Sound familiar?

Today someone asks me to check into this new ground floor MLM opportunity for them. Where do all these gamblers come from? Don’t they know that the failure rate for new companies is around 95% during the first two years. Already this guy could be looking at only having one chance in 20 of making it to the third year with his business.

Oh, but not this new ground floor MLM opportunity. These guys have been around since 1999. They adopted the retail business model for their product. It didn’t work, but you know what, the MLM business model is what they should have gone with.

Here is what I found out in a few short minutes.

• The website does not list any information about the owners or managers so we can see what kind of experience they have in MLM or don’t have.
• They have a single category niche product. It failed in retail so now they want to go with MLM. They claim 200 million people use similar products daily in the US. Of course those products cost about one tenth to one twentieth the cost of this product. Looks like they described a different niche.
• There is no compensation plan on the web site. All I know is that they use the MLM compensation plan model.
• I checked out the product. I have seen it in the retail stores. Of course it is not there anymore. The price has gone way way up now. A package of the product is about $15. Similar products can be purchased retail for under $1.
• But there is science behind their product. Yep, one ingredient makes it different than some of the competition. But there is already competition well established who use this one magic ingredient.
• So I know nothing about the people running the company, or the compensation plan. But still I go to see what happens when I want to sign up. I have to agree to the terms and conditions. Guess what? By agreeing I am stating that I have read and understood the policies and procedures and the company’s compensation plan. They want me to lie right off the bat. Where are these items for me to read and understand.

There is more, but any of these things is reason not to look at this company seriously. Yet people will probably flock to it to get in on the ground floor MLM opportunity. They will not recognize how the company is spinning negatives into what looks like positives.

Sadly most will lose their money. Some will lose their trust in people and MLM. Some will feel their failure was all their fault.

But the first thing people should be doing is properly evaluating an opportunity. Before anything else, you must put yourself in the best possible position to achieve MLM success.

When you fall for a company with even a small amount of the kinds of problems listed above, you are reducing your chance to succeed.

It’s time to get educated.

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I bet not many. People ask me all the time, “How do you retail product.”

There are three issues here.

1. Skills
2. Belief
3. Business Model

First it certainly helps to have some MLM retailing skills. I think Tom “Big Al” Shreiter is the best there is at teaching these skills. You can go to his web site, Fortune Now, to get plenty of free skills for the part time network marketer and a paid site for professionals.

On the Fortune Now site, you will also find Tom’s workshop schedule. Be sure to attend when he comes to your area. The cost is about $20 for the 3 hour evening workshop. The best $20 you will ever spend.

Here are a couple of tips for MLM retailing. I am with a nutritional company. When talking to people about products, don’t be a product expert even when you know a lot about it. If you do, your customers and prospects will not join you in your business. I just say, “try it you might like it, and if you don’t there is a money back guarantee”. It works well and people see that they can do that so they join your business.

The big money is in mlm sponsoring, but it is very very important that everyone does some retail. Your people will reach break even easier and stay at or above break even if they retail. And when everyone on your team retails, your check will skyrocket. At least it will if you have a decent MLM compensation plan. One that rewards retailing.

The second issue is belief. Belief in yourself, your team, your company, and your product. Most people I talk to have very little belief in any of those. Your job as a sponsor is to believe in them until they can believe in themselves. The tip I gave above does wonders for people because most will never be product experts, and that is good.

With every small success comes belief. People believing in you will help your belief. This could be a post in itself.

The third issue is the MLM business model. Often times the products in network marketing are looked at as being expensive. If you believe that they are too expensive to retail, then you will struggle to retail them. So first let’s ask why do people buy.

Do people buy on price only? Can you sell a product that is not the lowest price?

Look out on the streets and parking lots. What do you see? Cars priced from maybe $10,000 to over $100,000. So people don’t buy on price. There is a quality difference between the cars though, so you don’t want to be selling an expensive product against less expensive equal products.

The big one is this. In your MLM business model, do people really retail the product? Some compensation plans, a part of the business model, do not reward retail sales with bonuses. If not, if the only reward is that you buy at wholesale and sell at retail, then you better have the easiest product in the world to sell or retail sales will be non existent.

The reason is those prices are set to get sales from distributors. They just stick an arbitrary mark up to that and call it retail. There is no market research done to see if people would consider the price for that product.

This compounds your problems because now you can’t retail and most of your team can’t retail. So each team member does a their minimum personal purchases which means you need many times the people to make the same income that someone in a company that has a MLM business model that promotes retail through their MLM business model.

Without the retail the only income is sponsoring a team. Many people will quit before they succeed.

When I chose my company the MLM business model was a major factor. So while the industry average is about 2000 active people on your team to create a $10,000 monthly recurring income, in my company it is 20% of that. So all things being equal if my friend joins the other company, I will always be making about five times as much as him with the same number of active team members and I will have a higher percentage of people who remain active.

Good info to know in advance. Don’t you think? Mentoring For Free

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