Why The Trump Network Failed for Stay at Home Moms
By: Dennis Yu
This is a guest post by Dennis Yu.
Donald Trump sold his name to an MLM company. With a name like Donald Trump, you’d imagine it would be selling real estate investment guides, right? Nope. They’re peddling three products– a nutritional supplement called Custom Essentials, a weight loss product called Silhouette Solution, and an energy stimulant called QuikStik. Donald Trump has about as much credibility selling dieting pills as Michael Jordan has selling underwear or William Shatner selling discount airline tickets.
Today I got a call from a stay-at-home mom who wanted to tell me about a new opportunity to drastically change my life, have the freedom I’ve always wanted….. blah, blah, blah– you know how the infomercial goes. By the way, the easiest way to spot an MLM pitch is that they talk about what it feels like getting rich, but somehow refuse to discuss the product itself. Sure enough, this girl is pitching the Trump Network to make money online. And she knows she’s pitching it to someone who already is a professional internet marketer and runs a company that does online advertising. She’s a smart lady, but her willingness to believe in shortcuts causes her to abandon reason. So here were a few things I pointed out about the Trump Network opportunity:
Have you tried the product? Have you lost weight or felt a magical burst of energy– or is this really your blind greed speaking?
Do you even know what the product looks like? Maybe even read the label– or are you just jumping in because Donald Trump’s name is on it? Your credibility will be a lot higher if you’re well-informed about what the product does, the ingredients, clinic tests, your own personal experience, etc… Don’t press me with breathless talk about instant wealth.
Do you have an advantage? There are a lot of agents selling this on-line and they’ve even created Facebook pages to promote it– the main one has over 9,000 fans on it. What skill do you have that will allow you to beat all those other people marketing online? Do you have prowess in ranking on Google, building landing pages that convert, buying advertising from Facebook, or some other talent?
Are you willing to put in the time? If you dilly dally among this and 5 other activities, you’re frittering away your precious time in categories that are ULTRA competitive. You can take any one niche and you’ll find that the people who dominate in that particular niche have spent years focusing on that niche– going at it 24×7. You coming in with a couple hours per week and no special skill or experience– you’re going to get eaten alive.
Am I saying not to try or being overly pessimistic? Nah, just showing the reality of how you are competing against all the other pros that are selling weight loss products, too. And it’s not just the Trump Network, even though their pills, creams, and flavored nonsense is just like all the other products in this category that cost pennies to make but can be sold for $100 when a broke celebrity is willing to put their name on it. Now before the rabid MLM crusaders come to the rescue, let me mention some positive things:
Some people actually do make money here: I know someone who did $100,000 a day in sales, primarily using Facebook. And another colleague did over $30 million selling these items primarily via high volume email. What’s the secret? They were the ones who owned the program and got the countless masses to sell on their behalf. As sophisticated companies, they had the resources to invest in engineering, marketing, product fulfillment, and of course, legal– because they knew they would get sued.
Sell what you actually use and believe in: That’s the most convincing sale– you are then speaking from conviction and experience. Odds are it’s not some magic diet pill, but perhaps you have the before and after pics of yourself to prove it– but I doubt it. The products you actually love are likely to be in another category– one that’s much less competitive. For example, belly rings or books on how to make paper airplanes. Yes, there are niches for stuff like that and you can still make a decent income there with a LOT less competition.
You can do it without a lot of money– Stop buying self-help books or investing in elaborate “get rich quick” seminars. Those people who run those seminars are laughing all the way to the bank when you buy their stuff. The irony of it. And they will continue to launch product after product, since few actually get rich quick by using such systems. If anyone reading this article actually did get rich buying someone else’s get rich quick scheme, please respond here. Didn’t think so.
You can do it without a lot of effort– Not exactly true. But if you choose the right niche, one that you are deeply knowledgeable about, then you already have years of advantage over someone who is coming in with only their greed to guide them. If you are a professional hairstylist or work on a Hollywood set doing the make-up for celebrities, you’ll likely have a better shot than some house mom who watched a late night infomercial on TV.
The reason I mentioned the Trump Network, as opposed to any other MLM scheme, is that it’s one guy who was wealthy at some point, but then went broke and had to sell his name for a TV show, real estate investment scheme, and now the weight loss scams. Hopefully, you’ll overcome a blind eagerness to get rich quick and discover that getting rich slowly isn’t a bad option when you consider the actual product and what advantage you have in the marketplace with skill, knowledge, and connections.
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Trump is a joke. He has devalued his brand with every sham product he has affixed his name to. It’s shameless and sad. You can admire the business savvy of getting your name out there to the extent he has, but you have to wonder where the line is drawn as to what products he is willing to endorse simply for a royalty check. Whether it is the Trump Network, Trump University or any other ridiculous scheme he’s got going, I’m not buying.
.-= PJ Mullen´s last blog ..Cause I’m just a ray of frikin’ sunshine =-.
PJ: Completely right. I know several people who could have managed his fortune better than he has (heck, I think even I could have). The man has lost his fortune for as many times as he’s rebuilt it. I wonder how he would have done if he was like the rest of us — no dad to give us a billion dollars.
I have a lot more respect for people that have success by means of talent, perseverance, and integrity. I think PJ summed up Trump perfectly.
Ed: I used to respect Trump. I though, Well, he didn’t really make all that money himself, but at least he’s doing something businessy with it. Now, he’s just turned into another scam artists trying to build back his fortune on the backs of gullible people.
Another great article, Dennis!
“What happens when you combine one of the world’s most ridiculed business personalities with one of the world’s most ridiculed business models?”
http://www.walletpop.com/blog/2009/11/23/donald-trump-enters-the-world-of-multi-level-marketing/
“Well, now, MLM finally does have a proper front man. Donald Trump is the most visible promoter of MLM, the Pied Piper. Before launching his MLM, Trump served as chief spokesman ACN. ACN claims to sell phones and phone service. It also sells a “business opportunity” for $500 based on recruiting other salespeople who recruit others in an “endless chain.” ACN was prosecuted in Canada and Australia for running a pyramid scheme. It escaped being shut down by those governments due to rulings by judges.
Now, the MLM world is electrified by Trump’s launching of his own MLM company. The MLM blogosphere pulses with pride. They point to Trump as proof of their system’s legitimacy. If Donald Trump says its legit, surely it must be! Right?
Sadly for the believers, no. In fact, Trump’s involvement is only more obvious evidence — if consumer loss rates of 99% need any more — of just how bogus recruitment-MLMs are as a “business model.” To those not caught up in MLM’s delusions and entrapments, Trump’s association with MLM is a red flag of flim-flam. A guy known for extravagant consumption, an overbearing braggart, a figment of PR spin, a regular on the covers of celebrity scandal magazines, a promoter of professional wrestling, a bankrupt executive in the gambling industry, a schemer notorious for skipping out on debts, a man famous for win-lose “deals.” This is the spokesman for a business based on person-to-person selling to friends and relatives? ”
http://www.falseprofits.com/files/438e29e0a6fb54286b76f7b7e06457fb-16.html
“Those who tell the truth about multi-level marketing (MLM) — that it is a pseudo-business, a mere camouflage for a classic pyramid scheme — face a wall of myths, deceptions and delusions. Charting the pyramid model and its flawed structure and characteristics, documenting the 99% failure rates, reporting the testimony of insiders in lawsuits and books who offer first hand accounts of the calculated lies about “income opportunity” – none of this breaks down that wall of deception. The media continues to buy MLM’s masquerade as a “fallback for consumers during the Recession.”
But then along comes a MLM spokesman, a hero of the business, who reveals the sham better than any analysis ever could. Enter Donald Trump. Bankrupt, scheming, abandoning those who loaned him money, ruining those who invested in his stock, while he smiles, postures for cameras, and pretends to be a financial expert and offers yet another bogus scheme for investors. This is the perfect caricature of the MLM industry.”
http://www.falseprofits.com/files/00082264d02c95dd2eedf6cefd13b009-19.html
Doo Dilly: Thank you so much for chiming in on this one. Your research is always well appreciated around here. By the way, I finally read the link you sent me in the homeschooling article about faith and science. I don’t know how you found that article, but it’s excellent. Thank you!
I really didn’t know any of this about Trump before I got this article from Dennis. He even had me somewhat duped into believing he was trustworthy. I didn’t know he was another MLM guy. I’m skeptical by nature so I would never fall for an MLM, but think of all the people who blindly trust a name and fall for this hoo ha. They become kool-aid drinking nuts in no time, following their dear leader as he ruins them for his own gain.
Hey Dennis…I’m surprised I haven’t heard much recently about TTN. Is anything happening lately? Up until recently The Donald’s focus was on running for Prez. I signed up with TTN in summer of 2009 when there was lots of buzz, but it seemed to fizzle. I’m starting to have good results with a supplement called Protandim. Seems to be a legitimate breakthrough & what a video they have. I’m curious…..Is there much growth with TTN? Anything new coming? Conventions? davepike@windstream.net