PHASE 1 How many times has your supermarket issued you a rebate check? 5 times? 10 times? They haven't? Well, they should. Every time you purchase food at your local supermarket, you increase its sales and profits. As a steady customer, don't you think you deserve a purchase rebate? After all, they would lose the extra profits from your purchases if you didn't shop with them. Shoppers deserve a purchase rebate. What about the $40 in advertising savings shown in the Mr. Food letter? Since you are already a customer, there is no need for Mr. Food to spend advertising money to convince you to purchase from their store. Mr. Food might as well pass this savings on to you. And what is that $320 referral income for? You told a few friends and neighbors you enjoyed shopping at Mr. Food. They changed from a competitor supermarket, and now shop at Mr. Food. You performed word-of-mouth advertising for Mr. Food. Now each month you should receive a referral check because your friends and neighbors shop at Mr. Food. Remember, if it wasn't for you, these people would still be shopping elsewhere. Does all this sound far-fetched? Hard to believe? Well, it happens everyday. Many businesses now share their advertising dollars with individuals in the search for more customers. Let’s consider this concept from the view-point of a local furniture store. When the furniture store retails a $1000 dinning room set, its profit and expenses may look like this: Cost of dinning room set From manufacturer................................................... $400 Overhead of rent, employees, Insurance, etc............................................................. $200 Advertising budget to bring Customers to the store.............................................. $300 Profit $100 What if the furniture retailer gave that 30 percent ($300 advertising budget) to individuals who performed word-of-mouth advertising instead of spending it on radio, TV, and newspaper advertising? If you refer a customer to the furniture store, or if the advertising media refers a customer to the furniture store, the result is the same. One customer, buying one dinning room set, produces $1000 in revenue to the furniture retailer. It shouldn't make any difference to the furniture store retailer WHO gets his advertising budget, an individual or the media. Does business really work this way? Can an individual receive referral or advertising income from manufacturers or retailers for the simple act of referring another person? Yes! It happens everyday in almost every industry. If you haven't heard about it or taken advantage of it, you could literally be walking past a fortune! WHY IT WORKS… The networking, or referral, concept is simple. Businesses who participate love the no risk advertising it provides. Individuals love getting their piece of the advertising pie for doing what they have been doing for free – talking. Among the types of products and services that successfully share their advertising budget with individuals are automobiles, appliances, legal insurance, food, clothing, sport equipment, buyer discount services, candy, health foods, travel, soda pop, water filters, auto clubs, and the list can go on and on. Somewhere, almost any product or service is now being offered through referral or network marketing. Remember, not every company will share its advertising budget, but surely one of its competitors will.
“Hmmm, just two more referrals and…”
PHASE 2 (THE CONCEPT EXPANDED) Remember the Mr. Food supermarket? If you have an average family, you may spend as much as $250 monthly for groceries. In one year's time, your purchases would add up to $3000. You can see that every family added to Mr. Food's customer base is very important to Mr. Food. Let's say you refer your neighbor, Alice, to the wonderful service and food selection at Mr. Food's supermarket. Alice's family purchases an additional $3000 worth of groceries from Mr. Food. You are now responsible for $6000 in grocery sales for Mr. Food’s supermarket. Surely you'll be earning a nice cash bonus. But what if Alice refers her brother's family to Mr. Food? That is an additional $3000 in sales. Of course, Alice will receive a word-of-mouth advertising bonus for referring her brother, but what about you? You didn't actually refer Alice's brother. However, if it wasn't for you referring Alice, her brother would never have known about Mr. Food. You might consider yourself INDIRECTLY responsible for introducing Alice's brother to Mr. Food. Now you are responsible (directly and indirectly) for $9000 in annual grocery sales for Mr. Food. You $3000 Alice $3000 Alice’s brother $3000 Total $9000 What do you think you deserve for referring $9000 in annual grocery sales to Mr. Food? 5% ($450)? 10% ($900)? What if Mr. Food could stop its full page newspaper advertising altogether and let you be responsible for filling Mr. Food with customers? Does this sound difficult? It really isn't. You see, you wouldn't have to do all the referring yourself. Imagine spreading the news of the wonderful Mr. Food Supermarket to five friends. If the five friends you told are not hermits, they could spread the news of the wonderful Mr. Food Supermarket to 5, 10, or even 15 of their friends. These individuals could pass the news along to their friends, etc. It is possible, by sharing the news with just a couple of friends, that eventually, everyone in town could be contacted. That's networking. Filling the Mr. Food Supermarket really won't be quite as hard as you imagine. Now, how much word-of-mouth advertising bonus do you deserve? You deserve the entire advertising budget. Of course, you would share it with your network of friends who helped you spread the news. Can you see how receiving just two percent of an entire supermarket's sales could be exciting? If you haven't thought of it already, I'm sure there is more than one supermarket in your county. There may even be a clothing store or an automobile dealership in your community also. The potential is mind-boggling! YOUR WORDS ARE AS GOOD AS GOLD How big are the advertising budgets of companies you presently do business with? Proctor & Gamble spent over $1.4 billion on advertising last year. J.C. Penny spent over $500 million on advertising. These are only two of the hundreds of thousands of companies that advertise every day. The total amount spent on advertising is more than a trillion dollars each year. You don't need to share in a very large percentage of a trillion dollars to live quite comfortably. Just look around you to see all the advertising spent in your local area. It's everywhere. For instance: - Billboards
- Television
- Cable Television
- Radio
- Newspapers
- Magazines
- Direct Mail
But none of these advertising methods are as effective as word-of-mouth advertising. Potential customers will give far more credence to a friend's recommendation than to a message on a $5,000 billboard. There is power in word-of-mouth advertising that can never be bought through regular advertising channels. Smart companies are more than willing to share their advertising budgets for this powerful method of increasing business. THE POWER OF MULTIPLICATION Most of us learned that by adding more effort, or by adding more service, we will add more to our personal earnings. This is true, but very limiting. There are only 24 hours in a day. We can't have any more. Multiplication of our efforts through networking can compound our results. Having 24-hour days limits the number of individuals we personally can refer. However, our referrals have 24 different hours in their ways to make personal referrals. Our network can compound our personal effort to produce staggering, combined results. The president of General Motors receives a salary based upon the power of multiplication. If he earns $1,000,000 per year in compensation, it isn't because he can paint car fenders 100 times faster than assembly line employees. No, the president is compensated not only on his personal efforts, but on his ability to multiply his efforts through the work of thousands of GM employees. You can have the same power to multiply your efforts and income through referral marketing. Your personal network will extend far beyond the people you personally introduce. If you can imagine a family tree, with you as the source, you can visualize the power of multiplication. YING’S METHOD Back in 1992, I met Ying, a mother of 3 children. With a low income family, Ying kept herself busy just caring her family. Now, Ying is the perfect example of multiplication. Her family used a variety of household products, cosmetics, and health products from a company which shared its advertising budget with individuals. The monthly rebate from her personal purchases was a great addition to the tight budget. But the real multiplication power came from Ying referring acquaintances and casual contacts to her company's products. The paper boy, the grocery store checkout clerk, church members, and almost any contact received a brochure showing how they too could buy directly from Ying's company and receive purchase rebates and referral bonuses. The Ying stopped. She didn't even bother to mention her company's shared advertising program again, but the multiplication factor kept working. The individuals Ying originally referred to her company continued to refer others. Generation after generation of new individuals continued to introduce others to the company's shared advertising bonus concept. All these individuals were indirectly the result of Ying's original efforts. The results? Ying's monthly referral bonuses grew to $2000 per month, then $2500 per month, then $3000 per month. What did Ying do with her time? She spent it with her family. Her income kept increasing because of the power of multiplication. The company's sales increased monthly because of the initial groundwork Ying performed months earlier.
INCOMPETENTS CAN RECEIVE REFERRAL BONUSES TOO What special talent is necessary to receive financial benefits from this shared advertising concept? Does one have to be outgoing? Well-connected? Or can anyone take advantage and qualify for sharing in a company's advertising budget? Everyone can get a monthly referral bonus check. No unique qualifications are necessary.
IT'S NOT WHO YOU KNOW – IT'S WHO THEY KNOW Thank goodness. If my referral bonuses depended on who I knew, I would need a different career. We are all limited in the number of people we know, but the multiplication concept is powered by the thousands of people others know. If you really stretched the point, everyone in the world could be contacted through a long sequence of referrals. Just how powerful can this multiplication power be!
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