Communication Tools: Magazines
Communication Tools: Magazines
in Direct Selling :
The Use of
Magazines
Tools Work
An effective communication tool shares your companys inspiring story in a compelling manner. Its a carefully thought-out, thorough, sophisticated and persuasive presentation of your business opportunity and products. The most effective recruiting tools include testimonials for inspiration and hard data figures for just the facts type mentalities. A careful balance between these two enables a tool to appeal to virtually every prospects personality type. An excellent training tool not only gives how to information, but it motivates associates, tooaffecting retention. Excellent training and recruiting tools have a positive bottom-line impact on revenue. Since 2005, the tool making the most impact on the direct selling industryin recruiting, retention and revenuehas been the third-party magazine. While there have been other magazines that addressed small or minor aspects of the industry, the publications created by VideoPlus address each of these challenges so completely that they have impacted the industry more than any other communication tool in history.
The Background: PrePaid Legal needed all prospects to be able to see the potential of their
The Payoff:
By making a self-liquidating investment in the most comprehensive tool available, PrePaid saw a 100% growth in recruiting in 9 months. Because of their strong tools culture, associates had early buy-in, making the most of the initial enthusiasm associates had for the magazine. Over the next 12 months, Pre-Paid Legal distributed over 7 million copies while driving the company to reach record recruiting numbers after over 30 years in business. Since this amazing success. PrePaid has been featured in 3 other newsstand magazines and several custom publications. Prepaid adapted the tool in a big way and continues to focus on magazines as the key driver for their business.
Often, direct selling companies dont have a strong tools culture. Many of these companies have discovered that the simplicity of using the magazines helped them move toward establishing a tools culture, but also had a significant impact on retention by re-inspiring current consultants. Even party plan companies, which rarely have a significant tools culture, have discovered the recruiting, retention and revenue benefits of using the magazine in effort to begin to develop a tools culture of be the messenger, not the message.
Company: BeautiControl
The Challenge:
Enjoying strong recruiting, this company wanted to reinforce and strengthen the confidence of their consultants. culture; their growth had been driven by an ingenious marketing direction of home spa parties. Todays busy women loved the idea of treating themselves to a ladies evening out in a spa atmosphere creating an opportunity to expose people to the full line of products available through BeautiControl. BeautiControl execs knew that by strengthening buy-in the result would be stronger retention and increased loyalty. They decided the magazine, while considered the most comprehensive tool available, was right for their culture because of the strong success profiles as well as the business development articles it features. These factors would build up their existing associates, accomplishing their goal.
The Background: This party plan company did not have a strong tools
The Payoff:
BeautiControl realizes that a new consultant receiving her kit is at her most vulnerable point. So now, included in the kit is the BeautiControl issue of Empowering Womenbuilding her belief and her dreams and allowing her to spread the same excitement in a way not possible before. This company had perhaps one of the best planned launches to date. They kept the magazine a secret even from the consultants profiled in it, and said the cover shoot was simply for marketing purposes. Throughout the first session of their major event, speakers kept using the phrase empowering women. When the magazine was unveiled the response was huge. Following the exciting announcement, consultants were taught where and how to introduce the magazine to prospects; establishing a consistent, effective approach that is well-suited to their culture. During that unveiling/training session, workers had been outside the conference doors, setting up huge displays of the magazine coverthe consultants responded with enthusiasmeven posing in front of the covers for inspiration.
Launch Notes:
Relaunch Notes: With the enormous response to the magazine, BeautiControl execs realized they
could easily optimize results by relaunching the magazine. This would capitalize on the enthusiasm to those using the magazine, introduce it thoroughly to new consultants, and ignite consultants who hadnt realized the results others were experiencing. Six months after the initial launch, BeautiControl relaunched the magazine at an event. While the element of surprise was absent, consultants responded with even more excitement, due to the successful testimonials driven by the magazine that were given on stage.
Features
These magazines feature a different direct selling company in each issue. The focus company is highlighted on the cover and throughout the magazine, with about a third of the magazine focusing on the companys strengths and how it serves the public as well as the field. Another third of the magazine is comprised of lifestyle profiles of top representatives. These articles are the ultimate testimonials. Incisive writing and four color photography of them, their homes and their families, is the dynamic human-interest appeal that draws the reader into considering the opportunity and products the company offers. Companies who elect to use this comprehensive tool can select the associates profiled in the magazine. They can base inclusion on past performance, achievement level or even on their individual story. In their second magazine, PrePaid Legal, Inc. developed a unique method of selecting associates for profiles encouraging strong activity during a traditionally slow period. (See case study Activity, not Politics on page 6.)
Widespread Appeal
The familiar and easy-to-flip-through format make the magazines a natural for generating idle curiosity; the content then gives information that creates a lasting positive impression of the rewards of owning a direct selling business.
For even broader appeal, featured companies select diverse types of associates for their success profiles, to increase the chances readers will identify with a specific representative. Selecting a variety of originating professions and financial backgrounds helps to demonstrate how truly level the playing field of direct selling is.
The Background: PrePaid had already experienced tremendous success with the magazine (100% growth in
The Payoff:
With record growth for this final quarter, PPL recognized theyd not only inspired associates to new levels of activity no matter the circumstances (holiday and family commitments of both associates and prospects) but theyd also resolved the politics of the situation.
After doubling recruiting figures in just 9 months, Harland Stonecipher, Founder, Chairman and CEO of PrePaid Legal said, In my 30 plus years at Pre-Paid Legal Services, this is the best recruiting tool I have ever seen. Its a magic wand. Pre-Launch
Attitudes and Actions
Six months prior to the magazine launch, your corporate team should evaluate what is driving current growth. Is it force of personality, invitations to events or communication tools? This analysis is important, because it will help determine your companys goals and develop the magazine activity
strategies to reach them. For example, if your goal is to create more buy-in with existing associates, youll formulate different plans than if your goal is to establish strong recruiting habits. One key strategy for stronger recruiting is training leaders to use tools for prospecting. This task is simple, because these associates understand that their success and income are based on duplicability. Once the leaders recognize that while not everyone can have a dynamic personality willing to risk rejection, everyone can hand a neighbor or acquaintance a communication tool and ask for their opinion, then follow through. The simplicity of this action makes it incredibly duplicatableand increases the success of the associate. A crucial element of this training is the reinforcement of a very common business principal return on investment, ROI. All business people, and most lay people, understand the concept that one must invest capital to see a return. Even sweat equity, in and of itself, cannot generate income without raw materials. The raw materials of building a duplicatable and therefore limitless, direct selling business are communication tools. Therefore, any associate planning to create income should expect to invest in the most effective communication tools available. Associates will soon recognize that magazines, due to their appeal, also have a great pass-along potential that helps further justify the investment. Again, its important to stress to associates the cost of the acquisition of a new team member rather than the cost per tool. For example, if a new associate is worth $500 per year to the sponsor, and 10 magazines were handed out to recruit him/her, then the cost per new team member is about $40. Clearly, the Return on Investment (ROI) is huge. Prior to the magazine launch, associates should be thoroughly adapted to the concepts of ROI and duplicability, so that these are standard behavior.
The Background: Associates were accustomed to using tools, but were also
The Payoff:
After the first year of using the magazine as their primary tool, USANAs net sales increased 16.5% to $99.8 million.
Pre-selling Magazines
By creating excitement prior to the launch of the magazines, you can pre-sell your initial first order. National Companies actually sold out of their magazine prior to its launch date.
The Background: Angela Loehr Chrysler and her team did everything right during this
The Payoff:
This cover situation resolved successfully, the buy-in of the field continued to grow, along with the buzz. Distributors began telling their friends and family, The company I work with is being featured in a national magazine! Anticipation of this tool, and the third party credibility it gives, was so high that the magazine actually sold out pre-launch. After several months, as the enthusiasm for it waned, corporate began shipping a single free issue with every order, which reignited enthusiasm for the magazine and extends the success of the magazine investment.
The key to creating and executing a plan that builds anticipation is corporate buy-in. Achieving your goals (increased recruiting, stronger retention, more revenue) with the magazine begins with each member of your corporate team fully understanding how the magazines are instrumental to attaining those goals. To maximize the prospecting/recruiting potential of magazines, the corporate team must be committed to several key steps in the pre-launch, launch and post-launch stage. To neglect or under-utilize any of these steps is to minimize the potential growth resulting from the magazines. An excellent way to establish their buy-in is to allow them to review the case studies that allow them to see the results other companies have achieved. At the end of this paper there are further studies of the results from variety of companies who used the magazines.
The Launch
Initially an Event, Ultimately a Business Practice
A key strategy to making the magazine a success is to make the magazine launch the primary event during a large conference. By creating excitement about the magazines potential, your team is arming the sales force for success.
The Background: This young organization was not yet a recognized name brand, but wanted to lay a solid
The Payoff:
The 500 associates at the conference purchased over 51,000 magazines in just 90 minutes, and the following month there was a 40% increase in sales. Clearly, the field responded to the tool and the company quickly realized a substantial ROI on this great tool.
Pricing the magazine is also important to a successful launch. While the magazine can be a self-liquidating investment, its important to remember that the goal is to break even on the first order by selling all of it. Therefore, pricing the magazine to sustain sales for at least six months is important. This break-even pricing strategy has lead most companies to re-order, creating maximum exposure for the featured company. Direct selling companies have launched their magazines with great fanfare. Some postcards printed on one side with the memorable activity plan slogan and on the reverse with the four step prospecting/recruiting method; some printed buttons, banners and pennants; one company literally gave the associates a song and dance. Each company experienced high excitement revealed by strong magazine sales at the event and higher recruiting numbers after the launch. Testimonials sell, as the magazines have proven time and again. So your executive team will want to
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brainstorm ideas for creating testimonials for the magazine launch. You will want people to experience success using the magazine as soon as possible, and share those success stories immediately. Some companies have requested early delivery of the magazines, and given them to select business builders; others have done an on-site demonstration by sending associates from stage into the field and back again. Take a look at your company climate and decide how to create testimonials that will work best for your sales force.
Post-Launch
Post Launch is crucial to the recruiting/retention/revenue success of the magazine. In this stage, corporate stresses to the field that this magazine, while launched at an event, is not an event but rather a process of making the magazine a part of the distributors everyday business activity so that they will be able to more easily recruit and more successfully retain, thereby creating more revenue. This is done by:
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With ongoing stimulation to maintain excitement for the effectiveness of this tool, the lifespan of a magazine is 12-18 months. Because of the associates familiarity with this tool, its key to remind them the magazine is new to anyone who hasnt seen it. Continue to promote it and refresh the excitement about it. The leaders testimonies are the consistent validation that will motivate active and new associates to use the magazine to increase their recruiting and inspire them to move to the next level. The purpose of validation, training and stimulation is not to increase magazine sales, but rather to build a distributors business through the consistent use of this comprehensive communication tool. However, companies such as Pre-Paid Legal, Vemma, and YTB International have discovered that magazine sales are directly proportional to growth of recruiting, retention and revenue. This simplified business system actually makes duplicability easy and obvious, eliminating the roadblock of lack of ability. Post Launch planning should actually be completed during the pre-launch planning. Its important to have a solid post launch plan framework laid out well in advance of the actual launch.
Shipping Costs
Shipping costs on magazines are high compared to many other tools. Shipping magazines naturally costs more than shipping DualDiscs or DVDs. However, magazines have consistently proven to be more effective recruiting tools than DualDiscs or DVDs alone; and magazines with a DualDisc or DVD insert have proven time and again to be the most effective tool the direct selling industry has ever used. As with any tool, make sure to provide volume-pricing discounts for those who are willing to invest in spreading the word about your company, and teaching others to use the same methodology. Several companies have elected to boldly demonstrate their confidence in this tool by paying for all auto shipped magazines, often building in enough cost to recover much of the shipping charges. The message subsidized shipping sends to the field is incredibly motivating.
Autoship
Another significant strategy utilized in post launch and ongoing support is Autoship. By making this nowproven tool automatically available to your field, the results can become exponential. Receiving the magazines every month by Autoship is a physical reminder of a distributors prospecting goals. The associates know that their activity level will be automatically supported by Corporates Autoship program of tools. This emphasizes the companys dedication to growth as well as sales of products.
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Company: Your Travel Biz [From No Tools to the Ultimate Tools Culture]
The Challenge:
YTB was a growing company looking to increase recruiting and their associates commissions by encouraging consistent activity. They began the first quarter of 2006 with 22,300 associates, with steady growth to 27, 400 by the end of that same quarter. Their revenue for the entire first quarter of 2006 was $8.04MM. Corporate leadership recognized that the tools they were using werent exceptionally strong, and werent used consistently by the field. Lloyd Coach Tomer and his team believed that the key to increasing consistent activity was to equip the associates with a tool that told the whole YTB story, as well as give them a visual reminder of their daily goals. They decided Autoship was the simplest way to do both. The corporate team made sure that the price of the magazines included shipping, so associates were able to budget easily for autoship. The magazine was released in the first quarter of 2007, and was the only change to the business process of the associates.
The Background: YTBs growth before utilizing the magazine was certainly respectable.
The Payoff:
The magazine increased consistent activity to the point that the number of new recruits for the first quarter of 2007, compared with the first quarter of 2006, quadrupled. Associates used over 1 million magazines to spread the word about YTB and its phenomenal benefits and opportunities. The revenueupon which commissions are basedincreased greatly, also. The entire first quarter of 2006 brought in $8.04 MM. January of 2007 brought in $7.84MM, February brought in $9.4MM and March brought in $11.0MM, for a total of $28.24MM. Thats approximately 400% growth. Noting the effectiveness of the magazine, and reviewing best practices of other companies featured in it, the YTB corporate team decided to add a new DVD to later reorders. This enhanced the message and also created additional onging excitement in the field. After 9 months, YTB is shipping in excess of 100,000 magazines per month while recruiting and revenue numbers continue to rise.
Since the 2-a-day program is so widely accepted, it is easy to consider shipping quantities of 50-60 to support that system. However, if 40 contacts per month are desired, that will be the most effective Autoship number. With a single Autoship order, associates will be able to meet the monthly goal. Offering an Autoship of 10 magazines doesnt promote the right behavior, as its not enough to get through the month. It will also require new associates to justify ordering 4 or more Autoship packs to meet the monthly goala difficult decision for those just entering the business.
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Box Drops
Many companies, such as Vemma, are discovering that including a magazine in every product box shipped for the first 30 days after launch helps to ensure that every representative and customer is exposed to the magazine and the opportunity it describes. Plan this carefully as your product boxes may need to be enlarged slightly to accommodate the additional magazine. The magazine can actually inspire some product loyalists to explore the business opportunity further. Compelling articles by nationally recognized, third-party experts can be key to this inspiration. Post Launch details, when planned pre-launch, can create momentum that optimizes the recruiting and motivation the magazine offers to associates.
Relaunch
Planning a Re-Launch at major event approximately 6 months hence is an effective way to maximize the results of the magazine by capitalizing on the associates whove experienced significant recruiting (or motivational) results. Getting these believers and doers on stage will demonstrate the effectiveness of the magazines, establishing the magazines ROI to the greater part of the field. Vemma President B.K Boreyko stressed to his field to concentrate on cost per acquisition of new recruit rather than cost per tool. When leaders present their ROI with cost per acquisition at re-launch, it clearly demonstrates the effectiveness of the magazines. Some companies have discovered that their re-launch produces more recruiting results than the initial launch, for the majority of their associates.
Conclusion
As you consider investing in a third party magazine, we know youll find it easy to focus on its effectiveness telling your companys and your associates, story in the most thorough way possiblewith compelling copy, captivating photography and built-in third party validation. We hope the information in this white paper will help you to consider the importance of thoroughly planning and excellently executing the elements that will help your magazine get into the hands of the millions who are looking for just such an opportunity. At VideoPlus Publishing, we are confident we can help you achieve brilliance in each of the facets mentioned above. Call and speak to one of our expertswere looking forward to hearing from you.