The Secret to Building Your Network Marketing Business

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The Secret to Building Your Network Marketing Business

There is a lot of hype around famous people who endorse network marketing. When we “name drop” a famous person who says something positive about our industry, we hope that gives us credibility with network marketing. After all, if “so and so famous person” says that network marketing is okay, then it must be okay, right?

You’ve probably heard that Warren Buffett purchased his own network marketing company in 2001—Pampered Chef. Pampered Chef is one company in the direct sales industry successfully using the Party Plan Compensation Model. Please know that I’m not promoting his company other than to ask the question, “Why did Buffett buy Pampered Chef?”

What are the principles he uses in choosing the companies he purchases?

Let’s take a look at a partial list of Buffett’s companies and some of the products they market:

  • Coca-Cola
  • American Express
  • Kraft Heinz
  • Gillette Shavers
  • See’s Candies
  • Dairy Queen
  • Geico Insurance
  • Phillips 66
  • Duracell batteries
  • Fruit of the Loom underwear
  • Pampered Chef, the premier provider of kitchen utensils and cooking equipment

Do you see any patterns here? 

Most of these products fit what I call the E3 formula. They are Essential to Everybody Every Day.

Principle #1: Essentially Ordinary

Buffett buys companies that sell ordinary, basic, ‘bread and butter’ type products that people use every day—sometimes several times a day. Do any of these products sound familiar to you: Coca-Cola, Kool-Aid, Jello, Ketchup, Planters Peanuts, Philadelphia Cream Cheese, and Oscar Mayer hot dogs?

Millions of bottles of coke were consumed today.
Millions of people accessed their bank account today.
Millions of people used their American Express today.
Millions of people bought candy and ice cream today.
Millions of people consumed Kraft Heinz products today.
Millions of people shaved today.
Millions of people had homes and cars insured today.
Millions of people used machines powered by batteries today.
Millions of people put on underwear today.
Millions of people cooked food today!

Principle #2:  Frequently Consumable 

Buffett prefers products that are consumable. That is, they get used up and need to be repurchased frequently. Thus, buyers become permanent customers.

Coke, razors, batteries, underwear—once they get used up or worn out, the consumer needs to replace them.  

Principle #3: Positively Addicting

Buffett prefers products that people get addicted to—“gotta have ‘em” products. 

You “gotta have” your caffeine fix.

You can’t drive by a See’s Candy store without dropping in for your candy fix.

You can’t show up anywhere with an unshaven face or legs.

You wouldn’t be caught dead without your undies.

Essentially ordinary, frequently consumable, and positively addicting. 

 

So what products does ARIIX have that fit these principles?

Let’s talk about essentially ordinary: 

How about air and water? How much more essential can you get?

“Gotta have ‘em.” Can’t live without them—Puritii fits this criterion.

 

Let’s talk about frequently consumable:

How about nutritional supplements? Health is essential.

“Gotta have ‘em.” Can’t live without them—every single day! Nutrifii fits these criteria.

 

Let’s talk about positively addicting:

How about beauty? Our skin is the largest organ of the body and as we age we are eager to retain our youth. We’re addicted to it.

“Gotta have it.” Can’t live without it. Jouvé fits these criteria.

 

I don’t know about you, but I would rather have a PureNourish shake with Power Boost for breakfast than the finest eggs benedict from the best restaurant. No lie! I’m positively addicted. It’s a healthy addiction, every morning. If my monthly shipment of PureNourish is ever late I get really grumpy. Gotta have it. Can’t live without it. 

The secret to Buffett’s and ARIIX’s success is marketing the type of products that build permanent customers

Even more, when consumers are compensated to share essentially ordinary, frequently consumable, and positively addicting products with others, they can grow their income exponentially. What’s more positively addicting than a weekly check that gets automatically deposited into your bank account?

That’s why ARIIX, in less than five years, has gone from zero to being listed as a top 100 direct sales company in the world!

That’s why you and I are “Buffett smart” to have added ARIIX to our portfolio—and we’ve only just begun.

-Robert Allen, ARIIX Chief Mindset Officer

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