What does it mean when a company does away with its play plan? It’s an absolute kick in the guts to the hard working reps who built the company from the ground up. All that hard work inviting people, talking to them on the phone, meeting people in cafes, restaurants and homes, doing presentations, the “no shows”, follow ups and coaching calls all of a sudden means nothing – a complete waste!
That’s what happened to the distributors of XELR8, makers of the Bazi nutrition beverage. Their company, a publicly traded company, just did away with their compensation plan. The three top distributors who had all reached the 250K Diamond level literally lost their livelihood over night and now they have to rebuild it all over again.
On January 19 2010, the chairman of XELR8, sent a letter all distributors telling them they are getting rid of their Multi-Level Marketing pay plan by the end of February 2010. Replacing the MLM compensation plan is a direct sales model where distributors earn a commission only from the retail sales of the product. [click to continue…]
How much monthly residual income do you need to be financially independent? Have you worked this out yet? What does it mean to be financially independent in the first place?
Financial independence means the passive residual income that is generated from the downline you have built covers your regular expenses (i.e. taxes, mortgage/rent, utilities, subscriptions and food). Therefore, financial independence gives you the divine option of quiting your J-O-B and never having to work another day in your life. Have you worked out the income you would need to have this privilege?
Let’s say that a good round figure for living a comfortable lifestyle without ever having to work again is around $5,000 per month. Some may need more, some will need less, but $5,000 is decent enough for the average person with the dollar at its present value (it may well be $10 million a few years time, but who knows?) [click to continue…]
I’ve said it before and I’ll say it again: Network marketing is a business built on relationships. No relationships, no MLM business, no long term residual income. But how do you build solid relationships with the right people? The answer is MARKETING.
Marketing is the tool you use to put yourself in touch with qualified people. The vast majority of network marketers don’t know how to market. As Mike Dillard of Magnetic Sponsoring fame says: “This is an industry of promotion pursued by people who have no idea how to promote.” Most network marketers are running around like untrained salespeople, pitching their business to anything with a pulse. And they are failing miserably.
In the third book of the Rich Dad series, Rich Dad’s Guide To Investing, Robert Kiyosaki brilliantly points out the difference between sales and marketing. Sales is done person-to-person, marketing is done through a system. You can only talk to so many people and be rejected so many times before you get worn out. But if you have an effective marketing system that does the prospecting for you, this is a completely different game. [click to continue…]
Have you ever been in this situation? Straight after you signed on the dotted line to become a new distributor, your upline sat you down and got you to write out a warm marketing list? That list of 100 of your friends and family?
Some uplines will even put their new distributors right on the spot by getting them to call their list right then and there. Instinctively most new distributors know that it’s not a good idea to be prospecting their friends and family about a business opportunity. And guess what? It’s not!
This is the way most network marketing companies do business and it produces appalling results. The thing angers me about this approach to building an MLM is the truth is obstructed from the new distributor. They don’t provide you with the years of training you need – all they tell you is you can be successful if you just show the plan to as many people as you can and get three just as driven as you! [click to continue…]
The REAL Difference between Internet Marketing and Network Marketing is RELATIONSHIPS. Internet Marketing is a form of Direct Marketing. Direct Marketing is a numbers game, Network Marketing is not – it is a relationships game.
There is nothing wrong with Internet Marketing or Direct Marketing. They are perfectly good business models where you can build a handsome “from home” income. But there is a big difference between Internet Marketing and Network Marketing and it’s important for you, as a network marketer to understand that difference.
The reason is if you apply the direct response marketing principles of internet marketing to a network marketing business, you are trading long term stability for short term profits. The one and only key to a lifetime of walk away residual income is the retention of people in your downline organisation. Direct marketing can’t do this for you. [click to continue…]
You can’t build a network marketing business without building relationships first. It has always been and always will be about relationships. Many companies have come into this industry and exploded because they had a revolutionary product. But often, their businesses died just as quickly because they didn’t care enough about their people.
Retention is the one and only key to making a lifetime of residual income. You can’t build this business by putting 100 people in at the start of the year and only having 6 left at the end of the year, that’s not sustainable.
With every single person you sponsor, you must have the mindset that they are going to be your business partners/associates forever. And that means becoming good friends with your prospect. [click to continue…]
