Fire Burns Up and Sand Shifts

You are a Champion!

“Motivation is temporary–but so are bathing and eating. It just turns out that if you do them every day you will live longer and smell better in the process!” Zig Ziglar

Because the compensation plan was developed to pay on a generational pay scale people get motivated when they learn how to work on a generational basis or solid rock.

Shifting Sand

Top Down Motivation (TDM) - You just received an MBA in Business Administration and feel pretty good about your prospects. “Visions” of being a CEO dance in your head. In the real world, on your first job interview, the HR Director says, “Well, you have a fine education from a great University and since you have no experience we have a great job opening here as Lead Janitor. I’m sure you will do well and advance rapidly.” And you say, “Well, you’ve got to be kidding and leave as soon as possible.”

The next day your friend Tom invites you to a seminar and people (some with the apparent IQ of 30) are on stage telling you about the $30,000 per month income they make in Network Marketing. Now you’ve seen the light, and wasted a lot of time in school. You’re on cloud nine and can’t wait to get started. Then, “reality” sets in because all your friends are saying, “You did what? I can’t believe you got into one of those things.”

In both examples (the types of stories and experiences could go to infinity), you have just experienced “Top Down Motivation.” The vision of getting a good education and being the CEO, and the vision of making $30,000 per month income in MLM. This kind of motivation puts you on a shifting sand buggy ride to no where except disappointment and disillusionment. Let’s see how to build on solid rock instead of shifting sand.

Failure is an event not a person

Bottom Up Motivation (BUM) - Tom convinced you to “make a list” of people to go see “now” because he has a now mentality and understands how to chase the business (Who do you know?). You have the contacts and influence and Tom brings the credibility. Tom’s going to motivate you by working down through your warm market and putting money in your pocket as soon as possible–right now!

Forget all those “vision” words–let’s see some action.

You’re job as a Sponsor is to get someone results as soon as possible. Don’t give them time to have a “theory” discussion with all the experts who “know” this thing doesn’t work. They have all the answers but still can’t make their credit card payments.

Working with Tom you now have several customers and several people in the business. People below you are getting great results on the product and “seeing the light.” How do they do this too? Tina has tremendous influence and is on the fourth level to Tom (you’re first level). Because of the pay plan Tom doesn’t get paid an override commission from her sales volume. However, Tom is an experienced person in the business and he doesn’t even give her fourth level a second thought. In fact, Tom is down in the trenches every day this week with Tina driving her volume–that’s where it’s at. Why does Tom understand the business?

Tom is keeping you strong in the business and in return keeps himself strong in the business. Understand this concept of solid rock strength [GOLDEN RULE!] .

• Some of the people on you’re second and third level (above Tina) will probably quit and Tom knows that it’s very likely that his hard work will pay off in future overrides and “residual” income. Also, he gets a leadership bonus to infinity.
• Everyone above Tina (including you) looks at Tina and thinks: “Tina’s on fire–I better get to work!” Tom makes sure you “all” know that Tina is on fire.
  
• Everyone upline to Tina, including her immediate sponsor, should be doing everything they can to help her be successful because it will make them successful.
  
• Leading by example, Tom teaches “how to fish” while giving them “fish and loaves.”
  

This is “real” motivation. All the people above Tina are excited and motivated because they “get paid” from her ability to do this “thing.”

FIRE BURNS UP! Working where the “action” is on the lowest level drives sales volume all the way up the organization (at every level).

The Power of Leveraged Growth

The Power of Leverage is the third part to my Three Star Leg Training.

Perhaps you have heard of the Six degrees of separation or the “small world “ phenomenon based on experiments conducted by Stanley Milgram (Harvard University researcher in experimental social psychology). We are only six people away from everyone on earth through social networks. Various groups, like those founded by actor Kevin Bacon, have used this concept to do charitable work.

A similar concept is Pay It Forward. In Ryan Hyde’s book and movie it is described as an obligation to do three good deeds (power of three) for others in repayment of a good deed that one receives, and that such good deeds should be things that the person cannot accomplish on their own. In this way, the need to help each other can spread exponentially through society, creating a social movement with the hopes of making the world a better place.

This same concept created all of the major religions on earth and can be used in a charitable sense to help people gain financial freedom. Believers leveraged their time through duplication and multiplication principles –teaching others to teach the message. Their word spread fast through word-of-mouth marketing (exponential growth).

If you are a strong enough believer in yourself (have a purpose or reason for building a business) you can do the same thing by teaching and training the multiplication concept without brick and mortar buildings, payrolls, etc. The Age of Communication with the Internet, email, etc. is coming back to take a message to the people! The Age of Brick and Mortar (waiting for people to find you) is quickly receding. You can see that the MLM concept is not out of date and has been used for thousands of years (social networking). People purposely spreading a message to other people.

A conventional business grows by hiring additional people and taking a percentage of their “efforts.” Leveraging other people (compressing time).

The MLM objective is to create residual income or critical mass–a lot of people taking a little bit of product. While you sleep income = You + Others + Time. You can start doing this part-time.

In our company we earn income (5) different ways not just the conventional way:

Conventional Plan Direct Sales Pay:

• Retail Sales
• Wholesale Sales

MLM - Added Pay for Recruiting and Training Business Builders:

• Override Commissions
• Leadership Bonuses
• Pay period Bonuses and Trips

The MLM way cost (public company statement studies) approximately 40 cents on each dollar of net sales. However, this is an effective way to grow sales volume exponentially and offset Distributor pay by reductions in other normal operating costs (other forms of marketing and distribution costs, etc.).

If you work the compensation plan the way it was designed (power of three) to be worked most of your pay would come from the third level. If not, you are working way too hard to achieve the same results. You don’t have to do it all yourself and it’s more productive if you don’t!

Blueprint Level	Business Builders	Ideal Pay Percent
1	3	8%
2	9	23%
3	27	69%
Total	39	100%

 

Would it be easier to find (3) Business Builders (potentially in your warm market) or find (39) people yourself? Also, based upon what you know about Supervising People, would you want to train and teach (3) people or (39) people?

If you understand how to work the plan the plan works over time.

The Power of Three

The Power of Three is the second part to my Three Star Leg Training.

A Diamond Distributor I know generally starts out this section of training with a question he was often asked: “How many people do you have under you.”

Several years back a relative, I suspect somewhat skeptical, asked me the same question and I said: “Well, over a thousand that I know about and a lot more that I don’t know about.” He did what I expected and looked at me in utter amazement. When people ask you this question it is a sure sign that they don’t understand very much about MLM. This is not a “sign up” game. It’s a business model that can be duplicated and taught. How many people are your “Direct Reports” on your job? Before my retirement from Corp. America I was over the accounting of a mid-sized company with several hundred million in sales. I had three direct reports but my organization chart (Blueprint) was much larger. If you have too many people as Direct Reports you can’t properly supervise them. If you sponsor too many directly in the business you won’t have time for them and you will “lose” them.

And so, how many people do you need to sponsor to be successful (defined by a person making a full-time income working part-time)?

The neat thing about MLM is being able to leverage time through other people. Therefore, I am only looking for Three Business Builders. In our case, these people were successful product users first and we moved them to Business Builders. I will talk about leverage and time in the third (last) series of this Three Star Leg training.

MLM is not Direct Sales or Retailing Products even though the Distributors are Customers, and we are paid on “Sales Volume.” Selling products is a subset of the MLM Universe. There are basically three aspects to MLM:

• Retailing
• Recruiting
• Training

Have a very good understanding of Third Party Invitation (TPI) or “Who do you know…” and Third Party Credibility (TPC). Much of what we do references a third party because it is powerful. For example, we train on a Bulletproof Shield that uses third parties to handle objections. “Edify Others” by using (TPC). A lot of people miss out on building a business because they never gain an understanding of the power of (TPC) and how to edify others. When you are recruiting you bring the people and the influence and you have someone else bringing (TPC). When someone under you brings the people and influence you bring the (TPC). Roles can switch to be effective in the business.

You are in business for yourself but not by yourself! This concept is the crux of the business and part of your responsibility as a Sponsor to teach. Company Training is primarily about learning core products and how to use the sales tools.

Our job as a Sponsor is to teach by example the Art of Duplication and Multiplication (Going Deep). Learning how to Chase the Business and create fire in an organization at the lowest levels possible (Fire Burns Up). Obviously, these too are separate training sessions.

We also teach by example the Art of Promotion (Going Wide). The Art of Promotion is primarily getting to Impending Events. The Company and the Distributors build Momentum in an organization through impending events. Momentum can drive recruiting and sales volume.

Working the Pay Period Calendar, Daily Method of Operation (DMO), and Building a Structure to Plug-into is too lengthy for one setting so I will stop without covering these important areas.

The Power of the Products and Membership

Why would I get into MLM? Most people wouldn’t for these reasons:

• They don’t understand it and the more we talk about it the worse it gets.
• They don’t have the Time.

And so, here is the first part of the Three Star Leg Training (The Power of Products, The Power of Three, and The Power of Leverage).

Why did my wife and I get into MLM? There are many reasons because for us it was a “process” or what we call “Layers of Conviction.” Over time, we added more layers. That’s why the term “follow-up” in this business is so important. The power is in the follow-up and the understanding that “No” does not mean “No” and only means “Not Now.” People who do not contact you over and over lose. There is considerable lag-time in the business and cultivating the soil and planting seeds is step number one. Also, there is a (72) hour rule that should be followed by those working the business. Follow-up and let people know that you will be “contacting” them to see how they are doing on the products so they will “expect” your call.

I can still hear the words of a great leader, coach, and trainer: “My job is to get products into someone’s mouth.” Why? The Power of the Products.

When my wife and I put the products in our mouths and began taking them correctly (follow-up) we started getting product results. After several months we were hooked on the products but “Not” the business.

My wife noticed results immediately (feeling better, looking better, and more energy) but it took me over a month to feel anything and start getting results on the products. You will find it interesting if you haven’t followed up with a person who has gotten on the products and is taking them consistently and persistently what you will find when you do make contact. Many will tell you a great product story!

A lot of sales trainers will tell you that you are making a big mistake if you don’t immediately mention the opportunity and fall back on products if they aren’t interested in the business. Certainly, we should mention that we are in this as a business and there is money to be made (people are looking for opportunities). We can determine how much time to spend on that by listening. Often, they are not interested because they haven’t experienced the power of the products. There is nothing more powerful for you after someone has gotten great product results for you to ask, “Who do you know that would like to get the same results you experienced?”

Many people get involved in the business for only one reason: “To buy wholesale.” A long time friend (powerful business leader) introduced my wife to the products and she was savvy enough to know that my wife was not interested in the business. My wife went for the “top discount” immediately without my knowledge. However, don’t ever underestimate the relationship of the spouse. My wife was in another Direct Sales Company for a long time and she would still be doing that today if it wasn’t for the “tremendous” pressure I put on her to do this instead. Spouses are “deal makers” and “deal breakers.”

I only mention that last sentence for one reason–if you are going to do this as a business you should keep the spouse engaged and in agreement over time (they may be interested or disinterested at first). I can think of several “key leaders” who aren’t really working the business today primarily because of their spouse. Their spouse isn’t on board so they are missing “the opportunity of a life time.” How sad!

Yes, I do have influence with my spouse and I greatly suspect that you do to!

Plan B

What do you think about comments like, “Plan A isn’t working so it’s time for Plan B?”

Here are my thoughts about Plan B. When it comes to your core values in life there is no plan B. Where would you go or what would you do to replace your core values?

In reality, people must be using Plan B, C, etc. often because on average people keep their jobs less than three years. I suspect that is partly because of words like adversity, disgust, or “You’re Fired.” Or, perhaps there is a “better opportunity.”

Actually, words like these really have nothing to do with a “Plan.” Adversity and disgust are part of every opportunity and the part of life that actually causes us to grow and become strong. We wouldn’t see inventions or improvements if there wasn’t a lot of disgust and adversity. What would happen if a child never faced adversity? They would become weak and never mature. If Edison had gone to Plan B, in the sense that some mean going to Plan B, we wouldn’t have electric lights (at least not by him). So, does Plan B mean you are a quitter? I think for a lot of people that’s exactly what it means. Plan A isn’t working so it’s time for Plan B. In other words, I quit.

What is a Plan? Normally, a plan isn’t a strategy or a direction in life. If we decide on a direction to go in life why would we change that direction? Plans are dynamic and change to fit the circumstances. Plans gage activity and allocation of resources. How are we doing in relation to our plan? A contingency plan is just another plan based on circumstances (the bridge is out take detour to Route 66-6). Does a contingency plan mean we are going to “change the direction” of our lives or just quit? Let’s just cash out and go live in the woods.

Here’s the plan:

In a company the CFO will say to the CEO, “Looks like we will be in violation of our loan covenants and the bank can call the loan if they want.” So here’s what I suggest we do to protect ourselves against that possibility.

“Visualize” the worse scenario you can think of and make a plan to deal with it. And, if your worse fears come about don’t think it is so strange. If 9/11 has taught us all anything - Facts are a lot stranger than Fiction could ever be (be sure you have the facts). Preparation (preparing for life) is the best plan. When adversity knocks so does opportunity so be prepared to take advantage. Where’s the opportunity in this adversity?

In actuality, we can work on more than one plan in order to go in the direction we want to go. If we have a strong enough desire and purpose, we can even work (3) jobs. Or, you can work MLM part-time and over time get “Life on your Terms.”

What’s your Plan? The real question for me is: “What’s your direction–where do you want to go in your life?” For me, Plan B, C, and D doesn’t mean “I quit.”

Finding the Right Sponsor

Finding the right person to sign up under in MLM is important.

Obviously, having a strong reason and purpose to do the business is important no matter who is your sponsor.

Fortunately, here is an area that I can’t comment on too much (except by observation and reading). Why? Because we have very strong upline sponsors and all of the people above us are the top Distributors in the company. The benefit we received from all of those people working to make us successful (teach us these concepts) was invaluable. More than that, the servant leadership and help they gave us (and the people we sponsored) keep us strong in the business.

Don’t despair if you signed up under someone who quit doing the business last week. I am sure that immediately takes a lot of people out of the game.

And so, how do you overcome this issue?

• Make contacts with other people in the company (particularly those who are successful in the business). Admittedly, there are top distributors who won’t help anyone outside their group but you can always find “someone strong and doing the business” to help.
• Make friends and contacts with people at Corp. Many of these people have a “Big Picture” view of the company. They can even direct you to a strong crossline person in your area of the country. Many of these people are glad to help others and get your help and support in return. Don’t be bashful to ask for help.
  
• Stay involved by attending “Impending Events.” There is a learning curve in any business and all we can say about that is: “Pay the price because it’s worth it.”
• No matter the circumstances of life–have fun and don’t quit.

It’s really up to you in the final outcome. The strongest Distributor in our upline (and the company) taught himself the business. He was successful before the company had matured enough to have the tremendous “tools” we have now.

Admittedly, as a last resort, you can cancel your Distributorship and sign up under someone who is in the game. However, this is not always the best thing to do because it’s still up to you. Also, many of the top Distributors shy away from signing up people that are under other Distributors because of the Golden Rule. Be prepared for some questions as to why you want to make a change.

Do what’s right!

What Type of Person Are You?

Trust is the reason why a Business Builders works “down” through a warm market using duplication. “Who do you know…” People trust you and don’t even know me even though they may be in my downline organization (because of you). In that respect, I am a positional leader (just like any industry organization chart) instead of informal leader. People don’t necessarily trust their formal leader (his power often comes from his ability to fire you). That’s why experienced Network Marketers try to build relationships at the lowest level in their organization. Also, fire burns up!

Recognition of our own strengths will have a serious impact on how fast we move in our Business and if we will “stick and stay.” Instead of getting into personality types (DISC) we can perhaps make this simpler. Let’s look at the following Business Builder Types:

• Retailer
• Recruiter
• Teacher

Suzy Q is a Retailer deluxe. She can easily connect with people and sell products. People like her and connect with her almost immediately but she can’t stop talking long enough to find out why the prospect would even be interested in doing this as a business. She may not be setting appointments and spending time recruiting. Suzy Q is probably looking for people like herself (we all are) but she probably shouldn’t be looking for Retailers–she should be looking for Recruiters and Teachers. Since retailing is her strength she’s not going to have a problem with retailing and wholesaling as long as she works hard. She needs to identify her weaknesses and complement her personality if she can.

Mike is a strong business person and Recruiter. He’s that fast talking attractive guy who has the ability to get anyone into any business. Mike’s that race horse and stud who everyone in MLM is looking for to join their downline. He may win bonus after bonus. Mike’s looking for other studs (like himself) and wouldn’t give a Retailer or Teacher the time of day. Mike is a “heavy hitter” but he may never get to residual income because Mike’s probably going to burn out and move on. Mike’s going to “stack” like crazy, etc. to build legs (if he’s smart and not new to MLM). The turnover in his organization will be huge because Mike’s not relational and he “loves them and leaves them.” Keep in mind that Hitler was a charismatic leader without character and integrity. Mike needs a change of course and he needs to look for some Retailers and Teachers.

Mary Jane is a Science Teacher and she is in debt up to her eyeballs. Mary Jane has the personality and what it takes to build residual income. Like many professionals (including House Wives) she has influence and she is relational. Also, she fits the MLM business model because it’s about duplication (teaching and training) and she has those skills. Unfortunately, Mary Jane never understands a sense of urgency (doesn’t know the pay period calendar exists) and she sells down instead of up because she thinks people are like her (can’t afford the products or the opportunity). She loves the products, the Sci/Med Board, and the training but feels that many of the people are high pressure sales types. She’s very protective of who she puts in front of people even though she has what it takes to build out the Blueprint. Mary Jane needs to look for Retailers and Recruiters.

If you are the CEO and a (PE) Professional Engineer are you looking for a PE to be your accountant? The same concept applies to any business including MLM.

Isn’t it grand that God has more than one cookie cutter? We are all unique and powerful in our own way.

We aren’t looking to duplicate ourselves over and over. We are duplicating the “Business.”

Why do many business models look so much alike all the way down to the size of the cubicles and Titles used on the organization charts?

What do people really follow? They follow our action and they follow our example (that’s called duplication in our industry).

I don’t need to convince experienced business leaders what people follow:

Go into any business establishment and start changing the way things are done around here and see what happens. It’s a tremendous contradiction of expected behavior (past actions and examples) and you will undoubtedly be in trouble with some of the employees. Particularly those who have been around for a long time.

Pyramid

Here is a “Pyramid” taught by coach John Wooden which was summarized from the information in his book The Essential Wooden. Great Book!

1. Industriousness - There will be no harvest without hard work.
2. Enthusiasm - The “god within” or energy and spirit of the Team.
3. Friendship - Spirit of goodwill that nourishes relationships.
4. Loyalty - Golden Rule - Do not betray your team, and they will not betray you.
5. Cooperation - “One hand washes the other.” The “best way” not “my way.”
6. Self Control - Control of your Team begins with control of yourself.
7. Alertness - Competition requires mental quickness and keen awareness.
8. Initiative - Failure to act is often the greatest failure of all. Leaders take risk.
9. Intentness - Determination to stay the course no matter how fearsome the course.
10. Condition - Character keeps us on top (mental, moral, and physical).
11. Skill - Complete competence and life long learner.
12. Team Spirit - Eagerness to sacrifice personal glory for the greatness of the Team.
13. Poise - Not rattled by events and being yourself on holding fast to principles.
14. Confidence - The knowledge that you and your organization are ready.
15. Competitive Greatness - Giving your heart every day.

Faith and Patience - The mortar that holds the blocks together. Things will work and if you build these blocks (even if it’s not the manner you may expect or desire).

Team Building

The successful Network Marketer will be a successful Team Builder. Being a teacher and coach in the game of life is important.

In the book The Essential Wooden, by coach John Wooden and Steve Jamison, John Wooden wrote this preseason letter to the team, July 23, 1971:

If each of you makes every effort to develop

to the best of your ability, follow the proper

rules of conduct and activity most conducive

to good physical condition, subordinate

individual acclaim for the welfare of the

team, and permit no personality clashes or

differences of opinion with teammates or

coaches to interfere with your or a

teammate’s efforts, it will be a very

rewarding year.

That’s what many of us want out of life to:

• Develop to the best of our ability
• Have a rewarding year or life

Coach Wooden, “The star of the team is the team.”

Key Industry Terms

Let’s look at two Key Terms that will help in Structuring Your Downline:

• Breakage (Company Rules)
• Stacking (Distributor Rules)

Breakage refers to rules established by the company, which (in general) allows the company to retain the cash from commissions earned by the Distributor. For example, the overall theoretical payout may be 40% but the company actually pays 30% due to rules (10% breakage). All compensation plans have breakage rules designed into their system. However, the more successful the company breakage rules the easier it is for other companies to recruit your Distributors–this is a business that takes time to learn and make a reasonable return or profit.

Stacking occurs when a Distributor recruits other Distributors placing them in a single Downline Leg. My definition of Stacking will be a little different than what you may normally read about it because I define Stacking as follows: “Stacking is the flip side of Breakage.” By my definition, Stacking refers to the rules established by the Distributor to overcome or offset Breakage (Company rules).

You may have to think about this comment for a moment: “Just like any companies organization chart there is a formal Blueprint and there is an informal Blueprint.” The Power of Three doesn’t stop working just because the informal plan and the formal plan aren’t the same. Just like the carpenter building a house from a print, he will correct the errors in the architect’s blueprint. He has built the house enough he knows the flaws in the formal plan.

Do you understand how your Company Compensation Plan works? Many plans are complicated and beyond the desire for the beginning Distributor to learn. Please note: “Don’t do anything you can’t strongly defend and is in violation of the Distributor Agreement.”

Companies and Sponsors are often short sighted when it comes to customer retention rates. Even a slight increase in retention rates can explode sales. As Brian and Jeffrey Eisenberg correctly states, “Any conversion process is like a leaky bucket–you pour water in, and water spurts out all the holes. You can keep adding more and more water in the bucket, or you can patch up the holes. Clearly, patching the holes first makes much better sense. We figure it’s like the cart-before-the-horse thing. Create the delightful experience first then drive the traffic.” Instead, many companies continue to add the straws (cut costs or improve profit) and then wonder which straw broke the customers back. Companies and Sponsors should learn a few financial terms related to the value of reducing turnover. One critical concept is the gross profit margin and ratio. Some companies have such a high gross profit that it makes much more sense to concentrate on gaining sales volume instead of shaving costs. Once they get past break-even sales (coverage of fixed costs) their profits grow astronomically. Grow your Sales if you want large profits or commissions!

What are the Positive Sides of Stacking? There are some positive sides of stacking not only for the Distributor but the Company too. The Stacking Rules created by the Distributor is limited only by their imagination and experience.

• Product Leg
• Business Builder Leg

Experienced Distributors will determine if a customer is interested in products or interested in the business. The product user will be placed in a Product Leg. The Business Builder will often be placed under the Sponsor (but not always). If a Product User becomes a Business Builder that’s great. In the long run everything washes out.

One of the advantages of stacking is that fire burns up. Sometimes it is difficult to build a relationship with someone on a lower level because you don’t know them. It is possible (when it makes sense) to stack someone on a lower level because you know them personally and feel comfortable working with them.

Or, new recruits receive the benefit of having people stacked under them (greatly benefiting them in override and/or bonuses) because of just one reason–they are hungry and it shows. Often, discussion turns to who should we help? We like a certain person and would like to help them but they aren’t hungry. They aren’t willing to put out any effort no matter how much you are willing to help them. Unfortunately, they aren’t willing to put out the effort to be a winner and it shows. That’s why people exhibiting the right attitudes win. Sometimes the people with bad attitudes, or wrong attitudes, have no idea how much they are limited by not receiving the help they need simply because it shows. A sponsor bets on the horse with the heart and effort to be a winner.

Or, you begin to realize that you have sponsored a person who is selfish and can’t give. People who aren’t willing to go that extra mile.  Therefore, you realize that they can’t win–they are in the wrong business.

It’s time for a story. A crossline Distributor was telling me and my wife a confidential story. Note: Nothing in the business is confidential. Would you prefer your Distributors get the crossline version or your version? Anyway, he said: “My Sponsor is so fantastic. I didn’t have the money to get to the highest level and he loaned/gave me the money to get into the business.” My wife and I just smiled. Yes, he did help this person (servant leadership) and yes the servant leader qualified a pay period leg to earn a higher “pin level” and more leadership bonus. Or, you are at a trade show training a downline member and making sure that they get “more” than they deserve–it cost you money to set up the event. That’s called win/win.

This story depicts a Distributor who is a good steward of the company’s interest as well as his own. Remember, commissions are only a percentage of sales and without sales a company can’t cover fixed cost. The Distributor took his hard-earned money and bought or loaned product on the hope of a future return and the productivity of a new person without money. This is often a big gamble.

Any company and sponsor should really appreciate that you understand how to create a win/win environment. If you have studied any industry statements (public companies) you will realize that the cost of nutrition products is normally less than 20¢ on a dollar of net sales. (Note: Net Sales includes the maximum wholesale discount–even Corp. people don’t understand this fact.) So if this kind of company isn’t making a profit who’s controlling fixed cost? I apologize if you don’t understand these financial accounting concepts. Since I am an accountant I have a deep understanding of this and get really concerned that a lot of people don’t understand–it’s so basic to success! GROW YOUR SALES - MASSIVE ACTION CURES ALL PROBLEMS! Gross profit (net profit depends on management) ratios are high so the potential for large net profits exist if a company or Distributor will only grow sales through retailing and recruiting. I suspect very few people would argue with the fact that Diamond Distributors attract new recruits to themselves and the company.

You have to set people up to win - this is not easy!