Wednesday, August 19, 2009

'Boiler Room' 2009 - The Social Media Marketing Smokescreen

Beware the newest manifestation of the "door-to-door" salesman: the social media marketer.

We know that times are tough these days. I, like most people, are looking into opportunities to earn a little extra cash. But after a recent experience, I learned that fulfillment from a job is more rewarding than earning easy money at the expense of the relationship with friends or people you know.

A couple weeks ago a friend referred me to a gentleman from Dallas who offered opportunities in online advertising and marketing. After a few phone conversations that included the words 'online', 'team', 'think tank' and 'creative', I was under the impression that this gig might involve designing ads for the next generation of online advertising. However, I did keep my guard up, because much of his business jargon was vague. Nonetheless, I figured there was no harm in attending the information session to figure out what all was really going on.

The second I entered the presentation hall, I knew what was up. There was a professional speaker scheduled. Many of the other 30 people in the room were college kids. There was even a high school senior. And aside from the six or seven "professionals" standing in the back of the room, I was the best dressed out of all the candidates. I had stumbled into a sales pitch - a sales pitch aimed at the ambitious, yet naive masses. I knew what was coming, and I could have simply turned around and walked out of there. But, I didn't want to be rude to the host, and I figured I could learn a thing or two on how these "network marketers" appeal to an audience that will eventually drive the market in the near future. So, I chalked it up as research and took a seat.

The speaker was very good - a man by the name of Mike Brown who proclaimed he was a millionaire and retired at the age of 25. His energetic and excited tone hit a chord with the young'uns, but his jokes were corny. At least to me. For about 20 minutes he prattled on about how no one should be working for anyone else and people who earned a paycheck were suckers. The crowd listened, probably unaware that there was still no mention of a product or service being sold.

For the next ten minutes, Mr. Brown went off on how internet marketing is the future of the economy, and companies are figuring ways to get the biggest piece of a $50 billion market pie. He mentioned that referral techniques are driving customers to online retailers more than any other method. And he was right. But to this point, there was still no mention of a product or service, or even responsibility. The crowd still hung in there, though.

Then, he got around to the business plan and how we could use our networks in Facebook and MySpace to make money. Lots of money. It was finally at this point when he scribbled the word 'Quixtar' on the whiteboard beside him. For a few people in the room, they realized what I had already figured out. Shoulders dropped. Sighs could be heard. I could sense eyes rolling. 'Quixtar'. Does the name 'Amway' ring a bell?

Right then I snickered to myself as I was reminded of that scene from the movie 'Go', when Jay Mohr and Scott Wolf are being given the same pitch by William Fichtner.

"Wow." I thought to myself, "I now know that 'social network marketing' is the new fancy word for 'pyramid scheme'."

And we all know how those turn out. I actually think this new form of marketing is even worse, because it tempts you to look to your friends and family as potential sales partners.

Again, I could have just walked out right then, but I wanted some satisfaction. So I went up to one of the hosts and started asking the awkward questions.

"If people ask what I do, what do I tell them?"

"Is there any kind of fulfillment that comes with selling people a business
concept?"

"How big of a net do I have to throw out there to get 4 or 5 ideal sales
candidates? 100?"

"Would I be getting a call from my sales partner every week asking if I'm
working?"

"Would I have to call all my sales partners all the time to get on their
case?"

"How did you get over risking your friendships with people by pitching them
this program?"


So, I left the building laughing to myself. I also came out with three ideal lessons learned.

1. Network marketing is the exact opposite of advertising. There's nothing creative about it. It's driven by ambition only. No research. No strategy. No art.

2. People are already at their wits' end from all the junk that gets posted on Facebook already (i.e.: quizzes, surveys, applications). Can you imagine how pissed at you they'd be if you started pushing hygiene and beauty products on them on a regular basis? You run the risk of losing those friends. Soon, your 400 or so connections will dwindle down to just your core group or clique. That is, if you're smart enough to avoid asking them to jump on board.

3. It's easy to be a motivational speaker when most of the audience is already motivated - by "quick and easy" money.

I have to admit, it was the second time this year that I got sucked into a presentation like that. Back in the spring a neighbor invited me over to watch some sporting event, but when I arrived, I found a table with literature and what seemed like bottles of wine. It was, in fact, a networking sales pitch for an acai drink product called Monavie. They showed me a video about the product that actually looked more like an episode of "Lifestyles of the Rich and Famous", as it featured the high-end cars and Hummers the elite sales teams drove. Watching the video with our hosts standing beside the television, I felt as if I was restrained and my eyelids were held open by clothespins. It was THAT awkward.

So, for you out there who are looking around for a little extra cash, make sure to avoid anything that says 'social media network marketing' or 'make money with your Facebook and MySpace.' Also, steer clear of those job descriptions that are vague as hell.

I do hope you leave this mountaintop a wiser person.

Take care, all.

AX

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