Recently, I was reminded of a story I heard about the great Green Bay Packers coach, Vince Lombardi. Every year at the beginning of training camp, he would hold up a football and say, “men, this is a football.” Now, these players were the elite of the elite. They had played football for many years and certainly knew what a football looked like. So, why did he do that each and every year that he coached? Lombardi never wanted his players to forget the importance of the basics.
As we coach or mentor our downline members, it is critical that we remember the lesson of Vince Lombardi. Too often we get caught up in the hottest new internet marketing program or the great new CD or DVD, or the awesome new direct marketing program and we forget what forged this industry. As an industry best selling author, I often get asked to speak at network marketing events and at most of them I ask how people were introduced to their network marketing company. Overwhelmingly it is still through someone they knew – a friend, family member, co-worker, or neighbor. With all the attention on the internet and technology, it’s still good old face-to-face marketing that is working best.
Now, don’t get me wrong, I think everyone should use the internet and the available technology to build a business, but let’s not forget the basics. How many people do you know who are experiencing financial struggles? Are working too many hours at work, away from their family? Never take a vacation, because they either can’t get away from work or don’t have the available funds? Are deeply in debt, just trying to stay afloat? Well, if you are with a legitimate network marketing company, you have the solution! However, if you go and vomit information all over them, the results will be ugly.
The key is to coach your people on how to approach their friends, family members, co-workers, and neighbors. Teach them to ask instead of tell. Asking people questions about their job or business, what they are doing for fun, how things are going with the family and financially, will uncover the areas of struggle that are causing pain. Then, you can ride in on your white stallion and deliver the solution. The results will be amazing.
Back in the early 90’s I asked a millionaire network marketer how to become a millionaire and he gave me a gem of wisdom. He told me to seek to make a million friends and the million dollars would follow. We should be coaching our downline members to go out and seek to make friends, rather then find prospects. A friend is more trusting and loyal than a stranger. How do we make friends? We invest time in them – getting to know them, helping them succeed, encouraging them along the way, being there with them when the times get tough. Network marketing is a simple, but difficult business. Everyone will have their struggles and as a good coach and friend, if you are there for your downline members, they will remember. That’s a basic to remember and teach.
When I joined the network marketing industry in 1979, my coach told me to become a master of the industry. He encouraged me to read and study the history of the industry, the successful companies, trends that would drive the industry, and so on. I invested time each week to reading books and talking with successful network marketers. In the early 90’s the internet made this even easier. At this point, I’ve read most of the books on network marketing, have many network marketing links in my favorites, am a subscriber to The Network Marketing Magazine, have listened to most of the tapes and CD’s, watched most of the videos and DVD’s, enjoyed many teleconferences and webinars, and spoken to many of the top income earners in the industry.
I believe that as coaches and mentors, we need to encourage our downline members to invest in themselves by becoming a master of the industry. Provide them with a recommended reading list of the best network marketing books (make sure you include my books The Ideal Business, The Twelve Power Secrets for Network Marketing Success, and Would You Like to Dig in My Goldmine? - You will find all of these on my site a www.rodnichols.com), a recommended CD/DVD list, and those web sites that you would consider important to their education. As they gain mastery of network marketing, fear goes away and they are more likely to approach people about their business, resulting in greater success.
People, this is a football. It’s important for us to go back to basics in our own businesses and then coach our people in the basics. Vince Lombardi coached one of the great football dynasties of all time and by going back to basics with your downline, you could enjoy watching many people in your downline succeed and create one of the great network marketing dynasties.
Tuesday, October 12, 2010
Thursday, October 7, 2010
Learn to Love Objections
Most network marketers cringe when their prospects begin to object, however top income earners rejoice, as they have learned to love objections. Here are some of the most common network marketing objections you will hear:
• “Isn’t this one of those pyramid schemes?”
• “I wouldn’t be interested.”
• “I don’t have enough time.”
• “I don’t have any money.”
• “I don’t know many people.”
• “I can’t or don’t like to sell.”
• “I’ve never run a business before.”
• “I don’t want to jeopardize my job.”
• “I can’t see myself doing that.”
• “I’ve tried MLM before and lost my shirt.”
• “My uncle was in MLM and now everyone avoids him.”
• “Is this like Amway (or some other MLM company).”
• “I’d lose all my friends/people would start avoiding me.”
• “I’d lose my status.”
The last two objections are usually unspoken and most prospects have them. People fear that prospecting their friends or pursuing this type of business would jeopardize their friendships and family relationships or their status in society. These may be the most difficult objections that you will have to handle and if you get stuck with a prospect, you may have to ask them if they have these thoughts and then deal with them using the process outlined below.
Before we talk about how to handle objections, you need to understand that objections are good. It means that the person is interested enough to object. Objections also give you a sneak peak into their inner mind and how they are thinking about what you are presenting. If you get good at handling objections, you will learn to love them and turn them into yes' for your business and product.
Handling Objections
Every type of network marketing business has a little different way to handle the various types of objections, so check with your sponsor or upline leaders to see if they have answers to the most common objections in your business. However, you can generally rely on the following six-step approach to handling all types of objections:
• Listen – listen to the entire objection. Most often, distributors will hear the first couple words and begin to think of an answer. The danger here is that quite often the objection either changes or the prospect will come full circle and answer their own objection. If you jump in with an answer, you prove to them you weren’t listening.
• Restate – restate the objection in your own words, to insure that you understood what they were trying to say. For example, if the prospect said, “I don’t have enough time”, you might say, “If I’m understanding what you are saying, you don’t feel like you have any extra time to add something like this into your schedule, is that correct?” Restating the objection shows that you were listening and also enables you to get a clear understanding of their concern.
• Agree or Show Understanding – it is important that you empathize with the prospect. For example, if your prospect said, “I’ve tried MLM before and lost my shirt”, you might say, “I’m sorry to hear that, could you tell me more about that situation.” By asking for more information, you may uncover the reason for the discomfort, which will help when you get to the next step – answering the objection.
• Answer – you can answer an objection in many ways. The most logical, but usually least effective, is verbally. The best way to answer an objection is to combine a verbal answer with visual reinforcement, such as articles, charts, graphs, and testimonial letters. People tend to disbelieve what they hear and believe what they see, so show them proof. There are various publications that have published positive articles about network marketing. Rich Dad, Poor Dad author, Robert Kiyosaki has written a book about network marketing - The Business of the 21st Century, which is a great proof source for network marketing as a legitimate and timely business.
• Confirm – make sure that you have answered the objection to the satisfaction of the prospect. Ask, “Does that answer your question?” or “Have I covered that to your satisfaction?” If not, ask what they would need to see in order to be satisfied and then if possible, provide that level of proof.
• Close – once you have confirmed the answer, ask a closing question that gives two or three positive options. For example, you might ask, “Our top people are starting with option 1 (describe it). The most popular package is Option 2 (describe it). Those who are really on a business and aren't quite ready to build a big business start with option 3 (describe it). Would you like to start Option 1 (big package), Option 2 (mid package), or Option 3 (small package)?”
This six-step approach is time-proven to work . . . if you actually use it. Most network marketers read all the books and listen to all the tapes, but they never internalize the information. You can opt for rejection, or you can practice and use a proven system for answering objections.
One final hint regarding objections – if they give you too many, do not try to answer them all. If they are this negative now, they will likely continue that attitude once they have joined. You are probably better off moving on to the next prospect.
Welcome objections, learn how to handle them properly, and they will help you sponsor more people and build a large network marketing business.
• “Isn’t this one of those pyramid schemes?”
• “I wouldn’t be interested.”
• “I don’t have enough time.”
• “I don’t have any money.”
• “I don’t know many people.”
• “I can’t or don’t like to sell.”
• “I’ve never run a business before.”
• “I don’t want to jeopardize my job.”
• “I can’t see myself doing that.”
• “I’ve tried MLM before and lost my shirt.”
• “My uncle was in MLM and now everyone avoids him.”
• “Is this like Amway (or some other MLM company).”
• “I’d lose all my friends/people would start avoiding me.”
• “I’d lose my status.”
The last two objections are usually unspoken and most prospects have them. People fear that prospecting their friends or pursuing this type of business would jeopardize their friendships and family relationships or their status in society. These may be the most difficult objections that you will have to handle and if you get stuck with a prospect, you may have to ask them if they have these thoughts and then deal with them using the process outlined below.
Before we talk about how to handle objections, you need to understand that objections are good. It means that the person is interested enough to object. Objections also give you a sneak peak into their inner mind and how they are thinking about what you are presenting. If you get good at handling objections, you will learn to love them and turn them into yes' for your business and product.
Handling Objections
Every type of network marketing business has a little different way to handle the various types of objections, so check with your sponsor or upline leaders to see if they have answers to the most common objections in your business. However, you can generally rely on the following six-step approach to handling all types of objections:
• Listen – listen to the entire objection. Most often, distributors will hear the first couple words and begin to think of an answer. The danger here is that quite often the objection either changes or the prospect will come full circle and answer their own objection. If you jump in with an answer, you prove to them you weren’t listening.
• Restate – restate the objection in your own words, to insure that you understood what they were trying to say. For example, if the prospect said, “I don’t have enough time”, you might say, “If I’m understanding what you are saying, you don’t feel like you have any extra time to add something like this into your schedule, is that correct?” Restating the objection shows that you were listening and also enables you to get a clear understanding of their concern.
• Agree or Show Understanding – it is important that you empathize with the prospect. For example, if your prospect said, “I’ve tried MLM before and lost my shirt”, you might say, “I’m sorry to hear that, could you tell me more about that situation.” By asking for more information, you may uncover the reason for the discomfort, which will help when you get to the next step – answering the objection.
• Answer – you can answer an objection in many ways. The most logical, but usually least effective, is verbally. The best way to answer an objection is to combine a verbal answer with visual reinforcement, such as articles, charts, graphs, and testimonial letters. People tend to disbelieve what they hear and believe what they see, so show them proof. There are various publications that have published positive articles about network marketing. Rich Dad, Poor Dad author, Robert Kiyosaki has written a book about network marketing - The Business of the 21st Century, which is a great proof source for network marketing as a legitimate and timely business.
• Confirm – make sure that you have answered the objection to the satisfaction of the prospect. Ask, “Does that answer your question?” or “Have I covered that to your satisfaction?” If not, ask what they would need to see in order to be satisfied and then if possible, provide that level of proof.
• Close – once you have confirmed the answer, ask a closing question that gives two or three positive options. For example, you might ask, “Our top people are starting with option 1 (describe it). The most popular package is Option 2 (describe it). Those who are really on a business and aren't quite ready to build a big business start with option 3 (describe it). Would you like to start Option 1 (big package), Option 2 (mid package), or Option 3 (small package)?”
This six-step approach is time-proven to work . . . if you actually use it. Most network marketers read all the books and listen to all the tapes, but they never internalize the information. You can opt for rejection, or you can practice and use a proven system for answering objections.
One final hint regarding objections – if they give you too many, do not try to answer them all. If they are this negative now, they will likely continue that attitude once they have joined. You are probably better off moving on to the next prospect.
Welcome objections, learn how to handle them properly, and they will help you sponsor more people and build a large network marketing business.
Tuesday, October 5, 2010
Four Steps to MLM Success
Network marketing (MLM) is a very simple business. It's a wonder to me why everyone doesn't make big money. Here are the four steps necessary for you to be successful:
1. Learn your business - study the company materials. Learn the company story - who? what? when? why? where? how? Study the products/services and the competition. Get statistics on the industry. Research the other network marketing companies that you compete with and determine your strengths and weaknesses. Talk with other successful distributors about how they have built their business. Get on the company e-mail distribution list and voice mail system (if your company has one), so that you can stay current. Buy all the training programs, CD’s, DVD’s, manuals, brochures, books, etc., so that you can have a better understanding of everything about your business. Listen to CD’s on your business whenever you are in the car. Tune in to the company teleconferences or web conferences. Attend all company and distributor sponsored meetings.
2. Do the business - get started right away, even while you are doing the research for number 1. You will learn more about your business by doing it then you will by researching it. Get out there and start talking to people. When they ask you something you don't know, say, "that's a good question and I don't know the answer, but I'll find out and get back with you." Go get the answer and call them back. Start making phone calls, meeting with people in person, conducting your own opportunity meetings, do your own teleconferences or web conferences, and have regular trainings for you downline. Ask your sponsor or another qualified upline leader to help with 3-way calls and meetings. Develop a duplicatable system that works.
3. Teach the business - when you sponsor a new distributor, you are responsible to that person to help them get started and send them down the path toward success. Teach them partially through what you say and mostly by what you do. They will follow your lead. Show them how to prospect by doing it. Show them how to sponsor by doing it. Show them how to retail by doing it. Show them how to train by doing it. Provide them with the tools to be successful. During the first 30 days stay in touch daily. Offer to mail or e-mail information to prospects until they are up to speed. Suggest doing some 3-way calls and an in-home business briefing (which you will conduct, so they can see how to do a briefing). Encourage them to attend all the meetings, conferences, and conventions. Help them set goals and a plan to reach those goals. Keep your new distributors heading in the right direction.
4. Teach them to teach the business - when you uncover leaders who begin to develop their own downline team, teach them how to teach the business to their downline. Teach about the power of example. Give them tools they can use to teach their downline how to sponsor, retail and train.
That's it. It's just that simple. If you will follow these 4 steps, you will achieve huge success in network marketing.
1. Learn your business - study the company materials. Learn the company story - who? what? when? why? where? how? Study the products/services and the competition. Get statistics on the industry. Research the other network marketing companies that you compete with and determine your strengths and weaknesses. Talk with other successful distributors about how they have built their business. Get on the company e-mail distribution list and voice mail system (if your company has one), so that you can stay current. Buy all the training programs, CD’s, DVD’s, manuals, brochures, books, etc., so that you can have a better understanding of everything about your business. Listen to CD’s on your business whenever you are in the car. Tune in to the company teleconferences or web conferences. Attend all company and distributor sponsored meetings.
2. Do the business - get started right away, even while you are doing the research for number 1. You will learn more about your business by doing it then you will by researching it. Get out there and start talking to people. When they ask you something you don't know, say, "that's a good question and I don't know the answer, but I'll find out and get back with you." Go get the answer and call them back. Start making phone calls, meeting with people in person, conducting your own opportunity meetings, do your own teleconferences or web conferences, and have regular trainings for you downline. Ask your sponsor or another qualified upline leader to help with 3-way calls and meetings. Develop a duplicatable system that works.
3. Teach the business - when you sponsor a new distributor, you are responsible to that person to help them get started and send them down the path toward success. Teach them partially through what you say and mostly by what you do. They will follow your lead. Show them how to prospect by doing it. Show them how to sponsor by doing it. Show them how to retail by doing it. Show them how to train by doing it. Provide them with the tools to be successful. During the first 30 days stay in touch daily. Offer to mail or e-mail information to prospects until they are up to speed. Suggest doing some 3-way calls and an in-home business briefing (which you will conduct, so they can see how to do a briefing). Encourage them to attend all the meetings, conferences, and conventions. Help them set goals and a plan to reach those goals. Keep your new distributors heading in the right direction.
4. Teach them to teach the business - when you uncover leaders who begin to develop their own downline team, teach them how to teach the business to their downline. Teach about the power of example. Give them tools they can use to teach their downline how to sponsor, retail and train.
That's it. It's just that simple. If you will follow these 4 steps, you will achieve huge success in network marketing.
Friday, September 24, 2010
Which Compensation Plan is the Best?
Is it the breakaway, matrix, unilevel, binary, hybrid binary, 2-up . . .? Over the last 31 years in network marketing, I've researched and written about them all and although I have an opinion as to which is the best, I must say that the answer to question is really up to the individual. In this articles, I'm going to cover the positives and negatives about each plan and discuss what type of person would do best in each plan. I failed with a number of companies, because they didn't have the right compensation plan for me, whereas there were many people making tons of money in that plan. That's when I began to realize that plans are not good or bad, they are just good or bad for each individual and you have to make that choice. Hopefully this article will help you make a better choice.
Breakaway Plan
This is the oldest of the compensation plans. Companies like Amway, Shaklee, Herbalife, Nikken, and Nu Skin, use this plan. In a breakaway plan, you can sponsor as wide as you want. This means that you can place as many people as you want on your level number one, which is also called your “frontline.” This makes the breakaway plan, a horizontal growth plan, meaning that the primary growth is horizontally. As the people you personally sponsor begin to sponsor people, you will experience downline growth.
The breakaway plan is often referred to as a “stair step breakaway,” as visually the commission structure looks like a staircase. As you achieve certain levels (typically by achieving increasing volume levels), you move up the stairs to higher leadership levels. This generally means an increase in the commission percentage you earn or an increase in the number of downline generations or breakaway groups (which will be explained later in this section) on which you can get paid.
The people in your downline are also working to move up the staircase to higher levels of achievement. In most breakaway plans, when someone in your downline achieves a certain level of volume (purchases made by their downline distributors and customers), they breakaway from you and form their own independent group. Typically, your commission percentage drops, as you are no longer managing that group. In many breakaway plans, the volume that is created by that breakaway group no longer counts for your qualification to higher levels of achievement. Also, most companies limit the number of levels of breakaway groups you can get paid upon to typically five or six levels.
Advantages of a Breakaway
The biggest advantage is that you can sponsor unlimited number of people across your frontline and earn downline commissions on unlimited number of legs. This feature, results in the highest potential earnings of any plan. It is the breakaway plan that has resulted in the mammoth earnings that have become legendary in the network marketing industry. Also, the breakaway plan typically pays down unlimited levels to the next breakaway group. This means that you don’t miss out on a downline volume in levels six and below like you would in some plans. Stability of this plan is also advantageous, as it has been around for over fifty years. It’s a plan that has been heavily scrutinized by the state and national regulators, so unless there is distributor fraud (i.e., frontloading, extraordinary income claims, etc.), this is a safe plan.
Disadvantages of a Breakaway
An immediate disadvantage is that breakaway plans typically pay on a monthly basis. This means that at the end of your first month, your commissions will be calculated and it’s often past the 20th of the following month before you would receive a check. Many people need to make money quicker. Also, the really big money is in building depth, after you have built width. This takes time, so it may take five to ten years or more to get into the six-figure range. The breakaway plan is a great plan for the full-time heavy hitter, because they will get into deeper levels (or backend money) quicker. The average part-time distributor will likely never make it to the really big incomes. The breakaway plan also typically has monthly group volume requirements. If you don’t meet those requirements you don’t earn a check. In some plans, if you miss the monthly requirement two or three months in a row, you can lose your leadership title and possibly even your downline commissions, until you re-qualify. Another disadvantage of the breakaway is that in some plans, if you have a downline person who is a real superstar and they achieve a higher leadership position before you do, they pass you up. This means that you get paid on their personal purchases, but not on their downline group volume. If you only have a small number of downline leaders and need to maintain a high monthly group volume requirement, this can be very damaging. The last disadvantage of the breakaway plan is that it is very complex. This makes it difficult for the new distributor to explain in a presentation and even more difficult for a business candidate to understand how to make money. Not understanding how to make money reduces the possibility of candidates to join your business.
Who Will do the Best in the Breakaway?
Historically, the person who has achieved the greatest success in a breakaway plan is the person who can sponsor a lot of people. Secondary to that is the person who can also build successful teams.
Unilevel Plan
The unilevel plan resembles a breakaway, but does not have the breakaway groups. It too is a horizontal growth plan, as the primary focus is on sponsoring across the frontline. Like the breakaway, you can sponsor an unlimited number of people on your frontline. Also, similar to the breakaway, there is a limitation to the levels of downline on which you can be paid. Since there are no breakaway groups, you will typically get paid down five to seven levels of downline distributors in a unilevel plan. Unique to the unilevel plan is the infinity bonus. This is an increase in the levels of commission that you can be paid on, achieved by building a certain number of frontline leaders (people who have achieved a certain amount of downline volume). In most unilevels, the standard commission percentage will be between 1% and 5%. The infinity bonus will be between 1% and 3% and will extend down ever increasing numbers of levels, as you achieve higher ranks.
There is also a hybrid plan that is called a compressed unilevel. This is a plan that pays high commission percentages on the first three levels. For example, you might get paid 15% on your first level, 45% on your second level, and 10% on the third level. Then, until you achieve a high leadership position, you will not earn on your fourth level and below. This is a great plan for the part-timer, who is only going to sponsor a small number of part-timers. The plan really maximizes the small amount of production. However, it penalizes the person who sponsors more and works to build a large network, as it will take awhile for them to achieve a high enough rank to start earning on the fourth level and below. Also, history tells us that in a mature network marketing organization, the greatest number of distributors will be down around the ninth or tenth levels. The compressed plan does not allow for maximum payout on those lower levels.
The unilevel plan is a decent plan for both the part- and full-time distributors. The potential income levels are high enough for the heavy hitter and many unilevels combine weekly payout with fast-start bonuses (extra commissions paid during the first few months of a distributorship) to make it quickly lucrative for the part-timer.
Advantages of a Unilevel
The first advantage is simplicity. The unilevel plan is typically very easy to understand and explain. This makes the job of the new distributor quite easy and increases the odds of a business candidate joining. Like the breakaway plan, the unilevel has the benefit of unlimited frontline sponsoring (or width). Typically the unilevel doesn’t have the large group volume requirements, so it’s a much easier plan than the breakaway and much better suited for the part-timer. Also, most unilevel plans offer infinity bonuses, which enable you to earn on unlimited levels of downline distributors.
Disadvantages of a Unilevel
Typically a distributor in a unilevel will have to develop between ten and fifteen frontline leaders (people who have achieved a certain level of volume) in order to tap into the infinity bonus, which enables them to earn below the typical level limitations (most often either five or six levels). Most distributors will never accomplish this and thus will never earn below the level limitation. This means that if an average distributor builds say five strong legs, can only earn down six levels, and has a superstar on the seventh level or below, he or she cannot earn a penny on them. Although the unilevel can be lucrative, historically the heavy hitters (people who are going to personally sponsor hundreds of people into their network) will choose the stair step plan over the unilevel, because they can immediately earn on a greater number of levels in the breakaway plan.
Who Will do the Best in the Unilevel?
Similar to the Breakaway, the person who can sponsor a lot of people will achieve the most in the Unilevel. Width is the key to success, so you will need to have a lot of people across your front line. Building successful teams is also important here.
Matrix Plan
The matrix is the first of the “vertical” growth plans. In this plan, there is a limitation to the number of people you can sponsor on your frontline. There is also a limitation to the number of levels in depth for which you can get paid. For example, a 5 x 7 matrix means that you can personally sponsor five people across your frontline and can earn down seven levels deep. The matrix does not restrict the number of people you sponsor, as you can continue sponsoring people and placing them into your downline. This is called filling up the matrix. In a 5 x 7 matrix, there would be five people on your frontline, then twenty-five on your second level, then one-hundred twenty-five on the third level and so on in multiplications of five down to the seventh level. If you were to personally sponsor thirty people, you would fill up not only your first level, but also the second level. This would benefit all of your frontline (first level) distributors, as their frontline would now be filled and they didn’t have to do anything. This is called “spillover” and is one of the biggest perceived benefits of the matrix.
Advantages of a Matrix
The first and most prominent is spillover, which was mentioned earlier. This is where your sponsor or an upline leader places someone in your downline. Since the focus of the breakaway and unilevel is on building horizontally, there is very little spillover. However, with the matrix and its first level limitation, there can be a great deal of spillover, if you are fortunate enough to have an upline who is sponsoring more than his or her five. The matrix is also a very simple plan, so it is easy to explain, thus increasing the odds of a business candidate joining. Plus, it is an easy plan to determine income. Typically there is a set commission percentage on each level and you know how many people are in that level and what the typical monthly order will be. It’s simple to determine how much you will make and to show a candidate how much he or she could make.
Disadvantages of a Matrix
Although spillover is an advantage, it is also a disadvantage. In the case of a matrix, it can cause “dead wood syndrome.” This is where you have people in your downline who are doing nothing and are waiting for you to fill their matrix. They may even get upset at you if you are not working fast enough. If you were to have dead wood in all spots in a leg (of a 5x7 matrix), you would have a dead leg and could not earn anything on that leg. The worst part is that you could have a real superstar on the 8th level and aren’t getting paid on him or her. The only things you can do is try to get those dead wood people doing something or wait until they quit and your superstar rolls up into the payout levels. The biggest disadvantage is the limitation on income. Since you are limited by both width and depth, your income is limited. However, most people will never fill a complete matrix, so it really isn’t a strong issue—except to the heavy hitter, who will always stay away from a matrix.
Who Will do the Best in the Matrix?
Since width is limited on a Matrix plan, it's all about vertical growth. They key here is to bring in solid people, so it's not about sponsoring a lot of people, but about the quality of those people. Since people who don't do anything become dead wood in the system and take up valuable spots, it's important to have people who are actually building a business, so the person who has quality business builders in their circle of influence is going to do wll here.
Binary Plan
The binary is the youngest of the compensation plans, having been around since about 1989. This is a very unique plan, in that it doesn’t revolve around levels. Instead you build business centers. Off of a business center are left and right legs. A leg is just a line of distributors one after the other. The way you are paid is based on volume in those two legs. Some binary plans require you to balance the volumes—this is called a balanced binary. In this type of plan, you would get paid at the volume level where the legs are balanced. For example if you had $1000 of volume in your left leg and $1000 volume in your right, you might earn a $200 check, which would be 10% of the total balanced volume of $2000. However, if you had $1000 on your left leg and $3,000 on your right, you would still only get paid at the $1000 level. In a good binary, the excess volume (carryover) will stay in your account for the next pay period (typically weekly), so you start the next week with $2,000 in your right leg. Typically, this volume will continue to accumulate up to a certain level, which is most commonly $5,000 in each leg.
There are several other types of binary plans. One that has come under a great deal of regulator scrutiny is the three-phase binary. This is where you build up volume in phases, with a new investment in business centers at the beginning of each phase. This plan apparently looks like a pyramid to many regulators, as several companies using this plan were driven out of business by the regulators. Another type is the 1/3–2/3 binary. This is similar to the balanced binary, except that if you have little or no volume in one of your legs, you can still receive some commission. The commission percentages are typically lower in this plan, to offset the additional commissions paid.
Disadvantages of a Binary
The disadvantage you will hear about most is the “runaway leg.” This is where someone in a leg really takes off and builds a huge business. You are then faced with a dilemma, as you have no one on the other side and must quickly build the opposite leg to balance out the runaway leg. This actually occurs in all plans and in many, because of level limitations, the volume is just lost. In a good binary, the volume will accrue until it is used, so you have some time to play catch-up. Another disadvantage of the binary is the volume limitation in each leg (typically $5,000). This means that if you have $10,000 volume in this leg, you can only get paid on $5,000. This is offset by re-entry centers, which will be discussed in the benefit section.
Advantages of a Binary
The biggest is the limited number of legs that must be built in order to make money. Since on average, a network marketer will sponsor between two and four people, the binary offers them a very legitimate plan for making money in network marketing. Plus, most binary plans pay weekly and the initial payout level is usually fairly low, so a new distributor can earn his or her first check quickly, which usually results in a higher level of loyalty. Another advantage is the teamwork that results in a binary. Since you are only building two legs off of each center (some plans offer options of multiple centers, thus giving you more legs to build), you are forced to place additional recruits into the downlines of others. This is the same spillover that was introduced in the matrix, however in the binary there is no possibility of dead wood syndrome, since each person must build both legs in order to earn commissions. In most plans, there are level limitations, however in the binary plan there are none. You could get paid down 100 levels, as long as the total volume doesn’t exceed the maximum that can be accrued in a leg. The most unique benefit of the binary is the “re-entry center.” This offers two possibilities. As you maximize a business center by accruing the maximum volume in each leg (say $5,000 in each leg), you would earn a re-entry center. This is a new center, which can be placed at the bottom of any of your legs. By doing this, you instantly become part of your own downline and part of the downline of people who are in that leg. Also, your sponsor or an upline leader could re-enter into your downline. The binary is the only plan in existence with this feature.
Who Will do the Best in the Binary?
Since the binary limits the front line to two people, this plan is great for people who aren't that great at sponsoring a lot of people. Team building is the real key - helping the two you sponsor find their two and begin that duplication downline. Here the person who is great at building relationships and helping others succeed will do the best.
Hybrid Binary
This is the newest time-proven plan. There are several successful companies using this combination of the binary and unilevel plans. In a hybrid binary, distributors build a binary tree and get paid as if they were in a binary. However, when they reach a certain level of leadership, they also get paid in a unilevel structure (usually 8 to 10 levels). So, the advantages and disadvantages are those of both the binary and the unilevel. Personally, I like this plan the best, as it offers the ability for the average person, who isn't going to sponsor more than 4 people to make money (due to the binary). I also like that those who really want to excell and sponsor more people can make big time money in the unilevel portion of the plan. So, this plan provides the widest opportunity for success. One of the disadvantages in a binary plan has been the volume limitations and in the hybrid binary plans, they have dramatically increased the volume amounts, making the plan much more lucrative and yet still including the ability to have multiple centers (placed above the original centers, so that one leg is already built).
Who Will do the Best in the Hybrid Binary?
Since this is a combination of the binary and unilevel plans, those who will only sponsor a few people, but are good at building relationships and teams will be successful, as will those who can sponsor a lot of people. It's really the best of both worlds.
These are the five most common compensation plans. There are others that have surfaced time and time again, such as the Australian Two-Up. A unique feature distinguishes this plan. The first two people you sponsor go to your sponsor, not in your downline. Then as you sponsor additional people, they will put their first two into your downline. This sounds great, as long as you sponsor more than two people. Since most people will only sponsor 2-4 people, this is not a very good plan for the average person. To my knowlege there has not been a company use this plan to create long-term success. There are also companies who have combined common plans, such as a unilevel and binary. Although unique, this becomes very complex and makes the plan very difficult to understand and explain, thus reducing the probability that a candidate will join your team.
Hopefully this article will help you recognize whether you are in a company with the right compensation plan or if you are searching right now (which, if you are, let me know) it will help you choose a company with the right plan for you. The right plan can make all the difference. It did for me, as I floundered in the industry for a number of years and they discovered a plan that worked great for me. Keep in mind there are always other factors as well - management, products, trends, timing, training, support, etc., so make sure if you are researching companies, you are looking at all the factors, not just the compensation plan. If you would like my assistance, please contact me at Rod@RodNichols.com
Breakaway Plan
This is the oldest of the compensation plans. Companies like Amway, Shaklee, Herbalife, Nikken, and Nu Skin, use this plan. In a breakaway plan, you can sponsor as wide as you want. This means that you can place as many people as you want on your level number one, which is also called your “frontline.” This makes the breakaway plan, a horizontal growth plan, meaning that the primary growth is horizontally. As the people you personally sponsor begin to sponsor people, you will experience downline growth.
The breakaway plan is often referred to as a “stair step breakaway,” as visually the commission structure looks like a staircase. As you achieve certain levels (typically by achieving increasing volume levels), you move up the stairs to higher leadership levels. This generally means an increase in the commission percentage you earn or an increase in the number of downline generations or breakaway groups (which will be explained later in this section) on which you can get paid.
The people in your downline are also working to move up the staircase to higher levels of achievement. In most breakaway plans, when someone in your downline achieves a certain level of volume (purchases made by their downline distributors and customers), they breakaway from you and form their own independent group. Typically, your commission percentage drops, as you are no longer managing that group. In many breakaway plans, the volume that is created by that breakaway group no longer counts for your qualification to higher levels of achievement. Also, most companies limit the number of levels of breakaway groups you can get paid upon to typically five or six levels.
Advantages of a Breakaway
The biggest advantage is that you can sponsor unlimited number of people across your frontline and earn downline commissions on unlimited number of legs. This feature, results in the highest potential earnings of any plan. It is the breakaway plan that has resulted in the mammoth earnings that have become legendary in the network marketing industry. Also, the breakaway plan typically pays down unlimited levels to the next breakaway group. This means that you don’t miss out on a downline volume in levels six and below like you would in some plans. Stability of this plan is also advantageous, as it has been around for over fifty years. It’s a plan that has been heavily scrutinized by the state and national regulators, so unless there is distributor fraud (i.e., frontloading, extraordinary income claims, etc.), this is a safe plan.
Disadvantages of a Breakaway
An immediate disadvantage is that breakaway plans typically pay on a monthly basis. This means that at the end of your first month, your commissions will be calculated and it’s often past the 20th of the following month before you would receive a check. Many people need to make money quicker. Also, the really big money is in building depth, after you have built width. This takes time, so it may take five to ten years or more to get into the six-figure range. The breakaway plan is a great plan for the full-time heavy hitter, because they will get into deeper levels (or backend money) quicker. The average part-time distributor will likely never make it to the really big incomes. The breakaway plan also typically has monthly group volume requirements. If you don’t meet those requirements you don’t earn a check. In some plans, if you miss the monthly requirement two or three months in a row, you can lose your leadership title and possibly even your downline commissions, until you re-qualify. Another disadvantage of the breakaway is that in some plans, if you have a downline person who is a real superstar and they achieve a higher leadership position before you do, they pass you up. This means that you get paid on their personal purchases, but not on their downline group volume. If you only have a small number of downline leaders and need to maintain a high monthly group volume requirement, this can be very damaging. The last disadvantage of the breakaway plan is that it is very complex. This makes it difficult for the new distributor to explain in a presentation and even more difficult for a business candidate to understand how to make money. Not understanding how to make money reduces the possibility of candidates to join your business.
Who Will do the Best in the Breakaway?
Historically, the person who has achieved the greatest success in a breakaway plan is the person who can sponsor a lot of people. Secondary to that is the person who can also build successful teams.
Unilevel Plan
The unilevel plan resembles a breakaway, but does not have the breakaway groups. It too is a horizontal growth plan, as the primary focus is on sponsoring across the frontline. Like the breakaway, you can sponsor an unlimited number of people on your frontline. Also, similar to the breakaway, there is a limitation to the levels of downline on which you can be paid. Since there are no breakaway groups, you will typically get paid down five to seven levels of downline distributors in a unilevel plan. Unique to the unilevel plan is the infinity bonus. This is an increase in the levels of commission that you can be paid on, achieved by building a certain number of frontline leaders (people who have achieved a certain amount of downline volume). In most unilevels, the standard commission percentage will be between 1% and 5%. The infinity bonus will be between 1% and 3% and will extend down ever increasing numbers of levels, as you achieve higher ranks.
There is also a hybrid plan that is called a compressed unilevel. This is a plan that pays high commission percentages on the first three levels. For example, you might get paid 15% on your first level, 45% on your second level, and 10% on the third level. Then, until you achieve a high leadership position, you will not earn on your fourth level and below. This is a great plan for the part-timer, who is only going to sponsor a small number of part-timers. The plan really maximizes the small amount of production. However, it penalizes the person who sponsors more and works to build a large network, as it will take awhile for them to achieve a high enough rank to start earning on the fourth level and below. Also, history tells us that in a mature network marketing organization, the greatest number of distributors will be down around the ninth or tenth levels. The compressed plan does not allow for maximum payout on those lower levels.
The unilevel plan is a decent plan for both the part- and full-time distributors. The potential income levels are high enough for the heavy hitter and many unilevels combine weekly payout with fast-start bonuses (extra commissions paid during the first few months of a distributorship) to make it quickly lucrative for the part-timer.
Advantages of a Unilevel
The first advantage is simplicity. The unilevel plan is typically very easy to understand and explain. This makes the job of the new distributor quite easy and increases the odds of a business candidate joining. Like the breakaway plan, the unilevel has the benefit of unlimited frontline sponsoring (or width). Typically the unilevel doesn’t have the large group volume requirements, so it’s a much easier plan than the breakaway and much better suited for the part-timer. Also, most unilevel plans offer infinity bonuses, which enable you to earn on unlimited levels of downline distributors.
Disadvantages of a Unilevel
Typically a distributor in a unilevel will have to develop between ten and fifteen frontline leaders (people who have achieved a certain level of volume) in order to tap into the infinity bonus, which enables them to earn below the typical level limitations (most often either five or six levels). Most distributors will never accomplish this and thus will never earn below the level limitation. This means that if an average distributor builds say five strong legs, can only earn down six levels, and has a superstar on the seventh level or below, he or she cannot earn a penny on them. Although the unilevel can be lucrative, historically the heavy hitters (people who are going to personally sponsor hundreds of people into their network) will choose the stair step plan over the unilevel, because they can immediately earn on a greater number of levels in the breakaway plan.
Who Will do the Best in the Unilevel?
Similar to the Breakaway, the person who can sponsor a lot of people will achieve the most in the Unilevel. Width is the key to success, so you will need to have a lot of people across your front line. Building successful teams is also important here.
Matrix Plan
The matrix is the first of the “vertical” growth plans. In this plan, there is a limitation to the number of people you can sponsor on your frontline. There is also a limitation to the number of levels in depth for which you can get paid. For example, a 5 x 7 matrix means that you can personally sponsor five people across your frontline and can earn down seven levels deep. The matrix does not restrict the number of people you sponsor, as you can continue sponsoring people and placing them into your downline. This is called filling up the matrix. In a 5 x 7 matrix, there would be five people on your frontline, then twenty-five on your second level, then one-hundred twenty-five on the third level and so on in multiplications of five down to the seventh level. If you were to personally sponsor thirty people, you would fill up not only your first level, but also the second level. This would benefit all of your frontline (first level) distributors, as their frontline would now be filled and they didn’t have to do anything. This is called “spillover” and is one of the biggest perceived benefits of the matrix.
Advantages of a Matrix
The first and most prominent is spillover, which was mentioned earlier. This is where your sponsor or an upline leader places someone in your downline. Since the focus of the breakaway and unilevel is on building horizontally, there is very little spillover. However, with the matrix and its first level limitation, there can be a great deal of spillover, if you are fortunate enough to have an upline who is sponsoring more than his or her five. The matrix is also a very simple plan, so it is easy to explain, thus increasing the odds of a business candidate joining. Plus, it is an easy plan to determine income. Typically there is a set commission percentage on each level and you know how many people are in that level and what the typical monthly order will be. It’s simple to determine how much you will make and to show a candidate how much he or she could make.
Disadvantages of a Matrix
Although spillover is an advantage, it is also a disadvantage. In the case of a matrix, it can cause “dead wood syndrome.” This is where you have people in your downline who are doing nothing and are waiting for you to fill their matrix. They may even get upset at you if you are not working fast enough. If you were to have dead wood in all spots in a leg (of a 5x7 matrix), you would have a dead leg and could not earn anything on that leg. The worst part is that you could have a real superstar on the 8th level and aren’t getting paid on him or her. The only things you can do is try to get those dead wood people doing something or wait until they quit and your superstar rolls up into the payout levels. The biggest disadvantage is the limitation on income. Since you are limited by both width and depth, your income is limited. However, most people will never fill a complete matrix, so it really isn’t a strong issue—except to the heavy hitter, who will always stay away from a matrix.
Who Will do the Best in the Matrix?
Since width is limited on a Matrix plan, it's all about vertical growth. They key here is to bring in solid people, so it's not about sponsoring a lot of people, but about the quality of those people. Since people who don't do anything become dead wood in the system and take up valuable spots, it's important to have people who are actually building a business, so the person who has quality business builders in their circle of influence is going to do wll here.
Binary Plan
The binary is the youngest of the compensation plans, having been around since about 1989. This is a very unique plan, in that it doesn’t revolve around levels. Instead you build business centers. Off of a business center are left and right legs. A leg is just a line of distributors one after the other. The way you are paid is based on volume in those two legs. Some binary plans require you to balance the volumes—this is called a balanced binary. In this type of plan, you would get paid at the volume level where the legs are balanced. For example if you had $1000 of volume in your left leg and $1000 volume in your right, you might earn a $200 check, which would be 10% of the total balanced volume of $2000. However, if you had $1000 on your left leg and $3,000 on your right, you would still only get paid at the $1000 level. In a good binary, the excess volume (carryover) will stay in your account for the next pay period (typically weekly), so you start the next week with $2,000 in your right leg. Typically, this volume will continue to accumulate up to a certain level, which is most commonly $5,000 in each leg.
There are several other types of binary plans. One that has come under a great deal of regulator scrutiny is the three-phase binary. This is where you build up volume in phases, with a new investment in business centers at the beginning of each phase. This plan apparently looks like a pyramid to many regulators, as several companies using this plan were driven out of business by the regulators. Another type is the 1/3–2/3 binary. This is similar to the balanced binary, except that if you have little or no volume in one of your legs, you can still receive some commission. The commission percentages are typically lower in this plan, to offset the additional commissions paid.
Disadvantages of a Binary
The disadvantage you will hear about most is the “runaway leg.” This is where someone in a leg really takes off and builds a huge business. You are then faced with a dilemma, as you have no one on the other side and must quickly build the opposite leg to balance out the runaway leg. This actually occurs in all plans and in many, because of level limitations, the volume is just lost. In a good binary, the volume will accrue until it is used, so you have some time to play catch-up. Another disadvantage of the binary is the volume limitation in each leg (typically $5,000). This means that if you have $10,000 volume in this leg, you can only get paid on $5,000. This is offset by re-entry centers, which will be discussed in the benefit section.
Advantages of a Binary
The biggest is the limited number of legs that must be built in order to make money. Since on average, a network marketer will sponsor between two and four people, the binary offers them a very legitimate plan for making money in network marketing. Plus, most binary plans pay weekly and the initial payout level is usually fairly low, so a new distributor can earn his or her first check quickly, which usually results in a higher level of loyalty. Another advantage is the teamwork that results in a binary. Since you are only building two legs off of each center (some plans offer options of multiple centers, thus giving you more legs to build), you are forced to place additional recruits into the downlines of others. This is the same spillover that was introduced in the matrix, however in the binary there is no possibility of dead wood syndrome, since each person must build both legs in order to earn commissions. In most plans, there are level limitations, however in the binary plan there are none. You could get paid down 100 levels, as long as the total volume doesn’t exceed the maximum that can be accrued in a leg. The most unique benefit of the binary is the “re-entry center.” This offers two possibilities. As you maximize a business center by accruing the maximum volume in each leg (say $5,000 in each leg), you would earn a re-entry center. This is a new center, which can be placed at the bottom of any of your legs. By doing this, you instantly become part of your own downline and part of the downline of people who are in that leg. Also, your sponsor or an upline leader could re-enter into your downline. The binary is the only plan in existence with this feature.
Who Will do the Best in the Binary?
Since the binary limits the front line to two people, this plan is great for people who aren't that great at sponsoring a lot of people. Team building is the real key - helping the two you sponsor find their two and begin that duplication downline. Here the person who is great at building relationships and helping others succeed will do the best.
Hybrid Binary
This is the newest time-proven plan. There are several successful companies using this combination of the binary and unilevel plans. In a hybrid binary, distributors build a binary tree and get paid as if they were in a binary. However, when they reach a certain level of leadership, they also get paid in a unilevel structure (usually 8 to 10 levels). So, the advantages and disadvantages are those of both the binary and the unilevel. Personally, I like this plan the best, as it offers the ability for the average person, who isn't going to sponsor more than 4 people to make money (due to the binary). I also like that those who really want to excell and sponsor more people can make big time money in the unilevel portion of the plan. So, this plan provides the widest opportunity for success. One of the disadvantages in a binary plan has been the volume limitations and in the hybrid binary plans, they have dramatically increased the volume amounts, making the plan much more lucrative and yet still including the ability to have multiple centers (placed above the original centers, so that one leg is already built).
Who Will do the Best in the Hybrid Binary?
Since this is a combination of the binary and unilevel plans, those who will only sponsor a few people, but are good at building relationships and teams will be successful, as will those who can sponsor a lot of people. It's really the best of both worlds.
These are the five most common compensation plans. There are others that have surfaced time and time again, such as the Australian Two-Up. A unique feature distinguishes this plan. The first two people you sponsor go to your sponsor, not in your downline. Then as you sponsor additional people, they will put their first two into your downline. This sounds great, as long as you sponsor more than two people. Since most people will only sponsor 2-4 people, this is not a very good plan for the average person. To my knowlege there has not been a company use this plan to create long-term success. There are also companies who have combined common plans, such as a unilevel and binary. Although unique, this becomes very complex and makes the plan very difficult to understand and explain, thus reducing the probability that a candidate will join your team.
Hopefully this article will help you recognize whether you are in a company with the right compensation plan or if you are searching right now (which, if you are, let me know) it will help you choose a company with the right plan for you. The right plan can make all the difference. It did for me, as I floundered in the industry for a number of years and they discovered a plan that worked great for me. Keep in mind there are always other factors as well - management, products, trends, timing, training, support, etc., so make sure if you are researching companies, you are looking at all the factors, not just the compensation plan. If you would like my assistance, please contact me at Rod@RodNichols.com
Thursday, September 23, 2010
Xylitol A Sweet Alternative to Antibiotics for Ear Infections
I know this doesn't have direct relationship with network marketing, but many drinks out there have sugar, high fructose corn syrup, and artificial sweeteners in them, which have all been proven harmful to our health. Xylitol is natural sweetener that is a great replacement for all those other sweeteners and has many additional health effects, as can be seen in this article at Natural News. Dentists also recommend Xylitol, as it has many great oral health benefits, as well.
http://www.naturalnews.com/029819_xylitol_ear_infections.html
If you would like to be drinking a beverage that is sweetened naturally with Xylitol and Stevia and doesn't have any of the harmful ingredients most beverages have (sugar, high fructose corn syrup, artificial sweeteners, harmful preservatives, chemical fillers, etc) then check out Yoli Truth. It's a great orange flavored beverage that is backed with vitamins and minerals and none of the bad stuff. Plus, if you would like to get your product for FREE, make some extra money, and enjoy great tax benefits, there is an excellent home business attached. I am a founding distributor with Yoli and one of the top 7 income earners in the company. Come join us for great healthy products and the financial ride of your life, then click HERE.
http://www.naturalnews.com/029819_xylitol_ear_infections.html
If you would like to be drinking a beverage that is sweetened naturally with Xylitol and Stevia and doesn't have any of the harmful ingredients most beverages have (sugar, high fructose corn syrup, artificial sweeteners, harmful preservatives, chemical fillers, etc) then check out Yoli Truth. It's a great orange flavored beverage that is backed with vitamins and minerals and none of the bad stuff. Plus, if you would like to get your product for FREE, make some extra money, and enjoy great tax benefits, there is an excellent home business attached. I am a founding distributor with Yoli and one of the top 7 income earners in the company. Come join us for great healthy products and the financial ride of your life, then click HERE.
Monday, September 20, 2010
Linear vs Residual Income
One of the most difficult tasks as a network marketer is to help people understand why they need a network marketing business. Most people are happy (or so they say) with their hum-drum, go to work, guaranteed income (is it really?), come home and watch TV life. Your job is to plant some seeds of dissatisfaction. One great seed to plant is the difference between what they are earning, linear income and what you are earning, residual income.
Ask prospects if they are earning linear or residual income. They will look at you like you're speaking a foreign language. So, you'll just have to explain (smile).
Linear income is what you earn when you get an hourly wage, salary, commission, or fee. It means that you work hard and get paid once. You do this over and over, the rest of your life. If you are one of the lucky ones, you get to retire at 65 and earn more linear income called Social Security.
On the other hand, if you have an extra million bucks you can invest it and live off the interest. That's called residual income. What? You don't have an extra million?
Can you sing well enough to make a platinum recording or write a NY Times best selling book? The royalties you receive every month are another form of residual income. Can't do those things (then you are like most of us)? Well I guess that leads us to network marketing and the only form of residual income available to the average person.
Residual income is what you earn when you work hard for a period of time and get paid the rest of your life, whether you work or not. In network marketing you may have to work hard for six months, a year, 3 years or more, but it's better than the good old forty year plan.
So there's your explanation of linear vs residual income.
It's a great way to pique their interest. After you have explained the difference, ask them which they would prefer to do, work hard every day for the rest of their life or work hard hard for the next few years and get paid the rest of their life, while enjoying time and financial freedom?
If they respond with the latter, talk with them about your network marketing program.
By the way, which would you rather earn?
Ask prospects if they are earning linear or residual income. They will look at you like you're speaking a foreign language. So, you'll just have to explain (smile).
Linear income is what you earn when you get an hourly wage, salary, commission, or fee. It means that you work hard and get paid once. You do this over and over, the rest of your life. If you are one of the lucky ones, you get to retire at 65 and earn more linear income called Social Security.
On the other hand, if you have an extra million bucks you can invest it and live off the interest. That's called residual income. What? You don't have an extra million?
Can you sing well enough to make a platinum recording or write a NY Times best selling book? The royalties you receive every month are another form of residual income. Can't do those things (then you are like most of us)? Well I guess that leads us to network marketing and the only form of residual income available to the average person.
Residual income is what you earn when you work hard for a period of time and get paid the rest of your life, whether you work or not. In network marketing you may have to work hard for six months, a year, 3 years or more, but it's better than the good old forty year plan.
So there's your explanation of linear vs residual income.
It's a great way to pique their interest. After you have explained the difference, ask them which they would prefer to do, work hard every day for the rest of their life or work hard hard for the next few years and get paid the rest of their life, while enjoying time and financial freedom?
If they respond with the latter, talk with them about your network marketing program.
By the way, which would you rather earn?
Monday, August 23, 2010
The Secret to Network Marketing Success is ACTION
Those of us who have built large networks don't just sit around waiting for it to happen. We also don't make up excuses for why it's not working - not enough time, no one is interested, don't know enough people, not a salesperson, not the right kind of person, etc. No, achievers leave the excuses behind and shift into A.C.T.I.O.N.:
A = ATTITUDE
Achievers all seem to have a common "can do" attitude. There is no question in their mind that this is going to work. It's just a matter of time and effort. They are positive and upbeat. It's often difficult to tell whether they are having a good or bad day, because their attitude is always the same. What's your attitude like? This is the first step to shifting into action. Adjust your attitude and then move on.
C = CLEAR VISION
Achievers start with the end clearly in their mind. They have a clear vision of what their life is going to look like after all is said and done. They see their life in minute detail, with all the emotions included. When life is not going well for them, they just pull up their vision and revel in it until any negative feelings are gone. Do you have a clear vision of what your life is going to be like after you build a large and lucrative network? If not, then create your own vision. It's like making a movie in your mind. You're the producer, director, editor, and the star of the show. You and only you decide what goes into your movie, so make it really good!
T = TIME PLANNING
Once an achiever has a clear vision, they set goals, objectives (steps to the goals), and daily activities. Then they figure out how to work these daily activities into their busy schedules by commiting a certain amount of time each week. They know how to prioritize effectively. They are working on A priorities (prospecting, presentations, sponsoring, training, supporting) most of the time. They typically can accomplish twice as much in the same amount of time as the average person who is not a good time planner. How are you using your time? Have you commited a minimum amount of time to your business each week? Are you working on A priorities most of the time? If not, you better become a better time planner.
I = INITIATIVE
Achievers don't sit around wondering what to do or making excuses for why things can't be done that day. They have a vision and a plan of action, so each day they know exactly what they are going to do and they do it. You won't find achievers sleeping in.
They are typically up early reading and planning. They are constantly learning, so they can become better networkers. They attend seminars and all company functions. They get involved in Toastmasters, so they can become a better communicator. Are you up early each day, giving yourself extra hours to work your business or become a better networker? Do you know what you are going to do every day and get right to it, so you can gain the greatest benefit? If you want to be successful in network marketing or any type of business, you need to have a strong initiative.
O = ORGANIZED
Achievers are organized. They have systems for keeping track of information, prospects, and distributors. They don't have to spend hours looking for something important, thus they can use that time to build their business. Do you have systems in place to keep track of important company memos, testimonials, training information, prospects, distributors, etc? If not, talk with an upline leader and have them help you develop those systems.
N = NAVIGATE
The waters tend to get rough at times. Achievers have their sights on a goal. Because they never take their eyes away, they can navigate through the rough waters. Because they have a great attitude and a clear vision, even the huge waves of diversity will not disuade them from their path. Because of their constant dedication to their trade, they know how to build an effective business. Are you properly prepared to navigate through the rough waters? If not, you better get prepared because they are just around the bend.
Many people say they want the time freedom and financial security that network marketing, but most aren't willing to do what is necessary to make those dreams come true.
Want to be an achiever? Shift into A.C.T.I.O.N.
A = ATTITUDE
Achievers all seem to have a common "can do" attitude. There is no question in their mind that this is going to work. It's just a matter of time and effort. They are positive and upbeat. It's often difficult to tell whether they are having a good or bad day, because their attitude is always the same. What's your attitude like? This is the first step to shifting into action. Adjust your attitude and then move on.
C = CLEAR VISION
Achievers start with the end clearly in their mind. They have a clear vision of what their life is going to look like after all is said and done. They see their life in minute detail, with all the emotions included. When life is not going well for them, they just pull up their vision and revel in it until any negative feelings are gone. Do you have a clear vision of what your life is going to be like after you build a large and lucrative network? If not, then create your own vision. It's like making a movie in your mind. You're the producer, director, editor, and the star of the show. You and only you decide what goes into your movie, so make it really good!
T = TIME PLANNING
Once an achiever has a clear vision, they set goals, objectives (steps to the goals), and daily activities. Then they figure out how to work these daily activities into their busy schedules by commiting a certain amount of time each week. They know how to prioritize effectively. They are working on A priorities (prospecting, presentations, sponsoring, training, supporting) most of the time. They typically can accomplish twice as much in the same amount of time as the average person who is not a good time planner. How are you using your time? Have you commited a minimum amount of time to your business each week? Are you working on A priorities most of the time? If not, you better become a better time planner.
I = INITIATIVE
Achievers don't sit around wondering what to do or making excuses for why things can't be done that day. They have a vision and a plan of action, so each day they know exactly what they are going to do and they do it. You won't find achievers sleeping in.
They are typically up early reading and planning. They are constantly learning, so they can become better networkers. They attend seminars and all company functions. They get involved in Toastmasters, so they can become a better communicator. Are you up early each day, giving yourself extra hours to work your business or become a better networker? Do you know what you are going to do every day and get right to it, so you can gain the greatest benefit? If you want to be successful in network marketing or any type of business, you need to have a strong initiative.
O = ORGANIZED
Achievers are organized. They have systems for keeping track of information, prospects, and distributors. They don't have to spend hours looking for something important, thus they can use that time to build their business. Do you have systems in place to keep track of important company memos, testimonials, training information, prospects, distributors, etc? If not, talk with an upline leader and have them help you develop those systems.
N = NAVIGATE
The waters tend to get rough at times. Achievers have their sights on a goal. Because they never take their eyes away, they can navigate through the rough waters. Because they have a great attitude and a clear vision, even the huge waves of diversity will not disuade them from their path. Because of their constant dedication to their trade, they know how to build an effective business. Are you properly prepared to navigate through the rough waters? If not, you better get prepared because they are just around the bend.
Many people say they want the time freedom and financial security that network marketing, but most aren't willing to do what is necessary to make those dreams come true.
Want to be an achiever? Shift into A.C.T.I.O.N.
Wednesday, July 28, 2010
Tuesday, June 29, 2010
Why People Fail in Network Marketing
Over 90% of the people who join network marketing companies will fail. Many will fail over and over. Here are some of the reasons. Evaluate your own network marketing career. Make the necessary changes and you will achieve high levels of success! Here are main reasons why people fail in network marketing:
1. Select the wrong company - company goes out of business. Before you invest your time and money, make sure you have selected a company that is financially strong, well managed, has all the necessary infrastructure to handle momentum growth, and has a long-term plan that is beneficial to the distributors.
2. Select the wrong upline - no training or support. Make sure you are working with an upline group that has been successful, has the time to work with you personally, has proven training and marketing programs in place that you can use.
3. No purpose for being in business - if the "why?" is strong enough, the "how" is not as important.
4. No written goals - you must determine your goals, write them on a piece of paper, develop a plan of action, schedule daily activities that will take you to your goals.
5. Focused on making money - money is important, but your focus should be on helping others succeed. Zig Ziglar once said that "you can have everything you want, if you just help enough other people get what they want." Go out to make friends and help them become successful and you will also be successful.
6. Treat their business like a hobby - you must give your business consistent hours every day. If you treat it like a hobby (do things whenever you have some spare time), you will get paid like a hobby. If you treat it like a business (plan your work and work your plan daily), you will get paid like a BIG business!
7. Don't contact enough people - your job is to be a messenger. Take the message about your company, products, and opportunity out to as many people as is humanly possible each day. Don't worry about those who are not interested. You are just sifting for those who are. If you were to contact just one new person every day (six days a week), you would make 312 new contacts per year. If you just sponsored 10% of those, you would have 31 new distributors each year. What if they just duplicated what you did. WOW!
8. Blame - they blame their upline, the company, the compensation plan, and the products for their failure. This is YOUR business and YOUR responsibility. If you have chosen the right company and upline, then your success or failure falls squarely on your shoulders.
9. Impatience - most people get too impatient and quit with success just around the corner. This is a business and it takes time to build. If you were building a traditional business, it would take 3 to 5 years before you were actually making any money. In network marketing, you can do this in a matter of months. Be patient and never quit.
10. Takes NO personally - people are going to tell you NO. It's not the right time in their life for what you are offering. They are not rejecting you, but rather the opportunity or products. Don't take it personally, just stay in touch with the person, so when the time is right, you will be there.
1. Select the wrong company - company goes out of business. Before you invest your time and money, make sure you have selected a company that is financially strong, well managed, has all the necessary infrastructure to handle momentum growth, and has a long-term plan that is beneficial to the distributors.
2. Select the wrong upline - no training or support. Make sure you are working with an upline group that has been successful, has the time to work with you personally, has proven training and marketing programs in place that you can use.
3. No purpose for being in business - if the "why?" is strong enough, the "how" is not as important.
4. No written goals - you must determine your goals, write them on a piece of paper, develop a plan of action, schedule daily activities that will take you to your goals.
5. Focused on making money - money is important, but your focus should be on helping others succeed. Zig Ziglar once said that "you can have everything you want, if you just help enough other people get what they want." Go out to make friends and help them become successful and you will also be successful.
6. Treat their business like a hobby - you must give your business consistent hours every day. If you treat it like a hobby (do things whenever you have some spare time), you will get paid like a hobby. If you treat it like a business (plan your work and work your plan daily), you will get paid like a BIG business!
7. Don't contact enough people - your job is to be a messenger. Take the message about your company, products, and opportunity out to as many people as is humanly possible each day. Don't worry about those who are not interested. You are just sifting for those who are. If you were to contact just one new person every day (six days a week), you would make 312 new contacts per year. If you just sponsored 10% of those, you would have 31 new distributors each year. What if they just duplicated what you did. WOW!
8. Blame - they blame their upline, the company, the compensation plan, and the products for their failure. This is YOUR business and YOUR responsibility. If you have chosen the right company and upline, then your success or failure falls squarely on your shoulders.
9. Impatience - most people get too impatient and quit with success just around the corner. This is a business and it takes time to build. If you were building a traditional business, it would take 3 to 5 years before you were actually making any money. In network marketing, you can do this in a matter of months. Be patient and never quit.
10. Takes NO personally - people are going to tell you NO. It's not the right time in their life for what you are offering. They are not rejecting you, but rather the opportunity or products. Don't take it personally, just stay in touch with the person, so when the time is right, you will be there.
Tuesday, June 22, 2010
Thursday, June 17, 2010
Yoli Giving Back to the Community
Yoli Partners with the Odyssey House of Utah
Yoli is partnering with the Odyssey House of Utah to upgrade its therapeutic facilities and to provide tools and skills necessary to develop productive lives in the community. For nearly 40 years, Odyssey House of Utah has been providing substance abuse services to help people heal and overcome the pain and suffering caused by drug addiction.
The Odyssey House of Utah is a non- profit organization that creates accountable, self-sufficient, contributing, healthy and happy individuals and families by using the Therapeutic Community method to provide quality and effective substance abuse treatment to individuals and families in need – especially to those who are socially and economically disadvantaged.
Yoli has already made significant contributions to the Odyssey House. This includes gifts of product, logo wear, computer hardware and monetary consideration. We have worked with Odyssey’s Clients at our warehouse in providing team-building exercises in a real-world setting. Our biggest projects are yet ahead of us.
We have set in motion plans to upgrade the 1912 building to make it a more inviting, therapeutic environment to help the patients feel more relaxed during their transformational experience there. Phase one of our three phase plan goes into effect June 26, 2010. Yoli Founders, employees and Distributors are leading the charge, working hand in hand with Odyssey’s Clients, by painting the interior of the building, donating plants, installing improved lighting, and securing comfortable chairs.
If you would to be a part of this as a Yoli distributor or learn more about Yoli, click HERE.
Yoli is partnering with the Odyssey House of Utah to upgrade its therapeutic facilities and to provide tools and skills necessary to develop productive lives in the community. For nearly 40 years, Odyssey House of Utah has been providing substance abuse services to help people heal and overcome the pain and suffering caused by drug addiction.
The Odyssey House of Utah is a non- profit organization that creates accountable, self-sufficient, contributing, healthy and happy individuals and families by using the Therapeutic Community method to provide quality and effective substance abuse treatment to individuals and families in need – especially to those who are socially and economically disadvantaged.
Yoli has already made significant contributions to the Odyssey House. This includes gifts of product, logo wear, computer hardware and monetary consideration. We have worked with Odyssey’s Clients at our warehouse in providing team-building exercises in a real-world setting. Our biggest projects are yet ahead of us.
We have set in motion plans to upgrade the 1912 building to make it a more inviting, therapeutic environment to help the patients feel more relaxed during their transformational experience there. Phase one of our three phase plan goes into effect June 26, 2010. Yoli Founders, employees and Distributors are leading the charge, working hand in hand with Odyssey’s Clients, by painting the interior of the building, donating plants, installing improved lighting, and securing comfortable chairs.
If you would to be a part of this as a Yoli distributor or learn more about Yoli, click HERE.
Tuesday, June 15, 2010
You Wouldn't Be Interested Would You?
There was once a desperate insurance sales manager who was trying to figure out how to get his agents to sell more. Finally he called them all into a meeting and told them to go out and say to people, "you wouldn't be interested in insurance would you?" Since this was so easy, the agents spoke to many more people and the sales skyrocketed.
If your network marketing volumes aren't where you want them, you could do the same thing. Why not go out and say to people, "You wouldn't be interested in making some extra money would you?" Imagine if you said this to everyone you met, what would happen to your recruiting numbers. What would happen if you taught this simple technique to your entire downline?
You wouldn't be interested in getting wealthy would you?
If your network marketing volumes aren't where you want them, you could do the same thing. Why not go out and say to people, "You wouldn't be interested in making some extra money would you?" Imagine if you said this to everyone you met, what would happen to your recruiting numbers. What would happen if you taught this simple technique to your entire downline?
You wouldn't be interested in getting wealthy would you?
Wednesday, June 9, 2010
Blogging for Network Marketers
The internet is a mess. There are millions of network marketers vying for attention on the internet. So, how do you separate yourself from the rest? My friend, Ty Tribble, who has been a top distributor in several network marketing companies through the years, has used blogging to distinguish himself from the rest and attract thousands of prospects for his business. After much prodding from numerous people, Ty is finally releasing his secrets to the rest of us. Check it out by clicking HERE.
Tuesday, May 11, 2010
Dot-to-Dot Recruiting
We've all done one of those pictures where you connect the dots to complete the picture. You start out with just a bunch of dots and end up with a picture of a horse or something. Some of the best recruiters in our industry sponsor people in exactly the same way.
The first dot represents a prospect who says yes, completes a distributor application, purchases products, or whatever is necessary to sign up with your company.
Once you have all the paperwork out of the way, you tell your new recruit that you intend to recruit 10 people underneath him/her. Then you ask the key question, "Who would you like to put on your front line to also benefit from my recruiting efforts?" They will probably give you several names. Work with the new recruit to find five to ten who are motivated, successful, entrepreneurial and most of all open-minded. Mail an information packet and set up a time to do 3-way follow-up calls with your new recruit.
When you make the 3-way calls, your new distributor will start the call by introducing you as his/her new business partner. You take over from there. First, mention the information packet that was mailed and then ask if they have any questions or concerns. When they ask a question or issue a concern, don't answer it immediately, instead write it down and ask if they have any others. When all are out on the table ask, "if we were able to answer your questions and concerns to your satisfaction, would you be in a position to join our company?" If they say no, find out why not. If they say yes, answer the questions and concerns.
Once you have them committed, you begin the process again, by letting them know that you are going to build a network of 9 people under them. Ask who they would like on their front-line to benefit from your recruiting efforts. Keep repeating this process until you have all ten dots connected under your original distributor. Then teach the new distributors how to continue connecting the dots below them.
The result of all this will be a huge, duplication machine.
The first dot represents a prospect who says yes, completes a distributor application, purchases products, or whatever is necessary to sign up with your company.
Once you have all the paperwork out of the way, you tell your new recruit that you intend to recruit 10 people underneath him/her. Then you ask the key question, "Who would you like to put on your front line to also benefit from my recruiting efforts?" They will probably give you several names. Work with the new recruit to find five to ten who are motivated, successful, entrepreneurial and most of all open-minded. Mail an information packet and set up a time to do 3-way follow-up calls with your new recruit.
When you make the 3-way calls, your new distributor will start the call by introducing you as his/her new business partner. You take over from there. First, mention the information packet that was mailed and then ask if they have any questions or concerns. When they ask a question or issue a concern, don't answer it immediately, instead write it down and ask if they have any others. When all are out on the table ask, "if we were able to answer your questions and concerns to your satisfaction, would you be in a position to join our company?" If they say no, find out why not. If they say yes, answer the questions and concerns.
Once you have them committed, you begin the process again, by letting them know that you are going to build a network of 9 people under them. Ask who they would like on their front-line to benefit from your recruiting efforts. Keep repeating this process until you have all ten dots connected under your original distributor. Then teach the new distributors how to continue connecting the dots below them.
The result of all this will be a huge, duplication machine.
Thursday, April 8, 2010
Wednesday, March 31, 2010
2010: The Year of Oz
Having been in the network marketing industry since 1979, I've seen thousands of companies come and go. Some of them hit it big and others fizzle after just a few months to a few years. During that time I've learned some red flags to watch out for and also some keys to look for in a company that is going to succeed and I'll cover those a little later in this article.
Unfortunately the industry is filled with what I call Wizard of Oz companies and I believe 2010 will be a year when we will see even more of these OZ companies. If you remember in the movie, Dorothy, Toto and the crew arrive at the Emerald Palace and they are going to finally get in to see the Wizard. However, they are met with fire, smoke, and a big scarey face with a booming voice. That is until little Toto pulls the curtain away from the man running the machine. The voice says, "don't mind that man behind the curtain" and that's the way so many network marketing companies are. They are exciting looking on the outside, but don't want you pulling the curtain to see what's really going on.
You can quickly recognize these Wizard of Oz companies as they've got big name business people (from other industries) or athletes out front, there's lot's of hype about making big money without having to work very hard, there's glitz and glitter and smoke and mirrors, but if you invest the time to check out the company from the inside out, you'll find there isn't any substance. There's nothing but a little bitty man behind the curtain.
The difficult part for me is watching so many people get sucked into these companies only to be disappointed and then conclude that network marketing doesn't work. I've done this for 30 years and I've seen tens of thousands of people, from all walks of life, succeed in network marketing. It works and it can work for you. The first and possibly most important key is to find the right company for YOU.
Here are some red flags to watch out for and some keys to identifying a solid company that has long-term potential:
Red Flag #1: Big Name People
If the company is flaunting big name business people, millionaires/billionaires, TV pitchmen, or top athletes, then beware. It's okay to have these people giving testimonials (if they are involved with the company or using the product/service), however many of them are paid spokespeople who couldn't care less about the company, product, or your success, as long as they get paid. I've seen many a network marketing that was using the familiarity of a big name to bring people to their company and it works. The problem is that they typically don't have anything of substance to deliver or they wouldn't have to resort to the big name person.
Key #1: Management Team
One of the biggest keys I've found to identifying a solid company is a solid management team. Forget about the big name people; instead look for management that has successful experience running big companies - managing offices and employees, handling payroll, accounting, etc. Also, look for the team that has network marketing experience, preferably as a successful distributor. That way they will understand what we distributors go through to build a business and will make decisions that help us. Make sure the President or CEO is a dynamic leader that people are going to follow and who also has his/her ego in check. Finally, the management team should have a solid money guy; someone who has vast experience handling financial decisions and systems. It's a big plus if the management team or founders have self-funded the company. That means they are fully committed and are not going to give up easily.
Red Flag #2: Big Money Focus
If a company is only talking about making big money, run away as fast as you can. If you ask people involved with the company about their products or service and they quickly change the subject back to money, run, run away. They are using big money claims to lure you into a business that has no substance and won't last. It might even be a pyramid scheme or at least construed as such by the government regulators. The owners of these companies are just hoping to hang on long enough to make a bunch of money and then get out of Dodge. It's sad, but true; there are many wolves in the network marketing industry who are just waiting to devoir your hard earned money. So be wise when choosing a network marketing company. Don't believe everything you see, hear, or read, check it out. Do your due diligence and make an informed decision.
Key #2: Solid Product or Service
It's okay to share the possibility of making big money, but if a network marketing company is going to last long-term, it must market a solid product or service - something that people would readily buy without being involved with the business. For best results this should either be a consumable product or a renewable service. This will require less selling and since about 98% of the people out there hate to sell, you want a product or a service that people want to buy automatically every month, which brings me to autoship. If the company doesn't offer an autohip program for their product or an automatic subscription to their service, it won't work and you won't make money. Next, the product should be in high demand both now and far into the future. Who in their right mind would market buggy whips in the automobile era and yet many network marketing companies are offering old, obsolete products and services. Finally, the product or service should be something you enjoy, would buy even if you weren't in the business, and can get excited enough about to tell other people. It's a big bonus if the product is unique, patented, or exclusive to that company.
Red Flag #3: We Will Build it For You
I'm appalled at the number of internet and magazine ads I see that claim all you have to do is join and they will build the business for you. No recruiting. No presentations. No talking with your friends or family. No calling leads. No home meetings. Just join and use their proven system and you're going to make BIG MONEY! That's a load of garbage and you should run away quickly. Anything that sounds to good to be true usually is. Network marketing is a business and businesses require financial and time investments. Contrary to all those ads, you are going to have to talk with people, but the good news is that if you have a good company with a product/service you are excited about, you won't be able to stop talking with people. Also, this is a recruiting business and if someone is saying that you will never have to recruit anyone, they are LYING!!! I've been in this industry for 30 years and if there was a legitimate way to build a business without talking to people and recruiting anyone, I would know about it. Oh, there are the list builders and the programs where people can join for free, but no one makes money in those, so don't waste your time.
Key #3: Find a Good Upline Team
No one is going to build your network marketing business for you. They may be willing to put some people under you (in a binary or matrix plan), but you are still going to have to talk with people and recruit. The key here is to find a good upline team that will train and support you. They should offer internet based training via a team web site, e-mail messages, webinars and teleconferences, and even live meetings. This is something I've done for my teams for years and it works. It provides the training, tools, and resources necessary for anyone to succeed. Now, not everyone will, because some will not be willing to do the work, but they won't be able to say they failed due to poor training and support. You should also have upline leaders who are willing to send e-mail messages to or do 3-way calls with your business candidates. They should also offer personal one-on-one coaching or mentoring. Check their motives to see if they are only looking at what's in it for them or if they do sincerely seem interested in your success and are willing to devote the time to help you. A good company and product/service are important, but sometimes a good upline team is even more important.
So, there you go, three red flags to watch out for and 3 keys to success. Find a solid company with an excellent management team, a product/service that is in high demand and about which you can get excited, and a solid upline team that will help you accomplish your goals. When you find those keys and it feels right in your gut, jump in with both feet, put the blinders on and build like crazy. You'll love the results!
===============================================================
Rod Nichols has been involved in the network marketing industry since 1979, as a company founder/owner, distributor, consultant, trainer, coach, and author. His books Successful Network Marketing for the 21st Century and Would You Like to Dig In My Goldmine? were industry best sellers for several years and his newest books, The Twelve Power Secrets for Network Marketing Success and The Ideal Business are quickly becoming must reads for anyone serious about success in network marketing. Rod has trained tens of thousands of people and is know as a “nuts and bolts” trainer. He is available to speak at conventions, conferences, regionals, or any other event requiring a dynamic outside speaker. Rod is also available to coach individuals and small teams. More information about Rod, his fees, and other great network marketing resources are available on his website at www.RodNichols.com or you can e-mail him at Rod@RodNichols.com
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Unfortunately the industry is filled with what I call Wizard of Oz companies and I believe 2010 will be a year when we will see even more of these OZ companies. If you remember in the movie, Dorothy, Toto and the crew arrive at the Emerald Palace and they are going to finally get in to see the Wizard. However, they are met with fire, smoke, and a big scarey face with a booming voice. That is until little Toto pulls the curtain away from the man running the machine. The voice says, "don't mind that man behind the curtain" and that's the way so many network marketing companies are. They are exciting looking on the outside, but don't want you pulling the curtain to see what's really going on.
You can quickly recognize these Wizard of Oz companies as they've got big name business people (from other industries) or athletes out front, there's lot's of hype about making big money without having to work very hard, there's glitz and glitter and smoke and mirrors, but if you invest the time to check out the company from the inside out, you'll find there isn't any substance. There's nothing but a little bitty man behind the curtain.
The difficult part for me is watching so many people get sucked into these companies only to be disappointed and then conclude that network marketing doesn't work. I've done this for 30 years and I've seen tens of thousands of people, from all walks of life, succeed in network marketing. It works and it can work for you. The first and possibly most important key is to find the right company for YOU.
Here are some red flags to watch out for and some keys to identifying a solid company that has long-term potential:
Red Flag #1: Big Name People
If the company is flaunting big name business people, millionaires/billionaires, TV pitchmen, or top athletes, then beware. It's okay to have these people giving testimonials (if they are involved with the company or using the product/service), however many of them are paid spokespeople who couldn't care less about the company, product, or your success, as long as they get paid. I've seen many a network marketing that was using the familiarity of a big name to bring people to their company and it works. The problem is that they typically don't have anything of substance to deliver or they wouldn't have to resort to the big name person.
Key #1: Management Team
One of the biggest keys I've found to identifying a solid company is a solid management team. Forget about the big name people; instead look for management that has successful experience running big companies - managing offices and employees, handling payroll, accounting, etc. Also, look for the team that has network marketing experience, preferably as a successful distributor. That way they will understand what we distributors go through to build a business and will make decisions that help us. Make sure the President or CEO is a dynamic leader that people are going to follow and who also has his/her ego in check. Finally, the management team should have a solid money guy; someone who has vast experience handling financial decisions and systems. It's a big plus if the management team or founders have self-funded the company. That means they are fully committed and are not going to give up easily.
Red Flag #2: Big Money Focus
If a company is only talking about making big money, run away as fast as you can. If you ask people involved with the company about their products or service and they quickly change the subject back to money, run, run away. They are using big money claims to lure you into a business that has no substance and won't last. It might even be a pyramid scheme or at least construed as such by the government regulators. The owners of these companies are just hoping to hang on long enough to make a bunch of money and then get out of Dodge. It's sad, but true; there are many wolves in the network marketing industry who are just waiting to devoir your hard earned money. So be wise when choosing a network marketing company. Don't believe everything you see, hear, or read, check it out. Do your due diligence and make an informed decision.
Key #2: Solid Product or Service
It's okay to share the possibility of making big money, but if a network marketing company is going to last long-term, it must market a solid product or service - something that people would readily buy without being involved with the business. For best results this should either be a consumable product or a renewable service. This will require less selling and since about 98% of the people out there hate to sell, you want a product or a service that people want to buy automatically every month, which brings me to autoship. If the company doesn't offer an autohip program for their product or an automatic subscription to their service, it won't work and you won't make money. Next, the product should be in high demand both now and far into the future. Who in their right mind would market buggy whips in the automobile era and yet many network marketing companies are offering old, obsolete products and services. Finally, the product or service should be something you enjoy, would buy even if you weren't in the business, and can get excited enough about to tell other people. It's a big bonus if the product is unique, patented, or exclusive to that company.
Red Flag #3: We Will Build it For You
I'm appalled at the number of internet and magazine ads I see that claim all you have to do is join and they will build the business for you. No recruiting. No presentations. No talking with your friends or family. No calling leads. No home meetings. Just join and use their proven system and you're going to make BIG MONEY! That's a load of garbage and you should run away quickly. Anything that sounds to good to be true usually is. Network marketing is a business and businesses require financial and time investments. Contrary to all those ads, you are going to have to talk with people, but the good news is that if you have a good company with a product/service you are excited about, you won't be able to stop talking with people. Also, this is a recruiting business and if someone is saying that you will never have to recruit anyone, they are LYING!!! I've been in this industry for 30 years and if there was a legitimate way to build a business without talking to people and recruiting anyone, I would know about it. Oh, there are the list builders and the programs where people can join for free, but no one makes money in those, so don't waste your time.
Key #3: Find a Good Upline Team
No one is going to build your network marketing business for you. They may be willing to put some people under you (in a binary or matrix plan), but you are still going to have to talk with people and recruit. The key here is to find a good upline team that will train and support you. They should offer internet based training via a team web site, e-mail messages, webinars and teleconferences, and even live meetings. This is something I've done for my teams for years and it works. It provides the training, tools, and resources necessary for anyone to succeed. Now, not everyone will, because some will not be willing to do the work, but they won't be able to say they failed due to poor training and support. You should also have upline leaders who are willing to send e-mail messages to or do 3-way calls with your business candidates. They should also offer personal one-on-one coaching or mentoring. Check their motives to see if they are only looking at what's in it for them or if they do sincerely seem interested in your success and are willing to devote the time to help you. A good company and product/service are important, but sometimes a good upline team is even more important.
So, there you go, three red flags to watch out for and 3 keys to success. Find a solid company with an excellent management team, a product/service that is in high demand and about which you can get excited, and a solid upline team that will help you accomplish your goals. When you find those keys and it feels right in your gut, jump in with both feet, put the blinders on and build like crazy. You'll love the results!
===============================================================
Rod Nichols has been involved in the network marketing industry since 1979, as a company founder/owner, distributor, consultant, trainer, coach, and author. His books Successful Network Marketing for the 21st Century and Would You Like to Dig In My Goldmine? were industry best sellers for several years and his newest books, The Twelve Power Secrets for Network Marketing Success and The Ideal Business are quickly becoming must reads for anyone serious about success in network marketing. Rod has trained tens of thousands of people and is know as a “nuts and bolts” trainer. He is available to speak at conventions, conferences, regionals, or any other event requiring a dynamic outside speaker. Rod is also available to coach individuals and small teams. More information about Rod, his fees, and other great network marketing resources are available on his website at www.RodNichols.com or you can e-mail him at Rod@RodNichols.com
===============================================================
Tuesday, March 23, 2010
Get Paid to Prospect
Over the last 30 years in network marketing, I’ve used just about every possible method of prospecting. I’ve worked my warm market, cold prospected, purchased leads, advertised in the newspaper, mailed letters to business people, passed out videos and audios, placed opportunity cards on car windows and handed them to people, posted flyers with tear off strips, and advertised on the internet, just to name a few. In every case, it cost me both time and money to prospect, but if it produced results, the investment was valid. However, recently I’ve discovered a way to have my cake and eat it too. I’ve found a system that pays me to prospect for my network marketing business. Now, that’s what I’m talkin’ about!!!
It’s called a funded business system – meaning that the system funds itself (and you). Here’s how it works. You create a book or e-book that every network marketer would want. If you have the idea, but not the writing abilities, e-mail me and I’ll write it for you. Next, you set up a web system that teases the reader about the book and offers a 5 to 10 day free training, which is delivered by autoresponder. In this training you give the reader some of the key ideas from your book and then sell them on the benefits of buying the book. Each e-mail should include an ordering link. The system will take the order with payment (by credit card or PayPal) and instantly deliver the e-book or promise delivery of the book.
Here’s the exciting part – each person who subscribes to the free training and purchases a book is someone interested in network marketing. They are typically in one of three places: (1) Looking for a company – in which case, you could present your network marketing business; (2) Already with a company, but not completely happy and would be open to looking at alternatives – in which case, you would present your business; (3) Already with a company and completely happy – in which case, you would keep them in a database and revisit every 4 to 6 months (as the average network marketer will change companies every 6 to 12 months until they hit it big or quit the industry). The book and autoresponder training will position you as an industry authority, which sets you apart from other network marketers.
All you have to do is get the word out about your book. You can advertise on the many free classified sites, post information in the various MLM forums, start your own blog, or write articles like this one and submit it to network marketing resource sites. Once you’ve put the system into action, it will produce for you – both leads and income, which you can then use to fund other sources of marketing for your business.
This almost seems too good to be true and if I hadn’t seen the results with my own eyes (and bank account), I’m not sure would believe. A funded business system is a great way to build a network marketing business and make some extra money on the site. It’s particularly good for the person who has just joined a company, as it typically takes a few weeks to a few months to start making money in a network marketing business. By using a funded business system, they can generate leads and a quick income, which just might be what they need to stay in business.
Now, if you don’t want to go through the hassle of developing your own funded business system – writing the book or e-book, developing the web system, writing all the autoresponder trainings, securing a merchant or PayPal business account, and then monitoring the system to make sure that it’s working – then you can use an already established system, such as Magnetic Sponsoring. This system offers a power-packed e-book I’ve written and a powerful marketing system. You pay a one time fee for the book and get the marketing system for FREE.
I started using some of the elements of a funded business system back in 1995 and they helped me build a large and lucrative international organization in a short amount of time. However, I was disappointed as there were still some missing pieces to the puzzle. Magnetic Sponsoring has pulled all the pieces together
So, whether you develop your own funded business system or utilize Magnetic Sponsoring, your marketing life will change. Instead of paying for all those overpriced leads or advertising that may or may not produce, you can now get paid to prospect.
It’s called a funded business system – meaning that the system funds itself (and you). Here’s how it works. You create a book or e-book that every network marketer would want. If you have the idea, but not the writing abilities, e-mail me and I’ll write it for you. Next, you set up a web system that teases the reader about the book and offers a 5 to 10 day free training, which is delivered by autoresponder. In this training you give the reader some of the key ideas from your book and then sell them on the benefits of buying the book. Each e-mail should include an ordering link. The system will take the order with payment (by credit card or PayPal) and instantly deliver the e-book or promise delivery of the book.
Here’s the exciting part – each person who subscribes to the free training and purchases a book is someone interested in network marketing. They are typically in one of three places: (1) Looking for a company – in which case, you could present your network marketing business; (2) Already with a company, but not completely happy and would be open to looking at alternatives – in which case, you would present your business; (3) Already with a company and completely happy – in which case, you would keep them in a database and revisit every 4 to 6 months (as the average network marketer will change companies every 6 to 12 months until they hit it big or quit the industry). The book and autoresponder training will position you as an industry authority, which sets you apart from other network marketers.
All you have to do is get the word out about your book. You can advertise on the many free classified sites, post information in the various MLM forums, start your own blog, or write articles like this one and submit it to network marketing resource sites. Once you’ve put the system into action, it will produce for you – both leads and income, which you can then use to fund other sources of marketing for your business.
This almost seems too good to be true and if I hadn’t seen the results with my own eyes (and bank account), I’m not sure would believe. A funded business system is a great way to build a network marketing business and make some extra money on the site. It’s particularly good for the person who has just joined a company, as it typically takes a few weeks to a few months to start making money in a network marketing business. By using a funded business system, they can generate leads and a quick income, which just might be what they need to stay in business.
Now, if you don’t want to go through the hassle of developing your own funded business system – writing the book or e-book, developing the web system, writing all the autoresponder trainings, securing a merchant or PayPal business account, and then monitoring the system to make sure that it’s working – then you can use an already established system, such as Magnetic Sponsoring. This system offers a power-packed e-book I’ve written and a powerful marketing system. You pay a one time fee for the book and get the marketing system for FREE.
I started using some of the elements of a funded business system back in 1995 and they helped me build a large and lucrative international organization in a short amount of time. However, I was disappointed as there were still some missing pieces to the puzzle. Magnetic Sponsoring has pulled all the pieces together
So, whether you develop your own funded business system or utilize Magnetic Sponsoring, your marketing life will change. Instead of paying for all those overpriced leads or advertising that may or may not produce, you can now get paid to prospect.
Wednesday, March 17, 2010
Tuesday, February 23, 2010
Monday, February 22, 2010
Aspartame Renamed
Aspartame has been Renamed and is Now Being Marketed as a Natural Sweetener
Filed Under Food Toxins, Future of Food
by Drew Kaplan
Artificial sweeteners especially aspartame has gotten a bad rap over the years, most likely due to studies showing they cause cancer. But not to worry Ajinomoto the company that makes Aspartame has changed the name to AminoSweet. It has the same toxic ingredients but a nice new sounding name.
And if you or your child happens to be allergic to Aspartame, well don’t take it personally it’s just business.
Despite the evidence gained over the years showing that aspartame is a dangerous toxin, it has remained on the global market . In continues to gain approval for use in new types of food despite evidence showing that it causes neurological brain damage, cancerous tumors, and endocrine disruption, among other things.
Most consumers are oblivious to the fact that Aspartame was invented as a drug but upon discovery of its’ sweet taste was magically transformed from a drug to a food additive. HFA wants to warn our readers to beware of a wolf dressed up in sheep’s clothing or in this case Aspartame dressed up as Aminosweet.
Over 25 years ago, aspartame was first introduced into the European food supply. Today, it is an everyday component of most diet beverages, sugar-free desserts, and chewing gums in countries worldwide. But the tides have been turning as the general public is waking up to the truth about artificial sweeteners like aspartame and the harm they cause to health. The latest aspartame marketing scheme is a desperate effort to indoctrinate the public into accepting the chemical sweetener as natural and safe, despite evidence to the contrary.
Aspartame was an accidental discovery by James Schlatter, a chemist who had been trying to produce an anti-ulcer pharmaceutical drug for G.D. Searle & Company back in 1965. Upon mixing aspartic acid and phenylalanine, two naturally-occurring amino acids, he discovered that the new compound had a sweet taste. The company merely changed its FDA approval application from drug to food additive and, voila, aspartame was born.
G.D. Searle & Company first patented aspartame in 1970. An internal memo released in the same year urged company executives to work on getting the FDA into the “habit of saying yes” and of encouraging a “subconscious spirit of participation” in getting the chemical approved.
G.D. Searle & Company submitted its first petition to the FDA in 1973 and fought for years to gain FDA approval, submitting its own safety studies that many believed were inadequate and deceptive. Despite numerous objections, including one from its own scientists, the company was able to convince the FDA to approve aspartame for commercial use in a few products in 1974, igniting a blaze of controversy.
In 1976, then FDA Commissioner Alexander Schmidt wrote a letter to Sen. Ted Kennedy expressing concern over the “questionable integrity of the basic safety data submitted for aspartame safety”. FDA Chief Counsel Richard Merrill believed that a grand jury should investigate G.D. Searle & Company for lying about the safety of aspartame in its reports and for concealing evidence proving the chemical is unsafe for consumption.
The details of aspartame’s history are lengthy, but the point remains that the carcinogen was illegitimately approved as a food additive through heavy-handed prodding by a powerful corporation with its own interests in mind. Practically all drugs and food additives are approved by the FDA not because science shows they are safe but because companies essentially lobby the FDA with monetary payoffs and complete the agency’s multi-million dollar approval process.
Changing aspartame’s name to something that is “appealing and memorable”, in Ajinomoto’s own words, may hoodwink some but hopefully most will reject this clever marketing tactic as nothing more than a desperate attempt to preserve the company’s multi-billion dollar cash cow. Do not be deceived.
Sources:
Ajinomoto brands aspartame ‘AminoSweet’
Aspartame History Highlights
FDA’s approval of aspartame under scrutiny
An Overdue Ban On A Dangerous Sweetener
http://www.naturalnews.com/028151_aspartame_sweeteners.html
http://blogs.healthfreedomalliance.org/blog/2010/02/15/aspartame-has-been-renamed-and-is-now-being-marketed-as-a-natural-sweetener/
NOTE: Do you want to drink a product that is truly all natural and uses Stevia as a sweetner? Go to www.StartABlastCapBiz.com for more information on Yoli and on how you can make money drinking this healthy drink with the amazing new technology.
Filed Under Food Toxins, Future of Food
by Drew Kaplan
Artificial sweeteners especially aspartame has gotten a bad rap over the years, most likely due to studies showing they cause cancer. But not to worry Ajinomoto the company that makes Aspartame has changed the name to AminoSweet. It has the same toxic ingredients but a nice new sounding name.
And if you or your child happens to be allergic to Aspartame, well don’t take it personally it’s just business.
Despite the evidence gained over the years showing that aspartame is a dangerous toxin, it has remained on the global market . In continues to gain approval for use in new types of food despite evidence showing that it causes neurological brain damage, cancerous tumors, and endocrine disruption, among other things.
Most consumers are oblivious to the fact that Aspartame was invented as a drug but upon discovery of its’ sweet taste was magically transformed from a drug to a food additive. HFA wants to warn our readers to beware of a wolf dressed up in sheep’s clothing or in this case Aspartame dressed up as Aminosweet.
Over 25 years ago, aspartame was first introduced into the European food supply. Today, it is an everyday component of most diet beverages, sugar-free desserts, and chewing gums in countries worldwide. But the tides have been turning as the general public is waking up to the truth about artificial sweeteners like aspartame and the harm they cause to health. The latest aspartame marketing scheme is a desperate effort to indoctrinate the public into accepting the chemical sweetener as natural and safe, despite evidence to the contrary.
Aspartame was an accidental discovery by James Schlatter, a chemist who had been trying to produce an anti-ulcer pharmaceutical drug for G.D. Searle & Company back in 1965. Upon mixing aspartic acid and phenylalanine, two naturally-occurring amino acids, he discovered that the new compound had a sweet taste. The company merely changed its FDA approval application from drug to food additive and, voila, aspartame was born.
G.D. Searle & Company first patented aspartame in 1970. An internal memo released in the same year urged company executives to work on getting the FDA into the “habit of saying yes” and of encouraging a “subconscious spirit of participation” in getting the chemical approved.
G.D. Searle & Company submitted its first petition to the FDA in 1973 and fought for years to gain FDA approval, submitting its own safety studies that many believed were inadequate and deceptive. Despite numerous objections, including one from its own scientists, the company was able to convince the FDA to approve aspartame for commercial use in a few products in 1974, igniting a blaze of controversy.
In 1976, then FDA Commissioner Alexander Schmidt wrote a letter to Sen. Ted Kennedy expressing concern over the “questionable integrity of the basic safety data submitted for aspartame safety”. FDA Chief Counsel Richard Merrill believed that a grand jury should investigate G.D. Searle & Company for lying about the safety of aspartame in its reports and for concealing evidence proving the chemical is unsafe for consumption.
The details of aspartame’s history are lengthy, but the point remains that the carcinogen was illegitimately approved as a food additive through heavy-handed prodding by a powerful corporation with its own interests in mind. Practically all drugs and food additives are approved by the FDA not because science shows they are safe but because companies essentially lobby the FDA with monetary payoffs and complete the agency’s multi-million dollar approval process.
Changing aspartame’s name to something that is “appealing and memorable”, in Ajinomoto’s own words, may hoodwink some but hopefully most will reject this clever marketing tactic as nothing more than a desperate attempt to preserve the company’s multi-billion dollar cash cow. Do not be deceived.
Sources:
Ajinomoto brands aspartame ‘AminoSweet’
Aspartame History Highlights
FDA’s approval of aspartame under scrutiny
An Overdue Ban On A Dangerous Sweetener
http://www.naturalnews.com/028151_aspartame_sweeteners.html
http://blogs.healthfreedomalliance.org/blog/2010/02/15/aspartame-has-been-renamed-and-is-now-being-marketed-as-a-natural-sweetener/
NOTE: Do you want to drink a product that is truly all natural and uses Stevia as a sweetner? Go to www.StartABlastCapBiz.com for more information on Yoli and on how you can make money drinking this healthy drink with the amazing new technology.
Thursday, February 18, 2010
Thursday, February 11, 2010
Tuesday, February 9, 2010
Sugar Fuels Tumor Growth, Says Major New Study
Sugar Fuels Tumor Growth, Says Major New Study
Updated: 21 hours 6 minutes ago
Katie Drummond
Contributor
===============================================================
University of Minnesota researchers found that people who downed two or more soft drinks a week had an 87 percent higher risk of developing pancreatic cancer.
===============================================================
(Feb. 8) -- Sugary soft drinks drastically increase the risk of developing pancreatic cancer, according to a long-term study of 60,000 people in Singapore.
A research team at the University of Minnesota followed thousands of men and women participating in the Singapore Chinese Health Study for 14 years. At the end of the study, published this month in the journal Cancer Epidemiology, Biomarkers & Prevention, the team found that those drank two or more soft drinks a week had an 87 percent higher risk of developing pancreatic cancer.
David McNew, Getty Images
University of Minnesota researchers found that people who downed two or more soft drinks a week had an 87 percent higher risk of developing pancreatic cancer.
Dr. Mark Pereira, the study's lead researcher, warns that the findings likely apply to the United States and other industrialized nations as well. "Singapore is a wealthy country with excellent health care," he said. "Favorite pastimes are eating and shopping, so the findings should apply to other Western countries."
Oddly enough, those who drank fruit juice, which can have as much sugar as soda, didn't have the same cancer risk. Pereira suggests that soda drinkers might have poor health habits, which exacerbate their risk of illness. Of those studied in Singapore, individuals who drank soda were more likely to smoke and eat red meat -- two lifestyle factors already linked to cancer.
The connection between sugar and pancreatic cancer makes sense: insulin, which helps the body digest sugar, is made in the pancreas. Researchers suspect that sugary soda interferes with the body's insulin levels, which then contributes to cancerous cell growth in the pancreas.
Diabetes, another illness in which the body's insulin production is compromised, is a known risk factor for pancreatic cancer. The onset of diabetes later in life can also be an early symptom.
Determining the cause of pancreatic cancer could save thousands of lives a year: 230,000 people are diagnosed worldwide each year, and the American Cancer Society estimates that only 5 percent survive for five years.
But the study isn't a definitive answer. Out of the 60,000 individuals studied, 140 developed pancreatic cancer. Of those, 18 cases occurred in patients who'd consumed large quantities of soda, 12 occurred in those who drank soda occasionally, and 110 occurred in those who never consumed the sugary beverages.
In their analysis, the researchers acknowledge that the small numbers limit the power of the data, and "giv[e] potential to a chance association." The team also cites four previous studies that found little or no connection between soda and pancreatic cancer.
There are a handful of definitive or suggested causes for pancreatic cancer, making this study even more difficult to interpret. Aside from red meat consumption, smoking and diabetes, risk factors include genetics, ethnicity, old age, obesity and even excessive alcohol consumption.
The American Heart Association advises that women should consume fewer than 6.5 teaspoons of added sugar a day, and men should limit their consumption to 9.5 teaspoons. Given that a single can of soda contains 13 teaspoons, Americans would be wise to cut down, whether or not they're motivated by a potential cancer risk.
===================================
Lose the Sugar, but not the Taste!
Drink Yoli and Get Paid to Do It
www.StartABlastCapBiz.com
===================================
Updated: 21 hours 6 minutes ago
Katie Drummond
Contributor
===============================================================
University of Minnesota researchers found that people who downed two or more soft drinks a week had an 87 percent higher risk of developing pancreatic cancer.
===============================================================
(Feb. 8) -- Sugary soft drinks drastically increase the risk of developing pancreatic cancer, according to a long-term study of 60,000 people in Singapore.
A research team at the University of Minnesota followed thousands of men and women participating in the Singapore Chinese Health Study for 14 years. At the end of the study, published this month in the journal Cancer Epidemiology, Biomarkers & Prevention, the team found that those drank two or more soft drinks a week had an 87 percent higher risk of developing pancreatic cancer.
David McNew, Getty Images
University of Minnesota researchers found that people who downed two or more soft drinks a week had an 87 percent higher risk of developing pancreatic cancer.
Dr. Mark Pereira, the study's lead researcher, warns that the findings likely apply to the United States and other industrialized nations as well. "Singapore is a wealthy country with excellent health care," he said. "Favorite pastimes are eating and shopping, so the findings should apply to other Western countries."
Oddly enough, those who drank fruit juice, which can have as much sugar as soda, didn't have the same cancer risk. Pereira suggests that soda drinkers might have poor health habits, which exacerbate their risk of illness. Of those studied in Singapore, individuals who drank soda were more likely to smoke and eat red meat -- two lifestyle factors already linked to cancer.
The connection between sugar and pancreatic cancer makes sense: insulin, which helps the body digest sugar, is made in the pancreas. Researchers suspect that sugary soda interferes with the body's insulin levels, which then contributes to cancerous cell growth in the pancreas.
Diabetes, another illness in which the body's insulin production is compromised, is a known risk factor for pancreatic cancer. The onset of diabetes later in life can also be an early symptom.
Determining the cause of pancreatic cancer could save thousands of lives a year: 230,000 people are diagnosed worldwide each year, and the American Cancer Society estimates that only 5 percent survive for five years.
But the study isn't a definitive answer. Out of the 60,000 individuals studied, 140 developed pancreatic cancer. Of those, 18 cases occurred in patients who'd consumed large quantities of soda, 12 occurred in those who drank soda occasionally, and 110 occurred in those who never consumed the sugary beverages.
In their analysis, the researchers acknowledge that the small numbers limit the power of the data, and "giv[e] potential to a chance association." The team also cites four previous studies that found little or no connection between soda and pancreatic cancer.
There are a handful of definitive or suggested causes for pancreatic cancer, making this study even more difficult to interpret. Aside from red meat consumption, smoking and diabetes, risk factors include genetics, ethnicity, old age, obesity and even excessive alcohol consumption.
The American Heart Association advises that women should consume fewer than 6.5 teaspoons of added sugar a day, and men should limit their consumption to 9.5 teaspoons. Given that a single can of soda contains 13 teaspoons, Americans would be wise to cut down, whether or not they're motivated by a potential cancer risk.
===================================
Lose the Sugar, but not the Taste!
Drink Yoli and Get Paid to Do It
www.StartABlastCapBiz.com
===================================
Monday, February 8, 2010
Monday, February 1, 2010
Saturday, January 30, 2010
Friday, January 29, 2010
Thursday, January 28, 2010
Tuesday, January 26, 2010
Wednesday, January 6, 2010
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