9/12/11

Former MLM Company Owner Reveals Inside Secrets

I owned and ran an MLM company in 2004-2005. It took that experience to open my eyes about a lot of things in MLM.

For example, these 5 things will make it SIMPLE to build an MLM downline.
And these things are easy to remember, because they all start with the letter "P":

PRODUCT
  • Sell something that LOTS of people already like. That's much easier than trying to create a market for something they don't like or have never heard of.
  • So look for something that people already LIKE and WANT.
PRICE
  • Ideally, offer people something they LIKE and WANT, and show them how to BUY it at a BARGAIN PRICE. That way, you never have to deal with the objection of, "It's too expensive".
PAY PLAN
  • Most people are so dazed and confused about their "pay plan" that they can't understand it or explain it to others. The good news is that there is only ONE PAY PLAN in MLM.
  • The "plan" is to pay YOU 5%-10% of all the money "attached" to you.
  • Your company's "plan" will "cut off" for you at some point. There may be sales in your organization beyond that point, you just don't get paid on them (according to the "plan").
  • This can make it LOOK like you're making a higher percentage than you really are. DO NOT BE FOOLED.
  • You ARE being paid 5%-10% of all the dollars connected to you... no matter how many "levels" or "generations" there are.
  • If you could see ALL the sales below you, whether the company says they're in your "downline" or not... you would see that YOUR check is about 5%-10% of ALL that money.
  • And that's in actual DOLLARS, not "points" or "Bonus Volume".
  • It can't be much more than 10% unless the company lowers what it costs them to make the product, or raises the selling price. Most companies just raise the selling price, and that's why MLM products are usually expensive.
  • The best situation for you is one where the product is sold at a bargain price and YOU make your 5%-10%.
(I only know this because I owned and operated an MLM company. I have NEVER met a distributor that knew this, or a company owner who would tell me.)

POLICIES
  • A company POLICY is anything that you are required to agree to and understand. It may or may not be written. In some cases, it can just be "implied".
  • Policies are known to change without notice. It may be your responsibilty in your company to familiarize yourself with all policies.
  • ANY company can terminate you for a violation of its policies, whether you know about them or not.
  • Most people who are terminated from MLM companies are not aware that they made a violation.
  • A company may keep ALL or PART of your earnings if you violate a policy.
  • "Policies" may be known by other names, such as Policies and Procedures, Terms and Conditions, Distributor Agreement, etc.
  • Some state and federal laws require that you agree to company policies when you join as a representative. You may have signed something when you joined, or (more likely) clicked on something on the internet that says you agreed.
  • The best thing to do is READ and UNDERSTAND everything you agree to, even if it takes several hours... or several days. And ASK QUESTIONS about anything you don't understand.
  • (You may be surprised about some of the company policies you didn't know existed.)
PEOPLE
  • Your best candidates are people who are MLM-friendly. BEFORE THEY JOIN you, they must know what they're getting into and what is expected of them to be successful (Join, buy products, and influence others to do the same thing.) Otherwise they (and you) will have a VERY difficult time in MLM.
  • You need them "ASAP" (As Soon As Possible, As Simply As Possible). The simpler it is for you to explain your business to them, the better. With as few moving parts as possible. "Extra steps" (like meetings, webinars, conference calls, etc.) make the business more difficult.
Signing people up is the exciting part! It's the thrill of starting from nothing and building something huge and successful.

The challenge is talking with most people, who don't understand what's going on.

But the ones who "get it" will work and make a lot of money for you and themselves. However, they will be few and far between because of all the false information circulating around about MLM.

When you truly understand MLM, you see a big picture that most people don't. So the more you talk about that picture, the worse it gets for you, because most people don't want to hear it.

More talking doesn't increase people's understanding--- it only makes them more confused.

There's a lot to learn about MLM, but most of that learning is useless because there's only 5 things that make it work... as described in this article.

So just pay attention to the 5 "P"s, because that's all you and other people need to know.

Everything else is just "data" that won't make you (or other people) successful.


If you've never watched Mike Dillard's 7 free Magnetic Sponsoring videos, then you're working too hard--- AND missing about 90% of your potential income. Click here to watch.

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