5 Reasons Network Marketing May Be the Perfect Business Model

network-marketing

Low Start-Up Cost – Whether you earn a top executive income working for a corporation or you are a stay-at-home parent, the initial expense to get up and running fits almost anyone’s budget. This is one of the biggest reasons the industry has grown exponentially over the last 10 years. As more and more people lose their jobs, they are turning to Network Marketing to get back on their feet. With no overhead, no office space to lease, no employees to hire and a tiny start-up cost, it is a no-brainer.

Flexible Lifestyle – Since you are the boss, you get to choose when and how long you work. Having the ability to work around your personal life is so attractive; especially to those who are very busy. You can start building your business by squeezing in just a couple hours a day. Whether it’s early in the morning, after lunch or the middle of the night it doesn’t matter. You can build a business at any time of the day.

Leverage – The key to generating a large income is leveraging off the efforts of others. By training others to do exactly what you do successfully, you can not only earn off of their efforts, but off the efforts of those they train as well. This creates exponential growth in your business, which in turn creates exponential growth in your paycheck and in your free time. Leverage makes your business grows whether you are working or not. This means you are no longer trading time for money, but instead investing time that pays you over and over again.

Time Freedom – The older you get, the more you realize that time is your most valuable asset. If done correctly, Network Marketing gives you the ability to take control of your time and use it as you wish. This, again, is achieved by using leverage. The bigger you build your distribution network, the less you have to work. Not a bad deal.

Financial Freedom – The number one reason people get involved in the Network Marketing industry is so they don’t have to live paycheck to paycheck anymore. Your income potential is virtually unlimited. You get to decide how much you want to earn, and with the power of leverage, your profits will grow like crazy. Just as you earn more time through leverage, you can create an ever-growing income that gets bigger on its own.

Article Source: http://EzineArticles.com/6910622

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The Fitness Industry Business Model

At the beginning of 2017, I launched a social experiment, branding myself as a fitness mom and started a blog at http://www.edanjoygelt.com. My brand wasn’t far from the truth – I’ve religiously worked out for decades and fitness has always been a part of my life, I just wasn’t an expert athlete. At the start of my experiment, my goal was to understand the impact of social media and obviously reap the benefits from the exercise but what I also gained was a lesson in the marketing and psychology of fitness.

A marketing strategist to the core, I was excited by what I learned and couldn’t wait to share.

Profit Model

It’s well known that the strategy behind the lucrative fitness business includes a monthly membership fee and attendance. The more people that sign up + the more people that don’t show-up = the more money the club makes.

This strategy has allowed many basic and full-service clubs to enter the market at varying costs and still be wildly profitable. Clubs may offer bare bones equipment with long hours or great classes and equipment with an assortment of amenities.

Each club prices themselves low enough and provides sufficient value that members don’t find it worthwhile to cancel when they stop showing to exercise. Basic gyms to locations with more amenities range from $10 per month to $90.

SEXperience

Enter the premium fitness experience; these clubs offer fitness to the “who’s who” of society (or those who want to be seen as such). Just belonging to these types of clubs makes the members feel fitter and sexier without evening taking their first class. The shear elegance and notoriety associated with membership demands a higher membership fee and delivers more amenities, better quality trainers and ancillary benefits such as fancy child care, pools with slides, etc.

These clubs offer exclusivity with a member tag of $90 – $200 per month.

Down, Dirty & Real

These are the mom-and-pop shops dedicated to fitness for whatever reason they hold dear (maybe they were a boxer, dancer, yogi) and want to share their experience and train others. They are typically located in commercial business districts where the rents are low and the space is plenty.

Value is in the trainers, owners and sense of community among students. These clubs/studios are about the sense of convergence and if done right, they are profitable, mostly affordable and targeted toward one area of expertise like CrossFit, Yoga, Boot Camps, etc. If they can excel in marketing, these business models survive and thrive based on reputation and referrals.

Memberships, class packages or drop in rates – or a combination there-of are offered. Prices average about $60 – $100 per month or about $15 a class.

Designer Duds

Newer to the market: designer duds. In the fashion world – designer duds are the hottest and trendiest gear. In fitness, these are the “popular kids” on the block and include chains like SoulCycle, Orange Theory, CorePower, Pure Barre, etc.

These are AMAZING CONCEPTS, don’t get the “dud” part wrong but there is something to that too. The clubs/studios are genetically engineered and optimized to mix the physical and mental component with SEXperience. Hyper-focused clubs such as these make fitness sexy, chic and popular. Each fitness experience is spun from a corporate web, which has spent mega bucks perfecting climate, fitness routine, music (even volume), and ambiance.

I call them designer duds for 2 reasons, one – they are super trendy and pricey, second – like fashion, they will likely over-franchise, lose authenticity in time and eventually fizzle (think True Religion Jeans) and live up to the “dud”. After all, how many years can you spin in a dark room without getting the itch to do something else?

I still haven’t figured out the lifecycle for designer duds but I don’t see them having a long-term foothold in the market. Memberships are priced from $150 – $200 a month, or $20 – $40 per class.

Future of Fashion Fitness

As more Designer Duds enter the market, the full-service SEXperience clubs are stepping up their game. They are changing their class offerings by emulating designer duds, offering smaller group training classes and enhancing private areas to provide a more intimate training experience.

It will be interesting to see what will survive and thrive and what will sizzle out in the next 5-years.

Ways to Increase Holiday Sales

HOLIDAY SALES

Start Early

According to Experian, 69 percent of the marketers stated they started planning holiday campaigns by August. You can drive traffic for your holiday programming by building an email list and incentivizing shoppers to sign up for deals and steals during the season.  Maybe even offer an incentive for signing up – the incentive could be a free gift or the promise that they will be the first to know the Holiday season, follow up with your new customers 30-35% of shoppers are repeat buyers so follow up with shoppers, even after the holidays.  If possible analyze what they like and offer them similar items.  The more positive experiences a shopper has, the more loyal they will become to your brand.

Be Mobile Friendly

Mobile devices drive 56% of all internet traffic. Mobile traffic also accounted for 31% of all online sales on Cyber Monday in 2016. Interestingly, 70% of the total conversions in 2015 were made on a desktop. Only 20% were made on mobile devices. This is likely due to slow, un-responsive mobile sites. According to Google, 29% of shoppers leave mobile sites immediately if the page does not satisfy their needs. Some websites saw a conversion increase of 2% after cutting down their load time by four seconds.

A few tips to being more mobile friendly.  1.  Make sure your images are formatted correctly. A large image will kill page load time. 2. Limit the number of checkout steps. Reduce the number of taps required to checkout by including logins through social media. Including an option to log in via Facebook will reduce content that is not related to the purchase at checkout. This simple change can eliminate an entire step of the checkout process. 23% of people abandon retailer sites because they were required to create an account. Allow first-time buyers the option to check out as a guest to move them to the payment information page faster.

Create Urgent Calls-To-Action

A good way to nudge shoppers towards the checkout is to create a sense of urgency. Urgent calls to action provoke the shopper to buy now instead of leaving to comparison shop. Create limited time offers, notices of scarcity, price increases etc.  An effective use of a countdown timer may psychologically encourage a shopper to buy now or miss out. This can also be done with perks – a notice of “Free Shipping” that ends on an upcoming date also requires the shopper to take action to take advantage of the offer.

Another call to action is by creating urgency through scarcity.  If a limited amount of products are available, it pushes the shopper to act now.  This can be done with “low stock” notice or “only 1 left”. A simple “checkout now” button on these pop-ups is beneficial for the shopper.

That’s a Wrap

Holiday is the most important time of the year for retailers. Make the most of it!  And most importantly, track data, you’ll need it next year!

By:  Edan Gelt, MBA, CMD

With more than 20 years of diverse marketing experience, including more than a decade at Harlem Irving, Edan Gelt has extensive capability in diverse marketing mediums across various industries, offering insight on marketing strategy, research, public relations, advertising, special events, social media, direct marketing, branding and more.

Edan holds a Bachelor of Science degree in Marketing from Elmhurst College and an Executive MBA degree from the University of Illinois.

For more information visit www.edangelt.com,

 or https://www.linkedin.com/in/edan-joy-gelt/

Things You Need to Know About Video Marketing

video marketing

Edan Gelt: Marketers are often hesitant about using video in a marketing campaign. The medium is often perceived as an expensive form of advertising, used for major brands with large marketing budgets.  However, to overlook the power of video and overestimate the actual expense puts any business moving into the future at a disadvantage.

GENERATES ATTENTION

Your target market is viewing videos all the time. Statistics have shown that 92% of all B2B prospects watch online videos on a continual basis and Youtube has more than 4 billion views every day (Bytemobile Mobile Analytics Report).

Smart businesses use video marketing as a tactic to improve consumer engagement by including videos in emails, which increases click-through-rates and enhances conversions when the video is added to a landing page.

According to Twittter, videos and photos receive the highest number of shares. The videos have more impact because they entertain, they have a viral potential, they require little reflection of the brain and can be used to educate on a subject.

One study found that 58% of consumers had more confidence in companies that produce video content.  By 2019, video content will be the driving factor behind 85% of search traffic in the U.S. – AMA

SEARCHABLE

Customers who are searching for your products and/or services will likely search through the listings on Google. 70% of the top 100 search listings on Google are video results. In order to make your site rank higher on the results page, you can share your videos on social media, post them on blogs and embed the videos into your website.

Founder of Facebook, Mr.Zuckerberg has noted that Mobile Devices and growth of video on Social Media as two of the most important trends happening today.

Data backs up this idea: Video ad types will boom 184% from $9.9 billion to $28 billion in ad spend – making them the fastest growing ad type within 2 years.

CONVINCING

Videos offer marketers the opportunity to use both sight and sound to connect with their target audience storytelling. Invoking emotions in your target audience is an effective method that results from showing images, which connect hearts and minds with your product or services.

The general trend will be toward short, digestible videos with a strong story with compelling message.  Most video consumers want short and to the point, they don’t have time for more than a minute or so so a quick hit is all that is needed to determine whether a consumer is interested in investigating your product further.

Snapchat is founded on the short video premise and we are seeing short-form video content infiltrate other platforms like Instagram and Facebook messenger.

MEASUREABLE

One of the most beneficial things about sharing a video on social media sites such as Facebook and Youtube is that you can keep track of the number of people who have actually viewed your video and shared it.  This creates an effective channel to measure the results of specific campaigns and help you determine which videos have translated into effective marketing and increased sales.

COST EFFECTIVE

Videos stay on Google for an extended period of time. Compare that to TV where you pay per placement – one and done.   Native video content usually stays online and reduces your overall spend over time.

To start, you don’t need fancy video equipment or a professional videographer to get in on video marketing.  In fact, a smartphone is enough; the organic quality might actually help you relate better to your target market by just being real.

Push Vs. Pull Marketing

Push vs Pull Marketing

I am amazed that even in 2017, local businesses still place expensive, relatively untargeted radio and newspaper ads for their push marketing strategies.  Don’t get me wrong, I haven’t gone fully to the dark side of digital for push I still believe in direct mail and use it often but the world has changed and reaching consumers has changed as well.  The advantage of digital is reaching the target market with both a push/pull strategy

To understand what works best for business – it’s important to understand what push and pull marketing is and how to use them.

Push Marketing

Push marketing is a promotional strategy that businesses use to get their message in front of potential customers. Just think of the pop-up ad for a local gym as you are scrolling through your favorite fashion article – it’s “pushing” the content at you.

Advertising on relevant websites with banner ads, sponsored bloggers, Social Media ads, and TV advertising are all great channels for businesses that want to get their product known. Receiving a customized mailer for furniture after searching or getting emails from Groupon are all forms of more targeted push marketing.

Push marketing can be very efficient when executed properly but also expensive.

Pull Marketing

Pull marketing, on the other hand, takes the opposite approach. The goal of pull marketing is to get the customers to come to you, hence the term pull, where marketers are attempting to pull customers in.

Today’s consumer is an avid online researcher. They read reviews, conduct keyword searches and asks online social friends for suggestions. Pull Marketing gives businesses an opportunity to attract the consumer wanting answers your business can provide. When a prospect finds reviews, white papers or a blog about a topic they want to know more about, that is pull marketing.

One example includes the marketing of children’s toys. In the first stage, the company advertises the product. Next, the children and parents see the advertisement and want to purchase the toy. As demand increases, retailers begin scrambling trying to stock the product in their stores. All the while, the company has successfully pulled customers to them.  A great example was the launch of Tickle-Me-Elmo but mre recently, Hatchimals.

Service industry companies use pull marketing to generate interest in new services or to create positive feedback about the company. If a massage clinic, for example, wanted to increase its business, it could use social media sites to encourage their customers to share information about the clinic with their friends. People are much more likely to buy a product or visit a business on the recommendation of a friend. Through social networking, the massage clinic can rely on some of its existing customers to “advertise” for the clinic through recommendations.

So which is Best, Push or Pull?

It depends on the goal of the company, where it is in its lifecycle.  Often a Push Strategy to launch and a Pull to reinforce is the best bet for business owners.

With more than 20 years of diverse marketing experience, including more than a decade at Harlem Irving, Edan Gelt has extensive capability in diverse marketing mediums across various industries, offering insight on marketing strategy, research, public relations, advertising, special events, social media, direct marketing, branding and more.

Edan holds a Bachelor of Science degree in Marketing from Elmhurst College and an Executive MBA degree from the University of Illinois.

For more information visit www.edangelt.com

 or https://www.linkedin.com/in/edan-joy-gelt/

5 Tips of Starting A Vacation Rental Business

A few years ago when the kids were young, we decided to invest in a summer home.  As big boaters, we wanted something close to a body of water but affordable enough to maintain year round.  Our first venture was a trailer, but due to the cleanliness of the lake it was on, cramped quarters, and only 5 Gallons of hot water, we quickly traded our trailer in for a home along a cleaner body of water

We ventured into Michigan and found a small quaint town.  We couldn’t afford lake side housing so opted for a little cottage a mile from the beach.  It was close enough to home but far away from reality.  As the kids grew, our ability to make it out to our summer home lessened so we decided to dive into the world of renting.  After interviewing several rental companies in the area, we opted to manage rentals ourselves to avoid the hefty 20 – 25% fee.

CONVERTING

If you are in the process of converting a vacation home into a vacation rental some changes need to be made.   Walk through your home and remove any valuable items you don’t want broken or removed from the property. Swap out family photos with artwork. Consider the linens – the quantity and even the color.  Whites may be easier to bleach but may stain easier.   Make sure you have back up towels and two sets of sheets for each bed for quick turnovers or when you don’t have time to have laundry done.

PURCHASING A VACATION RENTAL

If you are purchasing a new property, make sure the economics work. Research the area and figure standard rental rates and the length of the season.  In our case, our rental season is only 12-weeks long so we needed to make sure that renting made more sense than selling, we figured-in the cost of furnishing and updating as well as taxes and utilities.

Edan Gelt Vacation Rental Business
Edan Gelt Vacation Rental Business

LISTING

We chose to list our property on both AIRBNB and VRBO.  It takes a bit of coordination to make sure the websites are updated continually so if you rent on one, you need to make sure you block off the dates on the other

You need to create a powerful listing that captivates online viewers so treat the listing as a marketing tool.  Take great pictures and write an honest and detailed description of the property.  Include your distance from key destinations and any added value your property offers.  Research pricing of similar properties and price accordingly, taking into consideration fluctuations for holidays and peak travel times.

RESOURCES

Put a team in place.  Interview cleaning people, get to know your neighbors and find a local handyman.  If your vacation property is far from your main residence, your team is your most valuable resource.  During the summer, our cleaning lady becomes the go-to gal.  She lets us know if there is damage and turns over the property for the next guest in as little as 3-hours.   Our neighbors have also helped when tenants had issues like a new battery in a smoke detector or figuring out cable.  They even  notified us of a burst pipe in the winter.

TAXES

Make sure you pay taxes on your rental income, state dependent.  If you are a vacation homeowner and only want to rent less than 2-weeks per year, you can do so tax-free but anything more is taxable.

It does get a bit chaotic at times managing a vacation rental with schedules, tenants and but for us it’s been fun.

By:  Edan Gelt, MBA, CMD

FREE Versus Discount Marketing

As marketers we create and distribute promotional offers to drive traffic to our business, store and or/website clients – so what message really drives action?  What is valued the most, a loyalty program, discounting, buy one get ones?  How about FREE?

Everyone likes a discount but FREE comes out ahead when strategizing long term impact.  FREE not only drives consumers to take action quicker but FREE is a gift that keeps on giving.

The Law of Reciprocity

I wrote about the Law of Reciprocity in the past.  It is human nature to want to give back when one receives something.  So although it would seem that a FREE Bag of Dog Food at PetSmart, Free Slurpee Day at 7-Eleven or a FREE $25 Gift Card at Floor and Décor would cause these retailers to lose money, it actually has the opposite effect and increases sales.

I have been the recipient of all of the offers above and each and every time I have walked out buying an additional item (and I know the law of reciprocity).  I am so grateful to the retailer providing the free offer; I am intrinsically motivated to make an additional purchase (or I feel bad leaving without making a purchase).

Even if you’re not like me, feeling grateful enough to buy something, maybe you’re even guilted into it?  Ever try a sample at Costco and feel obligated to buy it afterwards?

According to a 2013 TIME Magazine article regarding 7-Eleven, my personal reaction of purchasing more after receiving something free is quite common. 7-Eleven’s Free Slurpee Day has resulted in ancillary sales increases of 40% or more in hot dogs, beef jerky and other snacks parable with an icee beverage.  It’s no wonder FREE Slurpee Day is an annual event.

Edan Gelt Marketing
Edan Gelt Marketing

Perception

Offering customers a discount does not relate as well as a FREE or bonus item, even if the value is the same.  In a study reported in the Journal of Marketing, writers Haipeng (Allan) Chen, Howard Marmorstein, Michael Tsiros, & Akshay R. Rao, note that when people were offered 33% more of an item versus 33% off the regular price, people actually picked the extra product, even though the discount was a better deal.  They learned that people’s perception of FREE or bonus outweighed the reality of the discount.

 Something to talk about

Not only are free offers good sampling opportunities but they also make great stories for the media.  FREE offers also make huge splash on social media.  People tend to share freebies.  If a famous sandwich shop is offering a free 6” sub and puts the offer on a social platform, it will go viral – driving swarms of people to the business location.  The promotion will also likely make the evening news.

By:  Edan Gelt, MBA, CMD

Interested in creating a strategic marketing campaign to increase sales?

Reach out at https://www.linkedin.com/in/edan-joy-gelt/

With more than 20 years of diverse marketing experience, including more than a decade at Harlem Irving, Edan Gelt has an extensive capability in diverse marketing mediums across various industries, offering insight on marketing strategy, research, public relations, advertising, special events, social media, direct marketing, branding and more.

Edan Gelt holds a Bachelor of Science degree in Marketing from Elmhurst College and an Executive MBA degree from the University of Illinois.