Network Marketing Trials & Tribulations in the Far East

This blog relates facts, figures & rants to educate truths, debunk myths & assist newbie/seasoned readers who are sieving the myriad of deceit concocted by people wishing to close deals in a quicker fashion. Looking for: 1) the right company, 2) a viable compensation plan, 3) good co-workers, 4) a simple duplicable system with dependable support & resources…goes a long way in making it easier (& safer) to build a network based on the right principles. If "Nobodies" can make it, YOU can too.

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Thursday, January 11, 2007

Pay Plan Reference Guide

The following is a quick reference guide of major companies and their respective distributor compensation plans.
See here for tips on finding the most suitable network distribution product.

With knowledge of how modern day participants like to get involved in network distribution programs with as little personal recruitment possible & more teamwork / groupwork (see earlier discussion)... we shall only evaluate plans that make feasible for the common person potential high income with the fewest possible "pay legs" & personal introductions.

Note that:
- 1:2 leg ratio growth is a natural progression of an organisation, not an "obstacle" -- i.e. 1:1 growth is abnormal / unnatural;
- a "common man" should focus on building 2 "pay legs" instead of 4, 6, 8, etc legs as it will dissipate business momentum (additional legs play into the picture only for Leader-distributors);
- fast start & retail sales commissions have been left out to look at the potential Big Picture (big income);
- single-level matching bonuses are liable to be bypassed by cunning downlines;
- though companies pitch that bonuses have no maximum figure stipulated (thus claiming "unlimited' income potential) evaluations should be conducted from the perspective of a common man who more likely will not qualify for said bonuses based on 2 referrals.

It is also said that DSA statistics have shown historically that the average MLM participant personally sponsors 2.x downlines, hence business plans based on 2 personal referrals are only natural at this point of the early 21st century.

It is not an exhaustive list, so feel free to add on or correct us by emailing us. Also, please do email if you find any typos / companies out of place.
This list will be updated as & when payplan modifications take place.


Unilevel / Breakaway
(for simplicity, 3 or more frontlines)

Amway (aka Quixtar; distributors try to build "pipelines" i.e. indirect sponsoring by downlines, which are against company policy & liable for termination), Tupperware, Nu Skin Enterprises (aka Pharmanex, Big Planet, etc; features reduced breakaway), Forever Living Products, 4Life Research, Long Far International, Enliven (features binary hybrid), Unicity Networks (aka Rexall Showcase / Sundown), XanGo (distributors try to build like binary while some build traditional unilevel resulting in unstable income), Freelife International, Univera Life Sciences, Lifestyles, Herbalife, Zija, Vitamark.


Forced Matrix

Amigo Health Labs Inc (ceased ops), Fruta Vida, Liberty Health Net (LHN, LHN International), Melaleuca.


Dual-team / Binary / Modified Binary
(1 Business Centre & 2 referrals)

Any unlisted company bonuses means you do NOT qualify for it with 2 personal business referrals.

- Usana Health Sciences
(USD 1k/week max; by "cycles"; 100/200 pts monthly autoship; 1:1 leg ratio; 5k carryover vol; highest achievement based on 2 personal downlines -- Gold Director;
Usana requires multiple re-entry positions / BCs to earn more than 1k),
- MonaVie / Monarch Health Sciences
(USD 1.5k/week; 100/200 pts autoship; 5% L & 5% R (aka 10% weak leg on 1:1 leg ratio); up to 2 generations of matching bonus (rate varies; based on 2 sponsored downlines); do not qualify for Car program; highest achievement -- Silver Executive),
- Isagenix International
(250 cycles/week; @ 900 pts cycles; 100 pts autoship; 1:2 leg ratio with at least 2 active personal referrals; 12k carryover vol; unilevel hybrid up to 4 generations; earn only from local market product volume, until sponsoring 5 active referrals do you earn from international volume; additional bonuses only upon sponsoring 10 active referrals; highest achievement -- 2 Star Golden Circle Executive),
- Agel Enterprises
(USD 6.25k/week; 100/200 pts autoship; 10% weak leg; 250k carryover vol; varying matching bonuses up to 4 levels & from 6% with high vol requirements; max $500 monthly Luxury Car & Travel Expense Bonuses; up to 20 (!!!) high-performing active personal referrals required for other bonuses; highest achievement -- Senior Director),
- CyberWize
(USD 7k/week; by cycles; 75/50/100 pts autoship (100 required for bonus qualifications, e.g. Free Car program); 20% - 33% weak leg; 1:2 leg ratio with at least 2 active personal referrals; up to $1,200 monthly Car Bonus; various single-level matching bonus but 10% if based on 2 sponsored downlines; also has retail "4 customer" rule before releasing commission cheques; highest achievement -- Senior Director),
- Agape Superior Living
(USD 10k/week max, or USD 50k/week (i.e. up to 625 cycles/week) for "gold startup" with only 1 chance at signup; 30/70/140 pts autoship; 2:3 leg ratio; bonus pool & other exec bonuses only if you sponsor 6 or more active referrals; highest achievement -- Sapphire Club),
- Enliven International (ceased ops)
(USD 14k/week; 100 pts autoship; 10% weak leg; single-level matching bonus up to 5k/week on each direct referral; features unilevel hybrid which will require multiple legs & more than 2 referrals),
- Success University (ceased ops)
(USD 20k/week (i.e. up to 250 cycles/week); monthly tuition (autoship); 1:2 leg ratio; at least 2 active referrals; carryover vol; earnings per referred student depends on the numbers each one personally sponsors (5 to 30 students!!); highest achievement -- Student (!?!),
- Synergy Worldwide
(USD 20k/week; 80/100 or 120/150 pts autoship; 10% weak leg; single-level 100% matching bonus limited to 5k if you are not a high-performer),
- bHIP Global
(USD 25k/week; 20 pts autoship; 15% weak leg (recent promo @ 30%); 1:2 leg ratio; 250k carryover vol; Rookie bonus; & depending on # of dual-team autoships: a simple 20-20-10% three-level matching bonus, $1.5 mil one-time cash bonus, & up to $2,000 monthly Car Bonus; highest achievement -- Double Diamond Global Leader).



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Wednesday, January 10, 2007

Something Big that's often Misunderstood...(2)

To conclude our earlier discussion on the various network marketing compensation plans...

So... yes, some of you have guessed it by now, we'll be discussing the Dual-line Payplan.
(Also known as dual-team, 2-team, dual-leg, 2-leg. And, sometimes mistakenly labelled a "binary" for the wrong reasons.)
Read on and perhaps you'll understand the common misunderstandings a little better.

Some facts of Dual-Line compensations:

  • Gives a distributor the power to choose to stop at 2 referrals.
    (or as few as they want, as long as it is more than 2. See Point 3 for an elaboration.)
  • No monthly / weekly "minimum" group product volume targets.
    (some companies do though.)
  • Marginal initial organisational growth.
    (due to minimalist 2 referrals required. But you will see why it does not matter in the long-term as explained below. See Point 4. IN FACT, due to less numbers required, people might act faster in recruiting in some cases.)
  • Sometimes paid on qualifying volume "cycles" depending on the growth of the 2 legs.
    (some companies' cycle payouts are fair, some may not be. See below for what "fair cycling / balancing" means. See Point 2.)
  • Due to smaller initial numbers of referrals, short-term revenue is slow... but steady.
    And for some, due to "cycling", your first couple cycles may take some time to materialise.
    (if you look at it objectively, if a part-timer was involved in the previous 3 comp plans, they'd not be receiving big upfront revenue anyway... perhaps just marginally more.
    And, if the part-time downlines were not sponsoring many new distributors of their own anyway, there wouldn't be a large organisation even in a unilevel!
    So... let's not sweat the small stuff and look at the long-term residual goal that is truly available in binary plans.)
  • Allows an "upline" to place a new "downline" below an existing downline, aka "spillover".
    (provides motivation, shows organisational growth & encourages teamwork.
    Up to half of new downline signups get placed under you, while it is usually much less in matrix plans where 25% or less of new signups gets placed under.
    e.g. in 4-by-something or 5-by-something matrix plans)
  • Due to the smaller numbers involved, companies tend to allow unlimited levels of revenue even for the fresh starter.

Common myths of binary or dual-line plans:

  1. Volumes get "washed away" / flushed
  2. Balancing "problem"
  3. "Not really" just 2 referrals, you need more
  4. You "won't go far" with just 2
  5. The "elephant leg" phenomena
  6. Downlines "sit back & wait" for the revenues,
    or, since its 2, you work your butt off to find more to join you
  7. Only fits "big-time" networkers who plug in their existing downline
Myths busted!!
Here's why:

  1. Most companies with binaries allow unlimited (or literally unlimited) product volume accumulation.
    (some don't though, so do your research well.)

    No doubt, it usually accumulates on one leg but as your other leg grows in consumers, would you rather have a situation where you qualify for revenue % or cycles with volume points already banked on the other leg, or start afresh with 0 points?
    Obviously, "something" is better than nothing.

    --> Volumes do not get "washed away"!

  2. Some companies require both legs to exactly "balance" or match in volume consumption before releasing a % or "cycle" paycheque.
    e.g. Companies that cycle based on an equal 1:1 or "1/2 - 1/2" balance, are unrealistic as not everybody can refer 2 distributors -- 1 in each leg -- at the same time. Organisation growth is naturally not 1:1.

    There are some companies that allow a more "natural" organisation growth & payout to take place.
    e.g. Let's assume a distributor "X" signs up into a system, and in the worst-case receives no upline assistance in growing a downline.
    X then proceeds to spend Time Period 1 promoting the products/co. to 1 new distributor & signs her up in Leg A.
    In Time Period 2, both of them promote to 1 new distributor each, and X places her new distributor in Leg B. Ratio of legs A:B is 2:1.
    In Time Period 3, X chooses to "stop at 2" while the rest continue in referring 2. What results is a leg ratio A:B of 4:2.
    From the above, it is clear that cycles based on a 33%, or 1:2 or "1/3 - 2/3" org expansion is not only fair, but also realistic.
    In fact, in Time Period 4 onwards, the org expansion ranges from 34-38%.
    Therefore, the fairest binary structure remains to be "1/3 - 2/3" (1:2 leg ratio).

    Just look for the Right Company.

    Of course, the argument that remains then would be that "not every distributor/consumer consumes the same amount of products monthly".
    To which, only a predictable compensation (with actual possible revenue figures) in a "worst-case product-consumption / distributor-recruitment case study" will be able to show that a consumer is actually able to earn -- then that will absolutely illustrate & suppress all debates.

    The logic here is: if one can earn in worst-case, what more if product consumption is greater than worst-case!

    Ask your current / potential Sponsor to show this to you in his/her comp plan.
    If they can't... Contact Us (or leave a private comment)! =)

    Finally, some companies incentivise default overriding commissions (i.e. weak leg % or "cycling") by rewarding distributors through "matching bonuses". Only upon sponsoring a heavy-hitting networker would one derive much revenue to "match". Usually, one would "match" individuals who are most likely just average like yourself, SO "matching bonuses" provide some form of marginal incentive. Evaluate for yourself if it blends into your business building strategies.

    --> No problems here with "balancing". Binary plans that pay on a 1/3 - 2/3 leg ratio are more than fair!

  3. "Not really just 2" -- yes and no.

    Yes: If your company restricts you to a low capped revenue of e.g. 1k/week <-- Usana Health Sciences. In such a case, it isn't really just 2 referrals you need. One would have to build multiple "inside" legs & open multiple "business centres" in one's own downline. That means 2 additional referrals for each RBC opened! That's tough! You're better off joining a unilevel in this case.

    A resounding NO: If your company allows you to achieve your desired income target on as little as 1 distributorship / RBC -- truly 2 referrals.
    e.g. If you like to refer as little as 2 customers, stop & teach your downlines the same thing, and set a target to earn US$12k per week in 1 or 2 years time, then a company like... umm... Enliven allows you the flexibility.
    However, seriously, if you're looking to leverage on the power of just 2 referrals in a US$14k/week company... why "incapacitate" yourself if the sky's the limit?
    Therefore, you should naturally take a serious look at Synergy (20k) or why not bHIP Global (25k!!).

    --> Find a company with a high cap with proven infrastructure to ride on -- that truly features a compensation based on 2. Yes, they exist!

  4. e.g. If a distributor hypothetically signs up and in the "worst-case" does not receive "upline" assistance in placing new distributors below him/her (like in Point 2 above)...
    and the distributor spends his first 2 months referring 2 downline distributors into the business (@ a rate of 1 distributor / month) & the situation repeats itself:
    Month 6 --> 20 downline distributors
    Month 12 --> 376
    Month 18 --> 6,764 !

    It is not a joke... go do your grade / primary school arithmetics.

    MLM skeptics will like to argue that market "saturation" will be reached sooner or later.

    Well, we've got news for you: 1) not everyone will be involved in building a network with a company at any one time; 2) products & systems between companies (e.g. The Body Shop at Home vs. Primerica vs. The Pampered Chef) may not be related at all & those savvy in the industry may be able to juggle 2 or more companies; 3) the human population currently stands at 6.6 billion (or 6,600 million) and is growing 6 figures daily.

    With a minimalist network of 2, it is real hard to hit the perceived "saturated" situation... & simply makes more sense to work with as compared to a network which requires more & more people (e.g. unilevel plans) before one gets rewarded for the work done marketing products/systems.

    --> You will go far with just 2!

  5. The "elephant" leg:
    Usually a result of business building tactics like what some call "streamlining" (a variant of "stacking" in unilevel compensation), which is good for early organisational motivation but results in detrimental network dynamics.

    Now, if there exists upline assistance in the contrary from the above [Point 4] "worst case" -- where uplines place new downlines below existing distributors -- naturally one leg will start growing at a greater rate than the other "weak" leg.

    Perhaps you'll then need to focus your efforts in developing your downline distributors in your weak leg to speed things up, though you might not "catch up". But... so what?!

    --> This is only a natural characteristic that one should feel priviledged if he/she is presented a unique situation like that.
    Otherwise, patience is the key & as shown in Point 4, with the natural consumer network growth you will see the numbers and still benefit from your hard work.
    There is nothing to be discouraged about.

  6. In no other compensation structure will it allow a distributor to earn handsome rewards based on a simple referral of 2 sub-distributors.
    Unilevel & matrix plans can reward on 2 distributor referrals, but will not be able to qualify a member for bonuses & revenue beyond their very restrictive levels of earnings.
    This post will explain why one doesn't "work & work" in a simple system of 2.

    --> With only 2 referrals required to optimise a simple dual-line system, there is no reason why distributors should "sit back" and not do the minimalist work required.
    If this is the case in your consumer network or the network you're joining, then it boils down to inadequate leadership, education & motivation.
    Simply find a team with the correct leadership!

  7. --> And, as obvious as it is from the above elaborations, a dual-line compensation plan not only suits a big-time biz builder, but is also perfect for the part-time promoter / distributor / basic consumer who comes in "fresh off the boat"!
All in all, a binary compensation plan usually allows a new distributor to capitalise on "automatic" & selfless biz support from all directly related senior partners -- & all the way to the company's #1 distributor!

Similarly, in the near future, when assistance is requested from junior partners, it'd be totally worth a distributor's effort & time in helping out all juniors as one would be rightfully rewarded when the situation bears fruit.

--> These days many marketing groups within traditional payplan companies make it mandatory to enroll their new distributors in similar ways to promote the ever-present teamwork, however still subjecting themselves to their comp plan's restrictions, breakaway characteristics, etc.

(Leaders will also argue that there are "no losses" when distributors fall outside earning levels because infinity bonuses take care of that. The fact of the matter remains, that (1) ONLY leaders will attain the argued infinity bonuses (& only at later business stages); and (2) during the time period where network product volume falls outside of one's earning levels & until the said distributor qualifies for infinity bonuses, commissions are flushed & lost forever.)

In fact, many people building traditional payplan businesses in this fashion do not realise that they are flouting their own distributor contract policies & are liable to be terminated.

Obviously, many people are not terminated because they are earning minimal to nada in their paycheck, & yet are generating product sales volume for the company.
However, it'd be worthwhile to terminate Leaders as it would save Companies 5 to 6 figures in monthly commission payouts in their P&L figures -- and major companies HAVE been known to terminate such individuals from time to time.
Why build business silly like that & jeapordize one's efforts?
Get yourself involved with a company which will reward you to the full extent of your (& your network's) effort 100% of the time!
=)

So... which compensation makes the most sense to appeal to the widest audience of potential independent distributors -- i.e. the part-timers?

Just find the right company, with consumable products, that fulfils all the above generous characteristics!
or... contact us (or leave a private comment). ;)

** [Please refer back to this post for future updates & graphical illustrations.]


To end off, here is an excerpt of Jason Wells' comment from another site, on his view of compensation plans. (Jason is a leader from a dual-team payplan company.):

" I have read a lot of posts. Bottom line, if you don't sponsor or move product, you will not make money in any of the plans. That is one thing I agree with.

But when you remove the "smoke and mirrors," every plan has its limitation. I favor the binary, because its limitation is up to me. If I can't find two solid people and train them (even if they are sponsored and trained by someone else), I don't make money.

Other plans often require personal sales volume requirements that create a non-residual income situation.

My 4 top people were sponsored by someone else and I reached down and helped them since I am not paid on levels. I can go as deep as I want until I find my leader.

Other plans kill you on this because of levels and the breakaway will kill you if you are not selling a lot. That is where you hear the stories of the "garage full of products."

If you are heavy hitter and unique in your production, you will (do well) in the break away, however, if you are average like me (<-- edit: & 90% of the network marketing population!) binary... should be your choice. "


Do WITHOUT the juice/vitamin/cosmetic/household "stuff".
Find a niche & the market will come to you!

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Tuesday, January 09, 2007

Research & an Open Mind is of Utmost Importance

Here are very realistic encounters by Tim M. again.

" The pitfalls of not enough research

I think that research is so important in any business!

One of the issues that I deal with everyday as it relates to MLM is that people don't do their due diligence. Here are a few examples from my experiences.

1. They don't even bother to evaluate.

This is fine.... it's their right... and I respect that. For me, I'm an open minded person and if someone wants to show me something I've never seen before, then I'm willing to look... but some people are just not interested... Works for me... it means that we don't waste each other's time.

2. They ask the wrong people.

These are the people that look at only one side. They surf the internet and bring up every negative article they can find and ignore the positive ones.... Or they go talk to their friends and family who have already tried it and quit... or even worse... that "heard" that it doesn't work.

When you are researching ANY business... you don't focus on what people do to fail! You focus on what you need to do to succeed. Sure you want to be careful of the pitfalls, but just because you know people who are failing, that doesn't mean that you will too. Learn from their mistakes and use that information to succeed.

3. They don't ask any questions and just jump on board.

These people pose arguably the worst problem for this profession. Someone approaches them with a business, and many times because of the small initial investment and huge potential return, they jump on board and don't ask any questions. This means that they are ill-prepared. There's a good chance that this person will quit as soon as they hit their first roadblock. Then they'll become one of the statistics and one of the people that tell everyone it doesn't work.

4. They believe everything their sponsor says and don't check on the facts.

I spoke to a lady not to long ago that was looking for a home business... She said that she tried MLM a couple times before and failed. I asked more questions... she started to tell me about one of the companies... she mentioned that they required a huge $5K investment, and she ended up getting nothing for the money... there was supposed to be a product, but it never showed up. I spoke with her for a while and I assured her that our company was legal and legitimate. I mentioned that we are publicly traded and there's nothing to worry about. She responded by saying that the other company was publicly traded too.... now this got me interested.... I said "great... what's the stock ticker?" She didn't know... I said "well, then what's the name of the company?".. I looked for any information I could find but found nothing... I couldn't even find it in MLM listings.. I asked her when she last saw the stock report... She responded that she never even looked. I was shocked... but unfortunately, not surprised. They told her they were publicly traded, but this woman didn't even bother to check... It's sooooo easy to check a stock ticker...

In marketing, everyone knows that bad news travels much faster than good news.... According to a report I read recently for every good experience a person has they will tell 2 people... for every bad experience a person has they'll tell 10 people. No wonder MLM has such a bad rap. We've been around for over 60 years and it's a purely word-of-mouth business. No wonder people are so negative. "




NO MORE juice/vitamin/cosmetic/household "stuff"!
There's just one too many!!

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Monday, January 08, 2007

Something Big that's often Misunderstood...(1)

To follow on with a post from some months back... we'd herewith like to discuss in an academic & logical fashion -- arguably the most misunderstood compensation plan the industry has produced.

Well, there isn't a perfect solution to a compensation plan, really -- it will depend on the way you intend to work, how it suits your habits... & especially how it suits the network dynamics & the majority of people referred into the biz...
simply because if its not something that suits the majority (& because your performance will depend on the majority's performances) why even waste effort on it?
Makes sense?

Before we discuss its details, let's quickly talk about the pros & cons of the industry's sister plans...
--> keeping in mind that 90% of the people getting involved in network marketing are part-timers involved in 9-5 work, with little intention of going full-time into network marketing in the short-term.
--> also, keeping in mind that the point of network marketing is to leverage on the work done by the network as a whole (promoting products), thus resulting in residual income.


The Unilevel

  • One can sponsor as wide a frontline as they wish (i.e. many personally-sponsored distributors on 1st level).
    Many legs. (For practicality here, any plan that requires 3 or more frontlines / legs, will be discussed as a Unilevel.)
  • Good for building a large organisation in an acceptable time.
  • Not practical for majority of distributors who realise the great biz opportunity the industry presents, but only have part-time to spare on their biz.
    (too much effort required to meet specified large number of personally-sponsored distributors to qualify for "executive/leadership" bonuses.)
  • Incorporates variations of depth-for-width compensations.
    (e.g. you can't earn level 2, unless you personally sponsor 2; you can't earn level 3, unless you personally sponsor 3; etcetc.
    OR, you can't earn beyond level 3 if you don't attain "X" pin title; you can't earn beyond level 4 if you don't attain "Y" pin title; etcetc.)
  • Cuts / breaks off revenue after certain levels.
    (e.g. only pays up to level 5, or 6, etc.)
  • May include a "dynamic compression" characteristic, which essentially does not apply to the small-time distributors who simply do not have downline volume/numbers.
  • May include a periodical "bonus pool", which again does not apply to small-timers.
  • May include an "infinity bonus", which does not apply to small-timers.
  • Very large organisational downline volume (monthly/quarterly/etc) required to qualify for bonuses/commissions.
  • All product volume gets reset (flushed) at the end of the month.
  • Revenue-wise, great for upfront paybacks (small sums though), but requires non-stop work to manage one's wide frontline (& each downline's wide frontlines), and to continue sponsoring new distributors to meet commission qualifications & offset for attrition.
  • "Modern" methods of building Unilevel incorporate various degree of stacking or streamlining. These are basically binary payplan biz building traits which are applied negatively to unilevel biz building. Among other detrimental results, distributors are liable to get terminated! (See next post.)
--> A possible but difficult residual income plan, especially for part-timers.
It is essentially a "working plan".



The Breakaway


  • aka the "stairstep breakaway" plan.
  • Almost always a feature of Unilevel plans.
  • Wide array of incentives / bonuses to encourage a distributor to continue building his/her organisation.
  • It is literally mandatory to continue building one's organisation, especially when revenue is lost when a downline matches a particular pin title that cuts-off earnings from the relevant sub-organisation.
    (one either has to increase consumer productivity from sidelines to stay ahead of that downline's pin title,
    OR, to simply make up for lost product volume.)
  • Very large organisational downline volume required to qualify for bonuses/commissions.
  • All product volume gets reset (flushed) at the end of the month.
  • Tendency for inventory loading (or "front loading" or "stacking" of memberships to gain pin titles / ranks.)
  • Recent modifications to Breakaway plans have reduced a "total" cut-off of revenue.
    (some plans now pay back a (smaller) % of the volume that was to be originally cut-off,
    OR, rewards the distributor an "extra few levels".
    YET, distributors still feel that it is awesome to be receiving a small(er) % of breakaway volume. Question to these happy campers is: Why not receive the same (larger) % as compared to before breakaway, dopehead?!
--> A recent "invention" in compensation plans is the "hybrid plans".
Well, a unilevel is a unilevel. Once you've got to sponsor more than 2 referrals, its not a "binary" any longer. Who are these companies trying to kid?? Obviously the unsuspecting small-time distributors/consumers!
Again, a possible but difficult residual income plan, especially for part-timers.


The Forced Matrix
(not referring to the "matrix schemes" aka "elevator plans" which tend to be illegal in nature)

  • Mostly requires a fixed number wide frontline (many personally-sponsored distributors), and a fixed number of levels deep .
    Keeps one's organisation within a "A x B" configuration. (e.g. 7x5, 8x4, etcetc.)
    i.e. no revenue from small-time distributors who fall outside of your "A x B" matrix.
  • Great for building a seemingly large/successful organisation.
  • Allows an "upline" to place a new "downline" below an existing downline (aka "spillover").
    (provides motivation, shows organisational growth & encourages teamwork.)
  • Incorporates variations of depth-for-width compensations.
  • Again, not practical for majority of distributors who only have part-time to spare on their biz.
    (too much effort required to meet specified number of personally-sponsored distributors to qualify for levels of compensation and/or "leadership" bonuses.)
  • Moreover the forced matrix structure gives people the false urge to sit back and have the matrix organisation form on its own.
  • May include an "infinity bonus", which does not apply to small-timers.
  • All product volume gets reset (flushed) at the end of the month.
  • Revenue-wise, moderate for upfront paybacks, but requires non-stop work to manage/manipulate the matrix to qualify for one's desired monthly paycheque.
  • Basically, the deeper one goes in a matrix, the more people need to be placed sideways (on the same level) before someone gets placed below on the next level. Large MLM earnings surely take a long time to build. Good payplan for generating hundredaires.
--> Yet again, a possible but difficult residual income plan, especially for part-timers.
All in all, if a part-timer can't refer enough new distributors into their business in their part-time efforts... how in the world are they going to build up the mandatory large organisations to bring in their promised "full-time income" as illustrated above?

Also, if you're not confused by now, we are!! There are just too many hocus-pocus "bonuses" being thrown on the table just to lure ignorant bystanders into signing up.

And one major factor of the above plans that prevents a new distributor from obtaining "automatic" & selfless biz support from the seemingly "large population" of senior partners is the simple fact that most of the mid-level "senior partners" (uplines) do not qualify for "infinity" bonuses that rewards them for the selfless effort put in when time is spent helping out a junior distributor who falls outside of his/her earning levels.


<Part 2 coming up... >


Do WITHOUT the juice/vitamin/cosmetic/household "stuff".
Find a niche & the market will come to you!

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Sunday, January 07, 2007

An Inspirational Testimony

The following inspirational testament is made by Tim M. of Canada -- just a regular guy from a regular background everyone can relate to.
Enjoy!

"My story is probably very typical. I have no previous MLM experience, I'm no salesman, this was my first try at my own business. I grew up in a small town in New Brunswick, Canada. My dad was a truck driver who worked plenty of hours, and my mom stayed at home with us. When I got a little older my dad took a pay cut and moved to a sales position so that he could spend more time with us. For us, family was most important. Since my father didn't even have a high school education I thought that to be successful I would need to work hard to get a good education, work hard to get a good job, and work hard to climb that ladder. I did that. I got a Computer Science Degree, and moved to Ottawa, Canada and landed a job with one of the largest companies in the country. Since I've been working with Nortel, I've watched as 100,000 of my friends and collegues lost their jobs and their pensions. I knew this wasn't it. I knew this can't be the answer. There must be something more.

I got involved in Network Marketing because of my best friend. He already owned his own business and he was very successful with it, so when he told me that he wanted to work with me and to teach me what he knew about business I jumped right on. He and I got to work, and his business grew at more than twice the speed of mine. I thought that it was just because of his connections in business and the knowledge that he had. I was able to build a pretty respectable business of my own, but now I realize that it was just because of the "facts". My company is an amazing company with amazing growth and timing, but really, when it comes down to it... those are all just numbers.

I just got back from our global convention in Dallas this weekend. This is my second one. The first one helped me with my belief in the vehicle, so I wasn't sure what to expect from this one. However, I kept an open mind and I went to learn. I met all the millionaires, and rubbed shoulders with corporate. But I realized something profound. One of these millionaires in particular touched me on a different level. He is a guru in the industry.. He's been in Network Marketing since the age of 16... he's built 6 annual-million dollar downlines and as I'm talking to him, he makes me feel as though I'm the only person in the room. Not only that, but he's the only millionaire that ate all his meals in the restaurant in the lobby.... Still on top of that, but before leaving the room, each and every time, he walked to every single table and acknowledged every single person there. I couldn't believe it. This industry really works.... your success IS directly proportional to how much you care about people.

While I was in Dallas, I also spent a lot of time talking to new distributors, helping them with their questions and confidence. Each and every time I spoke, I had a crowd gather around me. I couldn't understand what was happening... I'm no powerhouse... My sponsor is... why not go talk to him... but every time, they listened intently and when I was finished, they thanked me and thanked me again. Then it dawned on me. I'm a regular guy with a regular story, and I can relate to them on their level. I'm one of them and they can understand what I'm saying because I went through it... I'm speaking from experience. These people who are CEO types can't relate to the average person. Here I was not believing in myself because I was nothing special, when in actuality, the FACT that I'm nothing special is what makes what I have to say SO special. I truly have a gift. I have the gift of personal growth. I can teach people to change their lives by helping them grow as people.

Since the convention, I've now gathered interested people... All of which are average people with average lives who are looking for someone like me to help them learn and grow.

I have truly experienced something amazing and I would give up all the money in the world as long as I can keep the belief that I've just earned in MYSELF. "




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Saturday, January 06, 2007

Network Marketing is Still the Greatest Opportunity Available

Network marketing is one of the most rewarding home business opportunities today. For a start-up cost that typically ranges from a few dollars to perhaps a few hundred dollars, just about anyone can be in business for themselves.

Spring, TX (PRWEB) August 23, 2006 --
Network marketing is one of the most rewarding home business opportunities today.

For a start-up cost that typically ranges from a few dollars to perhaps a few hundred dollars, just about anyone can be in business for themselves. And the number of options available for what kind of network marketing business to go into continues to increase.

Many network marketing companies offer products and services that the average person uses on a daily and consistent basis. Products such as communication services, internet access, nutritional products, water filtration systems, financial programs, etc... lend themselves naturally to network marketing.

Essentially, consumers simply change the habit of buying certain products or services from traditional retail outlets and begin purchasing these same products or services from a network marketing company or independent representative.

The business model is basically a simple system where the network marketing company relies on independent representatives or affiliates to promote their products and services. When a sale is made, the network marketing company then pays a percentage of those proceeds to the independent representative that made the sale.

With network marketing, the commissions don't stop there. When the representative that made the actual sale is paid, there is typically a commission that goes to the representative that initially referred them.

The details of how much is paid, how commissions are earned, and who is qualified to earn what level of compensation will vary from one network marketing company to the next but the allure of network marketing rests primarily in the opportunity to continue to receive commissions over the lifetime of a customer's account as well as any other customers referred by your organization.

"Imagine telling your friends about the movie you really enjoyed last weekend and having the movie theater send you a check every time your friends bought a movie ticket, popcorn, and candy." says Brian Rooney, founder of MySearchSite. "Imagine getting a check every time a friend of yours went to a restaurant you told them about. That's the power and attraction of network marketing."

While the business concept is simple, the failure rate in network marketing is similar to the failure rate in traditional businesses. Some believe this failure rate stems from over-hyped opportunity meetings where people are lead to believe that if they just sign up and get a few friends involved, they can make millions.

If you are considering a network marketing opportunity, realize that you are starting a business. While your start-up costs are amazingly low (compare an average of $50 to $100 to several million dollars for some franchises), the same principles of hard work and dedication are required to succeed.

"Network marketing is a very simple business" says Brian Rooney. "but if you don't take it seriously, treat it like a business and work hard at it, you will fail.".

Network marketing reps who don’t have the necessary skills to be successful can learn how to become successful at making solid presentations, retail sales, and the other required skills to succeed.

There are many reasons to start working with a network marketing company and most people like to start in their spare time or as a part-time venture.

Those that pick a solid company to work with and commit to building a successful business over the course of a number of years will usually reach a level of success and income beyond their previous job experiences.

It takes commitment and determination in both building and marketing your business.

Key ingredients to network marketing success include:

Selecting a stable company with solid management.
Selecting a company with products that people need and want.
Selecting a company that is designed to stay in business.
Selecting a team or sponsor that is going to work with you.
Realizing that this is a network marketing BUSINESS and being committed to working your business.


About The Author:
Brian Rooney is the founder of TrafficWave




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