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Why Network Marketing (MLM) Works

Archive for May, 2007

Emotion versus Logic (Trouble versus Gain)

Posted by bodybydesign on May 30, 2007

According to Lee Boyan, Successful Cold Call Selling, “human behavior is determined by emotion much more than by logic.” We know that it’s not all logic when we purchase that “luxury auto.”

Also, people may be more strongly motivated to avoid losing what they already have than to gain a profit (fear of loss is stronger than promise of gain). If a thug was stealing the tires off of that new luxury auto in the driveway you would probably be ready to go outside and confront them (might not be too logical).

“Suppose you feel fine, everything is going great. A friend says, ‘I have this new headache remedy that just beats anything I’ve ever used.’ Your reaction is probably something like, ‘That’s nice.’ It’s just small talk. You would just as soon talk about something of livelier interest. On the other hand, suppose you have a splitting headache and a friend says, ‘I have this new headache remedy that just beats anything I’ve ever used.’ You bet you’re going to be interested!

Feelings are only temporary. They can be changed. Success in gaining the attention of a prospect often hinges on your ability to bring about an awareness of a dissatisfaction. Just as benefits do not exist unless they are in the mind of the prospect, feelings connected with the loss of well-being do not exist unless that person is actually experiencing or envisions such loss.”

So, how do you get the attention of a prospect and spark their interest? You find their troubles and problems. Instead of promoting “make a profit” you should be talking about “Miss out on profits.”

BENEFIT TROUBLE
AND PAIN
Make a profit Miss out on profits
Cut costs Waste money
Save time Waste time and payroll dollars
Easier to do Work harder than necessary
Save taxes Overly generous to the government
Improve
health
Risk poor
health
Peace of mind Worry, fear
Improve employee morale Excessive employee turnover
Improve image Avoid looking bad
Improve customer satisfaction Avoid customer complaints

When some people get up to speak do they think about their “Improved Image” and making a great impression or do they think about “Avoiding a Bad Impression?”

When we are talking about our compensation plan do we talk about that million dollars that Joe Blow makes or how to avoid your bankruptcy and get out of debt?

CONCENTRATE ON TROUBLE AND PAIN!

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Eye Contact

Posted by bodybydesign on May 28, 2007

In his book how to connect in business in 90 seconds or less Nicholas Boothman says this:

Your message goes where your voice goes, and your voice goes where your eyes send it. How do you feel when you meet someone and they don’t give you eye contact? How do you feel when they do? How do you feel when you are talking with someone and his or her eyes make contact with someone or something else?

Eye contact is one of the most important nonverbal channels we have for communication.

The cheapest, most effective way to connect with others is to look them in the eye (and smile).”

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How to promote Distributor Events

Posted by bodybydesign on May 26, 2007

It’s time to promote a Distributor Event in your area. How do you do this?

  • Go to other events and build relationships with Key Distributors you would like to have as guest speakers.
  • Promote people with good product and income stories.
  • Promote people who are working the business hard and those that are good examples in the business.
  • Promote the people who you want to promote and who you know will promote you. If people won’t promote you then start eliminating them from your Leadership Events because this is not good for you (or your people) over time. Don’t let some strong willed person with their agenda take over your event. Eliminate Leaders from events who are not team players.
  • Consider promoting a gender “specific” meeting like, “This is a Women’s Only Meeting.”
  • Try to include your people in the meeting and get them involved in creating the event.
  • Don’t invite Corp. (they have their own meeting structure). It’s important to attend their meetings but this is not about promoting Corp.–it’s about promoting you!

Without a doubt the most powerful meetings are Distributor Based and you have to start working on this issue. Also, promote yourself and the niche market that you serve. This may or may not be the niche market that the Company and their Management serve.

It’s time to promote yourself and it’s time to take care of business! Think about it…this is a business not just a social club.

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Building a Structure

Posted by bodybydesign on May 25, 2007

You have laid a strong foundation so now it’s time to work on the structure:

Over time you will see a great benefit in developing a “structure” for your own people. Why would you take on that responsibility? The reason is to “control” your environment and build a Company within a Company.

If you work in Corporate America the decisions they make may directly impact your pay check. If things don’t go well you may get a pay cut instead of a pay raise. You may see long-term customers leave and go to the competitor.

When you control the environment your customers look to you. If you rely on someone else or Corp. for your structure they are in control and you are at their mercy, and if they head for the barn the horse you are riding will probably go too.

In MLM Corp. provides the hey but you get to ride the horse. Don’t let someone else control your group. Inner circles can be great when it’s your inner circle. Speaking from experience, the most powerful Business Builders I have witnessed didn’t develop their strong business inside the structure of Corp. or another Distributor structure. They did it themselves. You may never be a charismatic leader but most leaders fall into that category at the beginning. People are looking for a place to belong. Continue working at the business and recruiting “new blood” because you know more now than when you began. New horses only know about the barn (structure) you build. They don’t have visions of some other barn.

Ride in your own parade. Is it time for you to step up and take control?

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What is the reason for this event?

Posted by bodybydesign on May 23, 2007

What is the real reason you do what you do in MLM?

I remember a person who had acquired a lot of certificates (MBA, PhD, CPA, etc.) making fun of a professor at the University of Tulsa (a PhD and accounting expert in a particular industry) because he was teaching accounting and didn’t have his CPA certificate. The professor said, “It’s time to quit collecting certificates and go to work.” The person making fun certainly had a high education but he wasn’t someone you would want to go to lunch with or start a business with (unless you wanted to hear about him and his accomplishments). Often you will find someone who has more certificates (an expert) but at least you are in the game and they are not. There is only so much value in being an expert (the comparison to MLM is past pin levels or accomplishments).

I also remember very well a couple of boys who mowed lawns from a small age and were never afraid to get their hands dirty. They never went to college and both of them have been very successful in business. One of them has the largest business (in a particular industry) in the state. Even though both are wealthy their hands still get dirty every day and they live in the present–not in their past accomplishments. A lot of people have gotten past the point of what made them successful in the first place. They aren’t willing to do what it takes anymore. They were willing to do it originally because they were “hungry.”

In MLM you see successful people take speaking engagements not supporting their own downline or their own business. You see them spending a lot of time with “peers” or crossline members and that’s OK. Except that’s not always supporting your own group and keeping focused (keeping the main thing the main thing). A question that leaders need to ask themselves occasionally when they are asked to host an event: “Why this event, why this city, and why me?”

I have observed over and over in this business leaders promoted in other areas, on conference calls or hotel meetings, and the question why was never asked. In listening to some of the top workers and leaders I have heard serious resentment and discouragement concerning this issue. Have you ever been on a call or at a meeting where the “majority of the people” and their sponsor weren’t even mentioned on the call or recognized at the meeting? Sometimes past leaders that aren’t even doing the business (probably couldn’t do the business today because of changes in the market or their circumstances) are the speakers in the room or on the call. They don’t even have someone in the audience or on the call.

You can’t control Corp. but don’t let this happen to your group at Distributor events or calls. This is deadly to your group so don’t let it happen and don’t do it! There is a “time and place” for Top Down Motivation (TDM) but fire burns up. Bottom Up Motivation (BUM) and recognition is what your people generally need. No one wants to see the crowd or group go away and that’s the reason for this article. You will find some leaders who are either clueless about this or have their own agenda–is it time for a change?

When is the last time you called someone in your downline, set up an event to help your own people, and helped recruit or recruited new people into the business?

Focus on “your” business!

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How Life Works

Posted by bodybydesign on May 19, 2007

Why would we stay at level [B] if we desire to be at level [F]?

Destinations are not often achieved in a straight line.

LEVEL

                  [F]
              [E]  
      [D]       [D]    
    [C]   [C]   [C]      
  [B]       [B]        
[A]                  

TIME (∞ 7)

Most all of us start at level [A] with the idea of moving to level [F] over TIME.

Time is finite or limited ( but still variable) and the levels are variable over time. The destinations, goals, knowledge, etc. are infinite or unlimited and multidimensional (some goals may limit or increase other goals).

Time is relative because we can move faster or slower and we may never get to level [F]. Perhaps you are content at level [B]?

Define where you are now and what’s keeping you at level [B]. Define the steps you will take to go to the next level and take those steps. Define how much you desire to go to level [F] and tell people where you are going (so they can go too). [F]inish Strong!

Package this story and have it in your mind and on your lips:

  • Where I was
  • What I saw
  • What I did
  • Where I’m going

What circumstances OR distractions in your life have caused you to settle for where you are now at level [B]?

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Showing Disrespect

Posted by bodybydesign on May 18, 2007

This is a big issue in life and can lose more customers and friends than a person can imagine.

Showing Disrespect will lose customers fast! Seth Godin had a post about a Doctor who made him wait a long time without even so much as “I’m Sorry you had to wait.” How problems are handled (showing concern and respect) is extremely important in dealing with people. Many problems can quickly be overcome by being respectful.

“I’m really sorry you had to wait. Mr. Wilson’s eardrum exploded and we’re doing everything we can to help him.” A comment like this would make all the difference in the world as a reason for your having to wait a long time. Unfortunately, many people just don’t care what you think or feel or they just don’t get it. Perhaps considering this kind of issue is not important to a lot of busy people.

Have you ever had a friend that is extremely friendly when they are alone with you and ignore you in a crowd (like you don’t exist and don’t matter)? Or, when it comes to an opportunity to praise you there is dead silence. Or, somehow you became the butt end of their joke. Or, you are in a crowd and they are making eye contact over your shoulder looking for the person they really wanted to talk to. Or, they pass on the other side (avoiding eye contact) pretending not to see you. Or, you are in a conference and they mention other names but never mention your name. Or, everything is always top secret with them and somehow you are never in on their secrets and never included. Or, they can really mimic and exaggerate your expressions. Or, you find out they have been talking about you behind your back. Or, they ask you a question or call you and dismiss you before you can answer the question to answer another call or talk to someone else. Or, you are talking with them and they abruptly hang up or walk away without good excuse or polite excuse. Or, they obviously avoid your calls or emails. Here’s one that will really get you, I use to work for a Senior VP who would have his secretary call someone and then say, “Will you hold for Mr. So and So?” Like his time is valuable and your time is not and he called you! Or, he would be invited to a meeting and send his assistant. Or, at golf tournaments invite their buddies instead of valued customers. Or, they don’t have time for customers with serious (at least serious to them) problems. How people perceive you and your products is how it really is no matter if they’re wrong. These examples are not listed to give you or me a “guilt complex” but to point out that these experiences leave the impression “you’re not important to me.” This is like taking your spouse for granted and that’s how to get divorced right?

Recently, we canceled the insurance on our house and (3) cars with the same carrier who mailed us price increases each year without even contacting us to see if he could be of help. A young “hustler” called us all the time and convinced us he could save us $500 and give us better coverage. All of a sudden our old agent, who had our business for years, was matching dollars, sending cards, calling, etc.–too late my friend. What’s interesting is that my mom and dad, brother and his wife, and my sister all had coverage with my old agent! Customers have friends and relatives too.

I found it interesting being part of the Accounting Department employed by British Petroleum (BP) that we called the Operating People and various Plant Management our customers. We had a lot of training on that issue. Why? Because the high level management was smart enough to realize that this was exactly what they were–our customers. Unfortunately, they outsourced the accounting function anyway and they became our “real” customers. Few people even realize that the CEO was a contract employee (not a company employee).

You see people all the time who just have to get in their little dig. They may think they can gain popularity by putting someone else down. And, if you really want to see a dig backfire just let them dig someone who is popular and charismatic.

How does a person become charismatic or popular? I think a lot of it hinges on how they really feel about people because “how we feel” comes through in everything we do and say–loud and clear. People who really do like you, and make it all about you, are not only friendly but they can become charismatic people. People who others want to be around and look up to. For example, in MLM 98% of the people are product users and casual business builders. Will you ignore the 98% and only pay attention to the 2% you consider serious business builders? Better not. Strong Business Builders always go the extra mile!

Show some respect and as Seth Godin says–Flip the Funnel (making it a megaphone):

  • Turn strangers into friends.
  • Turn friends into customers.
  • And then…do the most important job:
  • Turn your customers into salespeople.

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Following the Rules or Driving Outside the Lines?

Posted by bodybydesign on May 17, 2007

There are reasons for rules but do you ever wonder what rules and procedures are for?

Sometimes they are for the convenience of those who don’t like to think for themselves. Rules and procedures are for a “lot” of reasons. Government agencies, that are not responsible to customers, love rules and procedures. In fact, I feel strongly that this “maturity of nations” is part of the “decline of nations” process. It becomes more and more difficult for businesses and people to operate with all the rules (which means the lack of bread on every table). Companies don’t get too big until the HR and Legal Departments begin to tell the President: “We need a Policies and Procedures manual so our employees will know what to do.” Or, so we won’t get sued (is your main business goal to keep from getting sued?). Of course we need reasonable agreements in this litigious society but if we are writing agreements to keep from getting sued take a “strong look” at the business philosophy. How are we dealing with people?

Here is a simple story that should make you think about rules. An author (I can’t remember his name) from many years back discussed this same subject and gave this example:

He was out late at night with a friend in the parking lot of a pro football stadium and they were the only ones in the parking lot. His friend was driving out of the parking lot (following the lines) and so he said to his friend, “Why don’t you just cut across because we are the only ones in the parking lot.” His friend said, “Yeah, but look at the lines!”

Of course there are reasons for rules, regulations, and lines but who makes these rules and why?

I am not suggesting that we make a habit of becoming a “rule breaker” but I am certainly suggesting that if we want to stay in business there are times we will “drive outside the lines.” No telling what kind of success we might encounter out there. Review your “Rules and Procedures Manual,” other business manuals, and your business philosophy often. If procedures and philosophies are contrary to good business practices get rid of them fast! George Silverman has some good comments on his word-of-mouth marketing blog on this issue.

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Doing Things Right or Doing the Right Things?

Posted by bodybydesign on May 16, 2007

I read this article in small is the new big, by Seth Godin, and I liked the story so here is a story about Clean Fire Trucks:

“I live in a neighborhood where all the firehouses are run by volunteers. I don’t know how my family, my neighbors, and I would get by without them–like firefighters everywhere, they do brave work with little credit.

One thing you’ll notice is how clean the trucks are. ‘Why are the trucks so clean?’ a friend asked. After all, a clean fire truck isn’t a lot better at putting out fires than a smudged one.

The answer: Because when there isn’t a fire, the firemen wait for the siren to ring. And while they’re waiting, they clean the truck.

Sounds a lot like where you work. Most organizations are staffed with people waiting for the alarm to ring. Instead of going out to the community and working to prevent new fires, the mind-set is that firemen are working to put out the fires that have started. Hotel desk clerks don’t write letters or make calls to generate new business–they stand at the desk waiting for business to arrive. Software engineers are often overwhelmed with an endless list of programming fires–and rarely get a chance to think about what they ought to build next.

The structure of most organizations (and every single school I’ve ever encountered!) supports this. It’s about cleaning your plate, finishing your assignments and following instructions. Initiative is hard to measure and direct and reward. Task completion, on the other hand, is a factory orientation that is predictable and feels safe.

In fast-changing markets, clean fire trucks show attention to detail but rarely lead to growth and success.

What a great way to describe a stuck but busy organization. ‘They sure have clean fire trucks.’ “

This story made me think of something a lady at the tag office said to me the other day as I was writing my annual contribution to the tag charity. It sure had been raining a lot and the lady said, “My son is a fireman and he sure is missing the overtime pay.” What did she mean? Well, we had been experiencing a drought and all the fires had created a lot of overtime pay for the fireman–which many greatly appreciate. I suspect your goal is not to have fires but that’s not necessarily the goal of a fireman. He’s not looking for destruction but he is interested in his pay.

It may be difficult to see things from the other persons perspective or do the right things to find success. “You can learn something from every person you meet–even if it’s what not to do.” Abraham Lincoln

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Gas Prices

Posted by bodybydesign on May 12, 2007

Running out of gas or just sick and tired of being sick and tired?

Find a great MLM Company and begin to supplement your income. Wouldn’t it be great to have a few extra hundred dollars per month by sharing products with your family and friends?

If you worry about doing MLM because of a few comments from “friends” just consider these thoughts:

  • You can count on (5) fingers the people whose opinions you really care about.
  • If you realized how little people thought about you then it really wouldn’t matter.
  • They don’t pay your credit cards when they come due.

You can always cut back or get another part-time job right? Well, consider that you can always move forward on your terms by doing a little networking. People are your “working capital” so start learning how to do it now.

Now is the time to start building your networking organization before the gas prices go higher!

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