The Best Way to Fail in Six Months or Less

Question…Why did you decide to join the network marketing industry?

I guarantee your answer is somewhere along these lines, “I wanted to make some extra money and become financially free.”

Your right in thinking that network marketing can positively affect your financial future. In fact, it is among the only type of business that does NOT rely on your education level, social class, location or race. It is as far reaching as it is unlimited in its potential to earn wealth.

When you talk to prospects about your business, how do you broach the topic?

More than likely you make a not so subtle brief lead in statement and then hit them with the opportunity.  You try to stick to the corporate script hoping your prospect will ask you questions about your network marketing company and its products or services.

The truth is you cannot convince someone who doesn’t have a need or interest in what you have to offer.  You’re barking up the wrong tree.  Sure, one or two may say ‘yes’ initially, but if you’ve been in network marketing any length of time, you know that’s not enough.  The hardest thing to do is motivate someone to work as hard as you do.  Next question…

How much money have you spent so far?

I’ve seen many distributors spend hundreds of dollars in one shot at corporate ‘pep rally’ events. Did you know that many top tier network marketers admit to being thousands of dollars in debt?  In fact,  it’s quite common.  In addition to the initial enrollment fees, product packs, and marketing packages, they’ve accumulated hundreds or thousands (depending on how long they’ve been in the industry) in advertising expenses, purchasing opportunity leads, monthly auto-ship requirements and travel expenses.  Broke and in debt, a very high number of network marketers drop out.

What have you been taught?

Think about it, how successful can your marketing efforts actually be when it’s targeted to people who never directly asked you for information? 

Which brings up a good point, 95% of people who get involved in MLM have absolutely no formal training in marketing. The methods widely taught in Network Marketing are completely contrary to those used by business savvy retailers and marketing experts.  Could this contribute to the high failure rate? 

You’re encouraged to get in people’s faces and hit them in the eye with your message. Constantly trying to sneak in your opportunity message into every conversation you have.   How many of you can actually enjoy telemarketing?  How do you respond to calls like that?

Network marketers are pushed to work harder and harder.  But that’s not the solution.

The goals and aspirations of network marketing can only be realized through the use of the most powerful social medium today…the Internet. It is by far, the perfect tool used by a growing number of network marketers to explode their down line while simultaneously realizing huge financial gain.

Develop skills that teach you how to work smarter not harder.  Slowly, network marketers like you, are catching on to just how the Internet can exponentially multiply their own efforts in ways they could not possible accomplish on their own.   This requires a shift in your thinking.  Instead of “one, two or three new representatives” a week you’ll have 15, 20 or 30 every month.  That’s exactly what I saw when I took my business building efforts online. 

When you’ve exhausted your initial contact list of 20, 30 or even 50 people and just about alienated everyone of your family, friends and peers what are you left with?  Was it really worth the effort?  Your upline will likely tell you to do one of three things:

·         Purchase leads.

·         Start at the beginning again and rework your list.

·         Keep the faith.

Although I am a big believer in faith, running a business requires planning, strategizing and a solid monetization plan.

The goals and aspirations of network marketing can only be realized through the use of the most powerful social medium today…the Internet. It is by far, the perfect tool used by a growing number of network marketers to explode their down line while simultaneously realizing huge financial gain.

How to Protect Your Investment in Network Marketing

Would you invest thousands all in one company that inconsistently yields less than 1% return on your investment? Would you consider that a good return? The rich don’t think that way and neither should you!

If you’ve ever invested in stocks or mutual funds and such, you know that it’s extremely important to diversify your portfolio. Why? Because, it is the best way to protect yourself and your money. Should one company fail to live up to expectations, you minimize your losses. This is even the more relevant in network marketing industry.

Don’t think your network marketing company will fail you?

Distributors Rights Association is dedicated to defending MLM distributors from unfair tactics used against them by their network marketing company. It logs and displays the more recent incidents of MLM distributor suspensions, terminations, and fraud within the industry. There are lawyers who specialize in these cases and they are kept very busy.

• Distributor suspension is one step before termination. The MLM company will suspend all income from a distributor while it considers as to whether or not any rules have been broken. However, D.R.A. has noted a growing trend among floundering MLM companies to use this tactic against their top distributors and “buffer up their coffers.”
  
• Distributor termination is another common complaint. Let’s say your doing very well and moving up the ranks of your MLM company. In fact, your doing better than your upline (not surprising when using the Internet to build your business). DRA has recorded cases of false allegation against another distributor who has much to gain by their termination. Most often, the company does not do a thorough check investigation and all too quickly terminates the accused and the distributor loses all contact information with his/her downline as well as all monies earned. The accuser on the other hand, inherits the terminated distributor’s downline and all the income generated from it.
• Similarly, there are recorded incidents of top selling distributors suddenly cut-off from the company and their downline. Failing MLM companies have been known to cut off some of the top earners in an effort to lower their expenses. The example used was when you have a distributor who brings in $20,000 worth of business and receiving $50,000 in earnings. The company will consider the $20,000 an acceptable loss in light of the fact they save $30,000 after terminating the distributor ($50,000 – $20,000 = $30,0000 savings).

Look, do you believe your house will burn down, or a flood will suddenly destroy your property? No, and neither do I. However, I still pay a monthly premium for my homeowners insurance just in case. This affords me protection for the things I have worked hard to obtain. In essence, it protects my investments, my assets from certain risks.

Think of all the effort and time you are putting into building your MLM/Network Marketing business. The hard truth is that it does not belong to you. You don’t have exclusive say or ownership over your network.

Think about this…why are you investing so much time, money and effort in something you don’t own? At any time, the company could conceivably cut you and several other distributors or IBOs off from their downline. Top distributors bringing in well over $10,000 a month and living a comfortable life when suddenly there were cut off from the company, their own downline and income. It’s happened to many others before. Isn’t that enough of a reason to start taking some precautionary measures?

So how can you protect yourself?

For network marketers, the question is not “how can I become a top tier network marketer?” Think of your network marketing business as just an extension of your online business. Instead, ask yourself, “How can I use Network marketing as another income stream for my business.”

Start an online business of your own with multiple streams of income, including your network marketing’s products/services. Consider your MLM as only one of several sources of income. There are many ways to successful build an income stream using the net including information marketing, affiliate marketing, selling digital and hard goods, selling advertising space, and many others.

Did you know that in most MLM companies, a distributor’s down-line cannot be inherited by their children? They too will have to start from scratch. Use your online presence to target a ripe audience already looking for network marketing opportunities.  A well plannned website will qualify your leads and compile a targeted list of warm leads for you.  This lsit is yours! All the while you are making money from everyone visiting your site even if they don’t join your MLM.

To quote a common American expression,  ‘take the bull by the horns’  and learn how to protect yourself, your business and your family’s future first. Having your own online business and multiple income stream protects and is something you can pass along to your children in the long run.

Top Affiliate Marketing Systems

Affiliate Marketing Systems are umbrellas for a slew of different affiliate programs.  Each one of these large directories offer a slew affiliate programs you can pick and choose from. Some of the smaller directories such as Millionaire Club offer more specialized types of affiliate programs. 

Choose only those programs that flow nicely with your existing online business thereby, adding quality to your content.  The more you can offer your visitors while focusing on your site’s theme, the better.

The Millionaire League

This directory focuses on specialized affiliate programs.  Offers a free e-book, “Licensed To Print Money”.  You also get new money making ideas, tips, strategies and techniques added EVERY MONTH! That means NEW ebooks, NEW reports, and NEW videos covering the hottest money making topics! Not to mention 24/7 Email & Video Support and an 60 Day Guarantee!  Lifetime memberships were $200 but new offer is $47 with the first 60 days free.

Clickbank is well known as one of the largest affiliate directories online.  With hundreds of different affiliate programs listed by category and search phrases.  It’s free to join and easy to incorporate your new “hoplink” into your site using simple html that is given to you to cut and paste.  However, please be aware that Clickbank does not make any guarantee regarding the legitimacy of it’s affiliate programs.  Anyone can list their program into Clickbanks directory.

 

There is a lot to learn about Clickbank, how it works, how are paid commissions, what are storefronts, what to avoid, what are hop links and much more.  Discover everything you need to know at in the FREE CLICKBANK GUIDE

The Spiderweb Marketing System  is an affiliate marketing system with its own list of affiliate programs.  The system takes you step-by-step on how to set up your own spiderweb site and how to sign on to each affiliate program via video training.  Going through the process does a good deal of time since you have to listen to each video and follow along. However, you only need to go through the process once.  You can also pick and choose which program your interested in joining.  The system tracks all your affiliate links and new affiliates that sign under you.  What makes it unique is how the system will skip over an inactive affiliate under you so to your benefit.  The “skipped” affiliate receives an email informing them that they just lost a commission and encourages them to sign-on to that program so as not to miss any more. <br>

The PepperJam Network  Is one of the fastest growing affiliate network directories online today.  It has had plenty of media attention and carefully selects which affiliate programs to offer.  Affiliate memberships are NOT guaranteed and require that you have a well established site with a respectable level of daily traffic.

The Truth About MLM One-Up Plans

First, let’s get one thing straight.  Any time you must rely on building a team to make you money, it’s an MLM.  If you cannot rely on entirely on your own efforts to succeed, it’s MLM.

Okay, what is an MLM One-up plan?  You come across a site: some guy sitting in a lawn chair at the beach sipping his cocktail.  The site claims limitless wealth is yours for the taking.  However, this opportunity is only for serious people willing to prove they’re worthy of this information.

How do you prove your worth?  You shell out $50 dollars from the get-go to “read all about it”.  One-up plans require that you first pay to receive information and/or enroll. 

I’ve already eluded to a prime example, Ty Coughlin’s “Reverse Funnel” system.  After you pay your initial $50, you discover that you are being sold a lifetime membership with the timeshare vacation company Global Resorts for only $2995.

The bait…you are paid $1,000 for every new membership you sell. Here’s why it’s referred to as the “One-up” plan.  Royalties on your first sold membership, skips you, and goes to your sponsor.  Every membership you sell thereafter goes to both you and your sponsor. 

“It’s Elementary, My Dear Watson…”

Now you’re thinking, “Wow! $1000 for each membership I sell, that’s pretty good.”  Hold on, do you believe selling $3000 memberships will be easy?  One-up plans have one big flaw, they are not duplicable.  In all MLMs, your ability to earn money is directly proportional to the degree in which the method is duplicable. 

Meaning, the greater the number of people who can copy exactly what you do and succeed equals the greater wealth you will all achieve.  A successful MLM will offer a product or service that the vast majority can easily afford and utilize.  You don’t want to sell to the top 10% and ignore the remaining 90%.  This is unreasonable and makes your job a whole lot harder.

Each member is required to set up a system website at a cost of $100.  They give you tools and services you need but it will cost you an additional $30 (very unimpressive and basic) up to $300 every month for the Rolls Royce version.

How are you going to get visitors to your site?  Advertise.  The Global Resorts Network  provides you with ads but that’s extra.  Effective advertising is not cheap.  You must budget a certain amount monthly for advertising.  Let’s go really conservative and keep it to $100 a month.

Ready, Set…Gotcha!

Okay, a few curious visitors pay the initial $50 for information.  What happens next? They drop out. They can’t afford the $3000 price tag and/or are just not interested in getting involved in a timeshare vacation program.  Again, it’s not duplicable if it’s too expensive.  In my research, I have not seen any mention of a refund.

Most people today have little left for luxuries and will not go any further.  Others will leave you behind, go searching for more information and find more alluring sites that offer them a little more than you do.  This will likely account for a good 75% – 90% of potential prospects.

I’ve been involved in timeshare programs before.  Trying to reserve one vacation week anywhere is very difficult.  As the number of members increase, availability decreases.   When availability decreases the value of the product also decreases.  Thus, the more memberships sold, the less they are worth.

Currently, there are at least three other marketing systems out there selling Global Resorts memberships.  Carbon copy marketing, I believe, is another one.  Since they are all promoting the same product to the same few who have money to spend, you are now competing against each other.

The Nitty Gritty

Now that you are better informed, how long do you think it will take you to sell two memberships (remember, you don’t get paid on the first)? Let’s say three months.  In your first three months you’ve spent:

·         $50 initial fee

·         $100 for the website

·         $3000 membership fee

·         $90 for the basic network fee ($30 x 3 months)

·         $300 in advertising costs ($100 x 3 months)

Your total expenses for your first three months are $3540.  Having sold your first two lifetime memberships, you’ve earned your first $1000, leaving you $2540 in the hole.  Of that, Ty has made approximately $540 from you.

Okay, give it another three months during which time you’ve sold another two memberships.  Add to your outstanding $2540, three months of advertising expenses ($300) and three months of network fees ($90) increasing your expenses to $2930. 

You’ve sold two more memberships and receive $2000, reducing your expenses to $930 but you still cannot claim a profit. On the other hand, you have added a grand total of $930 toTy’s bank account.

Three more months and you’ve sold two more lifetime memberships.  You’ve added another $390 to your expenses which totals $1,320.  Finally, after nine months you make a profit of $680. 

Congratulations! Your told now is the time to capitalize on your success!  If you really want to increase your numbers, spend more on advertising and upgrade your web site.  Where do you think that will land you?

In the meantime, Ty Coughlin is sitting pretty making money hand over fist on each person’s monthly fees and charges for using his system.  During your nine months of hard work, you’ve given him at least $1320.

I’m not saying you can’t make a profit with the Reverse Funnel system.  However, it’s not as easy as it sounds. Even if you do stick it out this far, statistically over 60% of those under you will not.  It’s also very likely that it will take your own recruits longer to build their network.

Notice, this example did not account for “Uncle Sam” which takes a big bite of out of your commissions, further delaying the time you finally break even. 

Biography:

Visit www.buildmynetwork.org and utilize the MLM Plan Directory to compare popular business opportunities and read informative articles like this one that help ordinary people to achieve real, quantifiable success.

 

 

Look Before You Leap

 

Knowledge is power when searching for a solid home based business opportunity.

There are several legitimate home based business opportunities with good income producing potential.  The internet is a great equalizer.  No matter your age, race, color or educational level, every person is presented with the same opportunities online. It’s a powerful tool that anyone can learn to wield.

When considering joining a business opportunity a little research goes a long way towards feeling a little more comfortable and confident when considering signing up with an MLM marketing or small business opportunity.

Company Identity – Look at the business’ main website, can you easily find their contact information such as name, address, phone, and email? A big plus are photos of company leaders and any information about them.

Front Loaders – Watch out! You’ll often find this system in place with businesses that sell product like nutrition, health and weight loss or cosmetics. A front loading marketing plan requires you to purchase your way into a certain commissionable level. These are often referred to as “product packs” or “business builder level”. If you have to purchase $500 of product to buy into a higher profit margin, how duplicatable is that? You’ll find that most people will not spend that kind of money. What you should also consider carefully is that these businesses will also give only a short time limit for product returns and impute restocking fees. Tread carefully.

Payment Information – Always use a credit card for your protection. If a business will not accept your credit card then that should send off all kinds of alarm bells in your head.  Many scammers will only accept bank wires, money orders or checks.  What about returns?  Reputable businesses permit a money back guarantee in writing with refunds within 30 to 90 days.  If a business insists on you send money via Fedex or UPS to a P.O. Box  then WATCH OUT.    I’m not claiming that all P.O. Box addresses are scams, however, you should be aware that sending money via Fedex or UPS how scammers get past Postal Fraud Investigators.

Look It Up - Start with www.whois.net they will let you look up any domain name and registration information.  Many legitimate businesses will register their name and address. 

Just the facts please! – Unfortunately, there are a number of MLM network marketing hate sites that unfairly characterize legitimate MLM opportunities placing them all into one large umbrella.  This is unfortunate when you consider that there are many legitimate MLM network marketing businesses and many more successful MLM business plans out there. 

Check the Records – The Better Business Bureau website can help you in your investigation. Go to the National BBB website and look up the business address. Then and see if they have two or more outstanding complaints against them as this indicate problems. Keep in mind that BBB reports can provide some insight but there may be more to it. The BBB report will also confirm the address listing and phone number. “No Report” generally means that there have not been any complaints filed against the company to date. Here is the link for the National BBB Advanced Search.  Also try the MLM Companies Direct Marketing Sales Directory.

Research & Compare: An online directory of popular home business opportunities will help you compare popular home based business opportunities in the MLM industry. The directory gives you a brief description of any enrollment fees, purchase requirements and a brief description of each network marketing business’ compensation plan. This directory will help you objectively compare each MLM business opportunity easily. To view the MLM Plan Directory follow the link in the resource box.