How do I set myself apart from the MLM crowd? I tell the TRUTH! Truth #1: Network marketing is all about YOU! It is NOT about products, comp plans, selling, recruiting, etcetera ... it is is about YOU!
In my previous post "How To Lead A Presentation: With The Product, Or The Opportunity? Part 1" we looked at the guidelines for presenting to a single prospect or a couple. We established that each prospect's current life situation determines whether you should start with the opportunity or the product.
Of course, just like each prospect, each scenario going into a presentation is different. That leads to the next question for the second part of this series.
Question: "What about a group presentation, would that make a difference?"
Answer: Absolutely! In this case it's preferable to lead with the product. Otherwise, the prospects will become confused. They'll be wondering what the product is and they won't understand the compensation plan. This addresses their 5 questions immediately:
1. What is the product? 2. What are you selling? 3. Will anyone buy it? 4. If I join, then will I have any customers? 5. Is it fairly priced?
Presentations are situation driven.
With a large group it's critical to build desire for the product right away. That way the prospects will be more open to the opportunity because now they perceive that product or service as valuable enough to want it.
That way they can see that everyone wants or needs it, and all they need to do is find others who want or need the product or service. This will build a foundation for your prospects to better understand the compensation plan.
Magical things will happen in your MLM business when common sense is your guide.
Many network marketing newcomers are very excited to get going, but they don't know how to begin. The most common way this confusion reveals itself is in the question, "What do I show my prospects first, the product or the opportunity?"
That's a great question. Let's look at it and see what shakes out.
Question: “Would you lead your presentation with the product, or the business?”
Answer: Opinions on this topic abound. Some insist the opportunity is most important, while others say lead with the product to cull out tire kickers quicker.
Here's a simple solution.
Lead with common sense. To illustrate, here are a couple of examples:
Example A: At a meeting a prospect says, “My doctor just told me I have a short time to live and I should set my affairs in order.” If you tell her, “Well Julie, we have this awesome opportunity meeting in three weeks!”, then you are out of synch with Julie’s needs. This lady needs to hear about your life changing product first.
Example B: Bob tells you he just lost his job and he can't imagine how he will pay his mortgage, the car loan, etc. Bob is telling you he needs money NOW, so this is not the time to tell him about your amazing product. Once again you are out of synch with the prospect's needs. You'll lose Bob if you don't address his immediate need … a lack of income.
Combine listening with common sense.
Let common sense lead the presentation. Your prospect is the expert on what their immediate need is. Once that is established then you can go from there.
Your prospects want to know what's in it for them. Let them tell you what they need right now so you can best tailor your presentation to fit their individual needs.
When you allow common sense to guide your presentation amazing things happen.
In my previous post "MLM Comp Plan Ups And Downs - The Binary" we looked at the attractive and the not-so-attractive sides of the Binary compensation plan. Now let's see what turns people on and what turns people off about the Uni-Level.
WARNING: fail to ask these 3 questions at your own risk!
1. How much volume do I need to make a given income goal? 2. How many people do I need to make a given income goal? 3. What do I need to do to make a given income goal?
Uni-Levels typically allow infinite width and very limited depth. Few uni-levels ever exceed 4 or 5 levels of sponsorship.
Here are the Uni-Level turn-ons.
1. It's a great "one-trick pony" plan: one product companies like this comp plan. 2. It promotes personal sales: the highest percentage of income is earned from front line sales, usually 20% to 30%. 3. It drives the behavior of product movement: 4. This plan eliminates manipulation: unlike the matrix or the aussie 2-up team members are not "spilled" or "given" to the upline sponsor, so there's no system cheating. 5. Simplicity: it's easily explained and understood.
Here are the Uni-Level turn-offs.
1. It's just so shallow: If your lowest level team member sponsors someone you get NOTHING. 2. It discourages upline support: second, through final level commissions are usually much smaller than personal commissions. (ex.: levels 1 through 5 pay 30%, 10%, 5%, 3%, 2% respectively.) 3. One-time commissions: residual income is non-existent. 4. There's no rest: one product means reps are constantly hunting for new customers like vampires for new blood.
The uni-level comp plan offers no pay-off for unscrupulous manipulation. Plus upline support is often harder to find than an honest politician. And the lack of back-end products creates a "sell, sell, sell" environment with zero provision for long-term wealth.
On the other hand, uni-levels are easy to understand, and sales people love them because they pay best for personal sales.
If you want a work at home sales job, then the Uni-Level compensation plan is perfect for you. If however, you are a future oriented person who wants to build a powerful business for a little while and then enjoy the rest of your life, then move on.
In my previous post "MLM Comp Plan Ups And Downs - The Aussie 2-Up" we examined the positives and negatives of that type of network marketing compensation plan. Now let's examine the Binary.
WARNING: failure to ask these 3 questions can kill your business.
1. How much volume do I need to make a given income goal? 2. How many people do I need to make a given income goal? 3. What do I need to do to make a given income goal?
A Binary comp plan is divided into two legs of sponsorship with a perfect 1/3 - 2/3 downline distribution requirement for commission payout to occur. A common lure used by some unscrupulous recruiters is a "give away pre-built leg" with massive volume.
The up side of the Binary.
1. A Run-Away Leg: this gives you bragging rights. 2. A Run-Away Strong Leg: this is twice as impressive as a run-away weak leg. 3. Unlimited Depth of Sponsorship: this offers true residual income. 4. Volume-Driven Pay: you get paid on all your team's volume. 5. Placement In Your Upline's Strong Leg: if she's a power recruiter, then you can concentrate on building just your weak leg.
The down side of the Binary.
1. A Run-Away Strong Leg: this is impossible to catch up to … you'll never get paid on it. 2. Unbalanced Team Placement: without a perfect 1/3 - 2/3 downline distribution you earn zippo!
The Binary is a volume-driven comp plan that pays for building limitless depth. If your weak leg runs-away and you are sponsored into a robo-recruiter's strong leg, then you have a fighting chance at capitalizing on a gold mine.
A run-away strong leg is a double-edged sword. It may be a potential network marketing death sentence because the perfect 1/3 - 2/3 balance can not be achieved.
OR ...
Your position in a run-away strong leg can give you legacy income ... so long as you keep up that all-imprtant perfect 1/3 - 2/3 balance.
Super strategists can build a Binary comp plan very successfully. If strategy is not your suit, then the Binary comp plan is not for you.
In my previous post "MLM Comp Plan Ups & Downs - The Matrix" we examined the advantages and disadvantages of that type of network marketing compensation plan. Now let's see what we can learn about the Aussie 2 Up.
In the Aussie 2 Up compensation plan you get to give away your first two recruits to your sponsor. Then she gets paid the commissions for the work you just did. Most entrepreneurs join a company with an Aussie 2 Up comp plan for it's big up-front profit commissions.
WARNING: Three Critical Questions You Must Ask About Any Compensation Plan
1. How much volume do I need to make a given income goal? 2. How many people do I need to make a given income goal? 3. What do I need to do to make a given income goal?
Those considering building with such a comp plan should be aware of the down side of the Aussie 2 Up so they do not get blindsided. Let's take a look at the good and the bad of the Aussie 2 Up.
The good side of the Aussie 2 Up.
1. Ideal for sponsor monsters: since they have the Green Lantern ring, the power suit, etc. they do well with this plan because they recruit lots of people who give their first two recruits up to them. So the sponsor monster can make lots of money. 2. It's shark territory: shrewd people will place duds or fictitious names into their first two positions so that when their next two positions come along they can place super recruiters there & be in fat city.
The bad side of the Aussie 2 Up.
1. Big ticket start-up: often from $2,000 to $20,000. 2. Stand-alone product: no back end sales are being made for residual income. 3. Works against industry averages: Average network marketers without a system for duplication sponsor 2.7 people in their entire career. That average person then gets paid on 0 to 1 person they place into their downline. 4. Treachery is a two-way street: your sponsor may help you build so he can take your two best recruits (then abandon you), or you can give him your dog and cat, or your toddler twins … and then work with real builders. 5. No residual income: no sponsoring = no income. 6. Against the numbers again: about 0.01% of the world's population can make an Aussie 2 Up work.
Building an Aussie 2-Up comp plan is a back-breaker … even for the 15% of the population that like it. Oh, and you can forget about duplication.
An extremely high ticket one-time-order product with this plan is the norm. Back end products for residual income don't exist.
The only equality in an Aussie 2-up comp plan is the chance that either the recruiter or the recruit can cheat the other out of their due commissions by manipulating the plan's flaws to their own advantage.
Can you recruit at will? No? Well, then avoid the Aussie 2 Up compensation plan like the plague. The numbers are just not in your favor.
WARNING: Neglect to ask these three critical questions at your own peril.
1. "How many people do I need to make a given income goal?" 2. "How much volume do I need to make a given income goal?" 3. "What do I need to do to make a given income goal?"
What makes the matrix compensation plan so popular among network marketers?
The fixed width and depth: make a matrix easy to understand. Spill over: a typical feature of matrices wherein a new recruit is placed below an existing member of the recruiter's downline, can help build your team's downline.
The up side of the matrix.
1. Spill Over - it's a great team builder. 2. Sponsor-Placed Spill - if you're placed under one of your sponsor’s front line reps, then you could benefit from the spill over that front line rep may create in the future.
The down side of the matrix.
1. Spill Over - this will choke your long-term income potential if it happens in your front line. These are lieutenant positions that must be occupied by strong builders. A dead-beat in one or more of these upper-echelon positions minimizes your comp plan potential. Your only hope at this point is for the dead beat to drop out and leave that position open. 2. Unwanted Spill - moving a spilled member out of your front line is difficult, if not impossible. 3. Fixed Depth - since there can only be "X" people placed in any matrix this also means this comp plan has a maximum earning potential of "X" number of reps. (a full 3 x 5 matrix pays on 363 recruits, you do not get paid on recruit #364 and above.)
There are two types of networkers that do well with the matrix comp plan.
The Robo-Recruiter: he can manipulate the plan for maximum pay-out The Educated Team Builder: she guards those front-line positions like a general.
Always remember the 3 critical questions before joining a company. What do I have to do, how much volume, and how many team members do I need to make my income goal?
If you join a company with a matrix comp plan, then shut-up about spill over. This feature leads to a Welfare mentality that swallows up front-line positions and reduces pay-outs for you and your team. There are dead beats out there looking for just such a "free ride". Oh, and don't forget your sponsor's incentive to fill those top positions for you.
Do you believe the advantages out-weigh the disadvantages? Great! Then go for it.
If you prefer a comp plan that pays you true unlimited residual income for all your hard work with no surprises, then keep looking.
If you work your network marketing business hard and build it, then you'll get paid, right?
Sorry Alice, but this isn't Wonder Land. The reality is the stair-step break-away has some features that work for you, and some that work against you.
WARNING: Neglect to ask these three critical questions at your own peril.
1. "How many people do I need to make a given income goal?" 2. "How much volume do I need to make a given income goal?" 3. "What do I need to do to make a given income goal?"
The up sides of the stair-step break-away.
1. It allows massive width. Say you sponsor 50 people, all placed on your front line. This gives you all the team volume.
2. If you sponsor a dud and then sponsor a builder this won't hurt you. You'll just work with the business builder.
The down sides of the stair-step break-away.
1. A builder below a dud can keep you from qualifying for some bonuses. The duds won't qualify for levels that help you.
2. The break away:
a. Say you have 5 legs with 50K total volume. You need10K volume per leg to be paid, but one leg has 30K volume. The strong leg will not pay because it has too much volume. All 5 legs must have equal volume.
b. Let’s say you are making 15% overrides on qualified legs. When they break-away you lose 10% of their personal volume and you're left with 2% or 3% of their personal volume. In some cases this incredible shrinking check can drop to 0%!
Always ask what you need to do, how much volume you need, and how many people you need to reach your income goal.
The stair-step break-away is a perfect comp plan for super recruiters. They instinctively find 50 more people to replace the income lost to break-away team members. They also see studs placed under duds as minor blips on the radar.
MLM is not a numbers game ... but ... you should work with the numbers.
If you're like 97% of all networkers, you're more likely to be hit twice by lightning than you are to to duplicate that robo recruiter's actions.
Your team probably won't grow like you need it to. And that balanced downline volume thing will strangle you to death. Besides, even if you meet the volume & team count requirements, who in their right mind wants a massive pay cut after all that work?
3% of all network marketers can succeed with the stair-step break-away. Why not go with the more favorable numbers?
Since the beginning of time there have been scams and scam artists. The greed and avarice of these denizens of the underworld have compelled them throughout history to seek out individuals by playing on fears of economic distress, and, or the desire for "easy money".
Entrepreneurs who are frustrated in MLM make some of the most attractive targets, as they are already in a money making mind set.
The advent of the virtual world of cyber space has opened the field wide for these prospect poachers to lay their nets around the globe intent on landing huge profits while minimizing their chances of capture by law enforcement … at least for some.
Below are a couple of examples of just how crafty these criminals can be, and the depths to which their lust for filthy lucre will drive them.
WARNING: after reading the information below you may feel the need to bath … repeatedly.
It's all in what they don't say.
These guys are tricky. Their motto is: "it's in the bag, if you word it just right." Learn the "buzz words" this now incarcerated lawyer told gifters to avoid.
Sometimes you should judge a book by it's cover.
As they say, "image is everything". This point is not lost on this gifting scammer. Some of these bad boys masquerade as "ethical people". See if you can figure out just what kind of ethics the owner of this gifting program site has.
You want to build a huge income. And you value your freedom. Right? OK, then instead of looking for a quick buck look for a legitimate home-based business that will keep you in cash and out of prison
Gifting programs never offer a product of real value, they lure unsuspecting folks with promises of big bucks for little effort, and they always use recruiting as the main way of generating income. The Feds are always on the look out for people who operate these schemes … and those who participate in them.
On the other hand, a legitimate network marketing business offers a valuable product, at a fair price anyone would buy if there was no compensation plan attached to it. This type of business will be around to pay your children's children.
If you want to build a lasting income from home without worry that the Feds will one day come looking to fit you for an orange jump suit, then I suggest you leave the gifting programs to those folks who think they can outrun the long arm of the law
I've said it again and again, “If you want to build a network marketing business that’ll pay your children’s children, then you must know what’s in your Policies & Procedures (the contract between you and your company).
Richard Dennis didn’t read the P&Ps, and if you repeat his mistake what happened to him could also happen to you.
Author of the tape, “Dead Doctors Don’t Lie”, Richard learned the value of reading the P&Ps the hard way. He built a very lucrative customer base to the pinnacle of the compensation plan in a particular MLM company.
That business Richard built was so lucrative that the company he represented decided one day to review their contract with him (the Policies & Procedures).
"Oh now Richard, you don't really need all that money."
It seems the company lawyers found a clause that gave the company the power to finagle the compensation plan to a completely different structure, AND eliminate all those pesky distributors … including their highest paid rep, Richard Dennis.
This one little clause caused Richard's $40,000 +monthly income to flat-line.
So, is it important to read your company's Policies & Procedures? According to Richard Dennis it is absolutely critical to read the Policies & Procedures before you put your blood, sweat, & tears into building a MLM business.
Failing to do this one simple thing gives the company the advantage. According to Richard, "They will use it if they think they need to."
I live in a small rural community with the love of my life Charlotte.
I am passionate about our life together, being the best role model for our children & grandchildren, & treating everyone I meet with honor, dignity, & respect.
I have little patience for bullies, liars, quibblers, & cheets.
I live by the law of reciprocity. In other words, "OK, so I did the right thing ... but can I do more?
That's why I love MLM. I get to bring good things to good people & save them the hassle of dealing with the stinkin' thinkin' of the 9 to 5 world.
One of the most successful network marketers in the industry, my good friend & mentor Richard Dennis, says it best, "MLM is a personal development program with a compensation plan attached."
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