can be successfully sold through direct response marketing and TV commercials. Several companies have made huge amounts of money doing it, remember the little blue pill?
Regeneca is even offering to send a free 5 day supply to potential customers who pay the shipping, so it leads you to believe that it must work.
The Regeneca product seems a little on the expensive side at $169 for a 30 day supply but the product info says that each pill can last up to 3 days.
Wow, how do you leave the house?
Now of course Infomercials cost some big money, so Regeneca is undoubtedly going to have to pass that cost on to the distributor by charging them for the leads.
Of course the challenge is that most people who enter the Network Marketing business want to achieve huge incomes without spending any money on advertising, so trying to convince them to spend $5 to $10 or even $20 a lead could be an uphill battle for Regeneca.
Now I am not a distributor for Regeneca however if I was going to market this I would not pay for or utilize the infomercial leads. This type of late night TV lead generation can many times give you a lot of leads that are not very qualified just calling in for the free offer.
Instead I would use an online marketing approach to generate opportunity leads and use the sizzle of the Regeneca business model to bring in a lot of distributors and leave the product retailing to those that actually want to have customers.
The money of course in network marketing is not in having thousands of customers, it’s in having thousands of distributors who each have a few customers.
Success in Regeneca or any MLM business hinges on your ability to structure it as a real business and to have a high volume lead generation system in place so you can look beyond just your friends and family for your success.
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