From a 40-Year Network Marketing Pro Comes a Deceptively Powerful Publication for Anyone Seeking an Honest Guide to Success in the Home-based Business
Industry.
Vance Alford
In 123 Pages of Grassroot Training, You will Rise to
Another Level of Sales Ability, Confidence, Effective
Networking, and More; All Done with an Exact Measure
Honesty.
Here is a Sample:
-Walking-the-Talk.
-Quickly Answer Prospects’ Questions.
-Acquire an Advanced Network Sales Vocabulary.
-Seeing Through Smoke and Mirrors.
-Cost Effective Sponsoring.
-Formulas for Success.
-Little Things-Big Difference
-Receive a Comprehensive Education of Compensation Plans.
-Conquer Fears.
-#1 Marketing Tools.
-Sampling.
-Art of Selling.
-Advanced Marketing Skills.
-Master the Telephone.
-Spot a Lucrative Company.
-How to Market On/Offline.
-Demanding the Most from Yourself.
-Lead Generation.
-Selecting a Sponsor.
-Ethics, Honesty, and Commonsense.
-Gain a Mastery of Network Sales.
-The #1 Best Advertising Source
__________________________________________________
Ugly, Little Network Marketing Handbook
______________________________________
Much like Forest Gump sprung from his porch rocker and ran for
three years, one day I opened my laptop and started writing.
This handbook has no ugly subject matter. It is simply ugly because
it does not follow the standard protocol for laying out a book; but its
contents are dynamite, and I took no shortcuts there.
You will find no Table of Contents here. No 24-page Introduction. No
Reference Guide, Notes, Acknowledgements, or Index. Just hard-
earned information that is guaranteed to improve your confidence
and downline building abilities. At times I may jump around; after all,
what is a hardcore writer with ADD supposed to do?
Just hang in there with me and you’ll come out on the other side with
a noggin’ full of Networking sense.
You will notice that I use the word Network Sales because, well, a lot
of people are uncomfortable with the terms MLM and Network
Marketing.
I am excited to bring The Ugly, Little Network Marketing Handbook to
you because I know its value. I have no doubt you will benefit.
Even though it is likely I do not, and never will, know you, I want you
to succeed. It is my desire that this information makes a difference in
your life- an impact that will save you money, increase your odds of
success, and make you so stuck-up with sales knowledge you’ll have
to keep your humility in check. 😉
This handbook is chock-full of gold nuggets. For free, you are getting
the meat many of the things I learned over a 40-year span. The Ugly,
Little Handbook is an open vault full of goodies that will take your
sponsoring and self-belief to a whole new level.
Read this handbook in its entirety and you will feel 10-feet tall in your
ability to prospect, sell, train, and then manage the large downline
you are building.
You will see with a new pair of eyes. You will become courageous,
directed, and focused on your business acumen.
Jump in and get your hands dirty. I want you to feel the grit and
embrace the pure rawness in each section- get ugly, if you will.
If one is a dedicated, hard worker, there is a $100,000-a-year income
within these pages. Even more.
It is all here. Read it, then act on it.
Network Sales is no day-at-the-beach. Some would even say it is
easier to teach a fish to ride a bicycle than build a downline.
There is nothing worse than having products that really work, a
smoking-hot compensation plan, yet no one to market to. Inside this
book, together, we can fix that.
Has your sponsor gone into witness protection? Has chasing people
got you down-in-the-mouth? Help is on the way.
You’ll find no graphs, statistics, and urban legends within these
pages. What I will share is layman, grassroots, and old school. You
know, stuff that works. Stuff the average person can understand then
do it.
I am going to discuss things like: Breakage, Autoresponders, BV,
Stockpiling, Clicks, Integrity, and Commonsense.
Further, you will learn the single-most important thing that is,
without exception, the key to your success.
You will be challenged. And the best part: You will be able to run
circles around those hot-shot MLM Junkies.
Bring your lunch and a scalpel; You are going to school. In no-time-
flat, you will be able to dissect a compensation plan like nobody’s
business.
- Been There Done That -
I dislike a braggart, but I felt it was necessary to grab your
attention by sharing some of my accomplishments. It is important
to me that you know I speak to you from experience and not
Google.
• Forty years of experience in home-based and Network Sales.
• Once sponsored 2,797 independent representatives, on auto-
ship, in less than 3 years (2.5/day).
• Life-history of sponsoring over 6,000 paying distributors.
• Owned and co-owned three Network Sales companies.
• Owned the #2 Independent Advertising Brokerage and Lead
Generation company in North America for the Home-Based
Business Industry.
• An Industry Consultant, a Director of Marketing, and Top-Ranked
Distributor for 5 major companies.
• Accomplished copywriter hired throughout career to write sales
copy and design advertisements.
• Generated millions of sales leads and specialized
leads for some of Network Sales’ legendary leaders.
• Along with a partner, raised $1,300,000 to co-own and launch a
Network Sales company in Japan.
• Won dozens of cash bonuses and cruises.
• Won, at a world convention, every top-award.
-Let’s Begin-
If you are a newbie to the Home-based Business Industry, you
are receiving an education here that far surpasses the knowledge
of those who have been in industry for years- many who repeat
failure.
You may become angry that the truth on how to build a cash-cow-
downline has been withheld from you. I acknowledge the anger
will be justified. You will finally be reading the truth and your gut
will react.
Have you been taught to:
• Make a list of 100 people?
• Use extreme, untypical testimonies?
• Only share your opportunity with friends?
• Exclusively use 3-way calls?
• Fake it until you make it?
• Talk to anyone within 3 ft. of you (3 ft. Rule)?
• Handout expensive literature and samples?
• Hit the coffee shops and mall looking for prospects?
• Embrace rejection?
• Develop new “friends” only to pitch them?
You may become angry because you were taught the above
strategies are the only keys to success in Network Sales.
The Ugly, Little Handbook is going to open new doors for you.
Network Sales is a fantastic career, even a hobby. But in order for
you to make your goals and dreams come true, you must work
within the walls of honesty from the main office right down to the
people you elect to work and be seen with.
Shoot straight. Help people. Solve problems.
Knowledge is power; however, if you are looking for the perfect
company, product, sponsor, and sponsoring methods you might
consider kicking this handbook to the curb right now.
In the Network Sales world, never assume your sponsor will not
disappoint you. That a company is indestructible and you cannot
get hurt- and that includes the top companies.
One wrong step can bring leaders and companies crashing down.
Imagine a racecar driver who does not fight to reach the bottom of
the curve. Barring a miracle or all the other racers crashing, the
probability of a driver who stays at the top of the track, eats more
gas, travels further, and burns more tire rubber is almost
guaranteed to never win a race.
When you know how to win with the fundamentals, success can
be easy. Not being taught the keys to success, even the best way
to do the obvious, can keep failure on your doorstep over-and-
over again.
[As you read, I want to ask that you keep in mind a new business
opportunity I am about to release. I am adamant to make Network
Sales work for you.]
My co-founders and I imagined a company where all the boxes for
success are checked off, then we built it one checkbox at-the-
time.
There are many legendary companies that have strong leadership, excellent products, and strong compensation plans. There are also some companies that will rip the shirt off a poor man’s back.
While Network Sales can be a tall mountain to climb, I have friends who make $40,000 a week and millions of dollars a year. Many of my high-earning friends were not groomed to be a businessperson.
Network Sales is truly an outstanding element of the American Dream. It is self-employment and time freedom.
-America is the Land of Opportunity. So, Why Are not
More People Rich? -
Fact: Most all people fail because they are unwilling to put forth
the effort and sacrifices it requires to be rich. That is simply the
blunt matter of fact.
Le Van Vu came to America with nothing. He slept on the floor at
the bakery where he worked. He and his wife lived for 2 years on
$1200.
They saved $31,000 and bought the bakery where they worked.
They then opted to sleep on the floor for more another year and
paid off a $90,000 loan.
a. Does the average American have this drive?
b. How many millions of dollars do you estimate Le Van Vu is worth
today?
It is easy to blame an employer, a company, sponsor, product,
and your spouse for your current lifestyle and net worth. Do not
fall into this trap.
15,000,000 to 1: Your odds of hitting it big in the lottery. The effort
to buy a lottery ticket boarders on having a pulse.
- Do Not Forget This About Getting Rich: -
The easiest and quickest path to financial freedom is to not only
offer others a way to become wealthy, but to make sure the
opportunity you offer is easy, obtainable, and superior.
Regardless of this book’s twists and turns, this statement is what
this book is about.
- Network Sales: The Wave Keeps Getting Bigger -
Approximately 5,500 People Join the Network Sales Craze Each
Day in the USA. [Source: Direct Selling Association]
Network Sales is not a job, it is your business. It is a lifestyle. You
work with people and not for them. You work for yourself but not
by yourself.
The most likely reasons that Network Sales continues to grow at a
rapid pace are:
a) One can start with less than $500.
b) One sets their own hours.
c) One can work from anywhere.
d) It works for almost anyone.
e) The earnings potential is huge.
f) Residual Income.
g) No employees.
h) Easy to learn with reasonable effort.
i) Offers Time Freedom.
Network Sales is a highly particular way of doing business, and
an intelligent one at that. It is a business that taps into the power
of Duplication.
Duplication is the key to a successful and enduring Network
Sales career.
Network Sales can offer one pride and a sense of
accomplishment that can involve the entire family.
Best of all, one keeps getting paid for years into the future for work that was done just once. * Exponential Growth (Duplication) beats the pants off compound interest.
- Demand the Most from Yourself -
Right out of the gate, I want to ask you, “What are three of the
most top important things in selecting and succeeding with a
Network Sales company?”
The answer: Honesty, Integrity, and Truth.
Far too many companies, in all walks of business, play games of
deception and dishonesty.
Some companies sell inferior products with tremendous profit
margins to cover their greed. They may payout 30% rather than
the 51% they claim. They over-hype and under deliver.
There is no reason to align yourself with a dishonest company;
your success depends on it. Besides, there are hundreds of good,
honest companies.
How do you feel about sponsoring a retired, fixed-budget, couple
into a pay plan that you know have no chance of succeeding?
Just as bad, the product you sell has never shown you the results
the company claims.
It is in your best interest to set as your highest priority to offer
friends and strangers alike the best opportunity your research
revealed.
A company that offers the most people the best chance at
success.
Note that I did not say, the most money.
People who let you sponsor them put their trust in you. Do you
deserve that trust? The advice and training you offer, is it in your
best interest or your downline’s?
Do you seek success by doing your best to help others succeed?
Do not “fake-it-until-you-make-it.” Be yourself. If your lack of
experience is causing prospect objections, you need this Ugly,
Little Handbook more than ever. Remember, knowledge is power.
“Without labor nothing prospers.” -Sophocles
Yes, you can become wealthy in Network Sales. Yet, it is not
quite as simple as a company’s presentation may imply. In the
real world, it is much harder.
The truth is: Network Sales is easy to learn- you will find no rocket
science here. And, compared to the 40/40/40 plan it is not all that
much work. I did not say it is all pleasant all the time.
Spoiler Alert: You may miss a little TV. Further, let us send out
some kudos for all the many companies that have created pay
plans that truly present the opportunity to earn millions of dollars.
People who are prone to close shop and quit:
• Are not a product-of-the-product.
• Have no personal testimony.
• Do not utilize the power of duplication.
• Never create an elevator pitch.
• Do not attend company conventions.
• Do not accept that making $10,000/month takes effort (don’t
most careers?)
• Do not establish a place in or out of the home for an office.
• Do not have business cards printed.
• Are timid and never break out of their comfort zone.
• Allows others to steal their dreams.
• Do not study success and motivation every chance possible.
• Do not create a resource library.
• Do not give success a chance.
• Are already in credit card trouble when they sign up.
• Are not fully sold on the company.
• Are unwilling to invest in their business.
• Shy away from rejection.
• Fail to figure out smarter ways to do the business.
• Fail to resolve marital issues and/or spouses who do not
support them.
• Engage in stinking thinking and gossip.
Being loyal to an honest company with a compensation plan any
motivated individual can tackle is the key.
Add in a company with a mission to help mankind and animals
and you have the complete package with a bow on top. I invested
years in creating such a company for you.
- Little Things Make a Big Difference -
Every amazing thing that is brought forth as thought and reason
comes from a mass of gray matter: The brain. Yet, it is bland and
boring- borderline eerie. It can fool us and send us in the wrong
direction (fails to use good common sense).
Take for instance the art of boiling the perfect egg. One minute
can truly make a difference. It is easy to think another minute will
ensure the egg is not undercooked, when in fact it could become
rubbery.
A lot of the time we need to work with our mind; to give it a little
nudge to adjust its course. To listen to advice and experts. Our
mind is a sponge and is not all-knowing.
Tennis is another example. Bad commonsense tells us to follow
the ball and be predictive. The correct strategy is to return to the
centerline and at the baseline every time after one returns the
ball.
Another: When a car begins to slide, fully turn into the slide and
not out of the slide to correct the car. In other words, if the car is
sliding to the right, turn the wheel to the right.
Countless people have lost their life not knowing this fact. Bad
commonsense may tell one to turn away from the slide and apply
the brakes.
It is those esoteric things that can make all the difference in
business and life.
You can learn one valuable, new way to network that can make
all the difference in your career. It is my desire you will find
numerous of those valuable and new things here.
Network Sales can be mastered without five years of bootcamps
and throwing money down the drain. For the most part, success
can be obtained by practicing simple, old-school sales techniques
and psychology.
-The Art of Selling-
Here is one of the most powerful strategies Master Salespersons
use: When you feel the prospect is taking the bait, shut up.
Do not do what your brain is telling you, which is to talk more and
more. Then talk more. 😉
The intriguing thing about sales is that it is quite easy. Note I did
not say that people will not say no to your pitch. They will, alright.
We are wired to blow almost every sale we attempt because we
rely on our commonsense to push until the prospect caves.
My son holds the nation’s longest-standing free-throw shooting
record for his age group. His name is in the Basketball Hall of
Fame. His secret: Studying countless books and videos; then he
put that knowledge into establishing a form. He never deviated
from his form or belief that a shot would go in.
When you close a sale, do not deviate from your pitch. Make it
swift and on-point. People want what they cannot have. Keep the
carrot before them the entire time.
Some products can take an hour or more to pitch- there are
exceptions, especially if a demonstration is required. I once sold a
product that had a 20-page script. For duplication, every single
word was to be said and with no changes. It worked remarkably
well.
Believe 100% the sale will close. Be closing during your entire
pitch.
You will want to tell Mrs. Anderson who suffers with swollen joints
that your product works for (your) customers with severe arthritis.
Personalization is extremely important but skip the science
lesson.
Never, ever appear desperate- and do not appear to be begging.
NEVER.
When I was much younger, even though I was a good
salesperson, I was very much prone to overkill; and to this day, I
must be aware.
Try this one out:
“John, I will not keep you but a minute- my day has absolutely
been swamped with _______ (whatever keeps you busy). I just
have a few minutes, but I want to share something BIG with you
that I am excited about.
I came across a health product last month that is really working
for me. To be honest, I have been shocked- all I know is that it
makes me feel like I used to feel. It is for your good health. I have
also lost weight. I even sleep better.
I have a 7-day supply I put back for you. Try it out and let me
know if you feel a difference. For better sleep, take a capsule 30
minutes before bedtime. Hey, it might even fix that baldhead of
yours.
John (always use their name), here, the sample is on me. (Reach
out to John’s hand with the product; do not give him an
opportunity to not reach out for the sample.)
(Switch gears and make some small talk. You have done a great
job with your pitch; stop while you are ahead.)
Let us touch base soon; I want to hear if you liked the product.”
When day eight rolls around, and if the product is working (say
John slept better), you can almost bet on John wanting a full
bottle on auto ship.
Many people get attached to a product in just a few days. Of
course, others may never even open the samples
Do not ever apologize for being a tad aggressive.
You are proud to bring your product to them, not embarrassed.
You are excited and convinced your product will benefit them. The
product may change their life. It happens every day.
Let John settle for a while; do not rush to follow up. Some
prospects will reach out to you first- especially if the product
shows quick results. It happens every day.
If a prospect is ultimately interested, they will bring the heat on
their own. Meaning, questions about the creator, an ingredient,
FDA approval, and why they never heard of your product.
Answer each question with the least amount of words- don’t trip,
fall, and blow the sale.
To prevent your initial pitch from drifting, you withheld that type of
information from John. Tone down the science in a pitch
whenever possible.
If a prospects shies away from joining your business, do NOT
lose the opportunity to gain a customer. This is especially
important.
It is perfectly alright to contact friends and use samples- but it is a
personal decision. Sometimes friends and family are best left
alone. Just be careful not to join the NFL Club (No Friends Left).
For most people, the pitch to John is out of their comfort zone.
Yet, the truth is: To succeed it takes a good measure of effort,
most out of one’s comfort zone. Bravery is something I cannot
give you; however, I am convinced that I can give you more
confidence.
I want to show you how to become as successful as you are
capable of being in its simplest form. Do not over-think or over-
talk your pitch.
I wish I could produce my 40-years of experience within these
pages. I cannot; but I have made every attempt to use my
experiences to help you gain a Mastery of Network Sales
knowledge.
It is possible you can use the information I am sharing to become
hugely successful- even wealthy. But let me be clear: I am
referring to one putting forth an intelligent effort with no free
lunches.
Learn to help people with more than just their job; help them
with their lives.” -Jim Rohn
-The Opportunity Offered by Network Sales is
Unparalleled -
The Simple Story Few People Understand:
There is a story most everybody has heard but very few get the
message.
It goes like this: A person is offered a 30-day job. The worker can
choose between two pay plans:
Plan One. $300-a-day each day.
Plan Two: Receive one cent on day one. Two cents on day two...
and the pennies double each day.
It is easy to think there is no way to compete with the $300. Low-
and-behold, the penny doubles into millions of dollars!
At this point, everyone says they understand the math and would
pick the penny. But that is not the point of the story.
Even after fully understanding the math, many workers in the
world will still elect the 50-hour work week over self-employment.
The penny, as you already know, is Network Sales. As I have
already made clear, Network Sales is not easy in the beginning,
and your commission checks are likely to be small.
With Network Sales, in time your downline and income will grow
beyond your control, creating a residual income that could last a
lifetime.
(With the doubling penny, it will not put much food on the table in
the beginning - do not quit your job and insurance too quickly.) 😉
Residual Income
With residual income, the growth of your downline continues to
bring in income. What is not to be overlooked is that you are
getting paid over-and-over for work you did years and years ago.
I can attest to you; residual income is one of the greatest feelings
in the world. It is not a natural occurrence when 40-50 hours-a-
week is the norm.
Here is your quiz: Would you take a $250,000/year income or…?
You get the point.
The Automatic Ordering Program (Auto Ship)
With automatic ordering, the distributor commits to ordering a
certain number of products each month. Many companies offer
large packages containing each product as well as discounts for
volume discounts
Whether you order your product each month automatically or over
the phone, almost without exception your commission check is
predicated on your order on or before a specific date; therefore,
your auto-ship is one of the most important duties of your
business.
If you have 1,000 distributors in your downline and they have all
committed to a $100/month auto-ship, you have $100,000 in
monthly group volume. Credit card auto ships have greatly
improved Network Marketing’s earning potential for distributors.
Compensation Plans
Reward programs have become more representative-centric and
realistically offer the opportunity for a substantial income. Some
Networkers live lavish lives and their checks arrive monthly like
clockwork even as they travel the world.
These improvements have turned Network Sales into a fantastic
business opportunity that can be inherited.
The older plans look good on paper, but they rarely produced a
good income. Some companies now offer the opportunity for the
average Networker to earn money at an earlier stage.
For the inexperienced, a slight change may go undetected; yet, a
small tweak can equal a significant uptick in one’s check. Some
plans offer free product that can be used to qualify for one’s
monthly commission check. I like that. 😉
Later, I will address in detail the mechanics of most every-known
compensation plan.
-Compare Network Sales to Other Ways of Making
Money -
The real reason people choose Network Sales is because it is the
best game in town. Nowhere else can one find such tremendous
income potential available from such a small investment.
• Maybe you prefer working the 40/40/40 plan.
• Is a huge inheritance guaranteed?
• Do you trust your 401k and the decisions you
make?
• Are you fortunate enough to have a pension?
• Do you have the cash lying around to pick up a
few rental properties?
• Do you have a residual income from other
sources?
For retirement, $2,000,000+ from a downline organization that is
doing the lion’s share of the work has always been my main go-to
goal.
At the time of my writing, Covid-19 has decimated employment in
America. Historically, Network Sales does well when the USA
economy is down. It is better to act than sit around waiting for
better days to return.
Network Sales perform well in good and bad times.
Compare the funds one would require stalling a foreclosure. An
extra $300 a month would help save thousands of homes.
Today’s Network Sales compensation plans allow for $300-
$30,000+ a month.
Compare transfer buying prices. In other words, if you need any
product from the grocery that you also sell, buy it from yourself.
Facebook has been very instrumental in decreasing the stigma at-
home-businesses encounter. Capitalize on this advancement in
the home-based business landscape.
In short, there has never been a better time to enter or reenter
Network Sales.
-Is it Bad Timing, Bad Luck, Lack of Research, or Just
Lies? -
You do not want to start out of the gate having chosen the wrong
company. If you make the wrong decision, your chances of even
making a profit may be close to zero.
A hard worker can make money in most any company; yet, pick
the wrong company and you will make it much harder on yourself.
Selecting the right company is of extreme importance- do not take
this element lightly. Do your research and pick a proven, solid
company. Do not let a company pick you.
Use the knowledge you are learning throughout this book to
increase the odds that you will pick the right company.
Monkey See. Monkey Do.
It does not hurt to keep an eye on the proven professionals. What
company did they choose? What company are the hitters leaving?
Is the company about to encounter signs of momentum growth?
Is a big company what you are seeking (small fish in a big pond)?
Perhaps the bigger company would smother you while a smaller
company would give you a chance to blossom at your own pace.
Regardless, just be sure to make your goals realistic.
Does the Company Have a Future?
I have repeated my fair share of mistakes.
Here goes: Few companies prosper for decades. Many Network
Sales companies fail within in a few years.
That is another thorn in my side; I am determined to turn the tide
for good with a better than average opportunity.
Choose a company that will be successful for years. “So, what do
I look for?”, you are asking.
Remember:
• Anyone with a little money can make a fantasy-like video.
Cars and large homes mean little.
• Do not listen to the one, worn-out story from the top
distributor who made a million bucks his first year.
Likely, that was staged.
• The state-of-the-art product designed by a MIT
scientist. Countless companies fail with excellent
products.
-What to Look For -
Pay Plan
The most important thing in choosing a company is the pay plan-
with power and honesty. Remember: you are in business to make
money. Plans range from fantastic to failure.
Demand these qualities in your selected company:
• Financially secure.
• The future of the company is bright.
• The foundation of the products must be high-quality at reasonable
prices.
• Proven products that customers, not just representatives, reorder
monthly.
• Not a me-too company.
• The pay plan must be exceptional.
• Integrity.
Company’s Financial Strength (Be Aware of)
• Conventions become less lavish.
• The company exclaims they are moving to a newer office space.
The reality is the office space is smaller to save money.
• Officers leave. Officers trade positions. Officers Unknown.
• Positive propaganda starts making the rounds.
• Products ship late (suppliers may have cut their credit off).
• New products are introduced but not actually available for sale for
many months (uses your preorder money to fund and produce
new products).
Pick a company that is legitimately on the rise, not just
appearing to be. Ask around but consider the source.
There is much to be said about a company that has passed the 7-
year mark with $50 million in yearly sales. However, these
companies were also exciting babes-in-the-woods at one point
themselves.
Older, established companies can be dinosaurs; and they are
starting to fade as young, creative, and innovative companies
take over in the days of the millennial.
See, these dinosaurs have taken their strength overseas where
people are success-hungry and love Network Sales. This inflates
the sales figures for the United States’ prospects who ask what a
company’s sales volume is.
Many extraordinarily successful Networkers have left the power
companies. Therefore, if the players with immense knowledge
have left, is it sound judgement to join one?
Before you join a company, ask very thoughtful questions about
their financial health. If possible, fly-in and visit the company; ask
pointed questions to a company officer; visit the warehouse; get a
tour of their lab; observe Customer Service; and talk with
employees.
Unique and Beneficial Products
When people have an ache, they go to the store for pain-relief
products. They have a specific need. People are FAR more
interested in joining your company if they immediately see you
have a product they need.
A farmer needs a reliable tractor to grow and collect his good
crops. If your goal is to sponsor 10-12 frontline people, it makes
perfect sense to identify 10-12 farmers who need a new tractor.
A product does not need to be new-fangled and over-the-top to
generate excitement and demand. A solid product that
effectively meets the needs of the masses is a recipe for lasting
success.
Thirty years ago, I joined a company that sold a never-run
pantyhose from France; and a patented product that kept a
man’s razor sharp. Think about that. It was brilliant. Back then,
women wore pantyhose and most all men shave.
At first, I was embarrassed to sell the hose, but when I saw my
checks grow and grow, I was eager to sell them every day. I
was meeting a need and that equated money. That is how the
game is played.
Over-the-Top Excitement
Listen to your gut. NEVER join a Network Marketing company
unless it keeps you up at night with excitement.
The bottom line: Never join a company unless there is
something unique and extraordinary there. Hundreds and
hundreds of nutritional and diet companies are just me-too
companies.
It is simply foolish to join a me-too company. There absolutely
must be something that defines a company as a category-maker.
The new company I am going to present to you is one of those
extremely special companies.
Picking the Right Product Line
The Right Product for the Times + High Quality + Affordability =
Long-term Success.
Why take a chance on an untested product when you can align
yourself with a proven leader?
Historically, diet products, cleaning products, shampoos, and
personal care products do well because people reorder them
monthly.
Slow down. Sample the company’s products. Ask yourself if
their top-selling product is worth $75/month to you.
Products with Legal Problems
This one is self-explanatory.
The Miracle Product (Buyer Beware)
Many companies create 3 fantasies:
• They alone have this one-of-a-kind product.
• They proceed to make the product so miraculous that it takes on
a life of its own. It is difficult to stop good news, only this news is
mostly bogus.
• The product cures everything.
Ask yourself if the product’s claim-to-fame is baseless and simply
hype.
“Don’t follow the crowd, let the crowd follow you.” Margaret
Thatcher
- So, You Are Ready to Join? -
When you join a Network Sales company, if you are blessed, you
could be entering a lifetime relationship. You could be making one
of the biggest financial decisions of your life. Why settle for
anything less than the best?
People will naturally disagree and persuade you, but head-to-
head the winners should be obvious with the following
characteristics of a good company and compensation plan:
1.Is it easy to enter the opportunity?
2. Are you rewarded for direct sales as well as override
commissions?
3. Are you rewarded for personally sponsoring others (with a legal
product)?
4. Are you rewarded for recruiting on multiple levels?
5. Is the focus on selling products to the end consumer, rather
than to your downline?
6. Are you rewarded (not paid) for training and supporting your
downline?
7. Are you rewarded for high personal volume?
8. Are you rewarded for high group volume?
9. Are you rewarded for maintaining a monthly volume?
10. Does the plan provide for recognition?
11. Does the plan offer non-monetary rewards and incentives,
such as trips?
12. Is the plan's monthly maintenance requirement reasonable—
not so high that you can never achieve it, and thus never receive
compensation?
Your selection has now narrowed and the heat from your
potential sponsors increases. Do not lose focus and chose
the wrong sponsor. Sponsors, unless they are a real pro,
are a dime-a-dozen. Do not let friends, even your mother,
sway you in a direction of poorly performing company.
- Riding the Wave of Growth (Timing is Everything) -
Timing is extremely important in Network Sales. All successful
companies go through stages.
Two significant stages are formation and concentration. The
following stage is momentum ($50 million in sales).
Experiencing the momentum stage is the highlight of every
networker. Not to be dramatic, but in the momentum stage there
will be people who will seek out a sponsor to enroll them.
Next follows stability. As the word implies, being stable is a good
thing. The only negative is that the momentum stage has passed.
The experts agree that the best time to join a company is a few
years before momentum. Like the stock market, how can one
predict momentum?
Use the above checklist and add in the age of the company. This
is your best predictor. Momentum is particularly important and can
make your success multiply many times over.
- Let’s Keep Going -
We have a ways to go and many pitfalls for you to take serious
note of.
The Company Support System
Let me first defend the companies. It is easy to fall into a pattern
of blaming one’s failure on the company. They do not actually
work for you; however, they take your calls and mail the orders for
you and your downline. It is like they work for you, and that would
come at an unsurmountable cost to you. This is an element of
Network Sales that is vastly overlooked- mostly because it is free.
Ponder having your own staff and warehouse which are provided
for you at no cost. This is one of the most exciting things of all.
Always thank anyone you talk to from your chosen company. Be
kind and patient to them. Of course, they may stumble when
answering a difficult compensation plan question.
Support from a company does not mean they build your business;
however, you should expect to have the phone answered,
promises fulfilled, and your income deposited on time.
You should feel like you belong to a family, after all, you might
be a part of that family for a long time to come.
-Seeing Compensation Plans Through the Smoke and
Mirror-
Compensation plans is a subject so broad and complex an entire
book could be written on it. To make the wisest choice when
selecting a company, it is critical to have a good understanding of
pay plans.
In a job interview, would you not spend an ample amount of time
discussing the pay range of the job? Of course, you would!
It is true, there are companies that are masters of deceit. They
have spent time creating a plan that has so many hoops to jump
through it resembles a video game. You are slaving away and
unbeknownst to you, the cards are stacked against you. Like a
boobytrap, your downline could implode any day or month.
The talent of pay plan comprehension accomplishes three things:
• It helps you accurately rate just how good the plan is. Never take
a company’s nor prospective sponsor’s word. Do your own
research. Would they tell you if the plan was too difficult or simply
dishonest?
• Helps you sniff-out those sneaky pitfalls and plans like a hound
dog.
• Helps you explain to your prospects why your plan is honest, fair,
and balanced.
I am now going to expose the major deceptions used to
misrepresent pay plans. Some companies may have just a
sprinkle of deception while others throw in the kitchen sink (cons).
Some plans have some harmless hurdles, but one must bear in
mind that these plans are not roadmaps to easy street; they
cannot give away the farm to those who do not push through.
The Superstar Story
XYZ company tells you that it has the most lucrative pay plan
ever. As proof, they tell you, Charlie, a superstar over at ABC,
saw their plan and was blown-away.
So much so, he walked away from ABC, where he is making
$20,000 a month, to join XYZ.
Great story, right? That is all the proof you need to hear to join.
Sorry.
These type-stories are common. Behind the scenes, it can be that
XYZ paid Charlie to come over to XYZ. Charlie was very receptive
to the idea because his ABC downline was experiencing some
erosion.
I admit this will sound confusing, but do not rush to disqualify a
company because some fibs are floating around.
Millionaire Distributors
XYZ company tells you they have the most lucrative plan. As
proof, they share with you that Susan Recruiter and Dave Heavy
Hitter, XYZ’s top distributors, each make $1,000,000 a year.
We do not know the truth about such stories, but my point is that
these stories mean nothing.
These stories do not express whether if people will prosper and
succeed with XYZ’s plan.
We will be discussing compensation hereon in more advanced
language and numbers. You will begin to feel more like a
compensation plan nerd with each section 😊
-What is the Real Deal with Bonus Volume, Anyway?-
Exaggerating Commissions with Low Bonus Volume
All Network Sales companies pay commission on sales of
products and services. In regular companies, salespersons are
paid a commission on retail price.
In Network Sales companies, most sales go to the distributors,
so paying commissions based on distributor cost, rather than
suggested retail price, is normal.
However, most companies pay bonuses based on another factor,
which is often called Bonus Volume (BV), or Commission Volume
(CV).
There is a legitimate reason to have BV. Network Sales bonuses
need to be paid at a consistent rate. But, if a company carries a
large product line, the markup will be smaller on some products
than on the others.
Products with a small markup do not allow for the paying of larger
commissions. By using BV, the commission can be constant
while the BV can be adjusted for different items in the product
line.
For the sake of example, let us say a company’s nutritional line
carries 100% BV, but an expensive piece of workout equipment
carries a BV 50% due to its low markup. This is perfectly
legitimate and legal.
Companies often pay out commissions in round numbers like 5%
or 10%. So, 3.75% becomes 5%, for example, on a 75% BV.
Some companies use BV to totally misrepresent the true
commissions they pay. For example, a company puts on their
sales materials: “We pay 40% on your second level.”
Great, right? Yet, in fine print you learn that commissions are
paid on BV of only 50% of the distributor price.
By doing so, your second level only pays 20%, not 40%.
If a company places a low BV on the most popular products, that
is deliberately misrepresenting the products. Remember that BV
does not affect the price to the end consumer.
Having lower BV, in and of itself, is common in the industry. The
important things to look for is how generous the company is with
its BV and if the company is honest.
Stacking the Big Money on the Hard-to-Reach Levels
XYZ company tells you they have the best plan in the industry. As
proof, they tell you that they pay 5% on level one, 5% on level
two, 5% on level three, 5% on level four, 5% on level five, and
25% on level 6.
You can see right away that all the goodies were pushed down to
the bottom. For the hard workers, there will eventually be
distributors on level 6.
But guess what? You may also need 10,000 in BV and have 6
active, personally sponsored distributors to qualify for that 6th
level.
It may take more than hard work to be paid for the effort you put
into building your team.
Breakage
Breakage allows a company to keep the money you did not earn.
One feels cheated and it can lead to a distributor becoming
negative or even quitting. But for most people, they will never
know.
Now you know to ask.
For example, a plan requires a distributor, at their current level, to
maintain $10,000 in group volume (GV) each month. In June, let
us say, when Mary was saving up for a family vacation, she
misses the mark by $93. Well, no cigar. ☹
Many different scenarios can occur that cause breakage;
however, breakage is not dishonest. Misrepresenting it is.
If a company states that it pays out 51% and it does not, then that
is dishonest. They may pay out 40%. The dishonest company
could state that the POTENTIAL for a distributor to earn 51%
exists, only he/she did not earn it.
I mentioned earlier to always have a reputation at the corporate
office of being a friendly leader and not losing your cool with
customer service.
Some companies will back-date the month of June for Mary and
let her order $93 worth of product. Ask to use a one-time
forgiveness and/or ask to speak to a manager or corporate officer.
Breakage and Low BV Combined
Pay attention to this classic example of how a company can
shake your hand and use the other hand to pick your pocket.
If this example is clear to you, you are well on your way to be a
Master of Network Sales.
Without accounting for BV and breakage, a pay plan will seem
more generous than it is.
For example, two companies could claim a payout of 50%.
One company may pay out the full 50%. The other may pay out a
measly 25%.
Here is how that occurs: The less honest company claims to pay
on six levels (5%,5%,5%,5%,5%, and 25%.) The more honest
company also pays on six levels (5%,5%,10%,10%, and 10%).
Here comes the slight-of-hand. The less honest company pays
only 60% on BV, which effectively makes their pay out
(3%,3%,3%,3%,3%, and 15%) and true pay out of 30%.
Add in the fact that some groups did not meet their GV and it
added to another 10% breakage. When it is all said and done, the
less honest company paid out 20%.
The Miracle of Spillover (Generally associated with a Matrix)
XYZ Company tells you that they have the most lucrative pay plan
in the industry. In fact, their pay plan is so good that you will easily
qualify for the free car bonus. Even better, you do not have to lift a
finger. Not one.
Using Spillover to pitch a prospect might go like this:
“Just sign up, pay, and order products each month. Then... just
wait for your checks to arrive.
It is all done through the miracle of spillover. You see, there are
several big-time hitters who really-get-after-it. They will be
sponsoring a ton of people who will spill into your downline.
Just recently, Joe sponsored 30. Katie? An easy 22. Suzy? 50,
and she has three children and a newborn.
So where did all these people windup being positioned? They
went to the lucky winners who already enrolled. There is an
avalanche of spillover happening right now and the earlier you
sign up the earlier you get your share, putting you closer to the
free car.”
Spillover can be a benefit of a pay plan, but it is better to never
even mention it when sponsoring. For example, you have a
downline of 50 people. The next person you sponsor will be
placed in the first available spot, left to right.
That means 49 others in your downline will have their mouths
open like little birdies waiting for a worm. Just one of your
downline will get a person spilled under them (the upline,
however, will benefit).
Under promise and over deliver. 😉
Money for Nothing
There is another money-for-nothing pitch you may likely
encounter. It is so ridiculous that I will not devote much time to it.
It goes like this: Sign up and they will do ALL the work for you.
Maybe they will say they have an office and staff that handles all
your orders. Heck, they even advertise for you.
If they are telling everyone the same thing… well, you get the
point.
In my opinion, this is the biggest con of all.
“To add value to others, one must first value others” -
John Maxwell
Front Loading
Before I begin, this is really all I need to say to keep you away
from this trap and your credit card balance low: It is illegal.
XYZ Company tells you they have the most lucrative pay plan in
the industry. You can make hundreds, even thousands of dollars
by just signing up a new distributor.
You see, new distributors in XYZ really must buy thousands of
dollars in products as soon as they sign up. It is in their best
interest, they are told, and when their recruits buy the products,
they earn thousands.
Some, with not a single sponsored person will buy their way to the
top positions. Unfortunately, some companies will turn a blind eye
to this act.
DO NOT fall for this. It is one of my top-scam picks.
This one goes like this: Pressure from people—even your friends-
who claim that they have indeed made thousands from signing up
one person, will ask you to pull out a credit card or two. You may
need three credit cards, likely, because some of these packages
can go from $5,000-$25,000.
There are several pitches companies use to justify this:
(1) One needs to ample samples of each product to effectively
sell and to honestly say you use all the products.
(2) The more you spend the more commitment you express.
(3) One needs products on hand to sell.
(4) Be instantly promoted to a higher rank where the
commission payout is higher.
(5) One needs inventory to appear to be a real business and not
just a hobby.
Over-buying products is known to the insiders as being “garage
qualified”. “Buy a lot and let it rot.”
Front Loading really hurts people. Right now, there is someone
falling for this manipulation. I have personally seen a garage with
$20,000 of product (sorry, Tom). Imagine the dollar value of
products one would have to purchase to have 10,000 of BV to
rank at a higher position upon signing.
A purchase of $750 is quite reasonable and is the legal limit. After
all, as Networkers we are required by law to also retail our
products. A frontload of $3-$5,000 is unconscionable.
Twisting the arm of a gullible person is even worse.
The Convoluted Pay Plan
(Another Stupid Alert)
XYZ tells you their pay plan is the most lucrative plan anywhere to
be found. In fact, their plan is so powerful and revolutionary that
no one will even understand it at first.
“Hey, you don’t even need to understand it to make money.
Just go out there and sponsor like a madman and the money will
start rolling in- and by that time you will understand it like the pro
you have become.”
No one would take a job under the same circumstances, and why
would one want to resort to tell their prospects the same pitch?
The blind leading the blind.
Honestly, it is worth mentioning that at first most all plans will
make one feel like a deer in highlights. It happens to me as well.
Do not confuse a difficult plan with being told you do not need to
understand it.
The Mighty Pyramid
XYZ Company tells you it is them who has the best pay plan in
the industry.
Let me use this example: A company pays out 90% in
commissions. Each month every distributor (wrong term as they
distribute nothing; let us use “participant”) sends XYZ $100 and
XYZ pays back a whopping $90 in commission to each
participant.
To do this, XYZ has eliminated the part of the plan that makes it
legal: A product!
For example, I will form a company, ABC, with a dynamic pay
plan. Remember, we cannot eliminate a product.
Let us add in a bottle of vitamins and see if we can turn this
scenario around (you might be surprised).
Let us buy a private label bottle of vitamins at $1 each. And, let us
sell it for $25. The payout does not change anything in my
example, so I have skipped it.
I know I need to pump up the volume, so let us make each
distributor buy 4 bottles a month for $100, and I fall only $4 short
of a disguised money game.
You know the bottom line: Find yourself a real company.
(Let us brighten things up and leave those cons and money
games behind.)
-There are Many, Many Very Honest Companies You
Can Join -
Please… do not let the con games put a bad taste in your mouth.
In fact, most companies have your best interest at heart… and do
not blame the good infrastructures, just people in general.
Let’s finish up with a comprehensive check list:
• Uses the Joe Superstar story. He’s the guy who may or may
not exist who makes $1,000,000 a year.
• Uses the 5 people who get 5 people example.
• Uses a pay plan that creates unfair Breakage (your money they
have devised a way to keep).
• Pay plan pushes the bigger pay deep down and away from the
average networker.
• Claims a high payout when the truth is their BV (which the
actual commission is calculated from) is low and the plan is
based on low BV.
• Uses the money-for-nothing pitch via Spillover.
• You only need to join. The company does all the work for you.
• High-dollar Frontloading.
• Uses the Free Car Bonus as a carrot.
• Promotes Transfer Buying (buying products from yourself
such a skincare; however, the company sells over-priced
products).
• Has “must-buy” starter kit, sales aids, or over-priced internet
tools.
• Simply boils down to a Money Game.
-One Company or Two Companies-
There many opinions on this topic- debates even. This analogy
always comes to mind for me: The smart fox only chases one
rabbit.
Working one company should take all your might. Working two
companies- burning that candle- can take a toll on you and
diminish the best version of yourself.
Personally, I am a very loyal person and working two companies
honestly messes with my head.
H o w e v e r … we all think our company will last forever, the
excitement will remain forever, and sponsoring will remain
simple, fun and easy.
Such is life: Some bad companies get greedy and survive. Some
good, honest companies go belly up.
Should you, bottom line, put all your eggs in one basket?
You can select from two second companies with this criteria:
- A company that helps support your company. For example,
a company excelling in tele-conferencing, autoresponders,
capture pages, and lead generation.
- The second-best company you researched.
Regardless, you should be a casual distributor in either. Sponsor
only close associates who understand your reasons and
intentions and will not gossip.
Be sure you read the policies and procedures; some companies
will, well, kick you out if they suspect you are “raiding” the
company of their distributors.
Find a way to use your second company as an inexpensive
insurance policy.
-Compensation Plans -
The Stair Step Breakaway
Someone picked the wrong name because one should beware of
any plan with the word Breakaway in it.
The Stair Step Breakaway is almost dead, if not already, yet the
mechanics still have a bearing on your compensation plan
education.
The stair steps are usually 10% then 20% commission.
When your volume is $1000 one month, you break away from the
team you were placed in. It is a form of breakage, yet the worst
part is that your team volume can move up to the closest leader
ranked above you if you fail to qualify—and it only gets more
difficult.
It is not for part-timers and was not created for walk-away residual
income. One must hustle to keep up- forever.
I remember when I first experienced my volume going to
someone else- oh the sting and disappointment.
This is an abbreviated version because you will likely never
encounter this (worthless) pay plan. Run if you do.
The Forced Matrix
Around 1982, an interesting plan came on the scene with much
fanfare.
The matrix is designed to pay on a certain number of levels. Each
person is limited on the number of frontline people they can
sponsor. Most always, you will be required to sponsor two people
to qualify to earn override commissions.
It works as such: If you are allowed two persons, the third person
you sponsor is forced to your second level. When your second
level is full, new people are forced to your third level and so forth.
For example, you could have a matrix that allows three on your
first level and paid eight levels deep (3X8). The plan may pay six
percent on each level for a total of 48%.
The Matrix would take on this structure:
3
9
27
81
243
729
2,187
6,561
Personally, I like a Matrix, but I do not like that eight level of
number of 6,561 used as a recruiting “tool”. However, it is
possible with the right company and product. A Matrix can swell to
very impressive numbers.
If constructed as such, one might be paid down three levels by
sponsoring no one and just purchasing a product. This is where
the Spillover comes into play, but do not bet the farm on it.
A Matrix is very much legal; however, like I mentioned about that
eight level, it should not be used to exploit someone due to the
sheer size of the number.
Over time, the Matrix has fallen out of favor with major companies
but remains popular with smaller opportunities.
I discovered another weakness, people become lazy and do little
or nothing (expecting Spillover).
It is problematic also in that a lot of people will be on your ninth
level and beyond, the 6,561 notwithstanding. And because some
people never receive Spillover.
Take for example, your friend, John, finds the heavy hitter he has
looked for his entire networking career. John is on your sixth level
but the hitter lands on John’s third level moving the hitter out of
your pay line.
The Matrix can be exciting if a lot of the features fall into place. It
is a good plan for the average person but not the hitter. I will have
to give the Matrix a C+.
The Uni-level
The Uni-level came on the scene a short time after the Matrix. It
was a significant improvement over the Matrix, became
immensely popular, and remains widely in use today as the
choice between it and the Binary.
The difference over the Matrix is that one can sponsor as many
people as possible on their first level- there is no maximum. There
is, however, no Forced Spillover.
Because the Uni-level goes wide, you have a relationship with
these people; and they stick around much longer because you
support and communicate (the key to keeping a downline) with
them.
Here is the quickie version (less any qualifiers):
When the people on your first level (personally sponsored)
sponsor people, they all go on your second level.
When the people on your second level sponsor people, they are
placed on your third level.
So forth and so on.
If a heavy hitter were sponsored on your fourth level and
personally sponsored 100 people, all 100 would become a part of
your fifth level. Of those 100, if each sponsored five, you would
have 500 on your sixth level.
It can get extremely exciting; I have enjoyed the Uni-levels I have
worked. Yet, the Uni-level is far from perfect.
The quandary of most legal plans is that there is a limit,
mathematically, to how much a plan can payout. You see, people
are short-sighted and want the larger percentages in the upper six
(or so) levels. People like to see 10%,10%, 20% and so forth.
The result and problem with a limited depth is, like the Matrix,
when your downline really takes off, it is on the deeper levels. So
many times, for those who really give things a chance, a hitter will
come along that completely changes the landscape of one’s
downline—and all this “action” is beyond your reach.
Inevitably , the leaders start to complain about their inability to
reach the deeper levels- and guess what? They make the payout
on levels one through six a portion of what it originally was, and
the company adds that money down deeper. So many times, I
have seen a company side with the leaders to the detriment of the
entire company.
The middle ground is to establish qualifiers. Let say if one has 10
people wide (personals), then they qualify to be paid on levels
seven and eight. For me, this qualifier has put a lot more money
in my pocket- the mechanics are solid.
It usually goes like this: The wider you sponsor on your frontline
the deeper you get paid. But as you might imagine, it can get
sticky- like requiring a $25,000 BV. Remember when we
discussed Breakage?
The hitter likes to see a one to two percent infinity bonus—yep,
that is forever down. The requirement to qualify for an infinity
bonus is quite steep.
My past experiences with a Uni-level have been favorable and I
would recommend one join a company which utilizes one. I give
the Uni-level a solid B.
The Binary
Binary compensation plans were invented in the 1980’s and, over time, gained some notoriety for fast growth leading to periods of popularity in the global Network Sales Industry. They have several unique characteristics that set them apart from most other types of compensation plans.
Binary is the most used pay plan in the industry today- it also has
the lowest retention rate. It can be a beast to grasp and explain.
I am just going to give you the bones. The part-timer will like the
Binary because of our friend Spillover. There are no limits to how
many levels one can be paid.
Let us call you the Business Center with two legs- left and right. It
is like the Matrix in that you have only two people on your first
level.
In addition, one leg is known as the Pay Leg and the other the
Strong Leg. There are some interesting hybrids, but traditionally
the Strong Leg, often called the Power Leg, does not pay you
directly. However, it does help qualify you to earn (more) from
your Pay Leg.
“There are no office hours for leaders.” – Cardinal J. Gibbons
Some of the hybrids pay you on your personally sponsored
distributors (and your team) regardless of which side they occupy.
A shortcoming is that your Pay Leg can “flip” and become your
Strong Leg and your pay falls significantly. I once had to get back
into high gear and sponsor another 47 people to keep up with this
balancing act. (The bigger leg is the Strong Leg, regardless of
side.)
If either of these legs start to erode, one has a problem that is
more often nearly impossible to recover from.
There are so many things that can give you a heart ache about
the Binary that you are not told nor see forthcoming.
Let’s see just how clear I can make this for you.
Instead of having three or more members on your frontline you
only have two on your front line. You receive Spillover in both
legs.
Often the company will allow you to choose which leg your new
downline member goes into. Usually, an upline will
encourage/advise a downline member on which leg to put their
new downline member. Make sure you run their advice up the
flagpole before you act. 😉
For example, if your upline put you on their left leg or right, they will encourage you to put your new downline member also on your left or right leg. The reason for this is that it allows the current downline members to benefit from the new members being added to a Power Leg. Mostly a good thing as both sides are built with Spillover. Unless….
When you join, beware of getting placed into no-man’s-land like a dead leg- ASK. Each leg has inside and outside legs.
Yeah, I know; this was all sounding great until now. Usually, your goose will be cooked in a dead leg unless you can build-out both of your left and right legs out.
Yeah, I know; this was all sounding good until now.
Experienced Networkers will nod their head on this tip: You want to be placed into a fast-building Power Leg, then you concentrate on building your Pay Leg.
It happened to me once. My sponsor, a friend, needed me in a spot that benefited him. Had I insisted to be placed into the company’s Power Leg (I joined at the launch), my income would have been MUCH bigger. I was eager to begin and I was overly confident. Lesson learned.
Before I move on, beware that everyone wants to be in the best spots, and everyone cannot be. Some people lose out for various reasons, mostly because people have never read or been told what I am sharing with you now.
A binary can really stink at times.
It can also be exciting and extremely rewarding.
In the Binary compensation plan, commissions are measured by volume . . . not levels. For example, in the Matrix compensation plan when a representative builds their team to the fifth, sixth or seventh level +, they get paid a percentage of volume at that level.
A company may have it set up where if you have, for example, 20 customers on your right side and 20 customers on your left side, they pay you the percentage of the volume. The variations run high and creativity is wide open for the Binary. This is called cycling and is discussed below.
So, on your right leg if you have 10 reps that have two customers each (20 customers total) that bought a product for $50 that would equal $1000.
And on your left leg if you have 10 reps that have two customers each (20 customers total) that same product of $50 dollars would equal $1000.
This equals $2000 in your total volume.
If the company decided to give you get nine percent residual income of the volume that would equal $180.
(Two each per dot.)
In another example, on your right leg you have 10 reps that have two customers each (20 customers total) that bought a product for $70 that would equal $1400 in volume.
And on your left leg if you have 10 reps, that have two customers each (20 customers total) that but the same product $60 dollars that would equal $1200 in volume.
If the company decided to give you get 15% residual income of the volume that would equal $180.
It is also characteristic of the Binary to use the term Cycling.
Cycling
For a Cycle to occur, the company gives you points for your volume on both sides. When the point total on both sides are equal, you earn another check. For example, 300/300.
Of the equal points, the company might pay 10% on 300/300 giving you $30. I am currently receiving residual pay from a company that uses the 300/300 format.
Infinity Pay Limitations
Here is my abbreviated version:
Every compensation plan is powered by volume and percentages, from which one can roughly estimate their commission check, but the Binary... uh, let me see how to approach this, has a few twists better left to computer software if I were to give numerical examples.
Since both of your legs can grow to Infinity, and that also goes for everyone on your team, the buck must stop somewhere, or the company finds itself paying a lot of people the same amount. Mathematically, this is an impossibility.
So, the company must stop the bleeding and they announce each
pay period (moreover, you might have to ask 😉) what
percentage they were able to pay out.
In the company’s defense, one cannot have their cake and eat it too. Spillover is enticing, and it is great—all things considered. And, for the company, it is simply mathematics if they want to stay solvent.
There are caps. The cap might be $1000 income a leg a week.
Yet when a company is only able to payout 7% instead of 10%, it is disappointing. And in some cases, are only able to payout $150,000 a year. These caps are not appealing to the hitter.
Further, for the average person, the company can put in Breakage, low BV, and difficult qualifications.
Advantages and Disadvantages
The Binary compensation plan makes it exciting as one team member goes under the one before them in a straight line. It’s encouraging and motivating.
There are a few advantages to working with a Binary structured plan.
Advantages
The following advantages are:
• Spillover – A bonus can be obtained by getting spillover. An example of this is when you are upline sponsors more than two people and the extra person falls to the next available spot which could be under you. Therefore, you would get the credit for it and receive any qualifying bonuses for obtaining a new person in your lineage
• Unlimited depth - Unlike the Matrix compensation plan, the Binary plan pays you through unlimited depth because you get paid for the volume. This ensures that every member in your upline (and possibly downline) benefits from this.
• Faster Growth - Starting with two in the Binary system you can build deeper faster since representatives get paid on depth. You do not have to acquire five or three to start building deeper into your lineage.
Disadvantages
Rarely will you have perfect volume balance between your left and right legs (unless manipulation is occurring). Some reps get lots of Spillover and build only their Pay Leg thereby receiving binary compensation sooner.
Others must build BOTH legs but get paid only on their Pay Leg. Thus, the rep who builds both legs often has developed 3 times the volume of another rep who built only their Pay Leg (due to this natural imbalance between legs). How can anyone consider a plan “fair” when it pays the same reward to a person who worked three times harder?
5
• Equal Legs (Cycling) - In some cases for representatives to be paid bonuses or residual income their left leg must be equal to the right leg. It is not always easy.
For example, if you get three levels of residual income:
1. 9% when you get 20 in each leg 2. 15% at 30 in each leg 3. 25% with 50 in each leg.
If you have 150 in the left leg (also with the help of spillover) and 23 in the right leg you will be paid residual income on 20 in each leg. In other words, you will get no credit for having an extra 130 in that leg.
. . . Company Has Final Say
These examples of compensation and residual income are not written in stone. Remember that I gave you only the bones for a Binary structure.
Companies can change their compensation plan and payout two to three times. It is your responsibility to keep updated with the company you choose.
The Binary can be a tiger to tame and, in many circles, has a bad-boy reputation.
Personally, I would not recommend a Binary.
The Australian Two-Up
There is a minor plan that has never really caught on for the major companies. Many that tried it are no longer in business.
The plan goes as such: the first two people you sponsor go to your sponsor. The third person you sponsor pays you. This third person gives you their first two sponsored people.
The notion is that it can go on forever- if people remain in the business.
There are modified versions that pay very deep in your pay line giving you a continued piece of the action.
The Two-Up is an extremely poor plan. Do not bother.
Trivia: The Two-Up is a traditional Australian gambling game. You do not want your prospect Googling the Two-Up.
The Two and Three Level Pay Plan
This plan is mostly self-explanatory: It pays on level one and level two—or one, two, and three. As you have learned by now, there is no future in such a plan and no hitter will come your way wanting to join.
It can, however, be good for several hundred to $1000/month.
A two-level plan that pays 10% on your first level and 40% on your second level is quite appealing- especially knowing one is not a hitter and will likely never will be one.
Let us say that the product is $100 and five people on your first level make a purchase. You earn $50 @ 10%. Dismal at best, but that 40% on your second level throws a nice, sappy log on the fire.
On level two, if 25 people (5x5 from above) order that $100 product, you get $40 per person.
You hit the jackpot at $1050. That is good pocket money, but that is with 30 solid people. It cannot be 15 or 20 people.
With such a plan, there is money to be made, just not big money-and without residual income.
Its claimed to fame is that the Two to Three Level Plan was the best pitch to ever sweep the industry.
Make sure your priorities are set. If residual income is important to you, this is not the plan for you. If you want to have some fun with a good product for a car payment, then this is for you.
I give the Two and Three Level Plan a B for the part-timer, and a D for the hitter.
“That which fails to finish was faulty from the start” – Dale Mahoney
-The Most Important Element of the Pay Plan –
The most important part of the pay plan is what the total
payout in commission is, based on distributor cost. Close to
50% is par for Matrixes and Uni-levels.
In Binaries, about 20% on the weak (pay) is excellent but not
always realistic or possible.
I am referring to true payout and not potential.
There is one other item that must be taken into consideration.
That is the price and quality of the products. In some
companies, the main technique to draw distributors is to pay
exceptionally large commissions.
The downside is something has to give and in this case it is
the product: They are cheap and ineffective. Big red flag.
Quality products at a fair price is a perquisite. Once that
requirement is met, then the total commission becomes the
most important element.
-Strategies That Lead to Success-
How Does the Part-time Person Make Money?
We have already covered the subject of pay plans. Now we
will begin to put together strategies that lead to success.
When you begin to understand how the serious money is
made in Network Sales, it seems the part-timer faces a rough
challenge.
Unfortunately, that is true. We have average to bad pay plans
and products in circulation. Plans favor the hitters. And since
old-school training has been swallowed whole by the internet,
training has faltered. Old-school training has never been more
in need than now for the part-time worker.
But it does not have to be that way. There are excellent plans
today. There are fabulous companies that walk straight and
adore their distributors.
With the right strategies, the part-timer can indeed have a
serious goal of leaving their J.O.B. (Just Over Broke) and
working Network Sales full-time.
-I am Delivering on My Promise-
The Single Most Important Secret for Success
I am tapping on your desk. Be sure you are wide awake for
this section.
The most critical element in Network Sales is to have a system
that has proven successful to you that will also work for your
downline.
Let us say you launch a serious Social Media and magazine
campaign and it produced amazing results. Will that work for
Janet and Dan? Probably not.
Your system must be able to be duplicated… often without
exception… by your teammates.
Your best systems are K.I.S.S.: Keep It Simple Sweetheart.
So, what is a system? It can be as simple as the EXACT
words one uses to attract a mutual friend on Facebook.
Remember when I talked about boiling an egg, and how a few
minutes of boiling and/or cooling can make or break the
perfect boiled egg?
If certain words have proven to draw an interest, do not
change a thing. Then share them with your downline.
Continued testing is always encouraged, just remember: “If it
ain’t broke, don’t fix it.”
The book you are reading now is part of a system. My book
can be handed out or offered as a part of a free offer. If the
prospect will fill out a form with their name, email, and phone,
the book can be downloaded courtesy of you.
And, exactly like I am asking you to look at my new company,
you can add links throughout this book pointing people to your
company.
A system does not have to have a big motor and a fancy
paintjob—it just needs to work for all and hopefully be very
affordable.
While what I have written here about the single most important
secret in Network Sales is only a brief discussion, do not let
my lack of words lull you to sleep.
IT IS CRITICAL, as critical as your business success solely
depends on it.
-Selecting Your Sponsor-
When experienced Networkers change companies, they
always shop for new upline leadership. They understand the
value of being connected to strong leadership.
When you choose to let someone sponsor you, you are
entering into a business partnership. You have every right be
to be careful. The relationship should be an alliance.
Ask them what they do for their new members as well as their
downline. What they do is what they do. Do not ask them to do
things especially for you.
It will serve you well, however, to explain to that upline your
ideas on what upline leadership should do to help their
downline.
You must find that that special sponsor that already has a
system in place that you can duplicate!
Do not be shy. Call the home office and ask for a good
sponsor that is making things happen. Find a way to contact
them and go for it. You may prefer a sponsor in your area.
I will share this bit of reality: If you select the super-star
sponsor, they are most likely too busy to train you until you
prove yourself, then they will dote on you. It may very well be
that they just do not have the time.
In the case above, make friends with a another solid distributor
that will let you be a wingman for a while.
The bottom line is that a superstar might not guarantee you
success; yet, being on their team and feeling the excitement
will, in the long run, make you more money.
-Cost-Effective Sponsoring-
Sponsoring has a cost whether it is time or money. Some
people have more time than money; and some people have
more money than time.
Money is not the be-all, but it does not hurt. You want each
prospect to be as cost-effective as possible to generate and
sponsor. Networking is Peer-to-Peer. Word-of-mouth. Referral.
All which are all free.
There is also time efficiency. Are you investing 2 hours into
each prospect when the fact is you are simply begging?
You want each prospect to be the best of both your time and
money. Consider the balance. Are you overspending? Are you
staying up too late and burning needless time?
You will sponsor a fair amount of your prospects. You will also
bomb and make mistakes.
Some things work for others that will not work for you.
This is where our friend duplication comes in because no one
can build a downline themself if not for cost and time alone.
But it is OK. You will learn your best way to sponsor, and you
best testing ground is your warm market. (I did not say family.
😉 )
-Networking with Your Warm Market-
Most people start off my working through their warm list.
Sometimes it is more like stumbling through a friend list, which
can be painful. It is, nevertheless, free.
The truth is, the more of a voice you have with prospects the
better Warm Market Marketing will work. In other words, in my
small hometown, an extremely nice and handsome surgeon
joined NuSkin. His wife was attractive and friendly. They built a
huge organization and became wildly successful).
Without clout and a track record, Warm Marketing (the list of
100) can be embarrassing and you eventually run yourself
away from the business.
Here is a technique, that on the surface may sound a bit like a
gimmick, that not only can save face, it can be highly effective
and cost efficient.
Try engaging a friend in conversation. Try not to call and ask
to meet. If you do, make it very causal, non-suspect. At the
most opportune time, simply ask:
“Will you help me with something? I just need your opinion. I
have been concerned about my age and wellbeing lately. I
have less energy and my sleep is poor. You may have noticed
that I have put on a few pounds as well.
What do you think about this product (pull a bottle out and
hand it them—put in their hand; do not make them reach)? It
was created in XYZ lab and some pro athletes are already
using it. It has really put some zip back into my life and I sleep
through the night now.
I am so impressed I am considering selling it. Do you think this
product would draw your attention? Would you buy it?”
Then listen and act accordingly. Bingo.
The difference is dramatic over calling a list of 100 and hearing
no, no, no….
-Products (and Your Downline)-
Most all Networkers are unaware of the FTC vs. Amway
landmark case. http://www.mlmlegal/landmark.html
Networkers should have 10 retail customers and sell 70% of
their products on-hand to expect protection under the law.
While it can be seldom forced, it can be. A company is to
police this ratio and record it for each representation as well.
Network Sales companies need to be cautious about being
just a “consumer club” where all product sales are within the
company’s distributors.
I inserted the above because people think they do not have to
peddle products. They are relieved. The problem with that
mindset is that they are missing out on a golden opportunity to
not only make some extra money, but hook a customer on a
product who is so impressed, they too, want to sell the
product(s).
‘
Failure to sell your product(s) is a major decision. You should
consider the negative impact of not selling your product on
your income and building a successful, long-term business. It
can be a killer to your Network Sales career.
- Get Serious and Receive Serious Results-
Network Sales is often perceived as a business that is not in
all actuality a business. Most people in Network Sales are part-
time people. The average distributor does not make much
money if none.
There is a perception of people selling a small number of
products to friends and family; that there are none of the
attributes of a real business like a storefront, employees, and a
payroll.
It is all just very, well, small time.
The misinformed make some valid points: Many home-based
business owners are involved on a casual basis- yet this can
be a good thing.
One of the positives of the home-based business is that one
can get involved at whatever level fits their allotted time and
lifestyle the best.
Nevertheless, relatively speaking, a homebased business can
indeed be as serious as any one business can be. And when it
is treated as such, the income potential is tremendous.
The serious home-based businessperson conducts business
much like any business professional. They have a specified
business plan and are very professional in their conduct.
These professionals may leave the confounds of the home and
rent an office for meeting and product sales. They, too,
advertise and may even hire employees. The employee part is,
however, what most business owners would prefer to pass on.
I encourage to make a place in your home for your business.
Record your expenses for taxes. Perhaps have a phone
number for both your business and personal life. And as
previously discussed, select an upline that tows the line and
will set the bar high for you.
Even though my inclination is to steer you towards a serious
business demeanor, don’t be over zealous and lose the
benefits of a business that offers you time freedom and the
opportunity to make and work with some incredibly wonderful,
new friends.
-Fishing for a Downline-
There are two fisherman who go out on a lake to catch some
fish. One has a good fishing pole and some fresh bait. Another
has a fishing boat and a giant two-hundred-yard-long net.
Who do you think will catch the most fish?
The better Networker involves themselves with social activities,
tries to strike-up conversations with strangers about making
extra income, and eventually makes mention of their business
opportunity.
The Networker with the big net might very well find success
with four people a month (one a week).
The real superstars generate hundreds of leads and then sift
and sort those who have the interest and drive necessary to
build a business within their downline.
There are many techniques that will forever bring profitable
results. Do not buy one hundred percent into the notion that in
today’s world Social Media is the only commonsense way to
build a business. Since when did people stop talking,
altogether?
-Duplication Revisited-
Duplication can never be discussed too much. I want to bring
to light that there are critics of a one-only duplication system
who believe that one shoe does not fit all. Different strokes for
different folks.
What must happen, regardless, is the enrollment of people
who enroll people, who enroll more people, and then enroll
more people. This is essential, but maybe not so strict and
hardline on how one and their downline achieves duplication.
There is room for some deviation. Yet, you may need to take
note of a few methods that work well but all have a common
thread like a series of effective capture pages.
There is incredible power in having several effective and
duplicatable systems to build a business.
- Effective Sponsoring Cost -
Word-of-mouth advertising is essentially free; however, as a
rule recruiting has a cost of some sort. This cost may be in
money or time.
Obviously, you want to keep your expenses low and sponsor
as many people as possible.
If you had to, alone, sponsor everyone who went into your
downline there would be no cost-effective way to build your
business. Your self-built downline would never return the work
and money you invested in it.
Help is on its way. The reason it is acceptable to pay the cost
required per enrollment/customer is because of our friend
Duplication. You not only get paid on the people you sponsor,
but on the people, they sponsor and so on.
When you invest the time needed to sponsor people, you are
investing in your business for the long term. You are investing
in Duplication. The money you earn will come from your entire
downline, or at least a significant portion of it, and not from the
people you sponsor.
You are not in the sponsoring business; you are in the
expanding and investing business.
The most cost-effective way to expand your downline is to
have pockets of people who are busy building their downline
(which is a part of your downline). As these leaders each
invest in their respective businesses, you profit from their work
at no cost to you. Again, Duplication at work.
But before you can get to this point, you need to plant a lot of
seeds. Seeds that will sprout and produce a bountiful harvest.
Sponsoring is a numbers game; it is also a sifting and sorting
business. Some people prefer throwing a lot of mud against
the wall and see what sticks. I always say, “Just do something
every day even if it feels stupid.”
I once opened a phonebook, put my finger on a name, and
mailed a man a package. Bill R. turned out to be one of my
best-ever distributors and friends. He also had an office
building for us to hold meetings and have desks and phones.
Rather than do nothing that day, I did something that surely
seemed like a waste of time and money.
Within reason, there are hundreds of methods that work. And,
if you do enough of them you will soon have done most
everything you see taught in books and expensive seminars.
Be proactive but not overzealous. You can drop $2000 into
Facebook ads in a heartbeat. You will need that just-right
picture, copy, and a stroke of luck to succeed from Facebook
advertising. The odds are not in your favor.
Keeping your cost low could make the difference between wild
success and going bust within a month. Look at the numbers;
do not exhaust your budget right away. You must learn to build
your business in cost-effective ways.
You will make mistakes along the way. When you do, learn
from them. Back away and evaluate the results you received
from the time and effort you invested. Run the numbers.
Create a personal business formula.
“The highest of distinctions is service to others.” – King
George VI
-Present-day Marketing (and Yesterday’s)-
If you are new to Network Sales or the home-based business
arena, you will be baffled as to how anyone made any money
before the Internet.
We were groomed to have a $200-$400 long-distance phone
bill, and then to spend another $300 on postage, cassettes,
faxes, leads, postcards, magazine ads, and mailing packages
each month.
*If you utilize postcards in your marketing arsenal, you can
save 25 cents postage per card. See
www.HomeBusinessAdvertiser.com )
In addition, there were costs for products, gas, motel meetings,
conventions, and entertaining prospects. The phone
companies and USPS must have made a fortune each day of
each week.
Then, came a vast number of magazines dedicated to the
home-based business industry, card decks, 800#s, auto-
dialers, and the fax machine. Every day, people, by the
hundreds-of-thousands, received recorded business
opportunity calls. Faxes were “blasted” to just about any fax
number in existence. Somehow, faxes even found their way to
prison inmates.
Next, the reduced per-minute phone charges war heated up. It
was so exciting to eventually see four-cents-a minute! We felt
like we were living in the future. Today, we can almost call
around the world for free.
Finally, the door was thrown wide-open with email and spam. It
was a nasty, extended, and inconsiderate time for
unwelcoming recipients of Viagra and business opportunity
ads.
Email was attractive to marketers because thousands, even
millions, of people could receive a call-to-action email within
hours.
It was also popular because postage rates were starting to
climb almost yearly. Email was cheap, and suddenly, there
were no paper and bulky packages to mail. Email made it
possible to become wealthy in a matter of months. It was an
unregulated, technological, wild-wild west. There was a
constant battle between spam-filtering software and those with
the genius to beat it.
I profited greatly from email and miss it to this day. I did,
however, always do my best to use actual lists of business
seekers and state my name, address, and phone in a
conspicuous place.
When the Federal Government passed legislation (CAN-
SPAM) to kill-off spam, things slowly came to a halt.
Social Media
Next came a new adventure in marketing: Social Media. A
whole new world opened- in fact, the entire world was at our
fingertips, in real time, via Facebook.
Many people have mastered Social Media and built worldwide
downlines. Likewise, the masses started to sponsor a few
friends and friends of friends- even strangers.
Nothing is as easy as it looks, right? Do not forget about our
old friend Duplication. Joining all types of Facebook groups
and mastering LinkedIn, etc., looking to generate prospects is
difficult no matter how well you explain it.
The ABC’s of Network Sales, by way of old-school training,
started eroding almost two decades ago. Yes, information on
how to sale, use a capture page, and stay motivated abounds
on the Internet; yet, there is no real substitute for being
handheld and taught the things I am attempting to explain to
you here.
Social Media is a breeding ground for MLM Junkies. “Back in
the day”, it could take months for word of a new opportunity
out of California to reach my state of North Carolina. Today,
new company launches hit the scene instantly and the grass
never looks greener to “program jumpers”.
(Here is a solid piece of advice: Unless your current company
is a dog, a real lemon, stick it out and give success a chance.)
Social Media, Facebook in particular, has to some degree
taken the monkey off the backs of homes-based businesses
that utilize networking. People see that a friend, cousin,
hairdresser, and even schoolteachers become involved in
Network Sales. They weight the character of a person against
the opportunity a person represents, and they feel a bit better
about those “pyramid” companies. 😊
Facebook advertising on a large scale is expensive and
requires much trial and error. They do have small advertising
packages that you may wish to investigate and experiment
with.
Advertising in General
Network Sales is a technique that puts people through the
system at an extremely slow pace. You talk about your
business and show them your opportunity. You are one person
and one person can only do but so much- no matter how hard
you are willing to work.
Advertising allows you to multiply yourself. With advertising,
you can reach 1,000s of people in one day. Advertising costs
money but all advertising is not equal. There is no set amount
of cost to sponsor a person.
I have over 30-years of experience in advertising. Most articles
and books I read are written by people who do not have a clue
about advertising. Most repeat what they have heard and
some flat-out handout bad advice. For example: The 1%
Response Rule was made up- pure fiction.
Many people view advertising in a way that is best illustrated
by this story:
Two men are introduced at a cocktail party. One is a
phenomenally successful novelist and the other a highly
success brain surgeon. The brain surgeon tells the novelist,
“This is quite a coincidence. When I retire, I am going to start
writing novels.” The novelist replies, “This really is a
coincidence, when I retire, I’m going into brain surgery.”
It is every bit as difficult to make the New York Best Seller List
as it is to do outstanding brain surgery. Both skills require
years to master. Most people are pretty darn sure they cannot
do brain surgery while a novel seems quite easy in
comparison.
Advertising is like that. Just about anyone can put together
some advertising. Right? Wrong! It takes years of training,
study, reading, learning from the best, and real-world
experience. If one wants to throw away 1000s of dollars, they
can advertise without any trial-and-error and years of
experimenting.
I cannot easily educate you in advertising, but I will explain
how successful advertising is developed.
There are principles and techniques that have been learned
over the years on how to effectively advertise: FREE. Sex
sells. Fill a need. Learned advertisers consistently do the
things that work the absolute best. Some advertisements work
consistently well while others flop.
Once you have the skill to produce professional advertising,
the work begins. You test Ad “A” against Ad “B”, then “C”. The
goal is to find the ad which produces the most leads/sales for
the least amount of money.
Let us take as an example a full-page ad vs. a quarter-page
ad. The full-page is $795 and the quarter page is $325. If the
full page generated 25 leads, the cost per lead would be
$31.80 each. If the quarter page generated 10 leads, the cost
would be $32.50 each.
Using the same ad, it would stand to reason that the full page
would out-pull the quarter-page ad. However, note there is
only 70 cents difference in the cost making the quarter-page
ad a bad value- even though it is $470 less. If the roles were
reversed, the full-page ad would be far less cost efficient.
This is just one piece of the puzzle. What is the best day of the
week to run the ad? Professional advertising brokers know that
Monday is a strong day to select because people have
returned to work after two days off, dislike their jobs, and want
more time freedom. Conversely, Friday is a bad day. Do not
run an ad the day of the President’s State-of-the-Union
Address. No major sporting events. No local ads following
forecast of bad weather.
Testing is awfully expensive and sometimes even the best
professionals get it wrong. Do you remember New Coke?
An ad can be “blind”. Meaning, unlike TV and radio, the
product name is never mentioned. This type ad is remarkably
effective. You may simply state: “Stiff Joints? Aching Back?
Losing Sleep? Doctors Failing You? Do Not Give-up! Visit
This Website for Immediate Relief.” (Hopefully, your website
has a dozens of testimonies.)
Ads come in all shapes and sizes. You can select from
newspaper, magazine, fliers, direct mail, car signs, TV, radio,
Internet, affordable billboards and much more. Whatever your
choices, your objective to be cost effective and generate the
most leads within your budget.
If you desire to generate leads as a serious Networker, you
can:
• Study the professionals in books and videos. Teach
yourself.
• Seek upline (do not stop going up, up, and up) support
from someone who has already done the testing and
heavy lifting.
• Hire a professional
Once you find that special ad that works, share it with your
downline and run it until it until the cows come home.
My #1 Advertising Source
For all your advertising needs and leads, make sure you
contact Bob Schwartz at Home Business Advertiser
Magazine: 717-426-2438.
Bob is one of the good guys- extremely helpful and honest.
Bob has mailed his magazine to over 2,400,000 opportunity
seekers.
If you have an interest in postcard advertising, he will save you
big money by having your postcard inserted into the HBA
magazine for just 10 cents each. Compare that price to the
USPS price of 35 cents a card!
A full-page ad is just $795 (co-op with 4 people for less than
$200 each). Bob can also assist you with a business card-size
ad for only $147. And, your advertising will also be promoted
online at no extra charge.
I have placed ads with HBA for 15 years with excellent results.
View a copy online to learn of more great advertising bargains:
ww.HomeBusinessAdvertiser.com
Clicks Are Cash
If you really are bold, have the funds, and want to step up to
the big leagues, hire an Internet agency to advertise for you.
There are programs such as:
• PPC (Pay-per-Click on your button/ link/URL).
• CPA (Cost-per-Action for a sale, form fill, registration,
click, or click through).
• CPM (Cost-per-Impression- cost per 1000 that your ad is
shown). YouTube has a CPM of $9.68. Not bad, but that
also calculates to $968 per 100,000.
CTR is the click-through-rate, whereas a prospect clicks
all the way through to your website.
The above costs can be affordable, but one must realize that it
takes a huge amount of traffic to see any measurable results.
One must also calculate the net profit per sale or fast-start
bonus.
If an agency has designed an ad to generate more for clicks
than hard results, you could have a flood of clicks- each one
you are on the hook for with little to no sales to speak of. This
strategy stems from the notion that throwing mud against the
wall, and gambling on many clicks, will produce more sales.
Make sure you do your due diligence when selecting a
company to assist you with generating clicks. There are
companies that will generate clicks that will appear in your
results, but the clicks are bogus.
Let’s say you pay a company for 1000 clicks. Depending on
what you pay and what you expect, a company is not going to
create 1000 high-quality clicks/click throughs for you
inexpensively. Consider if it sounds to-good-to-be-true. Also
compare with other companies and even ask to speak to a
customer.
Sometimes, your clicks will pour in from foreign prospects.
Take exception with it.
Also, consider how loose the tabulations can potentially be on
a CPA (cost-per-action). An “action” may be that they just
landed on a page of several advertisements.
I do not want to dissuade you, but just be on your toes.
-Your #1 Marketing Tools-
You build your business by sponsoring people who will build
their own business, and thereby continue to build your
business and increase your income.
I have given you thus far a variety of gold nuggets to build your
business and understand the mechanics of sponsoring and
Network Sales. However, there are the best choices and
combinations that will powerfully and cost effectively build your
business.
Automatic sponsoring systems have great appeal- one can
sponsor a prospect while they are asleep!
The Capture Page
In your marketing/sales arsenal, you need one key- and I
mean KEY- thing: A capture page. This is a web page/form
with fields for Name, Address, Phone, and Email. There are
many different types of forms, some that ask for one’s interest
level to how much they are willing to invest. In short, the form
allows you to collect leads for your opportunity and then
redirect the prospect to your website
You MUST capture at least the name and email of a prospect.
Do not let a prospect visit your website and then disappear into
thin air without you being able to follow-up with them.
Always use your capture page’s URL and not the URL of your
company website. Place this URL on the Internet as well as
your business card, newspaper, car sign, and fliers- anything
with exposure that a potential prospect can view.
You might see this strategy as a roadblock- that your
prospects will shy away and go elsewhere- but you will come
out ahead in the long run. Besides, how interested is a
prospect if they will not at least share their email?
Autoresponder
What is an autoresponder? An autoresponder is a service which allows you to automatically send out emails to an individual, a group, or to several different groups, of people.
The key things to know:
• Subscribers sign up to receive emails from you. • Once the emails are written, the sending process is
automatic. • Using email in this way is an astonishingly effective way to
communicate.
A “captured” email is ultimately important because it allows
you to enter it into an autoresponder. An auto-emailer will
“drip” additional and highlighted information into your
prospect’s inbox as often as you set it to.
Most autoresponders send a quick-reply, confirmation email
asking the prospect if they did indeed give you their email, and
do they wish to receive your information. Your commonsense
is probably thinking, “What else can I do to run my prospects
away?” Yes, some people will cool off and not give you their
permission back-to-back; if they decline, they are sending you
a message that they are just a tire-kicker.
You can set your autoresponder to deliver a new email daily.
Do not make the prospect mad; nevertheless, if your subject
lines are piquing their interest and they are not opting out,
send your emails more frequently. Every two to three days is
considerate; however, strike while the iron is hot.
Your autoresponder can be a money-printing machine if you
will invest time creating a substantial number of follow-up
letters. Creating thirty-six letters will allow you three letters a
week for three months. Most will eventually opt-out, but
conversely, many will hang in there and some will join months
later.
I have not seen it all, but I have seen enough unlikely
occurrences to know to never predict when a prospect will
enroll. My best example is a prospect who put a letter in a file
and opened it 13 months later and joined.
Continue to send follow-up letters until they unsubscribe or
reach out to you and express that they are no longer
interested.
Testimonies are the Holy Grail of marketing- never overlook
this fact. For a joint product, for example, use a subject line
like: “Today, John’s knees feel so much better.” One can build
an entire portfolio of autoresponder letters using testimonies.
Be proactive. Start a Facebook Group dedicated to just
testimonies for your product line. Make sure everyone
understands that every group member is automatically granted
permission to use the testimonies. Send prospects to the
group and encourage them to join. I have seen groups with
15,000+, made up of testimonies and visiting prospects.
Most autoresponders will record which prospects open your
email, which emails attract their interest, and how long they
spend on your website after they click through. This
information is critical and is one of the best ways for you to be
self-taught as a true marketer.
Experiment with your subject lines. Use product testimonies
and stories to keep the loop open. A bit advanced, but one can
string together a chain of emails which tell a story; each future
email picks up where the previous email left off. Make the
prospect curious for the next email.
When you find a winner, use it and model others after those
that your prospects open.
When a prospect clicks through, move them to your A List (hot
lead) and contact them ASAP.
The autoresponder is an incredible breakthrough in
sponsoring- and extremely cost effective and highly
duplicatable. Ask your downline for their series of proven
follow-up letters Initially, there is no human contact but be sure
to call your prospect if you captured their phone number.
Does the autoresponder really work? Absolutely.
Buying Leads
You can always let a lead generation company do the heavy
lifting for you. You can purchase business opportunity-seeker
leads.
Buy leads with a phone number and email. If you purchase
small orders of leads, you may want to ask for the postal
address to send a letter or reminder postcard that you called
and/or left a voicemail. Today, so many people will just not
answer their smart phone.
Some advertising companies place multi-purpose ads and do
not exclusively feature business opportunity offers. In other
words, your leads may not be interested in a business
opportunity. The price should reflect this. It is possible to close
this type lead, but the effort and patience is substantially
higher.
Expect to pay a premium price, but leads are available that
have been prescreened, and are even told to expect your call.
If the prospect does not remember replying and is not
interested in starting a business, ask the company to rectify
the situation. Since they have failed to prove the efficacy of
their leads once, I would request a refund rather than
replacement leads.
Advertising, any way you cut it, is expensive. Leads, as a rule,
end up being oversold to finance the ads. It is quite common to
see leads offered as 30, 60, and 90-days of age- all of which
have been sold. This pits you against other opportunities.
Successful marketers do not put all their eggs in a single
basket. Work your warm market. Put a flier up in a local coffee
shop. Surf around Facebook for groups that interest you (i.e.,
gardening, fishing, fashion, etc. Do not get lost inside 10 MLM
groups.) Create a product sample program. Consider a home
meeting. Try a click-through program.
Today, you can prospect using proven old-school ways and
exciting new-school methods- and to do so affordably. While
prospecting in these times can be confusing and expensive, it
is the best time in all of history to be a marketer.
What I Know About Sales Leads
I have generated and sold leads for over 30-years. Lead lists,
purchased regularly, used to be the right arm of a
Networker/home-based business owner. They were mostly
printed on peel-and-stick labels and ended up on letters and
postcards. It was not usual for an individual to purchase and
mail 1,000 pieces a month. A postage stamp in 1980 was 15
cents and still just a 25 cents in 1990.
“As we look ahead into the next century, leaders will those
who empower others.” – Bill Gates
Phone numbers were rare, and the age of the lead was difficult
to determine, but things worked out simply fine if a few proven
marketing rules were strictly adhered to.
With a well-written message, a good offer, and a fresh list, the
results could be outstanding. Eliminate one good element and
the results could be dismal- and it was all too easy to blame
the lead broker.
Eight things made the peel-and-stick label nearly extinct:
1. Postage rates.
2. High peel-and-stick label cost.
3. Today’s low-lead cost.
4. Internet.
5. Email.
6. Real-time leads.
7. Surveyed leads.
8. Leads with phones; even pre-interviewed.
Internet leads can be very problematic:
1. The age and origin are mostly unknown.
2. They can be a small part of a much larger, over-
used list.
3. How was the lead generated and the source?
4. Number of times sold due to inexpensive pricing and
misinformed consumers.
5. Accuracy (people create false email and phone
numbers).
6. Forged IP addresses and Date Stamps.
7. Can no longer bulk email prospects.
8. Bulk email leads are technically useless.
9. You are only able to email leads you generate
through your advertising and personal capture page.
Regarding #3 and #8: Unscrupulous people started selling lists
upwards of 1,000,000 leads for $50. This action caused people
to deduce that a lead is worth .0000005 each.
The best, logical choice is to buy more expensive,
prescreened leads with a valid phone number.
-Investing in Your Business-
This section is falls-in-line with the importance of Duplication.
As with Duplication, an investment in one’s home-based
business can make or break them, both financially and career
wise.
There is no excuse for one’s sponsor to not fully explain the
cost involved in running one’s new business. There should be
full disclosure just as there is when one buys a house.
There is no set cost for building a successful home-based
business. A good friend of mine, in a matter of months, found
himself $80,000 in debt.
On the other hand, many people start low and work
themselves up the ladder by reinvesting their checks into their
business. This is often wise, can teach one valuable lessons,
and keep them around long enough to give success a chance.
Let’s start with the budget of a Go-Getter:
• Product Start-Up = $250
• Marketing $100 x 12 months = $1200
• Monthly Auto Ship $100 X 12 months = $1200
• Sampling of other products = $500
• Add spouse or add product #2. $100 x 12 months $1200
• Convention with Spouse = $2000
(Airfare/Room/Meals/Entertainment/New Product) $6350
Of course, that estimated figure can be too extreme for
some and too low for others. If one is not keeping an eye
on their business, a distributor can easily make it to the
$6350 mark their first year.
The point is one cannot skate their way to success on a
free lunch- and to adhere to a budget that fits your
income.
Let’s compare that figure the $300,000 to $1,000,000+ for
a franchise. With that comes employee management and
sometimes only a marginally better income than people
with high-paying careers. It can also bring about
bankruptcy along with a multitude of other headaches.
We already know that people can earn millions of dollars
in a home business; and with the math of residual
income, a residual income can last a lifetime.
Franchises are obviously very popular- look on most
every city street corner. For most all people, a home
business if a far better choice- for others, it is the only
choice. Yet, thanks to the home-based business industry,
tremendous and affordable opportunities abound for
those with vision and determination.
-Head-to-Head-
As an active Networker, you will inevitably naturally
attract other Networkers. Most will be part timers. These
are excellent prospects that could have a high probability
of becoming a major player.
It is especially important in life and Network Sales to say
nothing if you do not have something nice to say. Always
compliment the other person’s company- make them less
on guard.
Both parties will logically want to recruit the other. Here is
a logical solution. Make an agreement that the superior
company will sign on the “loser” to their company.
If may seem a bit game-like but get in the ring together
and see who knocks the other one out first. I meant that
metaphorically. Stage a contest. State the pluses about
your company- why your product is relevant today and
how it has helped thousands of people and sold 650,000
units.
Then take turns. Put it on paper if you prefer. Perhaps,
your competition has a bigger downline because the
company and upline have the just-right duplication
system, proven ads, and follow-up letter.
If your competition does not want to play fair, then the
deal is off the table. If a person chooses to stay with an
inferior company, they are either attached to a product,
their sponsor, or both. That is understandable; however, if
they feel left out in the cold by their company and they are
not head-over-heels in love with a product, they need
you. Remember: You could be doing this person a real,
big favor that could prevent a crash and burn scenario
that could end their Networking career forever.
You should always be willing to take this challenge.
But wait a minute; what if your competition has the better
company?
Then you should be glad you found out the truth. It shows
you did not do your homework. Nevertheless, you now
can spend more quality time with a superior company
learning from the best.
Had you done your due diligence before you joined the
inferior company, you would not have lost. What is likely
to happen is this: The person will give you the sales pitch
for their company. Always let them go first, because when
it is your turn, you will already know where their company
falls short and where yours leads.
You will start by going over your company, the products,
and compensation plan. Then you will bring out an
evaluation sheets.
Go over one point at the time. Someone is going to get
their eyes opened wide. The evaluation sheets will reveal
the truth.
You should always be up for this challenge. It does not
have to be done in extreme seriousness. If someone
represents a better company and products, you want to
know about it!
Here is an evaluation sheet I created just for this
exercise:
1. Significant front loading.
2. Requirements obviously too difficult.
3. Total true commissions paid out to distributors too
low.
4. Company promotes spillover.
5. Presentations are misleading.
6. Stockpiling is encouraged.
7. No evidence company has long-term survival
qualities.
8. Pay plan not fair to the part timer.
9. Company’s high-sales figures are largely derived
from overseas sales.
10. Weak infinity bonuses.
11. Too early into start-up phase.
12. Weak management.
13. No evidence of financial strength.
14. No infrastructure to handle rapid growth.
15. Weak distributor support system.
16. Suspected legal issues.
17. Non-consumable products.
18. Products are low quality.
19. Products unreasonably priced.
20. Narrow product selection.
21. Products can only exist via a business
opportunity.
22. Main product is a miracle-cure product.
23. Overly difficult compensation plan to explain.
24. Difficult presentation required.
25. Downline can move out of pay line.
26. Excessive breakage.
27. Bonus Value is too low on most popular
products.
28. Difficult sponsoring requirements.
29. Personal volume requirement too high to
collect monies owed.
30. If binary, no carry-over of volume to next
week.
31. Me-too company.
32. Poor first impression.
33. Charges for training.
34. Company was recently renamed.
35. USA salesforce is in decline.
-A Simple ABC Formula for Success-
I congratulate you for having read this far. When I began
Networking, my mentor gave me a cassette with a pink label.
Sometimes, I still listen to it because a few things he mentions
helped me get to where I am today.
That short cassette pales in comparison to the gold nuggets I
am giving you in this ugly, little handbook. You now know so
much more than most all your competition and your downline.
Let’s add in a refresher:
Step 1. Make sure you conduct yourself and your business
dealings with the highest of integrity. This will ultimately make
or break you.
Step 2. Find the best company you can.
Step 3. Find the best possible sponsor who can align you with
strong upline support with proven systems in place for
maximum duplication.
Step 4. Work with your sponsor/upline to design a game plan
that will work with your time available and budget.
Step 5. Do whatever is possible to get started.
• Network with friends and family.
• Sell products.
• Hand out your capture page URL as many times as
possible, connected to your autoresponder.
• Form an alliance with someone with stronger skills than
yourself.
• Get a part-time job to help fund your endeavor. Work on
your motivation and education.
• Pay whatever price is required of yourself to be a winner.
Step 6. Position yourself to do sorting and sponsoring through
a national lead-generation pool. Build until you have two solid
leaders willing to do what you are doing- then duplicate and
manage your downline.
Step 7. Reinvest until you reach higher and higher levels.
Step 8. Dedicate yourself to helping others to join you in
seeking wealth and time freedom. Make it easy to succeed.
-The Dreaded Telephone-
Unless you are a sales professional, the thought of picking of a
telephone is freighting. That is normal.
Fortunately, that anxiety can be quickly overcome. Two things
will remove the fear:
• Repetition
• Posturing
Repetition: get in there and get your hands dirty. After 200
calls it will not be the people on the other line that concern you,
it will be the boredom of it all. 😉
Posturing: the person you want to come across as and your
objective. If you start into a sales pitch you are doing it all
wrong (remember when I spoke of working against
commonsense?)
This is a process of sorting. In fact, and trust me on this, some
people you do NOT want to join your business.
The correct posture is one where you are a business owner
and you are interviewing the prospect. Make them convince
you that are a good candidate to join forces with you.
What do I say/ask a prospect?
If a prospect appears to be qualified, move ahead but without
small talk unless it builds momentum. You may even discover
you were once in the same company. Network Sales can be a
small world! Lay the groundwork for a potentially good working
relationship.
But respect your own time. If someone wants to be nice and
just converse with you and has not even one question about
the business, cut things short. These are business calls.
• (Name), are you open to looking at a financial
opportunity?
• (Name), are you open to considering a Network Sales
business?
• (Name), are you open to joining the type of company I
represent?
• (Name), do you presently have the time and resources to
put into a business today?
• (Name), if I pledged to train and work with you, would that
make a difference in your decision?
In most cases, the call will last 30 seconds (remember the
boredom I spoke of?)
-Free Samples?-
I have spent my fair share of time at the USPS with a carton
full of (free) samples and literature. I estimate I have broken
even with the cost of sampling relative to my enrollments and
their product purchases over many months. Here are some
thoughts on Free Samples and whether to indeed charge for
them:
• Free samples are not always duplicatable. Can be
expensive.
• The product needs to give an immediate reaction like
energy.
• Hopefully, the taste is tolerable.
• Can they see themselves handing out the product to
others?
• It needs to be mailable (not a 12 oz. bottle of juice).
• Be careful to know if the sample has caused diarrhea,
stomach aches, headache, raised BP or the like.
I have wrestled with this quandary for years. PayPal (and the
like) has made a tremendous difference.
I suggest you charge for your samples at cost (make a few
bucks 😉 ), and charge the prospect for the postage. I once
charged $16 for seven – one-ounce packets of a seed-based
smoothie and I stayed busy. Those who were serious ordered.
Building a webpage to offer your samples and collect the
money is a huge plus. You can simply send someone to your
site where the product benefits will be reinforced, and
collection of funds will be easy with PayPal www.PayPal.com .
Sign up for a free business account so that you will have
access to pay buttons and more.
If you are unable to find someone to assist you with a
webpage, try. www.Fiverr.com Fiverr presents you with
dozens of people charging different prices. Pick the webpage
designer you like with the price you can afford.
The word sampling does not have to mean free.
Here is why: If your product is, for example, $50, the prospect
should be able to do the math and ascertain that it is a better
bargain to purchase the entire product.
If you have properly conveyed the efficacy of the product, this
technique can be remarkably effective. Stand your ground and
do not be afraid to simply say good-bye to those who reject
being charged.
I have found that one week to 10 days of samples is best.
“Play by the rules, but be ferocious.” – Phil Knight
-Business Alliances-
Do not be an island. Share. Give. Take. Teamwork.
The sharing of advertising (co-op) is an alliance. Creating a
bond and working relationship with your sponsor and upline is
an alliance. Having a shoulder to cry on is an alliance.
Knowing people in other companies can be a good alliance.
Identify your weaknesses and form a partnership with
someone who will complement you.
I once form an alliance with a trustworthy teammate. I ran the
advertising and he helped train the people that were joining at
a fast pace. Seventeen years later, we still talk and text
frequently and are partners in another venture.
-It is All in Your Head -
Network Marketing is a mental business, not a physical
business. Those who have strength of mind succeed. The
mentally weak fail.
People think of this business as the physical act of speaking to
people about a business opportunity. That is not, in the
nutshell, what it is about.
Let us face facts. Most everyone is physically capable of
talking to people. Many people have succeeded without the
sophisticated training I am giving you here. People succeed
every day against what appear to be insurmountable odds.
To be honest, anyone who pitches five people-a-day will
succeed in Network Sales- it’s a numbers game.
Then why do not more people just do it? As you have learned,
Network Sales is the obvious choice over the 40/40/40 plan.
After reading this far, you are either in love or out-of-love with
a career in Network Sales. If going to a J.O.B. seems the
better choice for you, then that is what you should do with your
life.
Network sales is not for everyone. It is not always a day-at-the-
beach.
But if you do see the big picture, and there is no doubt in your
mind, then go-for-it!
Then what stands between you and the fulfillment of your
dreams? It is your mind.
The only thing that separates you from unlimited success is
your mental weakness; your fears, your insecurity, and your
inability to take rejection and disappointment.
You need to be courageous to build an empire. Fortunately,
there are many ways to develop the mental attitude of a
winner. You are not alone; we all need help along the way to
develop the mental power we need to succeed.
These are the things you can do to help develop more self-
confidence, mental toughness, a positive spirit, and the
attitude of a winner:
1. Associate with winners. I like the saying:” Hang
around with pennies and you earn pennies. Hang
around with dollars and you earn dollars.” Truly, it is
the difference between losers and winners.
2. Attend trainings, conference calls, and conventions.
These events will motivate and encourage you.
While conventions are expensive, most people
agree they are worth every penny. You will
associate with like-minded people, meet new friends
(alliances), get top-notch training, and get those
questions answered that have been bugging you. Be
sure to meet the owner(s) if possible (be pushy). 😉
3. Read, read, and read. Become a voracious reader
and knowledge seeker.
You now know how to be financially successful. Never sell
yourself short. I remember the time a dear friend told me I was
selling myself short. That one comment sent my life off on a
new trajectory and I never looked back.
Let’s revisit our friend, Le Van Vu. He was a man that slept on
the floor on sacks of flour in a bakery shop and lived on
$1200/year.
Could you look this man in the face and tell him you cannot
afford to buy what you need for your business- even books to
sharpen your skills and talents?
America is the Land of Opportunity. The only thing holding you
back is yourself.
What is the Ultimate Key to Success?
“You will get everything you want out of like if you help
enough people get what they want.” -Zig Ziglar
DEDICATE YOURSELF TO HELPING OTHERS. This is
critical!
It is almost guaranteed that if you only look out for #1, you will
fail.
Giving. Sharing. Helping Others. The Golden Rule. These are
all at the core of Network Sales. It is unfortunate that too few
people really get the gravity and reward of putting others first.
Networking is a PEOPLE BUSINESS, not a PRODUCT
BUSINESS.
Sort through some people until you find someone who
genuinely wants a better life. Then show them the way. Work
with them like brothers and sisters.
I believe this is the best business on earth if executed properly.
You are rewarded in relation to how many people you help- the
Law of Reciprocity.
I encourage and challenge you to help others move to another
stage in life. Do it and watch what happens. 😉
By the way, my new company focuses on the needs of
Americans and the animals we have been entrusted with. It’s a
win-win.
- Sponsoring is Not Selling -
Networking is going through a process of finding someone who
is interested in your business, is a good fit with the products,
company, and you, are excited, and has some funds to join.
You cannot sell yourself into this scenario; you will frustrate
yourself to no end. Why? It is not selling.
It is sorting. Think of sorting through your mail, clothes, your
song list.
Take for example a car salesman. That term is not politically
correct, so I will use Transportation Specialist.
The Transportation Specialist has one shot to sell you a car. It
is a delicate situation. One usually dreads being approached
as well as dreads slinking off the lot feeling bad for the
salesperson.
Regardless, there will be undertones of pressure to purchase. I
must add that with the now-common fixed-price car lots, there
is more sorting being done in the car business.
Network Sales is totally different. You cannot sell someone on
being in your business. Do not bother. If they do not ask you to
enroll them, of their own volition, they will most likely back out
or join and then drop out.
People will warm up to you and your business- if you are
patient and sort. Let them come to their own decision.
Sorting can sometimes be like watching the grass grow, but
well worth it. Yet, it is so exciting to see a prospect take the
bait and gently tug on the line. Tug. Tug. Then the line
tightens, and all is left is to reel the prospect in. You provided
the bait, but the prospect is now hooked. You cannot make a
fish take your bait.
Bottom line: Some people will be interested in your opportunity
and others will not. Some will. Some will not. So, what. Next.
-Miscellaneous Tips –
- Your sponsor may indeed be too busy to return 20 calls a
day. Do not be put-off by this or get angry. Go upline until
your find someone with ample experience and more time.
- Here is one of the most important things I can share
with you: Never, ever prejudge people. If you do, you
will never be as successful as you could be. If you
judge people, it will come back to haunt you time
after time. I am a true believer that almost anyone can
surprise you once you get to know them.
- Find a customer service representative within your
company and make friends. You will receive better help,
company scoop, answers to question no one else will
answer (Alliances).
- If you do co-op advertising, do not expect a landslide of
prospects. Work the prospects you receive thoroughly-
you will have the time. Co-ops work best with just four
people.
- It is usually best to keep and close your own leads.
Prospects can get very offended it you pass them
downline- as if they were not important enough for the
upline (you) to talk with them.
- Organize your leads as such: Hot. Warm. Cold. The cold
leads can wait while until you work your Hot leads.
- Your first company, like dating or marriage, might not be
the right fit; do not beat yourself up about it.
- Some prospects are also talking to two to three people
with an opportunity. Subsequently, the prospect gets
overloaded and shuts down- and picks no one.
Put their name back for a little while and call them again
when the dust settles. You might be surprised that a few
of them may even be glad to hear from you. Also, they
may have quit another company within 90 days and are
ready to try again.
- You will have “blue” days when it seems like you will
never enroll anyone. I once went six months without a
solid enrollment. One afternoon, I received a call from a
gentleman asking me to teach him the ropes; and that he
would reward me. He turned out to be one of the best
friends and downline members I have ever encountered.
Be patient and believe.
- Make a point to listen to as many motivational videos and
podcasts as you can. Try to read a book-a-week about
success and being a better you. Reread them as able.
- Uplines are notorious for building and selling sponsoring
systems and autoresponders, etc. Do not be in such a
hurry to purchase their system. Chances are the system
will not bring you the results you expected; and you might
even receive zero leads. If it works for others, it will still
be around for you to purchase later.
- Even though conventions are expensive, they are
mandatory for the serious and loyal Networker. You will
come home feeling 10-feet tall and ready to take on the
world.
- The contrary (really upset) spouse. This is a difficult one.
In my opinion, the best way to bring back the harmony is
to show your spouse pay checks. This is a real setback
for many, many people. It needs to be resolved ASAP.
Write down your feelings and discuss your point of views.
If you have the funds or insurance, therapy may help. See
your pastor. It will only get worse if you run up your credit
cards and affect your spouse’s credit scores.
- Accept head-on that you are running a real business. You
will spend money, many times a LOT of money. Know
this going in so that you will not feel despair as you see
invest in your business.
- Do not feel down-in-the-mouth about small checks in the
beginning. There is nowhere to go but up! A $15 check
can grow to $3000/month within six months to one year.
- Work as hard as you possible can the first 90 days of
joining a company. You need to lift your business off the
ground with massive effort. This will also help set your
own personal tempo.
- When you have a total downline of 50+ people, you will
start to see some magic happen. You will have two to
three go-getters (pay attention to them) and many others
giving their best effort. Set reasonable goals. Make 75
your next goal- then 75, 100, 200, and 500+. Give
success a chance.
- Remember your taxes. Write-off a portion of the house for
your office space, utilities, internet, cell phone and more.
Make an office space and use it. Establish office hours
and stick to it. Afterall, we all know to show up for work or
get fired. Get yourself some business cards.
- Business card tip: Put your picture on your cards. People
hesitate more before they thrown away a person. Also,
incorporate some red, white, and blue color as people are
more inclined to keep a card with a patriotic theme. (Add
a flag.)
- Do not miss an auto ship or you may fail to get paid.
Some companies expect you to change your credit card
info should you have a lost and replaced or new card.
They will not inform you if your card fails. Many do, many
do not.
- Complain upline. Be positive downline.
- The person who demands handholding. Train them, then
wean them. Honestly, some people you are better off
without.
- Keep up with the latest news from your company, but do
not dig up negative things you do not understand or might
misinterpret- you might wish your sleuthing had not
produced results.
- Do not see any other downline in your company as
competition. Keep a team attitude.
- Do not try to explain a compensation plan over the
telephone.
- Do not criticize any company, including your own.
- In my opinion, do not list your products for sale on the
internet with companies such as Amazon. I know people
need to make living, but what about the other 10,000 who
are find themselves undercut in their sales efforts.
- If you have the available funds, visit the home office.
Meet the employees and officers. See their lab (if
available), warehouse, and shipping department. Many
companies will roll out the red carpet for you. Some
companies will even fly you there. Do not leave until you
introduce yourself to the president and CFO.
- There really is no real-estate rule in Network Sales.
Meaning, in real estate the first agent to make contact
gets rights to finish through with the sale. I admit, it would
be ethical to yield to another person if that person spoke
to a prospect first; nevertheless, in Network Sales the
prospect may wish to be sponsored by someone else. It
is easy for tempers to flair in this situation.
I can tell you from much experience with this issue that it
is better to just let the prospect select their sponsor and
then move on. Your time will come next. I also suggest to
not call the company and involve them.
- Policies may look boring but read them. Far too many
people have found themselves out of a substantial
monthly income after the company terminated them. We
are talking about business and money; unfortunately,
these two things can bring out the worse in people.
- Remember this: You cannot push a string, but you can
pull one. Do not push people to join- pull them with the
techniques you learned here.
- Think of launching your business this way: It takes a jet
plane the length of a runway to lift off. It takes a lot of
thrust and the plane shakes. Soon, the flight levels out as
the plane ascends to 30,000. At 30,000 feet the plane
glides smoothly. Your business will require that you work
the first 90 days as hard as you can- like the plane did at
take-off. Eventually, your business will run on autopilot.
- Loaning a prospect, the funds to join your business
should be viewed in several ways. Is the prospect
creditworthy? Can you afford the loan in the event you
are not repaid? Are you making this loan as an
exception? What are your expectations from the debtor?
Is the debtor a stranger?
To give value to the transaction, “giving” someone the
funds to join should be avoided.
I once loaned a woman the funds to join. I believed in her.
She not only repaid me; she went on to be my top
producer.
It should be made clear whether the transaction is a loan
or are you simply paying one’s way in.
- There is no growth in the comfort zone. There is no
comfort in the growth zone.
- People do not like to be on the outside looking in. Do not
hype; exhibit genuine excitement to make them desire
inclusion. If you feel that your company is a fun company,
share that. Tell your prospect about the blast you had at
the 80’s night you attended at the last convention. This
type of sharing can be remarkably effective.
- Do not turn away from distributors who sponsor no one
yet order religiously. I once had a downline member who
ordered for seven years but sponsored no one. When she
finally moved on, she felt so guilty that she sent me a
check for the time I invested in her. She had nothing to
feel guilty about- she was a blessing to the team.
For some people, joining a company and an active team
is just a social event. Such people make great team
members and they show-up for every conference call and
event. Treasure them.
- Many professionals teach that one should wait until a
company is a couple of years old before joining. That can
be a very sound advice. Nevertheless, humans like to be
first in line. First to buy tickets. First to tie one’s shoes.
People will always respond to joining a company first- we
are wired that way. I have had excellent result with start-
ups; after all, entrepreneurs take risks and sometimes
they pay off big.
- Your prospects have three days to reverse a decision to
join your company and receive their money back. It is the
law.
- For FREE conference calls with excellent quality, visit
www.freeconferencecalling.com You can record and
email your calls and more. Make sure each call is
recorded.
- Think twice about putting out fliers on windshields. You
might get away with it (albeit those people who call and
give you a piece of their mind), but the bigger issue is,
say, with a grocery store. They will have the parking lot
cleaned up, locate you, and make you pay for the
cleanup.
- State laws governing signs placed along highways and
public and private property.
https://www.cga.ct.gov/2006/rpt/2006-r-0369.htm
- How to be a successful blogger: While everyone is not
born to be a blogger, I recommend you at least try. If
nothing else, if you just write about your life and views, it
will become a diary, of sorts, your children will cherish. If
you are an esoteric, unusual, or entertaining person who,
let’s say, travels the world and samples food, your
audience will grow. Do not worry; that is very few us.
If you have a special talent like making flies for fly fishing,
cooking Asian food, or growing championship roses, your
audience will grow. If you are an authority on anything or
have insightful things to share, there is an audience for
you out of 8 billion people.
Once you have followers, softly introduce your product
with your testimony. You are a rock star to many of your
followers, and they will buy from you because, well, they
like and trust you.
- Remember when I wrote of Alliances? I cannot stress
enough the importance of having a list of your Home-
based Business friends. If you are already a Networker
have not started your list, what are you waiting for? For
beginners, start ASAP. I am mainly talking about
Networkers across the country and globally- not your
local network.
This is your quickest way to build a list: At a convention
(conventions are critical to your long-term success) count
out 100 business cards and commit to meeting 100
people. This is not to be uncomfortable; people do not
mind being approached at a convention- in fact, they
expect it.
Simply ask can you exchange cards. Once you see their
state (or ask), either comment on the state or ask a
question about it. (Wisconsin: Do you have tickets for the
Green Bay Packer’s games? You will not be able to shut
them up.) You are now off to a pleasant conversation.
Once your conversation is underway, ask them how they
build their business (always be learning- a little snooping,
too!)
Keep in touch with your new friends- email them. Tell it
was nice to meet them. Do a group email from your
distribution list on all holidays, especially the big ones.
This only takes a few minutes. The people you grow close
to, put them on your A List and personalize theirs.
Friends are simply good for encouragement and sharing
news; and last but not least, when you come across an
opportunity that passes my check list, contact you’re A
List and some of your B List. Do not do email to them all
or you could be accused of downline raiding.
- When you do a 3-way, do not be so quick to say, “I’ll get
my sponsor on the phone right now.” Yes, it is a buzz-kill
to be left hanging when your sponsor is busy in a work,
family, or private way; but unless you coordinate your 3-
ways when your sponsor is available, you are going to
have to wing it.
When winging it, say the exact same things your sponsor
says- you’ll pick these up from the notes you took while
your sponsor has successfully done 3-ways with you.
Many prospects will say it is OK that they missed out on
meeting your sponsor.
A serious prospect will likely want a 3-way arranged later.
However, do not wait till then to close the prospect.
There is a dirty-little-secret about 3-ways: It can intimidate
a prospect to converse with a perceived professional.
Every prospect is different; with time you will be able to
size-up a prospect and close them in a manner that works
for them and not you.
- If you give John a lead and John tells Mary, expect
repercussions from Mary. Sometimes, even though you
want to help your team, it is best to keep your leads
unless you have enough for your core people.
- Keep your wits about you at a convention. A convention
for an established company will set up a store with
everything from water bottles to clothing with the
company logo on them. Ask yourself is there anything
there you cannot live without. A logo on a T-shirt is not
likely to create many real prospects.
Also, I have seen this too often: The company creates a
One-time, Convention-Attendee-Only Bargain Pack. The
bargains are usually hundreds of dollars.
The last convention I attended, there was a $1250 -
attendee only-package. If you can commit to either using
or retailing the products (hopefully both), then buy the
products. (You likely will have to tote or mail the products
to your home.) The truth is: The products are not going
anywhere. So, what if a product is 10-15% higher back
home.
And if a company says, for example, every distributor who
buys XYZ package can eat with the president; or you can
get 1st seating at the awards ceremony- well, that is
taking advantage of your innate desire to be included.
Keeping up with Jones in Network Sales can be a
deathblow to your business and finances.
- Keeping you excited (and buying) is one of the MAJOR
“obligations” of a company. It is always the Big
Announcement, another one-time bargain pack, or an
Early Bird Special. I advise you to become somewhat
bulletproof to the constant barrage of these tactics unless
you just dig them and/or your credit cards have a low,
low, balance.
Motivation is always a good thing, so do not
misunderstand me on that point.
- [ Ok, I have confused you because I went a little negative-
a party-pooper. I also said some counterintuitive things.
I do want large orders flowing throughout your organization.
After a convention is a time to receive your biggest check
ever. It is exciting.
Nevertheless, I would not be keeping my word if I did not
speak some truths: I stated that I would put your success
first. I do not want your spouse to take issue with you
because your credit card has a high balance. Choose the
marathon and not the sprint.
*I often speak of credit cards because I simply do not want
anyone to leave Network Sales because their balance went
way beyond their earnings. Credit cards are a matter of real
concern, so I urge you to be responsible.
- I live in the Bible Belt. The best of us go to church on
Wednesday night. What does one do if their
upline/company’s conference calls are on a night that
conflicts with obligations you just cannot change or give up?
Time Zone differences are also problematic.
Solution: Request the call recording each week.
- Out of the gate. You have selected a great company and you
join. What now? There are only two options: A. Get off to a
fast start by prospecting right away. Don’t stress. Tell the
truth: You just joined, and you do not know everything, but
you did not want to wait on sharing with others until you did.
Turn lemons into lemonade. B. Wait and get more familiar
with your company and its products. I recommend A so that
you do not come down with a case analysis paralysis. 😉
- Using Fear of Loss (FOL). I am not into gimmicks, but some
sales techniques, if applied ethically, are alright to use. Fear
of Loss, as the term implies, means there is something you
will regret missing out on if you drag your feet.
For example, the Binary. The Binary operates with Spillover-
everyone goes under one other in a straight line. You would
want to join ASAP. An item at an auction or that special car
you found on Craigslist creates FOL. Do not twist any arms,
just explain the advantages of joining that day.
- Facebook Contacts: This is an immensely helpful tip. Say
you have 500 “friends” on Facebook- maybe 5000, and you
want to stay out of Facebook Jail for spamming via
Messenger. Watch your words and phrases implying one
can make fast money. Don’t send the kitchen sink and end
up with a 4” message. Brief is better. No all caps!
Keep the carrot, the mystery, in the equation and be
courteous. If you personally know the person or not, address
them by their first name. Your first sentence could make or
break you.
Example: “John, do you like helping people and animals?
Would you be interested in making a living by giving? If so, I
came across an opportunity that might just be perfect for
you. It is launching soon, and they are now accepting
Founders. Reply and I’ll send you the information.”
“Reply and I will send you the information” are the words to
use that should keep you out of Facebook Jail. You have not
sent them a link yet which makes your DM look less
spammy.
Be sure to include your phone number in your reply; and I
would them send to your capture page first. If your prospect
will not give you their name, email, and phone, they are not a
good prospect. If you send someone direct to a website you
have lost your chance to follow up and especially send drip
letters via your autoresponder.
_______________________________________________
A Brief Note
It is my true desire that after reading my handbook that you
have increased confidence in yourself and your knowledge
of Network Sales.
That you will dazzle more prospects, use better
commonsense and ethics, make more alliances, perfect your
duplication, and above all, close more prospects into your
business.
If you would like to talk to me about this handbook,
consulting, copy writing, advertising, or how you can utilize
this handbook to help you generate leads-, oh yeah, you can
contact me about anything but rocket science- contact me.
PS. I make a great alliance, too.
4109 Stranaver Place, Raleigh, NC 27612
919-524-4796