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MLM Retail Success

Don Standard — Sat, 28 Jun 2008 03:55:42 +0000

Hey, how many retailers do we have out there?

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

There are three issues here.

Skills
Belief
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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The Myth Of The Ground Floor Opportunity To MLM Success

Don Standard — Tue, 03 Jun 2008 23:30:03 +0000

Many people doing MLM will tell you that the only chance for most people to have MLM success is to get in on the ground floor.

What they mean by that, is to get in with a company as early as possible, like pre-launch.

The first problem with this belief is that if you really believe it, then you will be building a team of people who do not get the same opportunity that you did. The more time that passes, the less opportunity your new team members have if your belief is true.

The next problem.

The problem that most people never see is that they do not get in nearly as early as they think. In the beginning there are the company founders and they are the only ones that know about the plan. Then they hire one or more master distributors to put at the top of the pay plan.

These master distributors go out recruiting people they already know in network marketing who have built organizations and may be looking for a new company to build. Keep in mind that you and I have never heard one word about this company so far.

As these top level distributors are added, then they go out and recruit more network marketing people. There could be a sizable number of distributors in the company and there is still no public information about the company.

Finally the time comes for the leaders launch. Well actually they just give it a name like that to suck you in. Open advertising is going on and they don’t have a clue if you can be a leader and build or not. And if they are recruiting the public, then they have already launched.

They are just advertising and with a little bit of luck, the people who do not see themselves as leaders will wait to join. They want the best people near the top.

Then the pre-launch rolls out. Again, the company has launched. It is just a way to suck you into thinking that you are really getting in on a ground floor opportunity. If they survive long enough, they will eventually drop the pre-launch name.

Chances are, with many MLM compensation plans and companies, you have already missed the true ground floor that you needed for MLM success based on your belief. (My belief is that the opportunity is yet to come from a timing aspect.)

But it gets worse.

Ninety-Five percent of these companies will not survive for even two years. Those numbers hold true for new companies in general. It’s not just an MLM thing. You can verify through Forbes or Business Week.

That is the same as saying that 19 out of 20 new companies will fail in their first two years.

Are you a gambler?

Those are lousy odds. Can you afford to put two years of your life into a company that has a 95% chance of failure. When they lose, you lose. It’s time to start all over again with the same lousy odds and hope you get lucky the next time.

Has anyone ever jumped on the new company and gotten lucky. Yes, of course. But even with a lot of luck you have to do the work to make it happen. There are a lot more people who got in at the same time as those that did make it, but they never built any income. So even if you get lucky it takes work and MLM skills.

So not only are you gambling that the company will survive at least two years, but you get to live through all the growing pains with the new company.

And possibly the most miserable feeling of all will come after you have built a team. Then the ground floor opportunity doesn’t look so good to prospects. The sponsoring slows down. The people at the bottom are not making money and there are ten more ground floor opportunities calling them. They quit. Then those above them quit. The cycles continue until you lose most of your team. Now you have a tiny team, little income, and the ground floor opportunity is gone. What now?

My suggestion is, join Mentoring For Free, and read Success In 10 Steps. You can plug into free live training calls and hundreds of recorded training calls.

I hear things like this from people quite often, “I have learned more about network marketing in just the first two weeks of free MLM training than what I learned in all my previous years of network marketing combined.”

Your MLM Success May Depend On Your Company’s Policies and Procedures

Don Standard — Fri, 30 May 2008 02:59:48 +0000

You will hear about company’s policies and procedures over and over on this blog. We are going to look at them in bite size chunks.

These policies and procedures are your legal contract with your MLM company. You really need to know what you are signing and how it may affect you long term.

So let’s start with an easy one. This one is found in a lot of policies and procedures so instead of naming a company I have inserted [company] where you would normally see a company name.

[Company] expressly reserves the right to terminate all Agreements upon thirty (30) days written notice in the event that it elects to: (1) cease business operations; (2) dissolve as a corporate entity; or (3) terminate distribution of its products and services via relationship marketing.

When you read this statement, what do you feel. I feel that the company is already making plans for when they fail to succeed as a network marketing company. They may want to cease business operations. What will that do to you as a MLM distributor for the company? They may want to dissolve as a corporate entity. What will that do to you as a MLM distributor for the company? Or they may want to terminate distribution of products and services through network marketing. What will that do to you as a MLM distributor for the company?

In all cases that leaves you without a business and since you are agreeing to give them this right, you have no recourse if they take it. They are putting a plan into place to take away your business.

And look at the 3rd option again. They may take away your business and stay in business themselves, marketing the product are service by some other means. I know someone who built a network marketing business to an income of $100,000 per month. Then the company ceased marketing as a network marketing company and went into traditional retail, selling the product at stores like Walmart. The distributors did such a great job of promoting the product that everyone knew about it and they where no longer needed. So the distributors were left with nothing while the company continued to earn. I have another friend who was making about $46,000 each month when his MLM company did the same to him.

To enjoy MLM Success you will want to read your policies and procedures and avoid companies that are planning in advance for you to fail due to this contract. We will cover many statements from companies policies and procedures in this blog, taking them in easy to understand pieces. Be sure to come back for more.

Those of you who get the free ebook, Success In 10 Steps, or sign up for the free
Mentoring For Free MLM skills training will be offered additional training on the subject.