| “TJuice
fever.
More
than 9000 distributors are selling juice for the US network marketing
company Tahitian Noni in Norway.
It
will take off.
Personal
experience sells. Professor Gorm Kunøe at BI thinks network
marketing will explode.
picture1:
Like an idol. It was David Beckham tendencies at Rainbow Hotel
in Sandvika when founder Kelly Olsen was there to speak to the
Norwegian Distributors. “Can my friend take a picture of
us?”
picture
2: Welcoming drink. Kick – off – meeting starts with
a healing shot.
The
Article.
From
the stage at Rainbow Hotel you hear “I’Orana” and
“I’Orana” is answered by approximately 400 people.
It
seems like an obvious answer, despite the fact that it’s
Tahitian and means “good health”. But then it’s
not the first time the attendees are exposed to Tahitian traditions.
They are already familiar with how Tahitians strengthen their
health with the juice from the noni fruit.
9000
Norwegians have so fare believed in the healing powers in the
energy drink and has signed up as distributors. About 30.000 drink
the juice daily in Norway, according to the company, despite that
one bottle cost 270 NOK, almost as much as a bottle of Bache Gabrielsen
(Liquor). This has given the company a sale of 3.3 billion NOK
after 8 years existence. Over 300.000 people sell the juice.
“
Norway has the largest sale per capita among the 60 countries
that sell the juice. The rapid growth is caused by the fact that
we are a network company. That way it is easier to sell the products.
We’re now selling 35.000 bottles a month", says country
manager Jan Åke Karlsson, who helped build this organization
in Norway.
“High
congregation factor”
The
international growth has been amazing for the five founders. Eight
years ago they came up with the formula consisting of Noni fruit
with a twist of raspberries, boysenberries, grapes and blueberries.
This was to revolutionize drinking habits, the immune system and
the network industry.
“We
were all drawn towards the network model. It is a strong channel
when you personally tell your friends about the products you’re
selling” says Kelly Olsen, one of the founders.
On
stage in front of 400 people he describes the friendliness “like
coming home”.
Judging
from the crowd of people standing around him, most of the attendees
have something they want to share with the founder. One distributor,
Dagny Rekaa, gives him an art book of the painter Gaugin.
Gaugin
lived in Tahiti and a lot of the new logo image is inspired by
him. I thought “Wow, I just have to give this to Kelly Olsen”,
she says.
Kelly
Olsen’s popularity is an important part of the company’s
success, if you are to believe assistant professor Gorm Kunøe
at BI. He has analyzed network companies.
One
weakness that threatens MLM as a system is the risk of breakage
in the building phase. If one of the lower levels disappears,
the bonus is reduced to the rest of the upline organization and
in that way threatens the whole idea. That is why they are so
busy motivating the once at the bottom of the organization to
hang in there. Coaching from “the older” distributors,
bonuses, trips and motivational gatherings with a high “congregational
factor” are ways of doing this, he says.
Kunøe
describes the growth in network marketing as exploding and believes
that it will only keep on growing.
Network
marketing is a very fascinating phenomenon. The strongest tool
when selling a product is personal experience, second is the positive
talk around it, he explains.
“Miracle”
This
way of selling fulfilled the Tahitian Noni founder’s American
dream.
“The
founders emptied their credit cards and private accounts”,
says Kelly, who was persuaded by the investor the Asay brothers
to join them as they were taking the product to the market.
The
credit card bill has most likely been paid by now, the owners
are most likely very wealthy, but they choose to keep quiet about
profit and dividends.
“We
put money back into the company. In addition to that we also pay
approximately 53 % of the sales to the distributors. The company
is very strong at the moment. It is like a miracle”, says
Kelly Olsen.
“Greater
than black pearls?”
Oslo:
The Tahitians are well known for their black pearls, which is
also their largest export product. Now Tahitian Noni thinks their
rapid growth has made the noni fruit the largest export product.
Christine
Engen at Tahiti Tourisme North Europe does not agree.
“Black
pearls are definite still the largest income source from export”,
she says and is critical towards the claims from Tahitian Noni.
The
Noni fruit has become a great export product within agriculture
and has passed copra and monoioil. But black pearls are still
the greatest export product.
MLM
The
desire of becoming wealthy. Sellers are recruited from ordinary
people with a good network. Sellers must have a desire to become
rich fairly quickly and motivated to do some hard work.
Integrate network marketing in a new way. Word – of –
mouth (WoM) is the most important tool integrated with relation
marketing, electronic shopping and good websites. WoM is one of
the strongest tools combined with personal sales and presentation
to groups.
Fewer distribution links. Elimination of traditional distribution
links by selling directly from the warehouse increases the profit
dramatically. Electronic shopping does the hard work from the
old home shopping where the seller had all the products in the
car. The buyer orders and pays over the internet and gets the
products by mail.
Better and more social buying experience. The buyer gets a different
and often better purchasing experience than what the ordinary
perfumery, hardware store, PC seller or power supplier can offer.
Accepting pyramid bonus. One essential prerequisite of joining
a network company is that the distributor accepts that he/she
must give away a part of their earnings to the up line. At the
same time he/she must often commit to recruit new distributors.
Sours: Kunøe, 2003.
This
article appeared in the LIVSSTIL and is reproduced with permission.
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