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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Sunday, September 20, 2009

Mark Yarnell's article in The Central New York Business Journal

Acturial professionals, take note! That means insurance agents, financial planners, wealth managers, ...
Don't be like your compatriot. Be informed & educated about things -- especially good things.

Another MLM Fairy Tale from an Industry Outsider
By: Mark B. Yarnell

18th September 2009

I've had about enough self-righteous opinions from financial-sector capitalists who, perhaps embarrassed about their own performance, insist on criticizing legitimate professions.

One such asset manager, David John Marotta, took a shot at multi-level marketing (MLM) or network marketing recently in this journal (Aug. 28 issue, column entitled, "The False Lure of Multi-Level Marketing"). And his analysis was so flawed, unsubstantiated, and preposterous that I simply couldn't let it slide. Like so many other self-appointed pseudo-experts, Mr. Marotta evidently decided to hold court outside his own domain and, in so doing, embarrassed himself and his profession.

David is probably a wonderful asset manager, but I humbly suggest that he leave multi-level marketing to the experts.

In case you missed his column, here are a few of his bits of wisdom.

"MLM is a non-sustainable business model because it simply provides a product that has been marked up in price."

Sorry David, but last year alone, as a matter of public record, Amway did $8.2 billion in sales and Mary Kay, Herbalife, and Primerica (which operates in financial planning itself!), each generated in excess of $2 billion. Those are just a few examples of companies that have been extremely profitable for dozens of decades. So much for non-sustainability.

Oh, and by the way, on planet earth every product that is for sale has been "marked up in price." You see, David, that's how capitalism works. According to your bio, you do fee-only financial planning. Your fee, David, is a mark-up. Instead of anything tangible, you mark up a service that may help people or wipe them out financially. Either way you make money.

Among other things, David goes on to assert that MLM is "not really a business," "we offend our friends and families," create "no real value," and "endlessly recruit hopefuls who churn at the bottom of a pyramid," while "only those positioned at the top" collect big checks. He closes by calling our profession a "distraction from a genuine vocational calling."

Mr. Marotta offered not one shred of support for his Wikipedia-style distortions. Why? Because his ramblings lack credible research and support.

As a best selling author, I've met thousands of wonderful men and women since 1986 who, like me, joined established MLM companies at the very bottom and became wealthy through hard work and perseverance. We started with no money, special skills, or credentials and delivered superior products and services to people all over the world by word-of-mouth advertising. Many of us have earned millions over the years and given huge amounts to charities and multiple worthy causes.

My international MLM business has taken me to every continent. Unlike financial planners, we don't just sit at home and collect fees by moving money around, we build international distribution organizations that allow common people with very little capital to prosper based on their own hard work and character. Many of our products and services are far superior to the crap from overseas that people purchase from big-box superstores.

David closed with the following delusional comment, "There are hundreds of legitimate business opportunities available for entrepreneurs who want to build companies that provide real value." Sorry David, but you need to read a few books by legitimate writers. There are no options for millions of boomers who have been hammered relentlessly into horrible debt loads by unconscionable casino capitalism just in time for retirement. Others have worked diligently for decades only to have their assets "managed" into oblivion by people in your world.

Many have seen their assets converted from 401(k)s to 201(k)s by people in your profession. The only time I turned over $300,000 to an asset manager it was down the toilet in three years thanks to stupid, high-risk investments. Fortunately, I've managed the bulk of my MLM income over the years and have been comfortably semi-retired since the late 1980s.

There are good people and bad people in every profession. I'm going to assume that David is more like Warren Buffet than Bernie Madoff because ignorance is not always an indication of malice. So, David, why don't you pick up the phone and ask Mr. Buffet why he calls MLM a great field. Better yet, ask him why he owns The Pampered Chef. He might be able to teach you why so many experienced asset managers regard MLM with respect.

I'd like to end by thanking Adam Rombel, editor-in-chief of The Central New York Business Journal for his professional integrity. In an age when many periodicals pander only to special interests, his journal is obviously engaged in presenting both sides of issues. It's refreshing to have access to a legitimate journal with no hidden agenda or stereotypical biases.

--------------------------------------------------------------------------------
Mark B. Yarnell is author of the Random House bestseller, "Your First Year in Network Marketing," and former contributing editor to Success magazine.



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Wednesday, April 22, 2009

The crux of matrix plans & spillovers.

Putting on your business caps...
we all know that any traditional revenue-generating business achieves its regular business revenues from only a proportion of its full customer-base.

e.g. not all coca-cola drinkers consume coca-cola regularly.

Of course, generally speaking, there might be X number of loyal customers who might consume "ABC" brand daily but that's an ideal situation and besides the point -- lets talk big picture in reality!

Which leads us to networking... where it is the same as any traditional biz, company "DEF" can claim it has XXX,XXX numbers of distributors / consumers. It is always the case, that only a % of the distributor / consumer base are actively buying &/or promoting product on a regular basis.

In terms of matrix compensation plans, it does not matter how big your upline claims his team / organisation is -- & how it will spillover into your own downline "by default" which will generate "business for you" even if you did not refer anybody to the business / product.
Do you realise it is actually how many direct-linked uplines that are active in the business that will contribute to the actual spillover in your downline organisation.
Not forgetting, if YOU are contemplating registering a membership position and "sitting there" for spillovers without doing any work, imagine how many others are relishing that situation too? LOL.

The main post discussing matrix plans is here.

Take a pen & paper. Draw an imaginary line from you (dot #1), to your sponsor (dot #2), to his/her upline sponsor... all the way to the master distributor who sits at the top of the organisation.
i.e. the first guy in the business who the company put in charge of the entire network.
(You may throw in a couple dots in between each dot you drew earlier, if & only if every dot is a "capable recruiter" who brings consistent business throughout his career with the company. In reality we know most networkers cannot, or will not. Also in matrix compensations there are 3 or more legs in which to spillover additional new members -- which dilutes the situation exponentially.)

In real life, perhaps 30% of an average organisation is actually buying / promoting product. Lets be generous and say 50%!
That means you are left with only half (or less!) of the dots you drew earlier -- who will contribute in "building your downline" for you.

To cut the long story short, no matter how massive a company says its distributor/consumer database is (e.g. 300,000), it could very well be 10 dots or LESS (who contribute to spillover) linking you to the distributor who is above everyone in the organisation tree. This is just how business dynamics is in real life.

In comparison, modified-binary plans can truly let you "stop at 2" personally sponsored downlines, thereafter you benefit from FULL comp plan benefits while the business expands. Keyword being "can", because 90% of binaries / modified-binaries still come with many unseen conditions that require you to keep recruiting beyond 2. (Do your research and you might chance upon such a generous organisation -- hopefully this post can help you in that respect.)

Of course, the most taxing pay plans remain to be unilevel / stair-step, where your business building success almost entirely lie in your own hands. i.e. each & every sponsored downline in your organisation has to start from your effort. Meaning you have to bring a "frontline" of personal downlines, and from there they help you (& themselves) expand the organisation in the same way. No spillovers. In some old-school payplans like these, some uplines resort to "giving" downlines a few leads to personally sponsor (sort of like a spillover but only out of goodwill), BUT note that this opens up a can of worms policy-wise where the distributor is liable to be terminated.
Especially when networking is a human-to-human business, and a very primal human instinct is still involved -- jealousy! Rival teams or unhappy peers / crosslines may report such activities to your company's compliance department.

In conclusion, spillovers are great. But by making that fateful decision to be a part/full-time networker, you must be professional -- be responsible and do your minimum to drive a successful business for yourself.
The minimum? Sponsoring and recruiting, of course!

Once you are expending minimum effort, you will be growing an organisation no matter if its a matrix / modified-binary plan.



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

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Saturday, January 10, 2009

Who do You listen to while researching?

Tim Sales tells it like it is.

How do you conduct your personal research in network marketing / direct selling / mlm, what to & what not to listen to, and... WHO to listen to!

The best advise is on the 8 minute : 28 second mark.
Watch (and listen to) Tim all the way to the end.




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

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Tuesday, December 30, 2008

Matrix, Matrix, & more Matrices

Following on an earlier post...
Just in case you are caught up in one of the new web hypes by David D’Arcangelo (of PrePaid Legal, GBG, AMS Health Sciences & etc fame / infamy),
here is good info to ponder!

There's something going on VERY recently about a "new" setup promoting that its the "single-most profitable" solution to "internet marketing with network marketing" (<-- LOL, guys, most workable systems have been featuring this combination, duh!!)...
this recent one is called WebProsperity or Web Prosperity.

The "newness" has not failed to capture the attention of key names who are the usual internet marketing-only professionals we know. Have they really done their research before jumping on the marketing bandwagon??

Anyway, success in networking is all about finding a true home that you are comfortable with, & setting your personal objectives of working at it!
Is WebPros it?? If it is, go for it, learn what you can to take it to the next level in/out of the program.

Herewith is an excerpt from a post by a well-known industry consultant...




A MATRIX PAY PLAN STORY HEARD TOO OFTEN

Editor:
Note this report is from a disgusted French subscriber written in first-person format. Profanity has been cut out!


Matrix Pay Plans - guess what? I have been disappointed every time I joined one. Not because I didn't get any spillover, many times I got plenty of spillover, but I didn't make any amount of money. Why? Because there was only so much my upline could do for me, they could only put so many people under me, and they could not qualify me to earn at higher pay levels. In the end, it depended on me to continue the growth. I won't get into the details of how Matrix Pay Plans and spillover works, I will assume you, as an expert, are familiar with the concepts.

Editor's Comments: What people don't understand is that each time a person joins a Matrix pay plan a complete new Matrix opens underneath them. So if we are to look at spillover, by the 5th level there are 24 positions to be filled by YOU. If your upline is going to help you, he has to wade through 86 (4 other distributors) positions before he gets to drop just 1 new distributor on you!


EDITOR'S COMMENTS ON THE MATRIX PAY PLAN

What I want to emphasize here is that no company in its right mind, MLM, Affiliate or home party or even non-MLM, will pay you for doing nothing. All compensation plans are designed to reward those who generate business. Even IBM only affords to pay those individual salespersons who create growth for the company, otherwise, they are out the door!
MLM – Network Marketing companies are much kinder, they just pay you for what you do. So if you join a MLM company with the hopes of making money by getting lucky, You aren't going to earn much. You may receive some small checks (hopefully get your money back), but nothing to write home about!

So when people get suckered into a matrix plan, remember this..... failing to make money in a Matrix Plan by depending on spillover, it is not the Matrix Pay Plan that's failing, it is the individual that's failed because they stood around not doing anything. Most Matrixes show big money at the bottom. Down there where the money is…. only the most dedicated builders ever see a check for the piles of money displayed.

In addition, most of the criminal High Yield Investment Programs (called HYIP) use a Matrix Pay Plan and are basically Ponzi – Pyramid schemes. They lay in wait for people that get suckered into the "spillover" suck of the HYIP's Matrixes (Search HYIP Scams on Google).

I am sure there are people who will argue that there are opportunities out there that have no sponsoring requirements, all you have to do is sign up and make money with them. Well, all I have to say to that is that they won't last. It simply doesn't make business sense. Why would someone want to pay you for doing nothing?
2x2 Matrix Pay Plans make it easy to teach duplication to your downline. But, they are massively eclipsed (blown away) by the Binary Compensation plan because money from 40-50 levels rolls up to your position. How can I say this? There is a 95% failure in new MLM Companies and only 1 out of a 700 Matrix plans will survive (True Statistic).
In the Binary / Modified Binary (like a 2x2 Matrix), just 2 people are allowed on your first level, then you teach everyone in your downline to get their 2 (the rhythm of nature). Then help the people under them to get their 2 and so on. Spillover from all the activity can help speed up the growth and create momentum for the Binary team because if you sign up someone 43 levels below you, the money flows up through your whole team.

THAT is real true spillover!




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

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Friday, April 18, 2008

Quick recap of networking fundamentals

As a revision of an earlier blog post about the longevity of true "networking marketing" type businesses... here is a generic overview:

Products' benefits that only show after 3 days / weeks / months... are better kept as a Consumer Choice, & not a "business" choice.
(FYI taste is not a true benefit... unless that's the ONLY selling point of your product!)

e.g.
Herbalife products are good. Consume it.
Monavie / GoChi juices taste good. Consume it.
Uri whole / organic foods are good. Consume it.
Usana vitamins are top grade. Consume it.

... very much like... GNC products are also okay! Consume it!!!

Don't do business with it, because you will get disheartened with how much more work is needed to convince your consumer / customer on how good your product is relative to all other mlm / retail brands that exist out there.

Network marketing is a business of converting convinced consumers into business owners / product promoters. When the work of convincing a consumer becomes a burden, something is clearly not right.

Network marketing is an easy business. Don't make it unnecessarily difficult for yourself!


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

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Sunday, December 30, 2007

FirstClassMLM website

Get the facts sorted out by a former navy guy.
His name is Tim Sales.
When Researching Network Marketing, Who Should You Take Advice From?
- There are three types of people you can take advice from. Make sure you pick the right one.
Anti-MLM?
What is MLM, anyway?
- In very simple terms - and without hype - you will understand what MLM is and how it works.
How does Multi-Level Marketing work?
- How does the commission structure work? What activities would I be doing?
Is MLM legal? Says who?
- Is MLM even legal? If so, who has the authority to claim it's legal? Is MLM ethical and professional?
What is First Class MLM?
- Multi-Level Marketing can be done professionally and unprofessionally. First Class MLM is very professional.
Why look at MLM?
- Comparing the alternatives to MLM - MLM is looking pretty good!
How do I evaluate an MLM company?
- So you've decided MLM is a good business, now - how to evaluate whether a company is a good one or not.
What is a Trillion?
- Let's really put this into perspective
Is MLM a pyramid or scam?
- What do pyramids and scams have to do with MLM?
Isn't MLM a pyramid because of its shape?
- Multi-level marketing's structure is shaped like a pyramid - does that mean it is?
Are people at the top of an MLM company making all the money?
- Do people who get in first (and at the top) of an MLM company make all (or most of) the money?
Do most people fail in MLM?
- Are the odds good or bad that someone can make it in MLM?
Do all those levels of commission add to the price of the product?
- If you choose to build an MLM business, what are your odds of MLM success? Is MLM hard to do?
Does an MLM business collapse?
- Can an MLM business collapse because there are no more new people to join?
Is MLM a Ponzi Scheme?
- What does a Ponzi Scheme have to do with MLM?
Is MLM a chain letter?
- Does MLM have anything to do with a chain letter?
MLM history
- How did MLM begin? What are its roots?
Pyramid history
- Now that you know how MLM got started, how did pyramids start?
Wholesale Buying Organizations versus Retail Selling Organizations





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

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Monday, October 15, 2007

Business Longevity -- Practicality!

A genuine long term business requires all angles of its operations to break barriers:
- cultural (race, language, religion, etc)
- physical (environment, country borders, etc)
- virtual (mental perceptions, the world wide web (internet), etc)
Businesses which run with the least obstacles & limitations will be more likely to accomplish success.

As we've discussed in earlier posts, a business compensation plan which is beneficial & easily applicable & understood (by all participants) breaks across the above barriers easily.

After a company has its infrastructure (admin, logistics, management, etc) set in place, and the marketing group / team has been selected to provide better than average mentorship, guidance, training & support... the most important factor left to select would be the product / service.

Because of the nature of direct marketing / network distribution, a product / service that can cut out as much Time needed to understand the product / service itself will prove more successful than others.
(e.g. attending seminars / meetings are great, but is an extremely time consuming process.)
Word-of-mouth recommendations are powerful, but the circumstances during most brief interpersonal encounters do not allow much time flexibility.

Note:
- a business where trainings / meetings / seminars are emphasised with little reference to products at the presentations / meetings (or treating products as secondary to other aspects of business) would bring about government / authority intervention due to pyramid-like operations;
- likewise, a business where a product / service can be put aside (or even bypassed!) would border on questionable (legal) business practises;
- When the above happens, business longevity & popularity is compromised.
In fact, both the above situations had presented itself very recently (Nov '07) in 2 different developed countries & publicly-received companies.


A) "Education" products

One which requires online/offline reading, watching videos, listening to audios, attending classes, etc.
Think about this:
- is the whole population equally literate, i.e. able to read/watch & fully understand the material presented to maximise its worth?
- the (relatively long) time required to "consume" the product/service?
- the environment & technical equipment required for the activity to be carried out.


B) "Create-a-demand" products

One which the common population have not heard about & requires a product story be told about its origins, traditions, etc.
Think about this:
- is the story easily believable & understood, & then repeated by newcomers?
(a small element of doubt presents itself as an obstacle.)
- (even if multimedia is available) do you / prospective customers need to spend time to learn about the story?
- can the story be told anyplace anytime (in person / video) or must the prospective customer be (mentally) prepared for the situation?


C) "Scientifically heavy" products

One which contains new technology, or more than standard research & development (e.g. "world's first patented xyz element extraction process", "ingredient is found only in xyz region of earth & evaluated by xyz laboratory", etc.)
Think about this:
- are technical equipment required to introduce / evaluate product's effectiveness?
- are special research medical / experts required to substantiate / explain the claims?
- is time needed for any of the above?
- do you need to carry around documents / literature to back up product's claims?


D) "Tablets / capsules" products

No doubt, your brand might be of a higher quality or manufactured with higher standards, but...
Think about this:
- can the ingredients / benefits be found in many other brands?
(2 or 3 competitors are fine, but 10 or more doesn't make business sense in terms of efforts needed to justify how yours is better than theirs.)
- does the product only apply to a niche group of consumers (see below)?
- is it competitively priced?
- can the consumer make a split second decision on selecting your product / brand or second-guess his/her own decision?
(if he hesitates, you might lose the sale.)
- will you be potentially asked "why this brand & not the other one"?
- is time needed for any of the above?
- do you need to carry around documents / literature to back up product's claims?


E) "Widely available" products

Again, no doubt your brand might be of non-toxicity, or a higher quality / standard (e.g. appliances, aromatherapy, toiletries, home consumables, etc.), but...
Think about this:
- is it available in every single convenience / department store?
- is it available in every single distribution channel available (Retail / MLM / Mail Order / TV / etc.)?
- is it competitively priced?
- will you be potentially asked "why this brand & not the other one"?
- is time needed to reason that?


F) "Liquid / Juice" products

The acais, mangosteens, gojis, gaks, nonis, durians, any other herbs, "super" fruits, & all their derivatives.
Think about this:
- do you wanna start comparing ORAC values, placebo tests, & whatnots like what everybody has been doing since the beginning of time?
- will you be potentially asked "why this fruit/herb drink & not the other brand"?
- liquids are dense (heavy); bottles are bulky; for the same weight you may carry many more servings of non-liquid products/services to promote.
- because of the weight, liquids are more expensive to ship (especially international shipments) and the additional cost to the company is transferred down to the end-consumers / distributors.
- liquids are not legal inflight on airplanes; how are you going to conduct a dynamic international business if you're travelling to a meeting in a market which cannot / has not received your product in conventional ways?
- shipping liquids oneself to prospective customers / distributors is simply NOT possible due to postal laws / regulations!
- aside from heavy liquid shipping costs, these products are usually not affordably priced due to the marketed uniqueness -- in this way limiting your potential customer base.
- when you share a portion of the product (usually $20 to $40 per bottle) with a prospective customer, e.g. quarter bottle is $5 or more, that means every 50 unsuccessful sharing sessions equates to $250 or more invested in business expenses without any returns.
What happens when you cannot give away quarter bottles because of professional / hygiene reasons?! The costs!
- aside from good taste (preferably it is good to begin with!), these products usually do not produce immediate impact / gratification / results of its core benefit; it usually takes 3 days / 3 weeks / 3 months!
- what is the overall time to decision?


G) "Niche market" products

The fuel / gas saving devices, travel / holiday packages, spa services, health analysis systems, weight management / health programs, biomagnetic items, bio-inducing items, gold, jewelry, currency, precious collectibles, women-only products, men-only products, etc.
Think about this:
- do you own / operate the device that requires the product?
- did you already plan to travel? are you the decision maker?
- are you already inflicted with the particular condition that the product / service provider treats? (even if the customer isn't inflicted, time is needed to convince him/her if he wants to prevent the condition "in future".)
- did you already want to accessorise your wardrobe & wear bling-blings?
- did you already want to start a new hobby collecting precious metals?
- do you belong to the sex (gender) / age group that the product / service targets?
- if not, do you need to spend time creating a need for any of the above?
- or is time needed to convince yourself / others for any of the above?


A consistent factor in all the above is: do you want to spend the (tremendous amount of) time sifting & sorting person after person to see if he/she qualifies to be a customer (be it cost, practical application to his/her life, etc), as compared to a unique Mass Market product / service easily understood by people from everywhere & all age groups.


Conclusion

Which leads you to a potential solution to select this "perfect product" for a truly successful direct marketing / direct selling business.
It is not hard at all to find it in this modern day with technology, etc. Open your mind & just start looking.
Find one which has the following characteristics & your business will be set for a long time until a copycat comes along and tries hard enough to knock it off:

  • Portability
    (lightweight & easy to carry around world-wide)
  • Ease of introduction
    (preferably little to no time needed by customer to understand the product; no story needed; no demand to be "created", especially if it already exists)
  • Affordability
    (people from all financial backgrounds / status can use the product or business)
  • Mass Market
    (people of all ages & backgrounds can consume it)

It is as simple as that!

See here to select one by potential income.


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

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Friday, September 21, 2007

America's ABC News: Direct Sales Can Increase Your At-Home Business Income

As shown on ABC's "Good Morning, America" TV show.

TV show: http://abcnews.go.com/Video/playerIndex?id=3628738

Article: http://abcnews.go.com/GMA/TakeControl/Story?id=3626238&page=1






Make More Money by Working From Home
Direct Sales Can Increase Your At-Home Business Income

Sept. 20, 2007 —

Not long ago we featured a segment on starting a direct-sales business to make money from home. The response on the "Good Morning America" message boards and through e-mail proved that many of you were eager to tap into this opportunity, while others were already doing it and looking for ways to grow their businesses.

According to the Direct Selling Association, last year there were more than 15 million direct-sales representatives in this country, which is an increase of more than a million people over the previous year. Many of those people are content earning the median income of $2,500 a year, while others want to generate that figure per month.

One woman I met, Jeanne Wildman, a Longaberger direct seller, says she went from making about $200 a month to generating 10 times that much: a whopping $2,000 a month. Almost 20 percent of all direct sellers are now making more than $20,000 a year, so we know it is indeed possible to reach any financial goal that you set for yourself assuming you're ready to put in the work.

Do something daily. I received e-mails from more than 100 women who are in the $20,000-a-year bracket and each of them say they've reached that milestone because they contribute to their business daily.

They don't just dream about making money, they take action every single day to make that money. It could be contacting customers about re-orders. It may be networking and socializing outside of their homes where they always talk about their business. For some it's as simple as meeting someone new at the hair salon and passing out their business cards. Just about everyone says they're constantly focused on planning future parties because the primary sales forum is getting friends to host parties, where people are invited to socialize and shop. Bottom line: Work isn't just on their minds, it's also in their actions.

This follows the direction once offered by Mary Kay Ash who would motivate her sales force to maintain written lists of the six most important things to do each day. The focus then was on achieving daily accomplishments, just as it is today.

Form a team. Many women who are making in excess of $2,000 a month have found that they're so passionate about direct sales, they want to form teams of other direct-sales representatives. These women become team leaders and they recruit friends to become independent sales reps who report in under them. This means they've now taken on two roles: They continue to sell, and they also motivate and lead their team. By managing a team, you make commission on the sales of your recruits.

Yet, it's not a walk in the park: As a leader, you're now doing your own sales, worrying about your own customers and you're also motivating your team to achieve their sales goals.

In many ways, this mirrors the traditional work force: Every manager knows that his or her direct reports have different motivators. Some people work hard to get a promotion. Some perform just to keep their jobs. Others work hard to make more money. In direct sales, people get into it for different reasons: to save for the holidays, to earn a vacation, to pay for home repairs or to socialize. A great team leader recognizes that she'll have to know what motivates her team and she has to work to meet their needs. It's not just about signing people up to make more commission.

Bridging the gap. For some people, a desire to work at home may just be a temporary need, especially if they are taking care of children or an older parent, but they plan to return to the office one day.

Direct sales can be an ideal way to bridge the gap in employment. Starting a direct-selling business and forming a team not only means good money, but it builds invaluable leadership skills that many people can leverage into corporate careers. This is a way for anyone who wants to be at home to keep their hand in making money and building professional skills. This can make it easier to re-enter the work force later if desired.

It's all about how you spin it. Building a customer base by selling cosmetics or gourmet food where you consistently raise the bar on your financial goals is something that any employer can relate to. Direct sales is also a smart way to maintain contact with a personal and professional network.

Outgoing personality, drive, motivation. Of course direct sales isn't for everyone. For somebody who is shy and introverted and prefers to work alone as opposed to having to get out there and hustle, direct sales is not the right opportunity. If you're not comfortable getting out there and pushing your business, it's very difficult to be successful. You must really want to have the drive, personality and motivation to make it work.

Select the company that's ideal for you. Consider the type of product sold, compensation model and whether or not you want a long-established name (Longaberger, Tastefully Simple, Avon or Mary Kay, for example) or a new entrant to the market (Luxe Jewels, Private Quarters or Baby Crazy, for example).

- Tory Johnson is the workplace contributor on "GMA" and the CEO of Women for Hire.






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Wednesday, March 14, 2007

Robert Kiyosaki's Insights



The above is Robert T. Kiyosaki academically explaining everything in laymen's terms.

... the Employee, Self-employed / Small business owner, Business owner, & full-time Investor...

These youtube videos below are only 4 to 7 minutes long each.
So, it doesn't take up much time at all.
Have a look... and, click through to YouTube to watch all of them in 1 sitting.

R.K. recently co-authored the latest book with "The" Donald Trump -- "Why We Want You to be Rich", where they talk about the network marketing industry as a viable business option.

“Network marketing has proven itself to be a viable and rewarding source of income. There have been some remarkable examples of success, and those successes have been earned through diligence, enthusiasm, and the right product combined with timing.”
-- Why We Want You to be Rich, chapter 27, page 311.

In fact, chapter 27 is a whole section with personal views by both Robert & Donald showing very basic reasons why they recommend network marketing.

(btw, even Warren Buffett owns a network marketing company, The Pampered Chef, which follows in the footsteps of a legendary company called Tupperware.)

As with everything that exist out there in our world, there are opinions for & against the book. Essentially, forget the critics, just read the book and take away the points you find worthy & applicable to your life.
:)

As emphasized in the second video in the playlist, network marketing is essentially a part-time business until such a time where it has grown sizeably.
Experienced networkers & finance/insurance industry veterans may, naturally, choose to take the full-time route.

Tip: When you're truly building residual income... you do not take the "get rich quick" route!

As highlighted in this earlier article, and as will be clearly demonstrated in this upcoming movie, (true) network marketing remains to be one of the most realistic small businesses for a beginner to startup with (with a potential to turn really big).





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

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Monday, February 12, 2007

Focus on Success

Focus on success, not failure

" The other morning I was listening to the radio when I heard a distinguished professor from a distinguished university quoted, saying that 90% of new businesses fail.
Now, when I hear something like that, it's like hearing fingernails scraping on a blackboard; it gives me the creeps. I know those statistics scare people away from starting their own businesses, but I've looked at statistics of business births and deaths closely, and I know of no credible study showing anything close to a 90% failure rate.

So I picked up the phone and called the good professor. He couldn't remember where that number came from, and he quickly backed away from it.

"How do you define failure?" said Professor David Blanchflower, Professor of Economics at Dartmouth University, explaining that failure didn't really mean failure. "Failure usually includes companies that change their name or ownership or a person who is self-employed who moves to employment."

That's the rub...statistics you'll hear about business "failures" are likely to mean business "closures." In some cases, not even closures, just business changes.

For instance, I had my own — successful — consulting practice for many years. Like most sole proprietors, I reported my business income on my personal income tax return, using my own social security number. When I incorporated, the business got its own tax identification number. So my first "business" probably shows up in statistics as a business "death" even though it was actually getting larger.

As Mark Twain said, "News of my death is greatly exaggerated."

Overwhelmingly, businesses don't die or fail; the owners close them for reasons unrelated to whether the business is making money.

Take restaurants, for instance. Restaurants have a notoriously high "failure" rate. You'll often hear that 90% of restaurants fail in the first year; that's what they said on the TV reality show, "The Restaurant." Well, don't believe everything you hear on a reality show.

In a study in Columbus, Ohio, Professor H.G. Parsa of Ohio State University, tracked new restaurants from 1996-1999. In the first year, 26% closed. Another 19% closed the second year, and 14% the third. Collectively, 59% of new restaurants closed those three years. By the way, the "failure" rate wasn't very different between franchised restaurants – 57% — and independent restaurants – 61%.

Now, even though these numbers are much better than the 90% failure rate bandied about on TV, it's not particularly heartening to know that six out of ten restaurants closed in three years.

However, Professor Parsa found that reasons other than economic necessity made the owners decide to close. They cited divorce, poor health, and most importantly, an unwillingness to make the immense time commitment necessary as reasons for shutting their doors.

In other words, they had what David Birch, former head of a research firm specializing in studying small business data, called the "I Had No Idea" syndrome. Would-be entrepreneurs don't realize what's truly involved with running a business.

So what is your chance of success? I think Birch's statistics are probably as accurate as any. His survival rates:

• First year: 85%
• Second: 70%
• Third: 62%
• Fourth: 55%
• Fifth: 50%
• Sixth: 47%
• Seventh: 44%
• Eighth: 41%
• Ninth: 38%
• Tenth: 35%

"Once you've hit five years, your odds of survival go way up," Birch said. "Only two to three percent of businesses older than five shut down each year."

The lesson? To greatly increase your chance of success, find out as much as you can BEFORE you open your doors. Talk to people who run their own businesses, especially businesses similar to yours, and get a realistic understanding of the time, financial, and emotional resources necessary. Keep your eyes open — not to the possibility of failure, but to the very real demands of running your own business.

So … what about that 90% failure rate cited on the radio? I went to the station's Web site and replayed the story. Listening closely, I realized they didn't mention any time period. So, perhaps the professor is right after all. I think it's safe to assume that within some period of time — oh, let's say 50 years — 90% of all businesses will close. I can live with those odds. "

- Rhonda Abrams is author of The Successful Business Plan: Secrets & Strategies and president of The Planning Shop, publishers of books and other tools for business plans.
- Original link is here.





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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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Sunday, December 24, 2006

Latest Documentary Movie

>> NEWS FLASH <<

This is one of the latest documentary movies being shown on selected cinema screens.

It gives realistic insight into the LEGIT side of the network marketing / mlm industry...
and does what movies like "Fahrenheit 9/11" [See this link or this link], & "An Inconvenient Truth" has done to tell the Real Stories as they should be told -- FACTUALLY.
You will see that some folks make it, and some don't -- just like in all other affiliations in life, or line of work.

The Director had personally told us:
"As you know, there are a lot of people out there that think MLMs suck.
Our hope is that we have represented that side and the other side as well!
"The Downline" is the first and only true documentary about the MLM or Network Marketing industry."

The movie also illustrates to the general public what to watch out for in illegal multi-level operations -- the "money-games" or affectionately known as "pyramid schemes".
It was filmed without the intention of making it a marketing tool for the industry as it depicts both successes & failures.


Check out "The Downline"...

>> www.thedownlinemovie.com<<





Another movie worth checking out is "The Secret".
This article explains how it is being "interestingly" distributed worldwide -- word-of-mouth simply works!




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

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