A u.s. marketer of motivational, self-help, and health and wellness products is starting to make inroads into the Canadian market – and it’s using the introduction of direct-to-home (dth) satellite television in Canada as a hook to entice new distributors.
The Peoples Network (tpn) of Carrollton, Tex. markets its products through a network of independent distributors, in much the same way as Amway or Mary Kay. However, it also sells product through its tpn television network (currently available only to distributors but soon to be offered to the public through a preferred customer program) and through the Peoples Direct Global Mall, an on-line shopping service launched in June.
tpn television – which bills itself as ‘The World’s Only and Largest Success and Seminar Television Network’ – is available only to subscribers to satellite television services. In the u.s., the company’s 24-hours-a-day, seven-days-a-week motivational and home shopping programming is carried on dth satellite service Primestar. In Canada, tpn is carried exclusively by Star Choice Television Network.
It is perhaps because of this arrangement that the thrust of tpn’s marketing efforts in Canada appear to be predicated as much on the sale of satellite television as they are on the sale of tpn products and programming. In fact, information about the core business of tpn is incidental to the satellite television sales messages in both telephone and fax introductory information packages.
Some Ontario distributors, for example, are steering new prospects to a Toronto phone number (416-391-6088) that offers three messages about tpn, all of which concentrate on the introduction of digital satellite television. One of the messages welcomes listeners ‘to what might be the biggest financial opportunity ever offered in Canada.’ It asks prospects to imagine getting paid ‘as millions of Canadians, and North Americans, for that matter, turn on their television sets.’
‘It’s bigger than cable tv and bigger than the vcr, color tv and the cd player,’ the voice-message promises, ‘allowing you not only to profit from people gaining access to this technology, but also on their monthly television bill and other profit centres as well.’
Interested callers can then access a Texas-based fax-on-demand service to get more information and application forms.
Faxed information from ‘Team TPN, independent distributors of The Peoples Network,’ urges distributors to tell prospects they have ‘been asked by a marketing company representing Star Choice’ to sign up the first person in each neighborhood – and that that person ‘can profit from the monthly tv bill of each person in that neighborhood for life.’
According to Team TPN literature, distributors receive a commission on the sale of each Star Choice system and tpn programming package as well as a commission for every home shopping purchase of tpn products made by those they have signed up.
Prospects are asked to buy for $599 (or lease to own over 36 months) the Star Choice satellite dish and subscribe to its programming. (tpn is not part of Star Choice’s regular programming packages and must be paid for separately.)
While the contract makes it clear that distributors are obliged to purchase only the TPN Distributor Kit, priced at $29.95, they are also encouraged to buy the optional TPN Executive Training Pak, at $299 and the TPN Home Pak, ‘containing over 30 of tpn’s best-selling home care, personal care and wellness products’, at an additional $500.
Guy Skipworth, vice-president of Fredericton, n.b.-based Star Choice, says he was not aware that tpn distributors were using his company’s satellite television service as a means to sell tpn distributorships and programming. He says the nature of the relationship between the two companies is strictly one of television programming supplier and carrier – he says tpn has simply bought space on the Star Choice satellite.
‘To get the programming, they need to buy our system. tpn agents can sell the tpn subscription, but they can’t sell our equipment or programming. That’s not the arrangement,’ says Skipworth.
Kym Yancey, vice-president of marketing and research for tpn, says the phone message campaign in Ontario was not something the corporation itself initiated – he says that a number of distributors may be operating the phone line on their own, and that he would be investigating.
Asked whether the phone messages could be considered misleading because they give prospects the impression they can make money by selling the Star Choice service to others, Yancey says while the sales tactic may be aggressive, it’s not misleading.
‘In effect, our people have to be salespeople for Star Choice. You don’t get one without the other. In their effort to market tpn, they also know a very high-demand product such as digital satellite entertainment is a big deal.
‘The essence is simply this – to get tpn, you have to get Star Choice, so they’re marketing Star Choice at the same time.
‘Second of all, they’re looking for people who not only want the programming in homes themselves but also want to share with friends and neighbors and be able to create additional income from it.’
