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Mannatech. com Advertisin g Strategy Draft 2

Mannatech Final - Internet Business Models

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Develop research and present findings to CMO of Mannatech, Inc (health and beauty products) regarding the effectiveness of potential online advertising

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Page 1: Mannatech Final - Internet Business Models

Mannatech.com Advertising Strategy

Draft 2

Page 2: Mannatech Final - Internet Business Models

EXECUTIVE SUMMARY

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CONTENTS

Executive Summary .........................................................................................................................2

Introduction ......................................................................................................................................5

Statement of Work .......................................................................................................................6

Methodology ................................................................................................................................7

Findings ...........................................................................................................................................8

Competitive Analysis ...................................................................................................................9

Research ...................................................................................................................................9

Analysis .................................................................................................................................10

Recommendations ..................................................................................................................11

Path Forward ..........................................................................................................................11

Target Markets ...........................................................................................................................13

Summary ................................................................................................................................13

Research .................................................................................................................................13

Location of Sales ....................................................................................................................16

Recommendations ..................................................................................................................45

Path Forward ..........................................................................................................................46

Communication Methods ...........................................................................................................48

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Social Network communication ............................................................................................48

E-mail Advertisements ..........................................................................................................51

Advertisement Communication with Mannatech Associates ................................................53

Sponsorships ..........................................................................................................................54

Interstitial Ads .......................................................................................................................54

Banner Ads and Skyscraper Ads ...........................................................................................55

Rich Media .............................................................................................................................56

Pop-up Ads ............................................................................................................................56

Pop-under Ads .......................................................................................................................57

Advertising ................................................................................................................................59

Research .................................................................................................................................59

Analysis .................................................................................................................................63

Recommendations ..................................................................................................................72

Path Forward ..........................................................................................................................88

Summary ........................................................................................................................................90

Works Cited ...................................................................................................................................91

Appendices ................................................................................................................................93

Executive Summary .........................................................................................................................2

Introduction ......................................................................................................................................5

Statement of Work .......................................................................................................................6

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Methodology ................................................................................................................................7

Findings ...........................................................................................................................................8

Target Markets .............................................................................................................................9

Summary ..................................................................................................................................9

Research ...................................................................................................................................9

Location of Sales ...................................................................................................................12

Recommendations ..................................................................................................................41

Path Forward ..........................................................................................................................42

Advertising ................................................................................................................................44

Research .................................................................................................................................44

Analysis .................................................................................................................................48

Recommendations ..................................................................................................................57

Path Forward ..........................................................................................................................73

Summary ........................................................................................................................................75

Works Cited ...................................................................................................................................76

Appendices ................................................................................................................................78

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INTRODUCTION

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STATEMENT OF WORK

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METHODOLOGY

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FINDINGS

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COMPETITIVE ANALYSIS

RESEARCH We assessed over fifty Multi Level Marketing companies to determine if any of them use online

advertising to generate revenue. We reviewed all the big firms’ sites as well as few of the small

ones (revenue generated). From our initial research we found that none of the Multi Level

Marketing sites we looked at featured outside advertisers on their websites, at least not on the

home page. Since we did not have the member log in information for the sites we were unable to

review the member-specific content.

Our next step was to do online research and find websites similar to Mannatech.com (not

necessarily Multi Level Marketing companies) to see if they used outside advertising. We

analyzed sites targeted toward MLM associates and potential associates to see what kind of

advertisers they feature on their sites. The main thing we found was a clickable Facebook or

Twitter ad that sends users to those homepages. Based on our research, we found that no one

advertises on their official websites but some of the Multi Level Marketing employees advertise

on their personal websites.

To further assess the interest for placing advertising on MLM’s website, we developed a survey

that we sent to potential advertisers. We conducted a survey to see what companies may be

interested in placing ads on Mannatech’s website. We send out a 6 question survey to various

companies to assess interest for advertising on Mannatech’s website.

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ANALYSIS If Mannatech decides to include online advertising on their sites, it will be the first MLM, as far

as we know, to do this. This could be a good or a bad thing. One question wequestion we

should consider is why are other MLMs not using outside advertising on their sites? One

possible reason is that advertisers may not want to advertise on MLM’s sites because of their

reputation. Another reason may be because MLMs don’t get as many hits as other retail sites.

We developed a survey to determine if companies are interested in including advertisements on

MLMs websites and if so, what type of companies should Mannatech try to target. Here are the

findings from our survey:\

To date 8 responses were received.

o Out of the 8 responses, 1 company said it has previously places ads on an

MLM site (the MLM specialized in weight loss products)

o 2 responders said they would be interested in placing an ad on an MLM site,

while 6 said they would not be

Of those that would be interested:

o 1 responder said his/her company would create their own ad

o 1 responder would let Mannatech design the ad

o 1 responder said he/she would utilize third party to design the ad

Based on the survey, one reason why other MLMs are not including outside advertising on their

websites may be that they are not finding enough companies who would want to advertise with

them. This can be a major concern for Mannatech. If Mannatech decides to have ads on its

website, the first major and potentially difficult task will be to find companies who are willing to

advertise.

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Another thing we considered to help us determine whether or not Mannatech should include ads

on their site is how those ads will affect the associates and impact Mannatech’s revenue. We can

look at a couple of key questions:

If the advertisement customers click on gives them a bad deal (i.e. faulty product or

buying somewhere else is cheaper) or “tricks” them into getting in a long term

contract, how will they view us as a company?

o Maybe in a negative way because this could hurt the company’s image and

therefore hurt the number of people coming back to the website or even the

company

If the customers click on the advertisement, will they spend too much time on the

other site and forget why they got online?

o Customers could possibly get side-tracked, but they would probably come back to

the site since more than likely they visited the site to order products for their

customers and that will make them money.

RECOMMENDATIONS With the current scenario, we believe it will be a difficult task to find advertisers for the

Mannantech’s website. Since no other company out there is advertising to its down lines, this

might be a risk. Mannatech can further extend the survey we accomplished to additional

companies and try and see if there are enough companies who are interested in placing ads on

their website.

PATH FORWARD We recommend that Mannatech first contact all of its vendors and business partners to determine

if any of those companies would be interested in posting ads on Mannatech’s website. Since

these companies already have a relationship with Mannatech this would be a good opportunity to

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gradually implement outside advertising on the company’s site. Once Mannatech feels confident

that having outside advertising meets its business objectives, the company can then seek out

other companies who may want to advertise with them.

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TARGET MARKETS

SUMMARY

Mannatech, Inc. sells health enhancement, skin care and weight/fitness products using a direct

selling MLM model. The Mannatech website is a place where members can order products,

communicate and track sales. The website has approximately 500,000 registered users. Located

across the globe, these individuals are of differing cultural and socio-economic backgrounds and

speak a myriad of languages. Members are organized in a tree-like structure with people at the

top of the tree benefiting from the sales of people at the bottom of the tree. The purpose of this

section is to identify the characteristics of members that use the web site. Understanding the

target market will allow Mannatech to better evaluate the pros and cons of advertising on the

website. If Mannatech proceeds with website advertising, target market information is helpful in

determining the types of advertised products, design of web ads and member segmentation.

Understanding the Mannatech members and communities determines which advertising strategy

is most appropriate for the typical Mannatech registered user.

RESEARCH

Market as a Whole (Direct Selling Market Information)

This information is based on information collected from the Direct Selling Association surveys.

Main Reason for Becoming a Direct Sales Representative

36% Additional income

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31% It's your (primary) business and making money through direct sales is important to

you

29% Discount/wholesale/free products

4% Other

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Ethnicity Breakdown:

Caucasian: 78%

Hispanic: 13%

African-American: 5%

Asian: 1%

Other: 2%

Total Household Income:

$150K+: 8%

$100K - $149.9K: $14%

$75K - $99.9K: 16%

$50K - $74.9K: 21%

$35K to $49.9K: 14%

$15K to $34.9K: 16%

Less than $15K: 11%

Education

Number of People involved in selling direct marketing products:

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78%

13%

5% 1% 2%

CaucasianHispanicAfrican-Amer-icanAsianOther

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Estimated Total direct selling sales:

Location of Sales (reported as a percent of sales dollars)

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Hours spent on direct selling per week

Average Percent of Time Spent on...

Gender of people involved in selling direct marketing products:

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Age of people involved in selling direct marketing products:

Marital Status of people involved in selling direct marketing products:

Mannatech Market Demographics

This information is from research provided by Mannatech, Inc. corporate including the

Mannatech Customer Experience Scorecard1 and the Omniture Site Catalyst Countries Report2.

Age

According to the Mannatech Customer Experience Scorecard1, registered users are between

hethe ages of 25-55+. Those 55+ over account for over 50% of registered users.

Gender

The majority of Mannatech users are female.

67% Female

33% Male

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Income Levels

Over 60% of visitors’ household incomes are in the $30,000-$99,999 range.

Less than $30,000 19%

$30,000-$59,999 33%

$60,000-$99,999 29%

$100,000-$149,999 13%

$150,000 or more 7%

Education Level

Approximately half of users have an undergraduate degree or higher.

High School Graduate 14%

University Undergraduate Degree 31%

University Graduate Degree 15%

Medical Degree 3%

Other 37%

Nationality/Ethnicity2

Approximately 45% of registered users conduct their business and live in the United States.

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Marital Status

Nearly three-fourths of users are married. 1

Married 73%

Divorced/Separated 12%

Single, never marries 7%

Widowed 4%

Living with partner 3%

Behavioral Analysis

Research

User Status

Our plan of action is to determine a user’s status with regard to Mannatech (Nonusers, Ex-users,

Potential Users, First-time Users, Regularand Regular Users). Research (which will be explicated

further in a different section of the report) shows that the core target market is current registered

users who sign in to the Mannatech website. Further analysis may be used to determine status in

terms of associates, members, non-members and prospective customers.

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Primary Motivators

47% of Mannatech users visit the site to manage their personal Mannatech business. 29% access

the site to purchase products. Only 2% peruse the site to learn about Mannatech business

opportunity.

Analysis

The breakdown of Mannatech visitors indicates that the vast majority of site visitors are either

Mannatech associates or members. Thus, the vast majority of site visitors will be logging into

the private pages in order to manage their Mannatech business or to purchase.

Recommendation

If one of the main motivators for visiting the Mannatech site is to conduct business, related

advertisements would be appropriate and beneficial. If there are advertisements for companies

and products which may help the visitors conduct their business in a more streamlined manner,

this may motivate visitors to click on one of the ads for information. Accordingly, the ads must

be designed and marketed in a way which would have the user make a subconscious association

between the advertised product and Mannatech product sales. As an example, AT&T can target

their ad for the Mannatech site by correlating with Mannatech to offer special Mannatech-

specific benefits in addition to a general discount.

Mannatech associates are also motivated by the need to be successful business people. This

means that they will be aware of any cash outflow, and thus will constantly be looking for more

economical ways to do business. Marketing ads to the typically frugal natures common

incommon in most entrepreneurs greatly increases the opportunity for click through.

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Path Forward

Looking forward, Mannatech needs to focus on their target market (the true believers) and this

market’s interest in growing their business. Further research on the typical companies

Mannatech associates utilize to conduct their business may be advantageous. In addition,

Mannatech should gather an internal sample of the target market and conduct a relevant survey.

The survey would be effective in determining how Mannatech registered users would feel about

advertising on the Mannatech site. Analysis of the results would help Mannatech understand if

users find advertising beneficial or a distraction. Moreover, a survey would reveal answers to

questions about the type of advertising users would prefer or find most distracting. Once

Mannatech does an internal research of ad types, the company may even include samples in their

survey.

An internal financial analysis of costs and returns with regard to both internal, Mannatech-

oriented advertising and third-party advertising is necessary. The analysis may also include

other important factors such as intangible expenditures and earnings with regard to the

Mannatech reputation, credibility, the loyalty of users. All the different factors, some of which

may seem irrelevant, must be taken into account before entering this new advertising and website

content strategy.

With regards to third-party advertising, it is imperative that Mannatech keep the end-users in

mind. Ads on the website should be companies that would assist users in forming and staying in

contact with downlines and growing their business. Mannatech must conceive internal benefits

to correlate with third-party advertisements and entice users. Also, Mannatech must monitor the

benefits received from third-party advertising parties if third party advertising is placed on the

site.

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Geography

Research

78% of registered Mannatech users are located in the United States. Of the remaining 22%, 11%

are located in Canada.

Analysis

The majority of Mannatech registered users are located in North America.

Recommendation

Since North America amounts to the majority of Mannatech users, advertising should be limited

to products available in North America. A statement should be placed close to the ad indicating

that the offer is only available in North America to avoid confusion among international

members. Members should be surveyed before and after advertising is placed on the site to gauge

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member reaction. If web advertising enhances the value chain in North America and the

members are not irritated by the advertising, then it can be expanded to other countries such as

Australia and New Zealand.

Benefits

The majority of Mannatech business comes from North America. Focusing on the North

American market allows Mannatech the opportunity to test the market at a low cost. Starting the

advertising in one part of the world is more cost-efficient. The target market in North America is

mainly English-speaking. Therefore, no translation is required. In addition, the U.S. boasts

higher technological standards. Web advertising methods are not restricted due to the target

market’s bandwidth or connection speed.

Drawbacks

No matter the location, some advertising deals may not be available to all registered users in

every part of North America. Canada and the United States have different governing bodies with

different regulations and rules. Different firms provide different services depending on their city

of operation. The software to pinpoint the geographic location may be expensive. As with any

connection to a third-party, there is the possibility of diminishing Mannatech’s credibility.

Mannatech must have some control over advertising content and type. Focusing the advertising

project on North America limits the full possible benefits of the project.

Path Forward

Mannatech should investigate the costs and benefits of geographic segmentation of web content.

Content could be tailored to the language and location of the end user member. Ads could be

targeted to ensure that the advertised products are available and useful to members.

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Associate Profile: Online Sales

The auction site eBay and social networking sites like Facebook, Twitter, MySpace, Orkut and

LinkedIn were reviewed to enhance our understanding of Mannatech member interactions

outside of the Mannatech web site.

Research

Only eBay and www.checkoutmannatech.com were found to have any Mannatech products for

sale. EBay sellers are primarily low volume sellers that appear to be leaving the direct selling

business. One Mannatech associate even offered to sell his downline of sale people. Mannatech

prohibits its associates from selling on eBay and has created a specialized website

www.manaprotect.com for people to submit complaints of unauthorized selling on the web. All

other web links that were found offering Mannatech products for sale looped back to the

Mannatech main page or an associate page on www.mannapages.com.

Mannatech position for sale

Location: North Carolina

 

Seller User ID: cberglund

View similar active items | Sell one like this

0 Bids $7,500.00

The few repeat Mannatech products sellers are heavy discounters.

Repeat EBay Sellers

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Mannatech price $1572

Shoppinglady50

12 Jars Advanced Ambrotose Mannatech

150g 150 g 5.3oz

INTERNATIONAL BUYERS WELCOME * US

BUYER FREE SHIPPING

Location: Texas

 

Store: A Brand Name Designer...

Seller User ID: shoppinglady50

View similar active items | Sell one like

this

Buy It

Now

Sold

$749.99

Free

shipping

Oct-20

07:53

Mannatech Price $262

Cat57man

Enlarge

(2) Advanced Ambrotose Mannatech 150g

150 g 5.3 oz gram

Free Priority Mail Shipping for U.S. Buyers

exp. 05/11

Buy It

Now

Sold

$148.49

Free

shipping

Oct-19

16:23

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Location: Texas

 

Store: A Bargain Price Parad...

Seller User ID: cat57man

View similar active items | Sell one like

this

Analysis

Mannatech online sales are primarily through the main Mannatech web site. Creating an

independent web site to sell Mannatech products is difficult due to strict policies regarding the

display of Mannatech products. Blog postings regarding the creation of a websites to sell

Mannatech products mentioned the difficult policies that exist. The majority of Mannatech

members have decided that a private web site is more trouble that it is worth. In summary,

legitimate sellers of Mannatech products are not easily found on the internet. Mannapages for

members do not appear to be heavily used by members. The existing Mannapages do not offer

much in the way of customization or usability. Unauthorized sellers are not common, but when

found, are heavily discounting the product and devaluing the brand. Mannatech has successfully

ensured that the vast majority of online selling is performed on the official site and that all links

found on the web consolidate to the Mannatech web site.

Recommendations

Mannapages for members should be enhanced to provide real functionality and customization.

Currently members do not have an outlet for creative design and marketing of products. Hosting

member websites would allow Mannatech to monitor content while providing a store front

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viewable to the general public. Blogs and member created experiences with the products would

be a strong advertisement for Mannatech products. The members could leverage their

philosophy or interests to gain members. Prospective members do not currently have a way of

evaluating groups to join. Finding original content regarding Mannatech products is very

difficult. Web users expect to research products, look for reviews and find unique information.

Let the members sell products and share their passion.

Path Forward

Mannatech should investigate creating a store on eBay to create an official outlet for Mannatech

products and put pressure on unauthorized sellers. A department or person in charge of the

internet community could help involve new members in discussions and site creation. Group

advocates could help place members with communities that share their interests and background.

Associate Profile: Facebook

Research

There are over 500 Mannatech Associates who have facebook accounts. There are 75 groups

and 19 fan pages formed by Mannatech Associates on Facebook.com. The Mannatech groups

consist of 3670 members and 1318 fans.

Nationality/Ethnicity

The majority of Mannatech AsssociatesAssociates on facebook.com are from North America.

US: 340

Canada: 55

Europe: 32

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Australia: 40

South Africa: 17

Gender

Most Mannatech users on facebook.com are female. The age profile is very similar with the

Mannatech score card.

60 % Female

40% Male

Age

The users are mostly adult. We can easily see from most of their facebook profiles that, most of

the female associates are middle-aged, married and have children.

Analysis

Facebook seems to be as popular among Mannatech Associates just like it is with non-

Mannatech associates. Facebook users, connected to Mannatech, share feedback and information

about Mannatech products. Users discuss health, weight loss, well being, and nutrition on group

walls. Associates advertise Mannatech products on group pages and provide information about

job opportunities for prospective Mannatech members.

Recommendation

There many individual Facebook pages dedicated to Mannatech. It would be advantageous for

Mannatech to create one main primary Mannatech Facebook page that all associates could access

and link to. This process should at least be done at a regional level. Such a page would help

Mannatech associates keep in touch with happenings and information from multiple sources in a

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single place. This easy access to information would reduce the time and effort associates would

spend to interact with other members. Also, the feeling of kinship may be enhanced if

Mannatech Associates perceived and felt that they are a part of a large and wide, yet close-knit

network. Since the associate’s revenue is directly proportional to their downline, it may

encourage to users to work harder.

Path Forward

Mannatech should link to its Facebook page on the main Mannatech website and link back to the

Mannatech homepage on Facebook to create a closed loop.

A Facebook link on the Mannatech homepage would encourage Associates to join or interact on

the social network and use it to their benefit. Facebook features a more laid-back, enjoyable

atmosphere,atmosphere; it is also a friend-oriented network (as opposed to LinkedIn’s

professional perception). This association may help with the Associates’ perception of

Mannatech. Mannatech may now be perceived as a workplace which also provides for some

enjoyment and this might help attract more Associates in the future.

Associate Profile: Twitter4

The official Mannatech Twitter page twitter.com/mannatech boasts 697 followers. A small

sample size of MannaTweeps was examined.

Research

Gender

The majority of Mannatech followers are female. The figures are similar to the Mannatech

demographic figures listed in the scorecard1.

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58% Female

42% Male

Nationality/Ethnicity

Followers are located across the world. Geographic locations include the United States,

Australia, Canada, England, New Zealand, Sweden and Switzerland.

United States 61%

Canada 15%

Australia 9%

Switzerland 6%

England 3%

New Zealand 3%

Sweden 3%

Occupation

Mannatech followers and its following are diverse in their occupations. Many followers are

network marketers, home business owners (many are stay-at-home moms) or training coaches

assisting those with a multilevel marketing business. Many MannaTweeps list Mannatech in

their profile. Some followers hold full time jobs and utilize their Mannatech business as

supplemental income. Listed professions for the Mannatech following include physicians,

chiropractors, life coaches, teachers, performers, motivational speakers, athletes and personal

trainers.

Behavioral

MannaTweeps are advocates of home businesses, making extra money, fitness, wellness, natural

health, weight management, nutrition and skincare. Mannatweeps are users of Mannatech health

and skincare products and are firm believers in their positive effects. Many MannaTweeps are

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spiritual and religious. Individual Mannatech followers have a handful of followers to thousands

of followers of their profiles and pages.

Primary Motivators

MannaTweeps use Twitter to socially connect with others, find out more about upcoming

Mannatech advances and events. Many Mannatech followers post their own techniques and

strategies for being successful in the business on their personal Twitter page. Mannatech

corporate posts are news-oriented with links to articles.

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Analysis

Twitter is a logical place to connect associates with their immediate downline and Mannatech

corporate to connect with their registered users. However, the site is not very Mannatech

oriented, with only a small logo appearing on the upper left side of the page. The Mannatech

website is listed in the right panel but is lost otherwise.

Twitter and other social networking sites offer Mannatech a plethora of connections and

networks to tap into. Each individual follower on the Mannatech Twitter page adds value to the

overall Mannatech network by allowing for an additional connection. With some followers

having tens of thousands of followers themselves, the possibility to expand the network is

endless.

Path Forward

The Twitter page should be transformed aesthetically to feature Mannatech more prominently.

Mannatech registered users are internet users. The internet is their life-line and many are Twitter

users. They should further be directed back to the Mannatech homepage or at least one of the

satellite sites, depending on their interest. Whether their interest is in weight loss, the science

behind Mannatech products, skincare, etc. the official Mannatech sites should remain in the

network loop.

Associate Profile: MySpace

The number of Mannatech members within Myspace.com is 20 samples. Those people list

Mannatech as occupation and most of them work as independent associate of Mannatech.

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Research

Gender

The figures demonstrate that the number of Mannatech members between men and women are

the same:

50% Male

50% Female

Age

The majority of Mannatech members are between twenty to thirty years old (approximately

50%). The next highest age group is 31-40 year olds. This information is very different from the

Mannatech demographic figures listed on the scorecard. However, this error may be the effect of

a small sample size and the younger demographics of MySpace.com.

20-30 year: 50%

31-40 year: 31.25%

41-50 year: 6.25%

51-60 year: 12.5%

Education Levels

Most Mannatech members have college degrees or higher. This information is compatible with

the demographic data in the scorecard.

Location

Based on geographical data, it was found that Mannatech followers generally reside in the US.

The rest of members are located in other parts of the world such as Canada and England.

US 87.5%

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Others 12.5

Analysis

Mannatech members on MySpace have used this social network to network and send information

about Mannatech products to friends or other members. However, there are only a few

Mannatech followers on this site. Due to the low numbers of MySpace followers, this social

networking site is not an effective place for Mannatech advertising. Other social networks, such

as Facebook with larger fan bases would be more effective location for Mannatech advertising.

Path Forward

If Mannatech is interested in further using this site, it should motivate Mannatech associates to

visit this site more. Associates could use this site to create networking and transfer information

and experiences about Mannatech products effectively. Furthermore, it would help Mannatech

associates to interact with their downlines.

Associate Profile: LinkedIn

Research

Gender

56% of the employees are female and 44% are male. This data is very similar to the data on the

Mannatech scorecard.

Age

The median age of the employees is 37 years old.

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Location

Most of Mannatech associates are located in the DFW area, with a few located in either Denver

or Los Angeles. As a company, Mannatech is listed as a mid-sized public company (2006

revenues of $410 million) in the Health, Wellness and Fitness industry (Company Size 501-1000

employees).

Occupation

Common job titles found on LinkedIn are Associate, Independent Associate, Director, Regional

Director and Consultant. Through research, the career paths for Mannatech employees are clear.

Before - Home Interiors, Latimark...

After - Mary Kay Inc., SYSTIME...

Judging by the career path, it seems like the associates join Mannatech after having worked at

small companies with about 100 employees and then move on to bigger companies with a greater

number of employees. Some associates even move to other big MLMs such as Mary Kay Inc.

Analysis

One would expect LinkedIn to be a natural networking ground for associates, because it is of

prime importance in multi-level marketing firms. However, the profiles show different. Network

connections are few. Though associates are very internet savvy and use the internet for selling

products to customers, the associates don’t seem to be very active on LinkedIn. Perhaps the

Mannatech network is so close knit and personal that associates can manage to maintain that

network using personal email alone. It seems like the vast networking potential that LinkedIn

offers is not being properly utilized by Mannatech employees.

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Recommendation

Mannatech should encourage more of its employees to create profiles on LinkedIn and to use it

more actively. This is because the first person a customer would go to verify a salesperson’s

credibility is LinkedIn, and it would help the Mannatech associates to come across as more

trustworthy to their customers this way.

Path Forward

The LinkedIn page should be used more creatively by the associates to help build their network

of customers. The description of Mannatech given there is insufficient, and customers need to be

told of the company’s vision and mission statements in that space for company description. This

could also help convert potential Mannatech customers to associates, helping Mannatech

associates increase their downline, and hence their revenues.

Associate Profile: Orkut

Research

The following information was based on doing a search in Orkut for Mannatech in the

Occupation field of profiles. There are a total of ten users who listed their occupation as

Mannatech.

Age and Gender

In the North American region, users are all middle aged to older women. In Europe, the users

were younger and mostly male. These figures may show that the presentation and selling of

products is managed differently overseas.

Location

US 50%

Estonia 30%,

Italy 10%

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Canada 10%

Other Pertinent Information

The website www.buyambrotose.com is listed 6 times on discussion boards across Orkut.

Analysis

The users of Orkut, although small in number, are representative of the North American

demographic trends- middle aged women who market to their friends in their homes. It also

shows that this small slice of users also follows the generalized international trends that have

already been observed in Mannatech users.

Recommendation

Orkut is a small but growing group of users who have found an alternative to other social

networking sites, and Mannatech would have an edge if they get into the market at the beginning

stages such as this, in order to maximize the potential of all new entrants into the website seeing

their advertising and becoming potential Mannatech associates and members.

Path Forward

Mannatech must consider the gains which they would experience if they decided to expand their

presence onto Orkut and weigh this against the time and resources it would take to implement a

presence on the site. Also, further studies should be done to see if the growth rate of Orkut will

overtake other social websites in the future. Finally, Mannatech must look into the privacy and

other policies that Orkut implements in order to see if this would inhibit their use of the site to

promote their products.

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Website Information

Research

Frequency

48% of repeat visitors come to the site daily or at least weakly. First time visitors comprise only

7% of all visitors.

How do users find the site?

Users learn about business opportunities through friends, relatives or a network of acquaintances.

Only 9% of users learned about the Mannatech site thorough Internet search engines

Which pages are visited most?

Approximately one quarter of the top 50 pages on the Mannatech website are public to users who

have not logged in. The remaining three quarters of the sites require users to be logged in.

The top page views are related to shopping and the completion of orders.

Page Public/Private Hits

1. Home Page Public 402,363

2. MyMannatech:Dashboard Private 249,688

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3. Select Country Public 241,328

4. Checkout:Order Detail Public 195,931

5. My Mannatech:Order:My Orders Private 173,119

6.Checkout:Order Complete Private 124,778

7. Checkout:Order Confirmation Private 105,523

8. My Mannatech: Success Tracker Public 105,427

9. Checkout: Processing Private 94,007

10. Checkout: Payment Info Private 89,144

Analysis

From these figures, it is apparent that any advertising on the Mannatech site should be on private

pages. Third-party advertising should be more prominently placed on private pages, where most

of the target market visits.

Recommendations

Although, the Mannatech homepage is the most commonly visited page, no advertising should

be placed on the homepage as it is the point of first impression. Advertising on the homepage

would clutter the page, portray a negative connotation and may distract the target market from

effectively achieving their goal in accessing the site.

Path Forward

Mannatech should further investigate their website in detail. Some pertinent further that should

be answered in determining which pages to advertise include: how long do users stay on the

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web-site? Which page do users spend the most time? More public content should be available

from the home page. Many people visit the home page and then leave without a purchase or

login. The informational sub pages could host offers designed to benefit prospective members

and entice them to join Mannatech.

Community Profile

Each individual Mannatech associate and member is a part of an extensive Mannatech

community. The common thread that weaves the group together is Mannatech. Loyal and

committed, this group of believers connects with each other in multiple ways both online and on

a more personal basis. Through research and analysis of the individual Mannatech members and

associates, we have conceived a community profile of Mannatech members, specifically those in

North America.

The North American user tends to be an older educated population. 67% of the North American

users are female. Over 70% of the total users are married. Several indicators on different social

networking websites indicate that the majority of the users are associates with religious beliefs.

The trends illustrate that the group most responsible for Mannatech's success are middle class

American families who use Mannatech as a secondary source of income. With the current

economic times, many individuals in North America have found alternative ways to earn money,

in order to sustain their current standard of living into retirement and older age. Many people in

this demographic require a second source of income, which they have control over. This leads

many in this demographic to start small with a home business or to start selling products such as

those offered by Mannatech.

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Needs

As a community, Mannatech associates and members need:

Good Health

Primary or supplemental income

Close family ties

Spirituality

Connections

Desires

As a community, Mannatech associates and members have a multitude of wants and desires on a

personal note and with respect to a work environment:

Business Desires

Products that sell well

Products that enhance wellness

A company that helps generate income

Rewards based on individual and downline performance

Investment which requires little capital and is low risk

Control over working hours, time spent and amount of effort exerted

Face to face contact

Selling tools

Business administration tools including accounting, shipping, phones and office supplies

Recruiting Tools

Training on how to develop and run a business

An user-friendly business that is easy to start business

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Personal Desires

Greater control over own health

A better quality of life

Look great and feel great

Financial security and independence

An exciting, rewarding career

Sharing a product that they use and believe in

A community with similar values

A feeling of accomplishment

A feeling of helping neighbors and loved ones be healthy

A feeling of doing good in the world

Motivations

Whether Mannatech community members are mothers or male entrepreneurs, their primary goal

is to help other people. Altruistic and faithful, the community believes that Mannatech products

will improve the lives of others. They have a great desire to spread this prophecy and the tools to

conceive it. They are true believers in the products’ ability to improve wellness and improve

monetary independence through sales. Mannatech members want control of their own health and

financial welfare.

Selling Mannatech products fulfills a need to build a successful business and downline. The

successful downline will be composed of people that share common interests and continue to

recruit like mindedlikeminded members. As the page reports illustrate, Mannatech registered

users are constantly working to expose the world to Mannatech products by purchasing and

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reselling. In addition, users are accessing their personal Success Tracker pages to gain a feeling

of accomplishment and move forward with their goals.

The Mannatech community as a whole is family-oriented and in some cases, religious. The

majority of registered users are middle-aged, married females with children. Attendance at

Mannatech events is a good illustration of the strong family and religious associations. The

events incorporate sponsored Sabbath Keepers events and sponsored child care. In general,

people do not bring children to conferences. However, Mannatech functions have a demand for

child care. This speaks to a strong family dynamic.

Communication

On the go, driving the kids around between school, extracurricularalicular activities and errands

or working another full time job, these individuals are extremely busy with their daily lives. Yet,

they find the time to stay connected. Quick and easy communication is most efficient for

conducting their business and interacting with their downline and potential customers. PDA type

phones and the internet are probably most commonly used. Utilizing multiple social and

business networking sites as well as mannapages, there are multiple points of contact for these

individuals to connect and interact online.

RECOMMENDATIONS

Understanding the Mannatech community is essential to building loyalty and commitment

among members as well as communicating with Mannatech Associates. According to the

research on individual registered users and the Mannatech community as a whole,

advertisements should offer discounts as well as be correlated with a Mannatech loyalty

program. In order to properly target ads towards the North American Mannatech community,

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Mannatech and third-parties must offer these individuals opportunities to realize their goals of

earning a secondary income, or offer them savings on products which they may already currently

use in their daily lives. Mannatech must ensure that ads are relevant to the users. Otherwise,

Mannatech will not earn any benefits from the companies which are advertising on the website.

In addition to relevance, Mannatech must ensure that certain intrusive advertising is not used, as

this demographic will have a negative reaction and hold Mannatech responsible.

PATH FORWARD

Answering these questions will help define the sub communities within Mannatech community

and allow better targeting of products and services.

What is the distribution of down-line size? Are there many small groups, few large

groups or a combination? What is the mix?

We believe that the distribution of down line size could reveal the amount of true

entrepreneurial members versus followers.

Do different down-lines concentrate on purchases of specific product lines such as

Optimal Health, Optimal Skin, Optimal Weight and Fitness? Or do most down-lines

order equally from all groups.

Mannatech should study the purchasing history of the Mannatech communities and target them

appropriately.

What characterizes high, medium and low producers?

We are looking for traits that could identify a potential high producer early and target retention

promotions to them.

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Mannafest and other Mannatech functions can reveal much about the Mannatech

community. The content of the workshops in correlation to attendance of the workshops

would reveal specific interests. KiddieCorp attendance could reveal the number of

families involved with Mannatech and explain the differences between Mannatech

numbers and those of multilevel marketing industry as a whole.

Sabbath Keepers appears to be an active sub community. Investigating the positioning of

Sabbath Keepers in the Mannatech structure could reveal opportunities for targeted

products.

Are the athletes in Team Mannatech active Mannatech salespeople? Do they typically

lead down-lines? What is their role as a group? This is another opportunity to target an

internal community.

There are someare some differences between the demographics of the overall direct

selling industry and Mannatech demographics. The differences should be investigated.

Opportunities may be found in untapped communities.

On the international front, although other parts of the globe only account for 20% of Mannatech

total sales, the group is increasing in size. This international group conducts business in many

different languages and utilizes different selling techniques. If Mannatech decides to advertise to

its international market, different versions of an advertisement must be created and marketed

toward the myriad of groups depending on the group’s geographic location, language, religious

and cultural beliefs.

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COMMUNICATION METHODS

SOCIAL NETWORK COMMUNICATION

Research

People posting blogs as well as comments regarding Mannatech were found on numerous

websites such as Face Book and Twitter, personal blog, as well as video clips on YouTube. Also

while doing our research we found this online regarding a Mannatech lawsuit. -- “Mannatech

Company Settle False Marketing Claims for $1 Million penalty. And this wasn’t the first

time.-- The lawsuit, filed in 2007, alleged numerous instances in which freelance sales

associates falsely claimed that the products helped cure or prevented diseases such as cancer,

autism and Down syndrome.1”

22 Mannatech Facebook Pages foundFace Book(FB) 22 page results are found

o Among the pages found one official page was found “Mannatech, Inc. - Official

Page” which was created in late Sep. The information provided regarding, Press

release, Product, Training Information, Dialogue with associates on these pages

are various and much more attractive than Mannatech’s website.

o The other 21 pages are confusing. Some are obvious personal groups; some look

very similar to the official one. (ex. Mannatech Europe page… Is it official?? )

o Positive feedback from fans on the official website. One of the posts was “glad

that Mannatech was finally supporting the network”

1 http://www.ironmagazine.com/blog/2009/mannatech-company-settle-false-marketing-claims/

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o FB chats with some fans from Mannatech official page.Limited chatting is

used on Mannatech FB site

Some are not associates, they’ve just used Mannatech products.

Some are associates. They Associates have joined FB group to share

information about what is going on in the market, and to suggest that

Mannatech add this function to its website. They also mentioned is that

they wish that Mannatech provided “Contact information on all their

members.”

Some associates mentioned, compared with website, they prefer E-mail

because it is the best and easier to transfer information.

They tend to visit the website mainly for Product information and updates

Twitter

o Official twitter page http://twitter.com/mannatech, with many individual

comments in this official page.

o Hundreds of twitter threads related to Mannatech’s products can also be found.

YouTube

o Mannatech post official CEO talks on YouTube (1:16 mins)2

Personal Blog

o Many associates run their own blog, and usually post their videos to it

o Internet marketing tools target website targeting target Mannatech associates less

more than product introduction

2 http://www.youtube.com/watch?v=9y_9mwXh5E8

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Amazon

o 2 result under sponsored links, the one is office page and the other is associate’s

private link.

o EBay

o 112 results found for Mannatech.

o 4 major sellers sell various Mannatech products.

Analysis

o The unofficial comments from associates might hurt the Mannatech brand or cause financial

fine. There’s a need to control this situation among the social network.

o It is effective to set up the OFFICALOFFICIAL Page against other Mannatech pages on FB.

The fans of the official page are outnumbered the other pages in a fairly short period. (6xx

fans vs. less than 200 fans)

o Although the official twitter page is set up, it is less effective than the one in FB.

o First , it is difficult to distinguish the official page from some of the unofficial pages; the

reason we recognize it as being official is because of the Mannatech link posted on FB

official page.

o Secondly , we don’t know which posts are official, and which are comments from associates

or users.

o Associates are more focused on attracting down lines than selling products. They like the

network effect more than anything else.

o YouTube click cdount is low; either the awareness is low, or the CEO talk might not be an

effective / attractive way to communicate with the associates.

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Recommendations

o Setting up “Official” pages / groups in major social networking sites. People will make up

their own minds as to what they believe in. Also, there is a need to clearly address the

contract of the down line, telling them whether they are allowed to claim the effectiveness of

the medicine, is it legal to sell Mannatech’s product on their own.

o Leverage other social networking official pages in the same way that Mannatech is doing

with FaceBook page.

o Make use of YouTube, which is an effective and free communication tool. Create official

YouTube channel, post links to it on all social networking sites. Distribute the Mannatech

advertisements or discussions in an attractive format.

o Set up official shop on EBay / Amazon to avoid sales associates selling Mannatech products

in private online.

o Include an adaptive Search Engine application on the Mannatech website (ex. Google AD)

o Mobile Communicationo Research

With the advent of high speed internet hotspots, 3G mobile networks, and

WiMAX, consumers are increasingly integrating mobile communication and

information inquiries in their busy lives. This additional communication channel

is vital to the future of any advertising campaign, corporate communications

department, or customer relationship management program.

o Facebook Connection

Over 65 million, roughly 22% of active Facebook users access their facebook accounts using mobile devices. (http://www.facebook.com/press/info.php?statistics)

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Facebook users that access their account via a mobile device are 50% more active than users without mobile access. (http://www.facebook.com/press/info.php?statistics)

o Twitter Connection

Approximately 76% of Twitter users access the internet wirelessly via wireless laptop or PDA connection or a cellphone/smartphone. http://pewresearch.org/pubs/1117/twitter-tweet-users-demographics

Approximately 82% of Twitter users use their cellphones to send text messages and access online content. http://pewresearch.org/pubs/1117/twitter-tweet-users-demographics

o Text Messages

Text message users are active people. For example, texters are 37% more likely than other cellular users to have played recreational basketball and 23% more likely to have practiced yoga. http://www.marketingcharts.com/uncategorized/texters-young-culturally-diverse-online-spenders-6944/scarborough-top-online-markets-texters-dma-2008jpg/

Approximately 63% and 31% of mobile users 18-27 and 28-39 respectively use text messaging as a way to communicate. These percentages are growing. http://www.usatoday.com/tech/wireless/2005-07-27-text-messaging_x.htm

Several types of text message ads exist – Initial Appended Ads, Complete Full Message Ads, Reply by text, Click to Call, and Link to mobile websites. http://mmaglobal.com/mobileadvertising.pdf

Recommendations

It is recommended that Mannatech embrace mobile communications technology by

building a mobile version of their website and adopting text messaging as an additional

touch point.

E-MAIL ADVERTISEMENTS

Research

o Pros:

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o Low Cost – Can send thousands of e-mails for pennies on the dollar compared to physical

mail

o Speed – The message is delivered to customers in seconds

o Instant reply – Customers can respond instantly to the advertisement

o Better Statistics – HTML e-mails allow you to track how many people received the e-

mail, and how many clicked through the e-mail to make a purchase

o Targeted Advertisements – The sender is not locked in to sending the same advertisement

to everyone on an e-mail list

o Cost effectively customize message – Based on customer demographics or interests, the

advertiser can send one offer to one part of the list, and another offer to the others

o Cons:

o May be considered SPAM – The e-mail may never reach the intended recipient because it

was caught by a SPAM filter

o Requires large sample size – May require 100,000 e-mails or more to get a meaningful

response

o Low Response Rates – Non-opt-in e-mail campaigns typically have very low response

rates of .25 to .50 percent or less. However, targeted opt-in e-mail campaigns can reach

response rates of 5 to 10 percent or more

o Must Comply with Federal CAN-SPAM act – This act prevents marketers from sending

unsolicited messages, and sets rules for e-mail marketing behaviors. For example, the e-

mail must include unsubscribe or opt-out links and a physical mailing address in every

message. When someone requests removal, the sender must act quickly to remove;

usually within 10 days

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o Permanent once sent – If you are too quick to send the message out and overlook a

mistake, it is impossible to un-send, or get the e-mail back

Analysis

o E-mail can very quickly become a nuisance if used incorrectly. You do not want to

annoy the associates by sending multiple e-mails a day. How much is too much?

Mannatech must decide the acceptable level of e-mail communication between itself and

its associates. Do you want to e-mail the associates once a month? Once a week?

o What do you want to include in the e-mail communication? Do you include

advertisements for Mannatech products? Do you include advertisements for third

parties? Links to official social networking sites to increase awareness?

ADVERTISEMENT COMMUNICATION WITH MANNATECH ASSOCIATES

o Majority of Mannatech Members and Associates use the web and email for

communication with Mannatech.

o When placing ads, position in the premium location above the fold for major landing

pages, or pages where dwell time is low. As an option, placing a skyscraper on the side

of the page is acceptable provided it extends above the fold.

o Unless the background and adjacent content is so cluttered and overpowering, motion of

a flash ad is not necessary to draw attention to the ad.ad. Color and contrast with the

background and surrounding content will attract the eye.

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o Placing ads in an “email newsletter” should be near the top but not necessarily above the

fold as the primary purpose would be to provide useful information (value); otherwise the

email may get deleted outright as a spam advertisement.

o Allow users to choose either HTML or Plain Text for email newsletters as email is now

commonly read on mobile devices which do not necessarily support HTML. If an email

is unreadable, it will likely get marked as “read” and not be read again.

SPONSORSHIPS Logo and company message is placed in webpage to look as if it is almost part of the page, but is

clickable.

o Pros

o Is less intrusive and not pushy

o Customers are generally more trusting of these ads

o If customers like the company then they like company sponsoring the page

o Cons

o Blend into the website

o Customers unsure if it’s an ad or a partner of the company

Analysis

Research shows that consumers are more trusting of sponsorship advertising. This could be a

good option for Mannatech to pursue. Sponsorship (unlike other forms of advertising) generally

doesn’t cheapen the appearance of a company’s website.

INTERSTITIAL ADS Appear after you click a link but before you get to the final destination.

o Pros

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o Open and Close automatically

o Highly effective if done well

o Can be trained to appear during downloads

o Have customer’s full attention 5 to 10 seconds

o Cons

o Can be annoying

o Customers can’t close the

Analysis

This form of adveritisingadvertising may be effective if Mannatech users often surf multiple

Mannatech pages. It is suggested that ads be placed between Mannatech and R&D websites.

Possibly could place an ad having to do with particular product that consumer is researching.

Also embedded link advertising could be an effective form of advertising in order to not push

advertising upon consumers.

BANNER ADS AND SKYSCRAPER ADS Banner Ads and Skyscraper Ads - usually on side or top of the page, have animations and offer

ability to click through to advertisers’ site.

o Pros

o Effective if message is simple

o Traditional form of internet advertising

o Cons

o Being phased out

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o Don’t hold attention long enough

o Take up large amount of page can be in line of readers vision.

Analysis

This form of advertising is shown statistically to be a declining form of advertising. Cognitive

filtering is taking place within the mind of the consumer and consumers are not paying attention

to banner ads in a similar fashion that they don’t pay attention to TV commercials.

RICH MEDIA Ads done in Java, HTML, Flash, that can activate when rolled over. Can be games or videos,

generally interactive

o Pros

o Visitors don’t have to leave the site to interact with the ad

o More entertaining than banner advertising

o Usually get a lot of click through

o Cons

o Can be very annoying and distracting

o If not done professionally, give the website a negative connotation

Analysis

Rich media ads if done effectively have been proven to be profitable but at what cost? They take

away attention to the articles that consumers visit the website to read. In Mannatech’s case it

may be harmful considering that the sites navigating pages are simple and information packed.

Associates would be distracted by too many images.

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POP-UP ADS These are ads that appear when you go to a certain page of a site. They open a new window in

front of the previous window causing the user to do something immediately. They are usually

generated with JavascriptJavaScript, but can be generated by other means as well.

o Pros

o Visitors see the advertisement instantly

o The original window stays open to the same page

o These ads are fairly easy to implement

o Cons

o Can be very annoying and distracting

o People have pop-up blockers so many people will not see it

o These ads lack credibility; people do not trust them

Analysis

Pop-up ads are quickly being phased-out due to their growing hatred. The vast majority of

browsers have built-in pop-up blockers so the majority of users would not see them.

POP-UNDER ADS These are ads that appear when you go to a certain page of a site. They open a new window

behind the window that was open before the ad was triggered. They are usually generated with

JavascriptJavaScript, but can be generated by other means too.

o Pros

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o These are less common

o Not many people have blockers for this type of advertisement

o The user continues undisrupted

o Cons

o They are patented; may be expensive

o You are unable to control when the ad is viewed / may be after they exit the site

o The partnership will not be displayed as clearly without integration

Analysis

Most people have many browsers or tabs open at the same time and do not close them until they

are completely finished using the computer. At this point, the ad would be viewed. Taking this

into consideration, the user would be able view the advertisement after he / she has decided to

stop using the computer. Additionally, if the user had multiple windows or tabs open, he / she

will not know what triggered the ad. If an AT&T ad was there, the user, unless it specifically

states in the ad, would not know that it is due to a partnership with Mannatech.

Recommendations

There are many different options for displaying an advertisement. Mannatech needs to examine

the different options and decide which one, if any, would best suit their needs. Each different

type of ad conveys a different message and feeling to the user and these elements need to be

considered.

Path Forward

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Mannatech would be wise to include an adaptive search engine function in the new website.

Users may find it difficult to access needed information and providing a search engine that can

quickly locate needed information would greatly improve website functionality.

Mannatech associates would be very receptive to mobile based communications. Since the

majority of the associates are working mothers with busy schedules, having access to a mobile

Mannatech website to check on orders, shipments or new products would greatly enhance their

productivity along with your bottom line. Associates will also have the ability to leverage the

Mannatech mobile site when closing sales.

Associates would benefit greatly from having Mannatech messages and alerts sent directly to

their cell phones. These messages would lead them directly to the mobile website in which

Mannatech could promote whatever it chooses. By having text message alerts and

communications associates will interact more frequently and will be up to date regarding

business matters.

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ADVERTISING

RESEARCH

Advertising Restrictions

Technical Issues and Limitations

Browsers, Bandwidth and Rich Media

Figure 1 indicates roughly 98% of Mannatech.com visitors have Flash installed, and roughly

70% have connection speeds that support rich media. This indicates the vast majority of

Mannatech users are capable of receiving such as video, moving advertisements, sound, and

other rich Internet content (Mannatech, 2009).

Figure 1 Browser and bandwidth of Mannatech customers (Mannatech, 2009).

A key restriction of any advertising strategy, however, must include accommodations for those

users who by chance or by choice do not have the capability of receiving rich media. Each ad

placement should be capable of detecting the user’s configuration and adapt accordingly. For

example, if an ad shows Flash-based content, when no Flash player, or only an unsupported

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version is available, the ad should be replaced by an image or other more appropriate content

automatically.

E-Mail Limitations

Mannatech associates and members must opt-in to receive e-mail. E-mail marketing campaigns

are specifically outside the scope of this document.

Legal Limitations

New Disclosure Rules for Sponsored Internet Content

Effective December 1, 2009, new guidelines released by the US Federal Trade Commission

mandated that online marketers and content producers must tell readers (consumers) when they

are compensated to write positive reviews or online postings (Arango, 2009). The new rules

apply to any kind of sponsored word of mouth campaigns such as paid placements on social

networking sites such as Facebook and Twitter as well as blogs, product review sites, etc.

(MHB, 2009).

Mannatech.com Privacy Policy

Mannatech’s current privacy policy is fairly restrictive of the type of information sharing that can

lead to targeted advertising. We suggest Mannatech perform a careful legal review to ensure the

there is no conflict with the posted privacy policy and any selected advertising strategy.

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GATHERING AND USE OF INFORMATION

On most sections of our website, Mannatech collects personal information from our visitors on a voluntary basis. We do not require this information for customers to obtain access to our site. However, visitors may have to provide certain personal information in order to participate in some of our programs offered on our site. Personal information received from any visitor will be used solely for internal marketing purposes and will not be sold or provided to third parties.

The highlighted section is problematic because it could prevent certain types of targeted

advertising. Particularly problematic is that it does not allow an exception even for non-

personally identifiable information.

INFORMATION SHARING AND DISCLOSURE

MANNATECH RESTRICTS ACCESS TO NONPUBLIC INFORMATION ABOUT ITS INDEPENDENT ASSOCIATES AND MEMBERS TO THOSE PERSONS EMPLOYED BY OR CONTRACTED WITH MANNATECH WHO HAVE A LEGITIMATE BUSINESS NEED TO KNOW THAT INFORMATION IN ORDER TO PROVIDE PRODUCTS OR SERVICES TO ITS INDEPENDENT ASSOCIATES AND MEMBERS.

Mannatech will not sell, rent or exchange your personally identifiable information to anyone.

Mannatech may send personally identifiable information about you to other companies or people when:

We respond to subpoenas, court orders or legal process; or

We find that your actions on our web sites violate the Mannatech Terms of Service, or any of our usage guidelines for specific products or services.

The highlighted clause could be problematic if any partnership or advertising relationship

depends on any information that could lead to the identity of the user.

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Changes to the Privacy Policy on the New Mannatech.com

Old Site New Site

CHANGES TO THIS PRIVACY POLICY

Mannatech may amend this policy from time to time. If we make any substantial changes in the way we use your personal information we will notify you by posting a prominent announcement on our pages.

REVISION TO THE TERMS

Mannatech reserves the right, at its discretion, at any time, to change or modify these Site Terms that may be applicable to you, or any part thereof, and to impose new Site Terms and conditions. Such changes, modifications, additions or deletions will be effective immediately. Each time you use the Site the terms and conditions set forth in these Site Terms will apply to your use. Users of the Site should periodically check for changes to the Site Terms. Your continued use of this Site following the posting of changes to the Site Terms on the Site, or by other means by which you obtain notice of those changes, means that you accept those changes.

The new site contains a radically different section regarding changes to the privacy policy. This

should enable Mannatech to make changes without “posting a prominent announcement.”

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ANALYSIS

Options for Advertising Content

Suppliers and Partners

Mannatech can dip into its existing supplier and partner network to find advertising

opportunities. Mannatech could receive discounts or free products and/or services for placement

of targeted advertisements for suppliers.

For example, before each large meeting of the Mannatech community where travel is common,

Mannatech could place ads leading up to the event with discount packages through its preferred

travel providers. These firms, in exchange, could provide heavily discounted or free travel

services to Mannatech and its employees for the event.

Examples of potential advertising partners Mannatech:

Airlines, travel agents, hotels, car rental firms, and other travel-related providers

Wireless telephone providers, Internet service providers, and other telecommunications

firms

Computers, software and office supplies

Gym memberships, organic grocers and other non-competing firms with products

supporting a healthy lifestyle

Legal and tax preparation software

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Figure 2 A win-win-win relationship.

Such relationships with Mannatech suppliers could result a win-win-win. The supplier wins due

to the volume gains from Mannatech’s vast network. The members and associates win because

of the exclusive discounts provided by Mannatech’s partnership with the supplier. And, finally,

Mannatech wins directly by reducing the cost of doing business while simultaneously gaining

goodwill, largely because the members and associates will feel they are privileged due to their

relationship with Mannatech.

Affiliate Marketing

Affiliate marketing is an “Internet-based marketing practice in which a business rewards one or

more affiliates for each visitor or customer brought about by the affiliate's marketing efforts.

The Affiliate marketing industry has four core players at its heart: the Merchant (also known

informally as 'Retailer' or 'Brand'), the Network, the Publisher (also known informally as 'the

Affiliate') and the Customer” (Wikipedia).

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Mannatech Members and

Associates

SuppliersMannatech

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The following illustration shows the concept of affiliate marketing:

An alternative for Mannatech is to join an affiliate network for quick and easy access to

advertisers. Affiliate networks serve as intermediaries between affiliates (publishers/website

owners) and advertisers. Mannatech would be provided with thousands of advertisement

possibilities for their website. The affiliate network would provide banners, text links, and other

forms of advertising displays. Each click and impression would be tracked by the network. If a

visitor clicks a banner from Mannatech.com and fulfills requirements (such as service sign up)

Mannatech would be paid a pre-defined amount of money for the conversion. This alternative is

simple and provides a lot of advertising possibilities. Mannatech would not have to get in direct

contact with the advertiser since the affiliate networks already have a commitment from the

advertiser. On the other hand, unique advertising opportunities would be hard to come by using

this method. Offering associates a unique discount, for example, would not be possible. These

ads would be more generic and thus more risky due to the negative generally associated with ads.

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Below are screenshots of what Mannatech may expect to see with an affiliate network:

Front page:

Campaign search – find companies/products to advertiser on website:

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Search options – can search by type of banner and much more:

Search by specific product category:

Search results – Women category (displays campaign description, payout, and image)

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Sample campaign page – Clicked on “Free Silkies Tights” – displays ads you can use and the

code to paste into your website for tracking. Mannatech can create a custom ad if they feel it

will lead to a higher conversion rate.

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Statistics page – shows stats for specific campaigns (banner impressions, clicks, leads, click thru

ratio, total sales, amount earned, and more.

Options for Advertising on Mannatech.com

Staying in the Mannatech.com Boundaries

The new Mannatech web site

Old Site New Site

Figure 3 Source: Mannatech.com (Mannatech) Figure 4 Source: Mannatech.com (Mannatech)

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The new Mannatech.com site provides additional advertising opportunities. For the first time,

Mannatech will allow consumers to shop for Mannatech products online and will route orders to

Mannatech associates (Mannatech, 2009).

Leveraging Mannatech’s Total Web Presence

Mannatech has a much larger web presence than Mannatech.com alone. Error: Reference source

not found shows a handful of the targeted, content-oriented sites operated by Mannatech.

Figure 5 Other Mannatech web sites.

These sites include the following:

http://www.mannatechosolean.com

http://www.allaboutmannatech.com

http://www.mannatechscience.org

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http://www.exploremannatech.com

http://www.teammannatech.com

http://www.mannatecheconomicstimulus.com

http://www.mannatechskincare.com

http://www.mannapages.com

These sites offer additional advertising opportunities for Mannatech. Each site provides

information about the interests of the user to assist in targeting advertising content. And because

these sites are operated by Mannatech, cookies can be employed to identify a Mannatech

member or associate even when not logged on.

RECOMMENDATIONS

Create an Advertising Content Policy

Regardless of advertising strategy employed, we recommend Mannatech develop a

comprehensive content policy for all forms of advertising. A content policy should encompass

Mannatech’s desire to serve their downline, while ensuring advertisements conform to

Mannatech’s corporate vision and marketing goals. An established content policy also helps

reduce uncertainty regarding whether an advertisement is appropriate for Mannatech. Figure 6

shows how such a content policy could be described graphically.

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Figure 6 Sample decision tree to aid in the creation of a Mannatech content policy.

A content policy clarifies advertising restrictions. Examples might include the following:

Advertisements for competitive products

Advertisements for other MLM firms

Advertisements that would be generally offensive to the Mannatech audience

Advertisements of a religious or political nature

This list is provided for examples only and not intended to be exhaustive.

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Enhance Advertising Effectiveness Using Geo-Targeting

At the moment, Mannatech is using Google Analytics to find out the location of their visitors.

Geo-Targeting takes this concept and adds another element to it. While Google Analytics will

tell Mannatech where their visitors are from, it does not display specific for visitors of a

particular geographic location. A Geo Targeting script first identifies where the visitor comes

from and then displays the proper ad to the visitor based on his or her location. Mannatech

would alter the code in the script so that predefined banners show up for visitors of specific

countries. In addition to countries, Mannatech can display selective ads based on region, state,

or even city.

Mannatech can use Geo-Targeting with OpenX: http://www.openx.org/en/support/geotargeting.

The service costs $50, plus $12/month for database updating fees. This service will let

Mannatech target banners based on the visitor's continent and country. If Mannatech wants to

target visitors more closely, by region for example, it will cost $150 plus a $36/month updating

fee. To target by city, it will cost $370 plus $90/month for updates.

While this can be done for free, we recommend using OpenX as it has a much greater accuracy

due to its use of MaxMind. MaxMind uses a number of Internet mapping tools to identify and

correct IP addresses where the end-user location does not match the ISP location on the WHOIS

record. The service comes with instructions for easy installation. Another Geo-Targeting

alternative for Mannatech would be to do this manually. Step-by-step instructions can be found

at http://ekstreme.com/geotargeting.

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Partner with YouTube

In the past couple of years YouTube has become one of the top five most visited websites in the

entire world. All that incoming traffic into the website has made it easy for posters to earn money

from the website. A couple of years ago YouTube started what they call the partnership program,

or in other words profit sharing. This program has helped many people earn a lot of money

through posting videos on YouTube.

This is a simple way of earning money and at the same time keeping the professionalism of the

Mannatech brand on the website. Currently this program is invite only and in order to be invited

there are criteria’s that we believe Mannatech fits into. The criteria go as follows, the video

needs to be at a minimum thirty seconds long, have thousands of views and the poster of the

video should own everything that is being displayed in the video or have permissions for them.

Once you have been established on YouTube and have people view your videos, then YouTube

will give you the appropriate amount judging by the profit they are getting, hence the term profit

sharing. This is a brief description of the partnership program straight from googleGoogle. Our

Partnership Program is a revenue-sharing program that allows creators and producers of original

content to earn money from their popular videos on YouTube. You can earn revenue from

relevant advertisements that run against your video using Google's proprietary technology

(http://www.google.com/support/youtube/bin/answer.py?hl=en&answer=72851).

There are many pros and cons if Mannatech plans to use YouTube’s partnership program. The

pros include but are not limited to, Mannatech earning revenue for something they already do

which is making videos. Having the Ad’s not on the Mannatech website therefore there is no

responsibility. The initial investment for this is very little in some cases less than five thousand

dollarsthousand (dollars (http://www.nytimes.com/2008/12/11/business/media/11youtube.html).

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The cons include but are not limited to users being diverted away from the Mannatech website

and spending significant time on YouTube which they can be spending on the Mannatech

website.

Use Twitter and Monitor the Social Media Stream

Four Steps to Social Media Marketing Success

Whether you're a business or an individual, you must wrestle with many complex issues for

social media. These can often be overwhelming. Where to even begin?

Rather than be paralyzed, it's often best to understand that there are four simple, yet critical, steps

to social media:

It's easiest to think of it as a stairway, and the diagram is laid out as such. If you learn anything

from this column, it's that you need to take that first step. It's also the most important one. As

showcased in the diagram, the four steps are:

1. Listen to your customer and conversations around your brand. 2. Interact -- join the conversation.

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3. React -- Adjust your product or service based on feedback. 4. Sell.

Companies often enter the social media fray and jump straight to step four, selling. This is the

worst thing you can do, and it won't be effective.

You need to start with step one, which is listening. Without listening, the other three steps won't

achieve any degree of success. As many have said before me (including Li Evans), there's a

reason we have two ears and one mouth.

Notice in the diagram that the steps for the customer than happen in the reverse order of the

company. This is huge. It's these steps that the customer takes within social media that give an

exponential return (good or bad).

If it makes it easier to grasp, you can consider these steps 5, 6, 7, 8. This is where the magic can

really happen.

Listen: The customer buys the product service from the selling company. The customer's

first step is to listen for what to expect from the product or service (important expectation

setting here). What is the value that will be delivered? This also may involve reading

instructions or a manual.

Interact: The customer will then interact with their new product or service.

React: During or after this interaction, the customer will react according to their experience

(good/neutral/bad).

Sell: The consumer's reaction to the product or service will determine if they sell for or

against (the company/product). Keep in mind if it's a negative reaction you still have a

chance to correct the situation by interacting and reacting.

That's the beauty of social media. As a company, if you appropriately engage in the four steps,

then the stairs in the diagram act more like an escalator (pun intended) rather than a traditional

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stairway. It will create a positively circular motion, which, with the appropriate greasing (effort),

will continue to take your product or service to the top. And that is the true beauty of

Socialnomics. Some of the best strategies in social media are often the simplest.

Tips to Use Twitter More Effectively

Profile Says It All

A Twitter profile giving a clear, crisp and unambiguous message gets the most attention of

potential followers. Custom Twitter background, your real name, a link to your blog and an

appealing mini-bio turns any twitter profile into an effective fishnet to get new connections.

Your success on Twitter largely depends on whom you follow. It's not the quantity but the

quality of your Twitter network that matters the most. Follow most active, popular big names in

your domain and leverage their strong network by interacting with them and by attracting their

attention. Swim with a big fish and benefit from their reach.

Use twitter services like Mr.Tweet to get recommendations about whom you should follow to

get the maximum benefit from this micro-blogging service.

Track Hot Trends and Join The Bandwagon

One of the keys to get connected with more people on twitter is participating in constructive

debates. Use services like Twitscoop, Tweetmeme and Twitterfall to stay updated with the

latest happenings and the hot trends on twitter. Pick ongoing conversations and heated debates

related to your niche, and take that debate to the next level by sending your constructive tweets.

This will create large number of new connections in quick time.

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Tweet What You Are Known For

Large number of your followers expects to get specific kind of tweets from you, whether it's your

personal tweet or a tweet related to your business/domain. Intelligent tweeting involves cleverly

crafted personal and business tweets intermixed with each other to keep your followers asking

for more.

Direct Your Twitter Stream to Other Social Media Profiles

This is one of the best methods to leverage your already grown social media profiles. With the

advent of various social media mash up technologies, you can easily feed your different social

media profiles with your never-ending twitter stream. This will not only keep your other social

media accounts active, but will also spread your tweets across different channels giving more eye

balls for your Twitter conversations.

Don't Be an Owl, Tweet During Peak Time

If you know your audience, then you are also aware about the demographic data associated with

them. That means you very well know when they are most active on twitter. Tweeto'clock is an

excellent service that calculates the best time to tweet someone. You can handpick the most

popular, active and interesting users in your twitter network and can calculate the best time they

are most active on twitter. This will help you to engage with them more easily during their

convenient hours.

Understand the Power of Retweets

Initially, Internet marketing experts never saw twitter as a viral marketing platform. As it grew,

Twitter users realized how a snowball effect is created when people start retweeting some

interesting stuff. Once people start picking any tweet, it creates a rippling effect in connected

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networks spreading the content to massive number of people in very short time. Here are some

tips to get your tweets retweeted more often.

1. Keep tweets short.

2. Keep them interesting. Ideally a condensed teaser excerpt with a link.

3. Use best URL shortening services to track performance of your tweets.

Using Twitter for Enhancing Customer Service is part of advertising

Twitter is an ideal outlet to provide quick and reliable customer service.  There are a few key

benefits of why Twitter should be offered as a tool for customers to get help from your company

should they need it:

Low Cost – Twitter does not cost anything to sign up for and typically only costs you the

time you or your support staff spend on it.

Increased Brand Awareness -  Twitter provides your company an excellent opportunity to

not only further your brand recognition, but also to demonstrate that you are a company

that stands behind what you offer and will do everything in your power to satisfy

customers.

Ease of Use – One of the beauties of Twitter is the ease of use with the 140 character

limit.  This helps the customer looking for support to be clear and concise on the issue

they are having as well as your support staff being straight to the point on a resolution. 

Should the resolution require a more in depth explanation your staff can arrange an email

response or phone call to the customer.

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Make it Known and Be Available

If your company is offering support via Twitter make it known on your website, contact info,

business cards, on site, in your store, etc.  If the customers know that Twitter is an option for

additional help, chances are they will use it should they need support.  However, if no one knows

it is a viable channel for help, then chances are no one will use it.

Most importantly, if using Twitter as a support tool, be sure you have a staff member monitor it

frequently and engage with your followers.  The majority of Twitter users like the “real time”

aspect of the site, so chances are they will want a real time response from your company. You

don’t need to sit in front of the computer to monitor your brand continuously on Twitter.

Five Ways to Use Twitter to Aid Marketing

When assessing how to add Twitter to your marketing mix, consider the following five options:

Content distribution. Twitter is useful for time-sensitive information, such as:

Announcing breaking news. The US Airway plane crash-landing in the Hudson and the

Mumbai riots were initially broadcast via Twitter.

Transmitting time-sensitive information. This includes last-minute flight delays by

airlines like JetBlue and major traffic disruptions by LAFD.

Positioning your company as a thought leader. This includes distributing original

content to extend the conversation.

Providing an alternative forum for comments. This also includes enabling attendees at

live events, such as trade shows, to communicate with each other.

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Commerce support. Twitter can aid sales, but it can't become strictly a promotional broadcast

channel or many followers will leave.

Disseminate last-minute deals to drive sales.

Provide additional sales support to answer questions and help close deals. Like chat or a

toll-free number, Twitter enables e-tailers to service prospects and customers. A few

retailers already using Twitter effectively, including Dell, Zappos, and Whole Foods.

Offer customer service via another channel and proactively alleviate customer issues.

Comcast, a cable provider notorious for its customer service issues, has received positive

feedback on its responsiveness via Twitter.

Advocacy forum. Twitter is a platform from which to develop a following for you, your brand,

or your company.

Aid brand building. While many individuals use Twitter to enhance their personal brands,

Twitter enables companies to participate in the conversation.

Expand services with useful information cost-effectively, particularly for nonprofit and

political organizations. The March of Dimes provides daily pregnancy tips in English and

Spanish, while Barrack Obama's presidential campaign connected with voters (although

as president, Obama's tweets have become less frequent).

Public relations support. Twitter provides another outlet to enhance PR-related

communications.

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Enable reputation monitoring by tracking and participating in the conversation related to

your management, brands, and company. Also follow what's being said by thought

leaders in your niche.

Provide another channel to aid crisis management by getting your organization's story out

quickly in case of an emergency.

Use for PR outreach to journalists looking for timely input.

Research enabler. Leverage Twitter's search functionality and ability to query and respond to an

audience.

Track new trends on Twitter to discover what customers and prospects are saying about

your brands, products, and company. Unlike search engines, the conversation on Twitter

takes place in real time.

Participate by asking prospects their opinion about products and issues related to your

firm.

Brand your Twitter, design an individual background

You need to have a unified experience consistent with your brand so as not to confuse

consumers. Your Twitter profile is where people go to quickly discover how you are using

Twitter and learn more about your business. Make sure that you get your brand or business

messaging across using the 140-character descriptor field.

It is acceptable to tell them how you are going to use this Twitter channel and set expectations.

For example, if your account is strictly for distribution of an RSS feed and there will be no

human interaction, tell them so. Companies like SUN and Dell have multiple Twitter channels --

each specifically geared to deliver niche content to a target audience.

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Tip: Update your Twitter page background with an image that conveys the positioning of the

brand. A good example is Dunkin Donuts.

Notice how the company uses a visually branded background, page font, color, and an icon that

are all consistent with its brand. Also note that the bio is descriptive, concise, and links to the

Dunkin Donuts' homepage.

Utilizing Twitter Platforms

There are several Twitter application tools that allow you to communicate and engage your

followers. The most popular ones are Tweetdeck and Seesmic Desktop. However, if you want

to utilize your tool to build social media campaigns, monitor trends, track your followers,

keywords and analyze your company’s and competitors’ statistics, you should look to more

business structured platforms. The most popular platforms are Peoplebrowsr and HootSuite.

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Peoplbrowsr

Hootsuite

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Measuring ROI

Trying to associate social media with direct ROI (define) is doable, but with different kinds of

metrics.

Twitter + advertising concepts, however, offer a little of both worlds. For rich media ads like

Volvo's, ad engagement and click-throughs can be measured. There are also tangible metrics

associated with Twitter, such as:

Changes in follower count. Is there an increase or decrease?

Number of retweets (people re-posting someone else's tweet in order to "forward" it to

their followers).

Number of tweets using the designated hashtag. This provides a sense of the campaign's

popularity.

Changes in Web site or blog traffic -- traffic spikes should be expected and referral data

should show Twitter as a source.

There are two primary formats for leveraging Twitter for advertising:

Sponsored postings (known as "tweets" on Twitter), whereby solutions providers match-

make advertisers with willing Twitter users. Companies such as Twittad, Magpie, and

Izea offer these services.

Incorporating live tweets into rich media ad creative.

These sample ads can be fairly low- to moderate-cost, relatively easy to implement, and present a

new way to reach people, as well as generate awareness, brand buzz, and site traffic.

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PATH FORWARD

In determining Mannatech’s online advertising strategy, we recommend Mannatech carefully

address each of the following questions and concerns:

Evaluate whether Mannatech’s internal policies and procedures are compatible with this

project.

Does Mannatech already have an online content policy? If not, we recommend the

company begin investigating whether such a policy would be beneficial.

Have any current suppliers or partners expressed interest in expanding their partnership

with Mannatech? If so, consider approaching them for inclusion in a trial. Using

established partners will reduce time spent vetting content and partners, and reduce

company risk.

Mannatech should evaluate affiliate networks already existing in the marketplace. If

Mannatech can use existing networks to locate advertisers, this would reduce the

resources needed to develop their own advertising network.

Mannatech should immediately investigate expansion of its presence on social websites.

While social websites have traditionally been viewed as the purview of younger internet

users, the demographics of at least Facebook.com are moving toward the demographics

targeted by Mannatech.

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Evaluate whether regional and national targeted-advertising would be beneficial to

Mannatech and its advertisers. If it would be, considering using the geo-targeting tools

previously discussed.

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COMPETITIVE ANALYSIS

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RESEARCH

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WE ASSESSED OVER FIFTY MULTI LEVEL MARKETING COMPANIES TO DETERMINE IF ANY OF THEM USE ONLINE ADVERTISING TO GENERATE REVENUE. WE REVIEWED ALL THE BIG FIRMS’ SITES AS WELL AS FEW OF THE SMALL ONES (REVENUE GENERATED). FROM OUR INITIAL RESEARCH WE FOUND THAT NONE OF THE MULTI LEVEL MARKETING SITES WE LOOKED AT FEATURED OUTSIDE ADVERTISERS ON THEIR

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WEBSITES, AT LEAST NOT ON THE HOME PAGE. SINCE WE DID NOT HAVE THE MEMBER LOG IN INFORMATION FOR THE SITES WE WERE UNABLE TO REVIEW THE MEMBER- SPECIFIC CONTENT.

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OUR NEXT STEP WAS TO DO ONLINE RESEARCH AND FIND WEBSITES SIMILAR TO MANNATECH.COM (NOT NECESSARILY MULTI LEVEL MARKETING COMPANIES) TO SEE IF THEY USED OUTSIDE ADVERTISING. WE A NALYZED SITES TARGETED TOWARD MLM ASSOCIATES AND POTENTIAL ASSOCIATES TO SEE WHAT KIND OF ADVERTISERS THEY FEATURE ON THEIR SITES. THE MAIN THING WE FOUND WAS A

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CLICKABLE FACEBOOK OR TWITTER AD THAT SENDS USERS TO THOSE HOMEPAGES. BASED ON OUR RESEARCH, WE FOUND THAT NO ONE ADVERTISES ON THEIR OFFICIAL WEBSITES BUT SOME OF THE MULTI LEVEL MARKETING EMPLOYEES ADVERTISE ON THEIR PERSONAL WEBSITES.

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TO FURTHER ASSESS THE INTEREST FOR PLACING ADVERTISING ON MLM’S WEBSITE, WE DEVELOPED A SURVEY THAT WE SENT TO POTENTIAL ADVERTISERS. WE CONDUCTED A SURVEY TO SEE WHAT COMPANIES MAY BE INTERESTED IN PLACING ADS ON MANNATECH’S WEBSITE. WE SEND OUT A 6 QUESTION SURVEY TO VARIOUS COMPANIES TO ASSESS INTEREST FOR ADVERTISING ON MANNATECH’S WEBSITE.

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ANALYSIS

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I F MANNATECH DECIDES TO INCLUDE ONLINE ADVERTISING ON THEIR SITES, IT WILL BE THE FIRST MLM, AS FAR AS WE KNOW, TO DO THIS. THIS COULD BE A GOOD OR A BAD THING. ONE QUESTION WE SHOULD CONSIDER IS WHY ARE OTHER MLMS NOT USING OUTSIDE ADVERTISING ON THEIR SITES? ONE POSSIBLE REASON IS THAT ADVERTISERS MAY NOT WANT TO ADVERTISE ON MLM’S SITES BECAUSE OF THEIR REPUTATION.

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ANOTHER REASON MAY BE BECAUSE MLMS DON’T GET AS MANY HITS AS OTHER RETAIL SITES.

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WE DEVELOPED A SURVEY TO DETERMINE IF COMPANIES ARE INTERESTED IN INCLUDING ADVERTISEMENTS ON MLMS WEBSITES AND IF SO, WHAT TYPE OF COMPANIES SHOULD MANNATECH TRY TO TARGET. HERE ARE THE FINDINGS FROM OUR SURVEY:

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TO DATE 8 RESPONSES WERE RECEIVED.

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OUT OF THE 8 RESPONSES, 1 COMPANY SAID IT HAS PREVIOUSLY PLACES ADS ON AN MLM SITE (THE MLM SPECIALIZED IN WEIGHT LOSS PRODUCTS)

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2 RESPONDERS SAID THEY WOULD BE INTERESTED IN PLACING AN AD ON AN MLM SITE, WHILE 6 SAID THEY WOULD NOT BE

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OF THOSE THAT WOULD BE INTERESTED:

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1 RESPONDER SAID HIS/HER COMPANY WOULD CREATE THEIR OWN AD

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1 RESPONDER WOULD LET MANNATECH DESIGN THE AD

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1 RESPONDER SAID HE/SHE WOULD UTILIZE THIRD PARTY TO DESIGN THE AD

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BASED ON THE SURVEY, ONE REASON WHY OTHER MLMS ARE NOT INCLUDING OUTSIDE ADVERTISING ON THEIR WEBSITES MAY BE THAT THEY ARE NOT FINDING ENOUGH COMPANIES WHO WOULD WANT TO ADVERTISE WITH THEM. THIS CAN BE A MAJOR CONCERN FOR MANNATECH. IF MANNATECH DECIDES TO HAVE ADS ON ITS WEBSITE, THE FIRST MAJOR AND POTENTIALLY DIFFICULT TASK WILL BE TO FIND COMPANIES

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WHO ARE WILLING TO ADVERTISE.

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ANOTHER THING WE CONSIDERED TO HELP US DETERMINE WHETHER OR NOT MANNATECH SHOULD INCLUDE ADS ON THEIR SITE IS HOW THOSE ADS WILL AFFECT THE ASSOCIATES AND IMPACT MANNATECH’S REVENUE. WE CAN LOOK AT A COUPLE OF KEY QUESTIONS:

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IF THE ADVERTISEMENT CUSTOMERS CLICK ON GIVES THEM A BAD DEAL (I.E. FAULTY PRODUCT OR BUYING SOMEWHERE ELSE IS CHEAPER) OR “TRICKS” THEM INTO GETTING IN A LONG TERM CONTRACT, HOW WILL THEY VIEW US AS A COMPANY?

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MAYBE IN A NEGATIVE WAY BECAUSE THIS COULD HURT THE COMPAN Y’S IMAGE AND THEREFORE HURT THE NUMBER OF PEOPLE COMING BACK TO THE WEBSITE OR EVEN THE COMPANY

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IF THE CUSTOMERS CLICK ON THE ADVERTISEMENT, WILL THEY SPEND TOO MUCH TIME ON THE OTHER SITE AND FORGET WHY THEY GOT ONLINE?

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CUSTOMERS COULD POSSIBLY GET SIDE-TRACKED, BUT THEY WOULD PROBABLY COME BACK TO THE SITE SINCE MORE THAN LIKELY THEY VISITED THE SITE TO ORDER PRODUCTS FOR THEIR CUSTOMERS AND THAT WILL MAKE THEM MONEY.

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RECOMMENDATIONS

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WITH THE CURRENT SCENARIO, WE BELIEVE IT WILL BE A DIFFICULT TASK TO FIND ADVERTISERS FOR THE MANANTECH’S WEBSITE. SINCE NO OTHER COMPANY OUT THERE IS ADVERTISING TO ITS DOWN LINES, THIS MIGHT BE A RISK. MANNATECH CAN FURTHER EXTEND THE SURVEY WE ACCOMPLISHED TO ADDITIONAL COMPANIES AND TRY AND SEE IF THERE ARE ENOUGH COMPANIES WHO ARE

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INTERESTED IN PLACING ADS ON THEIR WEBSITE.

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PATH FORWARD

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WE RECOMMEND THAT MANNATECH FIRST CONTACT ALL OF ITS VENDORS AND BUSINESS PARTNERS TO DETERMINE IF ANY OF THOSE COMPANIES WOULD BE INTERESTED IN POSTING ADS ON MANNATECH’S WEBSITE. SINCE THESE COMPANIES ALREADY HAVE A RELATIONSHIP WITH MANNATECH THIS WOULD BE A GOOD OPPORTUNITY TO GRADUALLY IMPLEMENT OUTSIDE ADVERTISING ON THE

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COMPANY’S SITE. ONCE MANNATECH FEELS CONFIDENT THAT HAVING OUTSIDE ADVERTISING MEETS ITS BUSINESS OBJECTIVES, THE COMPANY CAN THEN SEEK OUT OTHER COMPANIES WHO MAY WANT TO ADVERTISE WITH THEM.

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S S UMMARY

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WORKS CITED

Arango, T. (2009, October 5). Soon, Bloggers Must Give Full Disclosure. The New York Times ,

p. 83.

Mannatech. (n.d.). Mannatech: Enriching Quality of Life. Retrieved September 20, 2009, from

Mannatech.com: https://www.mannatech.com/Default.aspx

Mannatech. (n.d.). New Mannatech.com. Retrieved September 20, 2009, from New

Mannatech.com: https://new.mannatech.com/

Mannatech. (2009, October). Questions for Mannatech - 2 - responses. (Consultant, Interviewer)

Mannatech. (n.d.). Terms/Privacy. Retrieved September 20, 2009, from Mannatech.com:

https://www.mannatech.com/PrivacyPolicy.aspx

Mannatech. (2009, August). Visitors Overview - Google Analytics.

MHB. (2009, October 5). FTC Releases New Guidelines For Bloggers, Twitterers and

Advertisers & Fines Up to $11K Per. Retrieved October 20, 2009, from TheDomains.com:

http://www.thedomains.com/2009/10/05/ftc-releases-new-guidelines-for-bloggers-twitterers-and-

advertisers-fines-up-to-11k-per/

Stelter, B. (2008, December 10). YouTube Videos Pull In Real Money. Retrieved October 18,

2009, from New York Times:

http://www.nytimes.com/2008/12/11/business/media/11youtube.html?_r=2

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Wikipedia. (n.d.). Affiliate Marketing. Retrieved October 20, 2009, from Wikipedia - Affiliate

Marketing: http://en.wikipedia.org/wiki/Affiliate_marketing

YouTube. (n.d.). Partner Help Center. Retrieved October 19, 2009, from YouTube:

http://www.google.com/support/youtube/bin/topic.py?hl=en&topic=12632

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APPENDICES

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APPENDICES

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