Saturday, August 30, 2014

The New Millionaires in Network Marketing Part 2

Now that you've evaluated the leaders of the company and you feel very confident in their leadership and vision. Does the product they offer appeal to the masses and is it consumable or a service?

With consumable products, there is an opportunity of you making a strong residual income off from the customers and from recruiting. Where from a service, once someone purchases the service they really have to be reminded to order more. If they’re consuming the product, when they run out, they’re going to re-order more.

The life of your long-term income is in people re-ordering your product every month. I have been involved with both in my twelve-year career and have helped more people with a consumable product earn income than with a service. As a sign of the times, many service-based companies are now offering consumable products in their portfolio.

I believe it’s due to the limit of potential revenue that can be generated in a service based company verses a company with a consumable product. Understanding the compensation plan can be a little tricky because you really need to know a little bit about the three basic types of compensation plans in our industry. They are: binary, matrix and unilevel compensation plans.

What is becoming very popular these days is a Hybrid compensation plan. It takes the best from two compensation plans and combines them. Here’s what you really want to know: what does it cost to make your product, how much goes to the company and how much is paid out to the distributor? If you know these numbers then you will understand how much money is going to the field and how much the company is keeping.

Whenever a company says we pay out 70%, you want to know where they get that percentage from. They may pay out 70%, but after you factor in the CV or BV point system, it’s more like 35% that actually is paid out to the field. If your company is unwilling to give you all these numbers, you can somewhat figure it out on your own. Take your last commission check that you got paid on a customer ordering a product. Look at what the wholesale price verses the retail price and what amount you got paid on that customer. Now take in mind you get different percentages on some customers, but this will give you some idea to what is paid out to distributors. 

Here’s the last thing you want to know, who is at the income level you aspire to be at? Ask that person how many people have they personally enrolled into the company, how many people placed an order last month and what was their income from those orders. This will let you know how much work will be involved on your end to acquire the income goal you have for yourself. Then ask yourself; can I with my existing talents and skills accomplish what they've accomplished?

Winning Is A Choice!

Tuesday, August 19, 2014

The New Millionaires in Network Marketing - Part I

The industry has evolved so much from the days of fax on demand, no Internet access and team commissions being paid out from upline’s very own commission checks. Many people, who are going to read this, have no idea what building a solid business was like in the early 70’s, 80’s and 90’s. The beautiful thing about our industry is that it has evolved in so many amazing ways. Information is so much easier to come by these days and they’re so many amazing stories of people having success on a part-time basis.

With so many people looking for an opportunity that will help them financially, socially and physically, how do you choose the right one? The first thing I look at is the leadership of that company. How many years of success have they had in the industry? Are they businessmen who are attempting to start a Network Marketing Company or former distributors who understand what it’s like in the field as a distributor and have now become an owner.

Let’s look at these two aspects for a moment. In my opinion, a businessman who has become an owner of a MLM company may have a little bit different perspective on this type of business because he or she may come from a profit verses expenses mindset. Which in the long run, you want your company to be very profitable, but I’ve seen in the past where business owners who lacked Network Marketing experience made changes that decimated the field because they really didn’t understand the MLM business model. On the other hand, a distributor who has had success building a team and generating income from their MLM Company becoming an owner may have a different approach with running an MLM company. That doesn’t necessarily mean that they are great business people, that just means that they may understand a distributors concerns. At the end of the day your decision should be based off of a few factors: is this group credible based off of their previous companies or businesses they’ve been a part of, is there any negative press about them in the media, if so how does it make you feel about introducing your family and friends to them, what type of success have they had in MLM, do you feel confident that they can lead you to your goals, and are you and your family committed to following them. 

These are just a few things you want to use to evaluate the leadership of a company. At the end of the day, everything is always fantastic during the honeymoon phase; you really don’t know the depth of someone’s leadership until you start facing challenges.