An Epic Failure!
I can count on one hand the major MLM companies that have filed bankruptcy, gone to direct sales by terminating their pay plans, or have gone out of business altogether in 2010.
So how do you protect yourself from company failures? How do you protect yourself if a company decides for whatever reason, not to renew your annual contract?
Do you do it with multiple streams of income? Participating in multiple MLM companies? Supplementing your business with affiliate programs?
In my personal humblest opinion, NO, NO, NO! [click to continue…]
Autoship is a must!
Whether you like it or not, you can’t have long term residual income, which is the big promise of MLM, without an autoship program. Long term residual income starts with autoship.The reason why autoship programs are so important is very simple. See, the vast majority of businesses make money from the small purchases of many customers.
Retail stores such as Walmart make their money from the small, regular purchases of their shoppers. Banks make a ton of money by charging you regular, hardly noticeable monthly fees. Utility companies, insurance companies, telecommunications companies all charge you by the month for their services. In fact, a business that relies on the custom of just one client is in a very risky situation.
Network marketing works exactly the same way, it is just a different form of distribution. In MLM, your money is not made from one hot shot who’s able to sell massive volumes of product. Your money is made by the regular, small efforts of your group of people. [click to continue…]
A network marketing company must keep it’s distributor force and grow it, otherwise there is no network marketing company. That’s not an easy thing to do for the companies, considering there are endless competing opportunities. Individual reps have a high tendency to quit, or jump to another company in order to find success.
So in order to keep their reps from leaving, they need to make themselves look good. Companies need their reps to think they are the best thing since sliced bread. But… some MLM companies are willing to lie, or use deceitful practices to paint a glowing image of themselves, desparately trying to retain their distributors and gain new ones.
They don’t lie directly. However they don’t tell the full truth either. They use voodoo, black magic, sorcery to twist the facts and spin the numbers. There are a lot of facts they can spin to make themselves look like a great opportunity. [click to continue…]
What’s your responsiblity as a network marketer? Our goal, long term residual income, is our reward for helping other people become financially independent. It’s the result of us developing leaders in our downline organisations who in turn, foster leaders in their own downline organisations.
Network marketing is a leadership driven business. As such, you can only succeed when you lead by example. You cannot make your downline members do anything, as they are not your employees – they are independent entrepreneurs of their own accord. You cannot motivate anybody. That has to come from within others themselves. But you can lead people by teaching other people how to play the game.
Your responsibility is to develop yourself into a leader and lead. Period. However, some MLM companies want you to be the babysitter. They don’t want to take on any responsibility in training their distributors or be accountable for their distributors’ actions so they put all of that responsibility on you. And if you don’t fully engage in your role as a babysitter, they can terminate you or steal your bonus check.
Again, the proof is in the policies and procedures. Many companies have the following clauses in their policies and procedures word verbatim. You’d think they all hired exactly the same lawyers to write their contracts. In fact, they do… [click to continue…]
