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Word of Mouth Part 4: Incentivized Vs. Inspired

(If you haven’t read Parts 1, 2 and 3 read them now. In fact, you really need to start with the post “What is the Single Most Powerful Force in Marketing?”)

In the last lesson, you learned about a way to measure Word of Mouth.

Now I’ll show you why it almost doesn’t matter.

First, here are some facts:

1. According to the U.S. Department of Labor 50% of All Business Startups Fail in the First 2 Years

2. For “MLM” companies, that figure jumps to 90-96% (depending on who you ask – MLM expert Richard Poe says 95%)

Hmmm …

Isn’t MLM all about leveraging Word of Mouth?

If Word of Mouth is so great, then why do 95% of these so-called “MLM” companies fail?

It has to do with the difference between what I call “Incentivized Word of Mouth” and “Inspired Word of Mouth.”

(Not to be confused, by the way, with the excellent “Inspired Marketing” concepts by Joe Vitale and Craig Perrine coming soon …)

MLM, affiliate marketing, bribed tell-a-friend forms, and the like are all “incentivized.”

That’s people telling people for the promise of some reward.

“Tell your friends about our new widget and we’ll give you a shiny trinket for every one who buys.”

“Inspired Word of Mouth” comes from a customer’s spontaneous desire to tell someone about the product.

That’s people telling people because they love the product so much they want others to know.

Incentivized Word of Mouth can, and should, be at least a part of our marketing arsenal.

Affiliate marketing, tell-a-friend forms (if intelligently used), contests …

These are all great ways to give your business a boost.

The statistics above, however, would indicate that making it the centerpiece of your marketing plan is problematic.

That is, if the word “problematic” does justice to the staggering 95% failure rate of MLMs.

The trouble with Incentivized Word of Mouth is that the recipient knows what’s going on.

He knows you’re only telling him because of the bribe.

There are varying degrees of this, but to illustrate the worst of it, think back to a time when you were pitched on an MLM.

Someone invites you to a “friendly dinner” and suddenly you discover you’re being sold something.

Ewwww.

Any mystery as to why most of these companies have to pack up and leave town?

(No offense meant to anyone here – I used to think it was the best thing since sliced bread – and even owned a few MLM companies. Since then I’ve wised up considerably.)

Contrast this with Inspired Word of Mouth ….

The conversations are natural.

They’re not forced.

Because the recommendation is genuine, you want to hear it.

Not only do you want to hear it, but the message is received so powerfully that it can bypass all skepticism – and almost all other parts of the sales process – and send people right to the order.

OK, so is Inspired Word of Mouth something that a company can control?

It absolutely is, and that’s what we’ll talk about in the next few posts.


  • Well, that was just exactly the article I needed to read today. I’m in the process of creating a new website that offers a lot of incentives. This was a reminder to me to allow the value offered to create the raving fans this business needs (and will have!), and allow the incentives to be the added bonus component.
    Thank you!
    Blessings,
    Andrea
    http://www.EmpoweredSoul.com

  • Seems to me that “incentivizing” is all about someone helping themselves; “inspiring” is all about someone helping others.
    Look at any of the biggest word of mouth or “viral” successes on the Internet: they were powered by people wanting to share something (e.g. a movie, report, website, product/service, etc) because they wanted to HELP others (whether by inspiring, informing, delighting, or helping in some other way), NOT so much because they wanted to help themselves.
    This is not just because the person receiving the word of mouth message – the “receiver” – is more likely to be open to the message, but because the word of mouth “referrer” is more likely to convey the message in the first place.
    In other words, someone is more likely to share something with another person if they believe they are helping that other person more than themselves. That’s why I’m more likely to refer my mother to my hairdresser when they give HER a discount voucher, than when they give ME a discount voucher as a reward for referring her.

  • Very well written. I have to admit, you do keep me wanting more.
    I am possibly one of the most giving people you will ever meet, but this blog of yours is giving and creating so much value. I always grab so many insights from each one of your posts.
    It’s nice to know that there is a marketing guy out there that is willing to give on a regular basis.

  • I tried to promote my society, the last ensemble in Singapore for our music type through yahoogroups.
    People were nice enough to spead the word, I estimated a few thousand, but seriously nobody took action to come forward, to learn music, or to join as members…
    Sad….

  • Really Helpful info for rookies like me :) Thanx a tonne! I’ve tried subscribing to a lot of “hard-core sellers in the garb of free info-distributors” but none has been sincere or true to their words…I must say you’re an exception..You really SHARE…Keep up the good work!

  • holy crap! I remember when I was in San Diego and a couple invited me to lunch to “network” or “mastermind”, and it was just a pitch for mlm. Think I talked to them ever again?
    exactly!
    big jason

  • How fascinating it is to watch a master at work! Mark, about the time I think I’ve seen your ultimate marketing feat, I find that it was just the next step in your plan.
    As helpful as this blog is, with all its valuable marketing info, the greatest lesson is watching you build your Simpleology company.
    I guess you could say it is seeing the Laws & Formula of Simpleology being put into action.

  • “Incentivized Word Of Mouth”–very interesting word, Mark.
    When I was active in Network Marketing, I emphasized to behave as much “inspiring” as possible.
    Seems to be hard, though, for the usual Joe to promote something, err, to recommend something without having the Dollar signs in their minds (and mouths) while they’re communicating.
    And the other person feels it, at least.
    One reason why I advise MLM newbies to focus on building a “customer downline” instead of a “business downline.”
    So, yes, I agree that Inspired Word of Mouth is more powerful and has more substance. (Besides yours, YouTube.com, MySpace.com, and, at least here in Brazil, Orkut.com are good examples, too?)
    Sincerely,
    Marcus
    P.S. An interesting scenario to watch was how many submitted a comment to your blog post on September 11, Mark.
    Just one day before, you asked for comments about the PDF Newsletter: 65 posts.
    Then, the incentivized request: 1267 posts. Plus two TrackBacks. :-D
    NOTE from MJ: Hey Marcus, great obervation. Please allow me to point out that that is Incentivized Action – not Incentivized Word of Mouth. Two totally different animals governed by completely separate dynamics.

  • Spiro

    The reason why 95% fail is because there not genuine internet marketers, rather internet renegades. Marketing is about people, not numbers. and Mr. Joyner knows this, also long term results over short term gain is what he looking to do with Simpleology, finally a true marketer who knows how to play the game. I actually have a smile on my face.
    The problem though is that people push incentive word of mouth especially with information websites because they know that they’re value offering is not strong thus the renegade shows up to do what they can to create short term gains.
    The internet has its life cycle and the day of forms, autoresponders and hypnotizing copywriting may render short term gains but its reached its peak.
    Good luck to all of you, to your continued success

  • Mark,
    Keep up the excellent work! You’ve got me hooked and I thank you for the continued knowledge you share both through Simpleology and this blog. This “word-of-mouth” blog is a real lesson of value and I am looking forward to the next post!!!!

  • I can’t argue with the fact that ‘word of mouth advertising’ IS important, BUT …
    … I would add the proviso that this ONLY is a valuable commodity IF you are an ESTABLISHED and RECOGNIZED Internet Marketer.
    If little old me used word of mouth advertising to tell people about Mark Joyner’s POWERFUL and DYNAMIC expertise on the Internet, I would get ignored because why the hell should they trust me? Why would they rush to the website, just because I recommended it via word of mouth? They wouldn’t!
    It may be the Single Most Powerful Force in Marketing, but NOT necessarily in INTERNET Marketing. I honestly feel there are a lot MORE important things that will ensure you are still around and profitable for many years as far as the Internet is concerned.
    Call me stupid for disagreeing with the ‘experts,’ but sheep are for shearing, NOT for being successful in their Internet endeavors.
    My ‘word of mouth advertising effort’ recommends that you visit my website for some MORE humor, ALSO at no cost.
    ttp://ewealth.myriad2020.com
    John in Australia
    NOTE from MJ: Hey John, it doesn’t matter how well known you are. It only matters how delighted your customers are. Your personal fame helps, but what really drives the train is customer delight – and that is controlled by exactly four simple factors. I invite you to try the program on a trial basis. Let me prove to you that it will work no matter what. It’s backed up by a 100% money-back guarantee.

  • Hi there Mark,
    Yours is one of the few blogs I subscribe to because it is so Non “Incentivized”. Simpleology is such a GREAT idea that i seriously don’t care if there is an affiliate program attached. People just need to look at it.
    If you’re anything like me, you subscribe to lots of “lists” and when you are on 100+ lists – it’s interesting what happens – the emails you open FIRST are ones where a) you get massive value, and b)you don’t get incentivised links…
    Keep up the great work! I’m a sponge!
    Regards, Dave

  • Alan Steacy

    Hello Mark,
    The 7 Day Turn Around Kit (which I am embarassed to say I am still working though with my bricks & mortar business), now this. When do you get time to sleep? Simpleology is awesome and believe it or not, I DO tell others about it! Hum, what a novel concept!
    Alan Steacy

  • Thank you so much, Mark! You are actually showing us the way by this series of posts: be the transformation you want to accomplish.
    Changing “Incentivized Vs. Inspired” into “Duty Vs. Love” helped me get this. People do what they have to do…no more, no less…to accomplish a duty. But there’s no limits to what people will do when they act out of love. And when you learn how to motivate your market to act out of love, you’ve got that viral snowball rollin’ and tumblin’!

  • Inspired is always better, no matter whether you are the one doing the speaking(selling) or the one doing the listening.
    It is always better to try and sell someone something that you believe in and can speak from the haeart about.
    Even if you have a “great product” to sell, if it’s something your not passionate about it will come accross as just another sales pitch. But if you love it, if you believe in it the words just flow out naturally.
    Case in point Simpleology, not getting a dime from it but can’t stop talking about it. Awesome! Just Awesome!
    Thanks Mark!
    Wayne Johnson
    http://www.mymilliondollartarget.wordpress.com

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