ebiz

Lesson 2


The Marketing Plan

The DHS Club Marketing Plan is a unique, hybrid version that combines internet, brokerage, referral and network marketing principles to create a new kind of Buyer's Club and new kinds of opportunities to save money and make money.

As a VIP, you have a legitimate business opportunity because it is based on genuine consumer opportunities. Without a base of consumers, no business can stand for very long. The foundation must be built on real products and services that fill a real need.


mp3
Click to listen to a Live CEO Chat from 7-21-04 on this subject. This session lasts about 35 minutes

Take a look at the different elements that comprise our Marketing Plan

Internet Marketing - DHS Club Members are able to shop online, market online and offer products and services online. It is like having your own Internet Shopping Mall plus more!

Brokerage Marketing - Rather than having to have the overhead or inventory of a typical retail business, you and the DHS Club simply act as brokers between the Members in your network and participating Merchant Affiliates (manufacturers, stores and vendors). The DHS Club's "Group Buying Power" enables us to gain commissions and discounts from our Merchant Affiliates from which you are able to earn Reward Points on your personal purchases.

Referral Marketing - You build your membership network by simply giving away free memberships and free ClubBucks Rewards cards so that people can save money and make money. You take no orders and make no deliveries. All of this is done for you.

Network Marketing - To encourage our Members to refer others to become Members and to become trainers and sales managers, we decided to use the Network Marketing principle of geometric progression in our Marketing Plan. This enables you to have a Vested and Leveraged Income that is based not just on your own efforts, but the efforts of others as well. With time, this ability can provide you with a SELF SUSTAINING or RESIDUAL INCOME as your network develops. So besides being able to gain Reward Points and earn Referral Fees, as a VIP, you are also able to earn "Network Income" from the purchases made by all the Members in your network!


GROWTH BY GEOMETRIC PROGRESSION

One of the most exciting aspects of network marketing is how you can potentially gain a large network from sponsoring a few people personally, with them in turn doing the same thing, with the pattern repeating. I.E.; If you sponsored just 2 VIPs, and they each sponsored just 2, who each sponsored just 2, etc., then this is what it would look like:

2 X 2 = 4 X 2 = 8 X 2 = 16 X 2 = 32 X 2 = 64 X 2= 128 X 2 = 256 X 2 = 512 X 2 = 1024 1024 X 2 = 2048 X 2 = 4096

If it took 30 days for this pattern to duplicate (each VIP sponsoring 2 others in their first 30 days), then you will have gained a huge membership network with over 8,000 VIPs in just one year. It is this potential of geometric growth that gets people excited about Network Marketing. Just think, if you were making $2.00 per VIP, then in one year you would be making $16,000 per month! Sounds great, doesn't it ? It also sounds too good to be true. The problem is............

It is too good to be true!


THE TRUTH ABOUT NETWORK MARKETING OR MULTI-LEVEL MARKETING (MLM)

In the past 20 years, more people have become millionaires using Network Marketing or MLM than from any other occupation or profession. Despite the success stories, MLM has had more than its fair share of problems and failures. With the explosion of internet based opportunities, many so called MLM opportunities are really cleverly disguised, illegal pyramid schemes that are here today and gone tomorrow.

Many people have tried their luck with legitimate MLM programs and have lost money or failed to make enough money to make it worth their while, to continue their efforts. Here are the facts that so many Network Marketers and MLM promoters fail to acknowledge or tell you:

Typically, 60% to 80% of the people who join, sponsor less than 2 members each, in their first 30 days. Therefore, thegeometric progression shown above, never really occurs in this manner.

The other factor that is not considered in the Geometric Progression scenario above, is that most of the people that join QUIT and the majority of them do so within a few months after joining. Consequently, annual drop out rates can be as high as 80%. According to the book, "Promises to Keep", about 50% of the distributors of the biggest MLM company in the world, drop out each year.

Why does this happen and why do people quit ?

  1. Most people never really get started because they don't know what to do. There is no real support or a step-by-step training provided or a good system to follow. As a result, they don't make any money because they are unable to sponsor enough people to become profitable.

  2. In order to fulfill the promise of "getting rich", MLM products or services are marked up so that "heavy hitters" can earn large override commissions. The result for the average participant? It is difficult, if not impossible to have any retail customers to earn commissions from.

  3. Because MLM products and services cost too much, the participants aren't really saving any money either.

  4. It's too much of a hassle being involved, for the little money that they may be making.

  5. Any of the above, combined with the fact that they are actually losing money each month because of money spent on product quotas, marketing materials, motivational tapes, rallies, seminars and long distance functions requiring travel, meal, lodging and ticket costs, makes it so they eventually lose hope that they can ever make money as a result developing a big network.

What are the causes of these problems and failures? Can they be eliminated? Is it possible that the leverage created by Network Marketing could benefit everyone and not just a few?


WHY IS THE DHS CLUB ANY DIFFERENT ?

Because our entire program is different! First of all, our Marketing Plan is not a pyramid scheme. We have been in business since 1997 and have an impeccable track record for doing business legally and honestly.

Although we do utilize the geometric progression and compensation principles of network marketing, we are unlike traditional network marketing or MLM companies. We do not offer a few hyped or overpriced products or "get rich quick" claims. We do not have MLM markup.

Our Marketing Plan is based on logic and common sense and utilizes the power of the internet to gain Members and Merchant Affiliates. We acknowledge the facts and statistics shown above and even allow that they can and will happen. From 1997 to 2003, the DHS Club has been able to test it's core principles, refine and discover new marketing methods and develop a step-by-step training and management system so that anyone can build a large network of members and realize a large residual income.

  • Our ClubAdvantage Business Building System was designed to benefit everyone who subscribes to it, not just a few "heavy hitters".
  • Our ClubBucks Rewards Card Program and our online Referral Marketing Programs combined with our e-Business Institute Training, make it much easier to refer new Members and sponsor VIPs.
  • We make it as affordable as possible to subscribe to the ClubAdvantage Business Building System. The less it costs to subscribe, the easier it is to sponsor, train and develop new VIPs.
  • Our revolutionary Start-up Incentive Program (SIP), Vertical Integration Plan (VIP) and Taproot Networking Technique (TNT) encourages a tremendous team effort and provides real support to get your network started and developed. The faster your network grows, the more motivated you are to refer new members and sponsor VIPs.
  • As soon as one of your personally referred Members makes a purchase with a participating Merchant or as soon as a Member in your network becomes a VIP, you begin to earn an income, which assures you and prospective VIPs of being able to quickly gain a positive cash flow.
  • We do not have or offer MLM marked up and overpriced products. You are able to offer your Members with the opportunity to shop and do business with stores and vendors they would normally use, but now they earn Reward Points. You give away free memberships so that people can save money!
  • There is no limit to what Members can save money on. ClubBucks Rewards cards can be used offline to save money on hair cuts, dining out, oil changes and just about everything people spend money on! Our online ClubShop Mall includes the biggest and best stores and brand names. And as our membership grows, so does our Group Buying Power and our ability to save and make more and at more locations.
  • Internet marketing means that you can have an international network of Members. Your financial well being is not based on a local, regional or even national economy. As we do not have products do not have the typical MLM markup, they are able to be priced attractively to be sold to your Member customers at our ClubShop Mall.
  • All Members and VIPs order on their own. The only orders you will have to place is your own. No inventory to keep or orders to deliver. It doesn't get any easier than this! Your ClubAdvantage subscription provides you with all the training, tools, programming, functions, reports and a delegated management structure to successfully build and develop a large network of members.
  • The motivation to refer people to the Club, sell subscriptions and sponsor more new VIPs is built right into our plan. There is no need to buy motivational tapes each week or go to an endless amount of weekend functions. Once you see your network growing, you'll want to do more so you can increase your Network Income and eventually receive residual Executive Director Bonuses.
INSPECT TO EXPECT

"All that glitters is not gold." Nick Burke (father of DHS Club Founder and CEO Dick Burke)

In the course of your starting, building and developing your DHS Club business, you will be solicited for and offered many "fantastic" and "get rich quick" programs and opportunities. The fact is that 80% of MLM start-ups fail within their first year and a very small percentage make it past five years.

Of these, many are actually illegal pyramid schemes, which are doomed to fail, because if they get big enough they will get shut down by government authorities. Doesn't it make sense that if you want to have a residual income for the rest of your life, then the company that offers the opportunity has to stay in business for the rest of your life? For more information on illegal pyramid schemes or companies that make big claims, visit the U.S. Federal Trade Commission's website at http://www.ftc.gov/

By having a DHS Club business, you are assured of partnering and associating with a company that has stood the test of time, improved itself along the way, and is prepared to meet the challenges ahead.

You can represent yourself and your business with the full confidence that you are offering people a genuine way to save money and a legitimate and proven way to make money.


Trainee I Index | Lesson 3