The 7 Sponsors to Avoid Like the Plague, Part 4
So far in our series of sponsors to avoid we’ve looked at the cult leader, “Fast Money Mary” and Pay-Per-Click Dick” Now let’s look at the fourth type…
The Celebrity Lead Magnet
As I wrote in my MLM Manifesto, I’ve lost count how many times I have seen this play out in the last 20 years. A company hires a famous spokesperson, the spokesperson joins as a distributor, or actually starts up their own company.
All the other distributors are gaga over the massive effect this will have on recruiting. Usually this leads to major media campaigns inciting people to lock in a spot early, because of the steady stream of new people who will be joining the company, based upon the halo effect of this celebrity. In the worst cases, this gets promoted with television commercials and lead generation co-ops are created. Thousands of leads pour in. But what happens at the end of the day?
The celebrity doesn’t understand a damn thing about how the business is conducted, and is usually doesn’t even attempt to do the work it takes. In fact, the spokesperson has most likely been duped into believing that others will work the leads brought in by his or her “name,” and that a nice residual income will be the result.
We’re witnessing this yet again now, with another company in pre-launch, started by a celebrity author & reality show host. There’s no reason to believe this one will end up any different then the dozens of other failures with this model. This doesn’t follow the formula for creating wealth in the business and is antithetical to the process of duplication. The last time this worked successfully in the business is never. But it will make for interesting theater.
Next post we’ll look at number five…
-RG
Right on brother. I thought the same thing. Way to tell it like it is. Really enjoying this series.
I can’t believe that I’am first. I have seen this to but I also noticed that it cost an arm and a leg to get into those types of business. I’ am one of the lucky ones that don’t fall for this. I do follow Randy because I know him like him and trust him. very good trainer
And i’m second to reply……I was reading along and thought uh oh this one won’t work and then laughed when I read “There’s no reason to believe this one will end up any different then the dozens of other failures with this model”
Exactally Randy !!! You Rock !! .
We have a celebrity spokesperson, but he is NOT PAID. As a matter of fact, I only see him from the videos on our Website, hear him on a conference call now and then, or see him at special annual events—- and he actually talks business (not hype) because he has an intimate knowledge about what we offer. So our celebrity spokessperson is not just a talking head, nor is there any hype about what or who he’s recruiting. I have no idea what his organization is like and I stay plugged in almost daily and I don’t hear anyone going ga-ga over him. Our CEO makes it a point to let it be known that absolutely no one can buy their way into a top spot—regardless of your status. Our company must be the exception, Randy.
Dear Anonymous,
Why are you anonymous?
IMHO, and with that backed by Rany’s years of experience, there are NO exceptions to this.
Heavy Hitters promise BIG money to NAMES to have them generate BUZZ and attract fresh blood into the funnel. Once the KILLING is made . . . .
TL
PS: Just what DOES Trump know about MLM? My guess is nothing.
Yes I’m not sure who anonymous is or what company they are referring to. But know that I am not talking about companies having a product spokesperson. Many do that with success. I’m talking about trying to drive lines with celebrity lead magnets.
-RG
Wow, just goes to show how much work is needed to straighten out our industry! These “Sponsors to Avoid” are one reason people are skeptical to get involved in network marketing. Randy, are you going to touch on this at the Mastermind event?
Okay, Randy. I understand you now. Our spokesperson doesn’t drive lines. He just happens to be a celebrity who believes in the organization and what we do, and has the Hollywood connection, but he doesn’t drive the build-up of down lines. I don’t blog about my organization in this format, thus the reason I am anonymous (to those who asked). And just so you know, Trump is NOT the celebrity I’m speaking of. To the person who said there are no exceptions, sorry, but you are wrong. Every company is not the same. I am in this organization and I guess we do things a little different from what you are used to, so yes, we must be the exception—-yes, we have a celebrity spokesperon, but he is not a recruit, recruit, recruit type of person. He talks mostly about the company and products.
I agree with you on this one Randy but its sure is great for marketing. So many people are duped into believing this tactic will work over and over again.
Great Post
Rick
Why should somebody want me as his sponsor when he joined the business because of another guy, who is famous.
I think normally he wants the celebrity to be his sponsor.
So it would be a bad choice.
I agree with everything you’ve said Randy. It just goes to show you that there has always been and always will be power in celebrity. The power of celebrity is a major force in marketing and advertising. It also apparently works really well in whipping people up into a frenzy in NM. Only time will tell with this latest example you mention but my guess is it will have no long term staying power.