Multilevel marketing is a business where you can believe what you want to believe. It also has a 97 percent failure rate. So while the sky is the limit, most of what people believe about MLM is pure fiction.
If you will simply accept a few facts, network marketing is easier and you make fewer mistakes.
Examples:
Fiction: MLM is not selling. It's just "show and tell". Simply share something you like with people you know, and collect a check.
FACTS: MLM is a way of organizing the people who buy products for mutual benefit and profit. Mutual benefit and profit means everyone earns what they're worth and gets what they pay for. To be successful, people must (1) join the business, (2) buy products, and (3) tell others who do the same. Ideally, you're looking for customers who want to be distributors, or distributors who what to be customers. The two things you all have in common are that you want the products and you want to make money.
Fiction: You must love the products.
FACTS: The best loved products are worthless without plenty of paying customers who buy them. You need products that are good enough for people to want them and pay for them. You don't have to love them to sell them.
Fiction: Your company needs to be debt free.
FACTS: You will NEVER know the true financial status of the company; it's not even likely that you'll ever visit the company's headquarters, let alone gain access to its financial records. Besides, "no debt" is NOT GOOD. Sales are made before commissions are paid; so technically, commission checks are a "debt". Rather than a company that has no debts, you need a company that PAYS its debts.
Fiction: The best MLM companies are publicly traded.
FACTS: A publicly traded company cares more about its stockholders than its employees and debtors. You are much better off in a privately held company that shows respect and appreciation for its distributors.
Fiction: Your company has the BEST compensation plan.
FACTS: There's no such thing as the "best" compensation plan, but some are better than others. A legal and legitimate plan typically pays YOU 5 to 10 percent of ALL the money your organization brings to the company--- you, your customers, their customers, THEIR customers, and so on. Don't look at what the plan pays on just the 5, 6, or 7 levels that your plan pays on--- or just the cycle bonuses in a binary. There's likely to be volume below that, you're just not getting paid on it. That's good--- no real pay plan can afford to pay you much more than 10 percent of all your organization's volume--- unless the cost of making the product is low or the price is too high.
Fiction: Geometric progression will make you rich.
FACTS: If you get 5 people, who get 5, who get 5, etc., you will have recruited the entire population of the world in just 14 levels. Then what would the people on the 14th level do? Geometric progression is actually a bad thing, because it creates a heavy bottom in your organization. Ideally, you want a group where most of the volume is somewhere in the middle.
Fiction: All you need to do is recruit 2 (or 3, or 4, or 5, or 10...)
FACTS: MLM history goes back almost 70 years, and you will not find ONE so-called "heavy hitter" who only recruited a few people. The most successful people recruit 100, 200, or more people PER YEAR--- or create at least that many customers who do not participate in the business.
Fiction: You need to be on the ground floor.
FACTS: The average life span of a network marketing company is 15 months--- which means that half of them haven't lasted that long. Start too early and you may be starting over before you can make your fortune.
Fiction: Everybody in my organization can be RICH, including me.
FACTS: 97% of the people in your downline will probably not make enough money to be successful. Six-figure incomes are very rare and should never be mentioned to your prospects. Making enough money to pay their car note or Visa bill is a much more attainable goal. Your first focus should be helping them make enough money to cover their monthly autoship---that will keep their attention long enough to build more profitable residuals. But 1,000 people in your downline each making $1,000 a month WILL make you rich.
Fiction: Each distributor recruits an average of 2.7 people.
FACTS: The real average is a lot less than that. Let's say you're the first distributor in your own MLM organization (because you are). You go out and recruit 2 people. Take out your calculator and enter "2 (divided by) 3 equals" and that tells you that the "average" distributor in your organizaton recruited .67 people. The next month, if your two recruits recruit two new people each, that makes them active like you are, and there would be 4 "new" recruits in your downline. So go back and clear your calculator and enter "3 (divided by) 4 equals", and the "average" distributor in your organization recruited .75 people. So each month, the average number would be close to, but not greater than ONE. What happens in the real world is that most people recruit zero, and a few people recruit a lot more than zero, which makes the average look higher.
SUMMARY: Products, companies, and comp plans are not nearly as important as PEOPLE. Your success depends on your connection to the people who create and control the profits. Focus on people, because people make profits.
MLM is good. Just make sure to learn how to stay away from scams and companies where you will NEVER be successful, no matter what you do. And find a way to influence enough people to help you be 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.
No comments:
Post a Comment