Email this page to a friend
Ask me a question
  *Q36 How do you calculate the potential of a new market.
   

This is a very important topic that should interest all leaders who are interested in opening up their business internationally. MLM is the same as all traditional businesses and no businessperson should go into a market without having a rough idea what that new market can produce.

30 plus years ago when I joined Amway she was doing US$1 billion a year in the USA and Canada. (Note. I am no longer with Amway) I have therefore used what Amway did to estimate the market potential for all markets that I want to build. The population of USA and Canada combine is around 300 million. So when you divide US$1 Billion with 300 million, this equals about US$3,000,000 per million a year.

However, your must not forget

1. Amway is Amway, the number 1 company in the world today.

2. You must also take into consideration the number of products sold by the company.

3. The marketing skill, spirit and culture of a company. You can see how good a company is in this area by checking how well the company is doing in the country of origin or in their matured markets. Do not just get excited by success of a company in a new market that is experiencing explosive growth. Check how they are doing in their old markets. Good companies must boom and maintain in all matured markets not boom and burst like I normally see today.

4. The GNP of the country. To say the Cuba can do as well as the USA per million maybe a dangerously wrong estimate.

You can therefore choose the following for a rough estimate.

1. US$3,000,000 per million.
2. US$2,500,000 per million.
3. US$2,000,000 per million.
4. US$1,500,000 per million.
5. US$1,000,000 per million.
6. US$500,000 per million.
7. US$250,000 per million.

Example 1.
Let us say a good company like Amway opens up in China. (As a MLM company) And because China being so vast with a population of 1.3 billion and we decide to use say US$1 million per million, this is the market estimate.

1.3 billion is 1300 million x 1,000,000 per million = US$1.3 billion per year or about US$100 million in sale a month.

Example 2.
Let us take another American company also granted a license in China but this company has less products and are weak in marketing (Always remember to check how well the company is doing in the country of origin or their matured markets and this will give you a rough idea how strong the company is in marketing) and we decide to use US$200,000 per million. This will be the rough estimation for this company.

1.3 billion is 1300 million x 200,000 per million = US$260 million per year or about US$20 million in sale a month.

Example 3.
Again we use Amway and the market is Singapore and the population is only 5 million but it is a rich country so we decide to use US$3,000,000 per million. This will be the rough estimation Amway may do in Singapore.

5,000.000 x US$3,000,000 = US$15 million per year or about US$1.2 million per month in sales.

It is therefore important for you to know the population and GNP of a country before going there to open your international market. If your company opens up in a small island in the Pacific ocean with a population of only 300,000 and the GNP is very low and we estimate the market to only do US$100,000 per million, my advise is don't go.

 
  Story Archive
   
  Q.56 Sponsoring Wide or Deep?
 
  Q54 MY CONVERSATION WITH A SCHEMER
 
  Q55 FANTASIES OF SOME NETWORKERS
 
  Q51. The United States Of America is a country that is made up of 51 States (50 States and one Federal district) I have therefore reserved Q51 for this very important topic. The United States of America is a country where pyramid schemes originated and remains the main export today. How come the US FTC is not doing anything?
 
  Q52. How to write a new anti-pyramid law to effectively close down pyramid scheme companies. (Coming soon.)
 
  Q53. Your computer. Tool or toy?
 
  Q49. We are not the biggest company but we are the best.
 
  Q50. I really do not have any idea how to communicate my ideas or talk to my upline. I find that the way he talks sometimes so straightforward and hurtful.
 
  Q48. My opinion on people who lost money in pyramid schemes and claim they are innocent victims.
 
  Q47. What is the greatest obstacle or challenge Networkers faced?
 
  *Q40. Our teams have gone to using the term Team Marketing, rather than Network or Multi-Level. This is also quite a common term around Europe and feels a bit more 'current' - what do you think?
 
  *Q1 Isn't MLM all just pyramid schemes?
 
  *Q10 I have no interest.
 
  *Q2 Do I have to sell?
 
  *Q3 Isn't the market already saturated?
 
  *Q4 MLM is a business that benefits only people who join first.
 
  *Q5 I have no time.
 
  *Q6 I am not a good speaker.
 
  *Q7 I have no friends.
 
  *Q8 Can you teach me how to be a Diamond?
 
  *Q9 The products are too expensive.
 
  *Q11 How to protect downlines from other companies.
 
  *Q12 Binary marketing plans.
 
  *Q13 I stumbled across an online program that teaches MLM. The courses are very good but I found out that it is also a MLM company. Will I damage my downlines if I also ask them to sign up for the course?
 
  *Q14 I was shown a MLM business that sells essential oils. I don't 100% understand their plan, but their concept is ask people to buy the franchise (RM30K- Malaysian Ringgit. About US$10,000) so they have more overriding. Secondly, they don't ask customers to buy the products, that means every person is a investor and no need to sell products and maintain monthly sales. The Top line also promise they will throw people down under me to help me build the 5 line system up to 7 deep.
 
  *Q15 What is your view on Binary (2 lines system) Triple Matrix (3 lines) Quintuple (5 lines system) type of MLM marketing plans?
 
  *Q16 I was invited to a MLM company business opportunity meeting and the speaker told us that the are going to go into the China market next year.
 
  *Q17 A friend doing a tuition center became a millionaire at the age of 30. He said he is successful because he has a mentor behind him to teach him how to invest and manage the business. So he recommend I should also look for a MLM mentor to be my teacher too.
 
  *Q18 I understand that meetings/training are very important in MLM but there are no meetings/training held for our group these 5 months (maybe we don't have a large group yet) We only attend company event once a month. I feel we are out of MLM system already.
 
  *Q19 My friend seems to have no motivation towards everything he does. He is lazy. He has the potential to be a good leader but doesn't have the drive to push anything further than his current limit. As a friend, what can i do to help him? His life seems to be disorganised and mundane and he know himself.
 
  *Q20 I'm a distributor in England and my wife is from Japan. She has moved back to Japan and I am moving out there in around 4 weeks and going to build my business out there. I have some friends in Thailand that I would like to sponsor too. Can give me some suggestion.
 
  *Q21 My upline is a so called leader. He bought 2 to qualify for his pin and profit sharing bonus and received US$205,000. At least US$120,000 is mine because he played games. Easy money comes, easy go. He is now bankrupt and his group has collapse.
 
  *Q22 What is your stand on short term promotion?
 
  *Q23 I joined a MLM company about 4 months ago. I can still remember how excited I was but my growth is very slow. I am not doing well and I feel down but I won't give up, I promise.
 
  *Q24 I have a leader who is very much committed with the business but very hard headed. He doesn't communicate and he doesn't want me to coordinate with his downlines. He is my former boss. He doesn't even reply on my SMS. Please advise me what to do with this kind of manager?
 
  *Q25 When you develop a certain area more than 100 kms away from your residence, what is your frequency to develop or visit the area. Also if you have new recruit what did you give and assistance? Thanks and more power
 
  *Q26 What are some mistakes you're not allowed to make?
 
  *Q27 Business in my country is booming and the leaders are beginning to fight amongst one another. There is a lot of jealousy and disunity.
 
  *Q28 I am distributor living in Indonesia and have been in the business for 12 years.I have attended many training/meetings such as OPP, NDO, MAM, Product Training, Home meeting, Business Workshop, Advance Training, etc. How do I develop a business school to teach MLM in Indonesia for my company?
 
  *Q29 I wrote a book on Network Marketing which is very good that will help many new distributors in my company but my company refuse to promote and sell my book. They sell personal improvement books written by people and even sell T shirts, hats, pens and other promotion materials. What do you think of this company policy.
 
  *Q30 The General Manager/Country Manager/Managing Director of our company does not listen to distributors.
 
  *Q31 My friends avoid me like a plague.
 
  *Q32 I need this business because I am in debt.
 
  *Q33 I am full time in this business. How many non-leadership lines should I have?
 
  *Q34 Save some money before buying the toys,
 
  *Q35 Can you teach me how to be a successful in this business?
 
  *Q37 Why the company does not provide free literatures like brochures, flyers, leaflets and etc.
 
  *Q38 A small flaw may cost you tons.
 
  *Q39. WE BELIEVE.
 
  *Q41. SUBJECT: Speaking Fee. I would like to invite you to my country to do training for my group. I want the best to come and visit us and I know you are the best. I will take care of everything and your expenses and then we split the profit 50-50. You should be able to earn about 20,000 euro for you effort as I expect about 1,000 people.
 
  *Q42. Your dogs are really cute and nice. They appear to have been well taken cared of and trained. One thing I like with dogs is that they are known to be loyal and do not bite the hand that feeds them. How I wish some of our former downlines who have gone astray and joined other companies and are now hurling inappropriate words against us learn and inculcate the faithful qualities of dogs.
 
  *Q43. Is sponsoring more important then retailing? I find the business very hard.
 
  *Q44. Advise. When you send emails to your friends and if you send to more then one always send under Bcc ( not under To or Cc) so that other people cannot get the addresses of your friends in your mailing list. This will reduce the spam mails many of us are getting everyday.
 
  *Q45. Some of my favorite books.
 
  *Q46. What is the most important thing you learnt in network marketing?
 
 
  ©2004 EddyChai.com. All rights reserved. Privacy Policy | Contact me