There are 60 million network marketers around the world. They come from all walks of life and all professions. This got me thinking. I started wondering – for no particular reason – how Ronald McDonald might go as a network marketer. I thought about whether selling a hamburger different from selling a network marketing opportunity? Well is it? In detail, yes. In all other ways, no.

I’ll explain.

I’ll start with my take on the McDonalds success formula.

Before I go any further, I’d better confess. I’ve eaten McDonalds burgers three times in my life.

The first time I had a McDonalds burger was shortly after they opened in Australia. It wasn’t an enjoyable experience, but it was an interesting one. The burger had no flavour, other than the sweetness of the bun. The tastelessness puzzled me. I could accept that McDonalds food scientists had somehow managed to remove all flavour from the meat, the lettuce, the cheese and the bun. For the life of me I couldn’t guess how they managed to make dill pickle flavourless.

I have eaten at McDonalds on two other occasions since then. It was in Mexico and McDonalds was my client, so that doesn’t count. The good news is that in Mexico, McDonalds have little sachets of chipotle salsa, so I could add a bit of spice.

Everyone who loves hamburgers will tell you that there are way better burgers in their local corner food. But that is irrelevant. McDonalds hasn’t succeeded on the quality of its burgers.

So, here’s what makes McDonalds a success.

 

McDonalds don’t sell hamburgers

Am I crazy? Of course they sell hamburgers, I hear you protesting. I’ll say it again. McDonalds don’t sell hamburgers. What they sell is a reliable experience. People go into a McDonalds store anywhere in the world and they know what to expect. They know what a Quarter Pounder looks like and tastes like. They know a McDonalds fry. And these things, like practically everything else in any store on earth, is the same whether you are in Djakarta or Moscow.

Now what’s the lesson here for network marketers?

 

A repeatable and reliable experience beats a great product

Don’t get me wrong. It’s MUCH easier to sell a great product than a dud product. But selling a product and selling an MLM opportunity are different beasts. Millions of people eat at McDonalds every day. But only a fraction of that number buys a McDonalds franchise.

If a great product was worth more than a reliable experience, then you’d pay a LOT more to buy a corner burger joint than you would to buy a McDonalds franchise.

People fork out big money for McDonalds franchises because McDonalds have put a LOT of effort into sophisticated systems, education, shop fitouts, menu design and so on. When you buy a McDonalds franchise, you are virtually guaranteed success.

When you join a network marketing business, you want that same confidence. You want evidence of the same passion for detail and you want repeatable techniques – formulas that you can pass on to those who join your downline.

 

Product training is no substitute for business training

Two weeks ago my niece got a part-time job at McDonalds. Like thousands of other kids before her, she gets on-the-job training – cooking times, portion size, service skills, hygiene. All important product knowledge to help her serve customers.

Could she run a store using this knowledge? Could she buy a franchise? Of course not.

Have you heard of Hamburger University? Franchisees-to-be go to university to study all aspects of the McDonalds business before they can start operating their franchise.

This is something that McDonalds do WAY better than many network marketing companies. You see, too many MLM businesses teach their distributors to demonstrate the company products at gatherings, then pitch the business opportunity to the assembled customers.

That system is wrong, wrong, wrong. In my opinion.

 

Can I interest you in a McDonalds franchise with your Big Mac?

Seriously, can you imagine being convinced of the benefits of buying a McDonalds franchise whilst you wait for your burger?

There are all sorts of problems with this approach.

It seriously undermines the perceived value of a franchise.

Even if it cost no more to start a McDonalds franchise than it does to become an MLM distributor, pitching the business opportunity indiscriminately presumes that every one lined up for a burger has the aptitude, time and passion to run a successful franchise.

McDonalds would NEVER confuse their customers and their potential business partners, as many MLM companies do.

The cost of becoming an MLM distributor is so low that people at product parties will often join with a “nothing to lose” attitude. Their commitment isn’t there from day one. And it rarely blossoms over time.

 

Build one market for your products.
Build a separate market for your opportunity.

It’s okay to introduce every one of your friends, family and neighbours to whatever products you sell on behalf of your MLM company. It’s not okay to pitch the business opportunity to every one of them.

What you need to do is this. Think about what skills, beliefs and attributes you want the people on your team to display and then ask yourself if there are people in your circle with these qualities.

By pitching to everyone, not only will you sign up many people who will go nowhere as distributors, but you will waste a lot of time trying to help and enthuse them.

McDonalds control the location of their franchise stores, limit the number in a neighbourhood and only allow those who’ve demonstrated the passion and skills to buy a franchise.

That’s the approach you should take. You are offering an opportunity to a limited number of people – say 12 (because that’s the number of executive distributors you need in many MLM companies to attain the top level). You need to concentrate solely on these 12 people, giving them business training, helping them find confidence, stay focused and succeed. By helping them succeed, you succeed.

The McDonalds corporation puts it energy into helping franchisees. Each franchisee helps those staff members who show an interest in advancing their careers. The rest of the staff gets product training and nothing more.

 

How McDonalds would do MLM

I believe they’d set these 4 rules: