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Why Network Marketing (MLM) Works

Archive for September, 2007

Stock Car Racing is a Team Sport

Posted by bodybydesign on September 29, 2007

You are a Champion!

A lot of people would not consider Stock Car Racing a Team Sport because they focus on the driver (the Deity of the game). Yes, the Driver or Deity is important but so is the pit crew, science behind the car, and sponsors. Sometimes even being able to draft off of or learn from other drivers better than themselves is important to race drivers. Just to have a race worth watching means that noted Driver(s) are in the race. How many races or team sports do you watch where the outcome is a given and the game is over in the first lap or first quarter? Competition is the name of the game!

The same thing is particularly true in Network Marketing. A lot of “Heavy Hitters” have drafted off a Deity Driver like Richard Petty, Junior Johnson, or Cale Yarborough. Without these deity figures the sport would have much less stature. People who have given their life and heart to the sport. Avery Johnson, Head Coach of the Dallas Mavericks, was telling the story about a player who joined the team and told him when he was introduced: “I’m here to take your job.” Avery, said, “Take my Job! You might want to prove you can back me up first!”

A lot of people are involved in Network Marketing “just to watch and be involved in” the competition. How many games or races would you attend with only 600 fans in the bleachers?

Did you know that the fans are even more important than the race car drivers? Who buys the hats, shirts, popcorn, cokes, beer and tickets that make all this possible for the driver to run in the race? What makes the race exciting (seeing the thousands in the stands behind a particular car and driver). What happens when the fans leave? That’s important to you even if you are not the driver they are rooting for and always come in last place. A lot of heavy hitters (Deity Drivers) lose sight of the fact that it never was and is not about them. The same thing happens to movie stars who fail to recognize the importance of their fans. The fan is the most important part of the Team (even if it’s not your Team) because they pay the bills.

Network Marketing is a Team Sport. Sometimes take your eye off the Richard Petty and put the focus on the guy setting next to you spending his hard earned money to get into the arena.

It’s all about making them comfortable and happy to be there. Don’t show the fans your underwear and Butt (because you have developed a burr in your britches) when they come to watch!

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How To Win

Posted by bodybydesign on September 26, 2007

You are a Champion!

I was listening to Coach Avery Johnson, Head Coach of the Dallas Mavericks, yesterday in a Dallas seminar talking about How to Win. He said I want to talk about some “E’s.”

  • Be Excited about life.
  • Expect to Win.
  • Exchange negative thoughts for good thoughts (the battle is in the mind).
  • Elevate your dreams (don’t let anyone capsize your dreams).
  • Change your Environment (you may need to eliminate some people).
  • Eliminate some bad habits (like Envy–just say I’m next).
  • Evaluate your gift (what is your gift?).
  • Educate yourself–what will it take to get to the next level?
  • Strive for Excellence (don’t go for average). Be excellent where you are now.
  • Be strong in the Eye of the storm. We need to stay positive when facing adversity.
  • Be an Expert manager. Walk, talk, think, behave, etc. like a winner.
  • Enjoy the ride because life is a journey.

Coach Avery Johnson will be a winner (win or lose) because he is well thought of and cares about people.

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Why You Will Make it in MLM

Posted by bodybydesign on September 23, 2007

You are a champion! 

We have already shown that 3 out of 4 DSA company members are MLM. That’s because MLM works best! So why would any company think of MLM as a negative? Their management lives in a past paradigm or mind set not held by the current generation.

  • Communication tools have made the world a smaller place. World wide over 60 million people are involved in Direct Sales according to the World Federation of Direct Selling Associations (WFDSA). It must be a business model that works.
  • The world population is aging and the opportunity for many people is in small business not big Corporations. As companies merge Globally resources will shift globally and a lot of workers will be displaced through mergers and acquisitions.
  • As we have noted in our last article–every one is a salesman! And so, why wouldn’t you want to make money doing what you already do for free (word-of-mouth marketing)?
  • Mass Marketing and Advertising is not nearly as effective as it once was and word-of-mouth marketing is the most effective form (not measured by many Corps.).
  • Computer Systems and the Internet have given MLM companies the tools necessary to operate world wide in a very organized (extremely fast) way. Boundaries and limitations are rapidly going away. For example, look at how politicians are now using the Internet to get their message out and raise campaign funds.
  • The fastest growing industry (Health and Wellness) makes up the largest percentage of DSA companies. Why? Because people take advantage of current trends and demographics (large expanding markets). Look at how many health care professionals have joined the Scientific and Medical Advisory Boards of DSA companies–you will be amazed.

What are you waiting for?

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Why You Won’t Make It in MLM

Posted by bodybydesign on September 20, 2007

You are a Champion!

Here are just a few of the reasons you won’t make it:

  • You think like an employee instead of a business owner. Just put in eight or nine hours (no matter how productive the activity) and go home. Banks look at your business model and plan but they also evaluate you as an individual. If you have an employee mentality you won’t get the loan. Also, they make sure you put up your house and everything you own as collateral for your business so if they lose what they have put into your business you will lose everything you own. All of that is avoided in MLM and you still feel cheated?
  • You don’t want to take time away from family and kids. And so, here is the quality time with your kids: “You watch TV in the living room and they play on the computer in their room?” Some top distributors are training their kids how to do the business so they can be productive and help the family succeed. Since this is a do as you go business they have made customers out of the ball team. What better training could your kids have than teaching them how to make it on their own? Oh well, make sure little Johnny “gets everything” he wants so that he can really function well when he gets out on his own.
  • You don’t want to take advantage of family and friends. If that’s the way you feel about family and friends I suggest strongly that you don’t approach them with the products or the business. In fact, you may not want to approach them on any level. Everyone has stories about the support of family and friends. I remember one from my grandmother. She and my granddad started a country store that was fairly successful in a rural community and a close relative put in a similar store on the corner across from them (he was also a strong pillar in their church). Family and friends may come around if you have success on the products and/or business (just like my grandmothers relative). My brother always mentions a $30 dollar kit imposed upon him by an uncle in Amway. Don’t do that because the $30 is nothing compared to their memory. I try to remind him when he tells me the story about a friend who lost thousands of dollars in front loaded inventory that “case law” prohibits this and many companies will accept 100% returns (including the kit). Also, there are always those who get sick on the products even though the Sci/Med Board is the best in the world (they prefer getting their caffeine and sugar from cokes and the concoctions from their high school friend). I found the story from the chair of our Sci/Med board interesting. He has a PhD in Nutrition and his mother bought a cure for something from someone down the street. My dad always gets dizzy on one of our products. In fact, he was getting dizzy every week even though he didn’t ever take this product. Be careful with family and friends.
  • You do all the work and your upline sponsor gets all the money and trips. You’ve just worked your tail off to win a trip to the Caribbean and your upline sponsors go because you won it for them (you didn’t get to go). You can show them by quitting the business. Somehow they are still doing the business without you and still making trips?
  • The products are too expensive and people can’t afford them. There has been a time or two when I thought the products were too expensive. However, when I considered the benefits received from the products I still take them myself. After all, the products are what got me interested in the business. When you quit taking the products it may be time to evaluate why you do the business. I’ve known downline members who couldn’t make their house payments but they took their boat or jet skis to the lake on the weekend (even though they were out of work). They still smoke and drink–people find the money for what they want in life so I don’t feel too guilty about supplying good nutrition.
  • You pick a company that’s all about retailing products instead of recruiting. There are books written about picking the wrong company to work with in the business and the host of reasons you will fail when you pick the wrong company. MLM is about recruiting and about residual income. Unless you want a hobby (and/or you just love the culture and doing the business for free) pick a compensation plan that is multi-level and will pay you well for your time and effort.
  • You can’t sell anything even though so and so could sell ice to an Eskimo. Wish I had a dollar for every time I’ve heard this one. You can’t sell so that’s the reason you’re not married because you can’t sell yourself. You can’t sell your boss on that new project at work. You can’t sell your kids on not staying out late at night or using hard core drugs. You can’t sell. I strongly suggest you just stay at home and feed the dog. Hopefully, he will eat what you have to offer.
  • I’ve talked to everyone I know about the business and the products. Perhaps you don’t know enough people? This comes full circle to your purpose and reason for doing the business. Your purpose and reason is not strong and you are very weak in the business. You can’t get out of your comfort zone. Don’t look for a new company yet because that’s not the problem.
  • He called me the “N” Word. Well, why don’t you just sue…that’s the Amercian way.

WANTED for Hazardous MLM Journey. Small wages at first, bitter cold market, long months of complete darkness and mind fog, long trips to no show events, constant danger of failure, long-run success doubtful. Honor and recognition in case of success which is not likely for wimps like you.

And so, you think I don’t have fun doing this?

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3 out of 4 Direct Sales Companies are MLM

Posted by bodybydesign on September 17, 2007

Just taking unaudited raw data from the DSA website and inputing into a Database I calculated the following information:

This shows that about 1/3 of the Direct Sales Industry is made up of Health & Wellness companies (including Nutritional Products). However, the percentage approaches 40% of the companies that are multi-level (37%).

  Health/
Wellness
Food/
Cooking
Skincare/
Cosmetics
Home
Products
Fashion Other Total
INDUST 30% 13% 12% 12% 17% 17% 100%
MLM 37% 11% 13% 8% 14% 17% 100%
% MLM 89% 65% 76% 50% 62% 74% 73%

Obvious questions to ask yourself:

  • Why does such a large percentage of Direct Selling Companies use a multi-level compensation plan?
  • Why does such a large percentage consist of Health and Wellness Companies?
  • What Industries could improve on their ratio of MLM to Total Industry?

In many respects this ratio could be higher. For example, Mary Kay Cosmetics does not consider itself to be MLM even though others might not agree. Unless the company considers themselves to be MLM they were not considered MLM in the data.

Notes: Health & Wellness (including Nutritional Supplements), Food/Cooking (including cookware), and Fashion (including Jewelry and clothing).

Here are the same ratios for the number of DSA companies selling Nutritional Supplements:

  Nutritional
Supplements
INDUST 32%
MLM 37%
% MLM 85%

Top MLM Categories in Descending Order (17% Other):

  1. Nutritional Supplements
  2. Personal Care
  3. Health/Fitness/Wellness
  4. Skincare
  5. Jewelry
  6. Weight Management
  7. Cosmetics
  8. Haircare/Hair Accessories
  9. Food/Gourmet Items
  10. Aromatherapy
  11. Homecare
  12. Candles/Candle Accessories
  13. Home Accessories/Decor
  14. Fragrances
  15. Cookware
  16. House and Kitchenwares
  17. Internet Services
  18. Books
  19. Fashion Accessories
  20. Oral Hygiene
  21. Tableware
  22. Water Treatment Systems
  23. Giftware
  24. Homeopathics
  25. Animal/Pet Care

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Friends

Posted by bodybydesign on September 11, 2007

You are a Champion!

Network Marketing is an eye opener when it comes to “Friends.”

I enjoy watching the transition that people go through when they start doing Network Marketing especially the true evangelist of the products. It’s a real paradigm shift. A paradigm is a set of assumptions, concepts, values, and practices that constitutes a way of viewing reality for the community that shares them, especially in an intellectual discipline.

People will often say, “I don’t want to share the products with my friends” and that very statement lets me know this: “You have no real friends.” If you can’t share the products with your friends who can you share them with? You either have little belief in your products or what you are doing (if you are promoting the products) or no faith in your so-called friends.

Have you ever started talking about a particular subject to a “friend” and have them roll their eyes? What are they doing? In my opinion, they are showing you that they are not really your friend. A true friend would never do that to you. What’s so ironic about people saying that they don’t want to damage their relationships with their friends is this: “You can’t damage or give up a relationship you obviously don’t have to begin with.”

If you have the cure for cancer would you share it with your friends? That’s the same question you could ask about your religion. If you have the answer to eternal life would you share it with your friends? The answer to both of those questions is often “no I would not.” Why? Because you have no faith in the message or you have no faith in your friends. You may say, “This is way too much hyperbole about my relationship with friends and family.” No it’s not–think about it.

If your influence is so low with your friends that they will not even listen to you with respect do you really have any friends? Please note, I’m talking about seriously and respectfully listening to you, and not about buying your products or joining you in the business.

There’s a big difference between being strong and forthright and not being a friend. We can all read the words (spoken or unspoken and the body language) of a friend. The founder of our company has a great story about the strong personality of the person who got him involved in Direct Sales. Our founder stood him up on an appointment that he agreed to with his eventual sponsor in a Direct Selling business. He received a phone call that went like this, “I was told that you were a man of your word.” Founder, “Yes, I am a man of my word.” Response, “Well, you must not be because you stood me up.” Was he being a friend? I guess so, he made him a millionaire many times over.

This business should be a tremendous paradigm shift for you and that’s a good thing. It really takes the chains of darkness off or the scales from you eyes when you start evangelistic work with your so-called friends (be it religion or something else). If people are embarrassed about what you are doing for a living it’s normally about them and not you. It’s the same answer as it would be for those who don’t want to be around you or associate with you (you are not their friend). Often, people are friendly to people that make “them” feel important or give “them” borrowed influence. That’s why some rich people have so many (fair weather) friends.

What is the answer to this dilemma? In my opinion, you should work on yourself so that you have serious credibility and work on you existing relationships. Second, you should consider developing a new set of friends because the people you are with are not your friends. This article is not really about Network Marketing. It’s about your relationships with other people.

It’s time for you to take a reality check. Don’t you want to know who will listen to you and who won’t? Perhaps you are not ready to see the world in a new light.

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Path of Least Resistance

Posted by bodybydesign on September 10, 2007

You are a Champion!

The path of least resistance leads you where?

Do you want others directing your path or would you prefer to lead your own way? Often people end up in destinations that they didn’t pick and don’t want because they let someone with a strong personality direct them down that path.

We may have assets or skills that others would like to utilize to accomplish their own goals or endeavors. For example, paying the bills of a recruiter (who doesn’t care about your goals in life) trying to place you in a career or direction you don’t want to go. Ask yourself this question: “Why did I just spend four years getting a degree that takes me in a certain direction and now I am being asked to change my direction to find employment?” You may think that this is not a critical decision–you are wrong!

When you get out of Business School it may be that you have an opportunity to work in accounting. Ask yourself this question: “Do I want to be an accountant?” If not, then the path you are taking needs to be one of the steps on the path you want to travel. Otherwise, it very well could be the wrong step to achieve your objectives.

I once worked with very smart engineer and MBA business student. He had all of these degrees and certificates because of his IQ and the lack of difficulty for him to go in a lot of different directions. He told me one day, “I don’t want people to know that I have a CPA certificate because I don’t want to be an accountant.” Guess what? He finally wound up being the Controller of that company when he was in his 40’s. I know he didn’t want it, and didn’t like it, and it wasn’t on the path he wanted to go even though he was very smart and qualified for the position.

Because of circumstances a lot of people take one step forward and two steps backward. They need to pay bills and may be doing an entry level job somewhere even though they have the experience to be a CEO. This is often true of those in their 50’s who have taken the “path of least resistance.”

That’s the beauty of Network Marketing because you can be the CEO of your own company (and pay bills) as you accomplish your real goals in life. Those things you’ve always wanted to do but couldn’t because of bills, family responsibilities, etc.

Consider not taking the path of least resistance and keeping your dreams!

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The End…

Posted by bodybydesign on September 8, 2007

You are a Champion!

I have taken you through the “process” and we have achieved MOMENTUM!

What is momentum? If you will look at the word Momentum the key word is MOMENT!

A moment may be a championship game and the Energy is in the Room! Many of us have experienced it and can recognize it when we see it. It is the top of the Pyramid! Wooden called it “Competitive Greatness.”

If you will go back a few articles you will see an article called Pyramid and is just an example of going through a process. Obviously, this was a very successful process for coach John Wooden (it worked for him and his teams). Please understand, there is not just one business model to success otherwise you wouldn’t have what we call “competitors.”

For me, momentum is the outward manifestation (appearance or moment) of the inner man. It’s the example and legacy you leave for others. It’s the lives you have touched with your efforts.

The End is Beginning…

Dr. Myles Munroe in his book The Principles and Power of Vision says this: “When do you start building a house? Is it when you dig the foundation? Essentially, you begin building whenever the idea for the house is conceived. The finished house is still in the unseen; other people pass by the property, and they don’t see it. However, to you, who understand and know what is going to happen, the house is already finished. Digging the foundation is simply the beginning of bringing your purpose to pass.Therefore, after you dig the foundation, and somebody asks you, ‘What are you doing?’ your answer is very definite. You point to the architect’s rendering of the house and say, ‘I am building this.’”

In Network Marketing you are the general contractor of your building. You begin the house and the steps keep you busy all the way through to completion. It starts with your purpose or plan to build. The plan is the three star gold blueprint you will find in these articles.

Begin to build…

“A vision, by itself, is merely a fantasy seeking commitment.” Dick Richards

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Tongue Control

Posted by bodybydesign on September 6, 2007

You are a Champion!

There is no better topic on becoming a good leader and “keeping” the organization and structure you have established. In just seconds your tongue can tear down months and years of work. In fact, even companies and churches are destroyed because of the lack of tongue control by the leaders. Proverbs 12:18, “There is that speaketh like the piercings of a sword: but the tongue of the wise is health.”

“The tongue should speak life not death!” Todd Cash.

A rule established by the founder of our company and mentioned in leadership meetings and training is this, “If it is not necessary to say it is necessary not to say.”

99.9% of the time if we have a failure in life it is going to be because we don’t have the wisdom to keep silent. Of course, this will be harder for some personality types than others. I remember a high school coach being asked by a student why he had a black eye and this was his response: “I was talking when I should have been listening.”

Always think about this when you speak: “What is the reason for this comment and what “great thing” will it accomplish.” Well, you say: “Talk about going overboard!” No, there is a time to speak and this is so important that I am adding double emphasis. See my article Born on Third Base regarding (20) Habits we need to stop.

If you become a leader in any organization you will start to become aware of the “dirty laundry.” This goes tipple if you are part of the core of a church. Why do I make that comment? No matter how dedicated and how hard we may strive at being better in life there will be failure (sometimes big failures). All organizations struggle with this daily.

It’s important to know about the rumbling in your organization and this is different from gossip or language that tears down the structure. We have to have an open door of communication but there should be rules. Also, if you want to be kept in the loop and informed be sure and be known as a person that keeps confidence and controls the tongue. My wife and I were in a leadership meeting and a VP, no longer in the company, was sharing some comments about another leader. The problem with the comments was this: “We know that leader better than them and the comments were not welcome.” By a few choice and polite words my wife let the person know that these comments were not welcome. That particular leader, being talked about, was a major reason that the company had its success and was well respected and liked by many. This tears down what has already been established so why is it being said?

Stay out of the personal affairs and problems of your Distributors! You are not their Doctor, etc. This is a business. A friend can ask for help and that’s OK. A good example comes to my mind right now. My wife, and a downline Distributor in another state, decided they needed to deal with a personal problem that was hurting the business. An upline Sponsor was suing one of her downline Sponsors and this person was a serious producer. We were thinking that this situation was really bad for business and needed to be addressed. That was a mistake, because the person was suing for a real reason and the person we were trying to protect wasn’t worth protecting and no longer in the business. Think long and hard about meddling in someones affairs. Also, you might want to go with the core values instead of the money.

Know your audience! Rick Warren, “At Saddleback Church we do not expect unbelievers to act like believers until they are. We do not expect visitors in the crowd to act like members of the congregation. We expect very little from the seeker who is investigating the claims of Christ. We simply say, as Jesus did in his first encounter with the disciples, “Come and see!” We invite unbelievers to check us out, to see for themselves what the church is all about.”

“It’s not about lowering standards or watering-down the message
but starting where people are.”

Promotion versus Training:

The art of promotion is a big factor in the creation of our goal (momentum). Serious training is done with the “core” group, or a session called TRAINING. This is not for the person who knows nothing about the business or the product. THIS IS A PROCESS!

If you are trying to sell someone on the products or the business why would you have someone as a speaker who doesn’t even know how to make that discernment or pick a topic? A good leader controls the meeting! Remember, “Organizing, Directing, and Controlling?”

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Layers of Conviction

Posted by bodybydesign on September 5, 2007

You are a Champion!

We call follow-up and continuing someone through the process Layers of Conviction or Layering.

Have you ever built a house as a general contractor? My wife and I have and it didn’t happen overnight. In fact, it was long process with many logical steps. I’m going to give you several examples in this article to make my point.

Selling people some products or recruiting people into the business is one thing. Taking people through a process is a whole different game that will require a lot of layering.

What’s Layering and how many Layers?

It all depends. Why? If I’m selling you a bar of soap it doesn’t take much layering. You have probably experienced soap before and have probably even taken a bath or two. When you buy my soap you will either like it, and buy it again, or you won’t like it and move on to another product. If I am a marketer of soap I may want to understand why you moved on. If I am a retail clerk in the store or selling on the Internet I could really care less. Unfortunately, a lot of so-called Network Marketers are like the clerk in the store. They will sell enough soap until it sticks to someone (repeat customer or a somehow business builder). If that’s what I was being “paid” to do that’s what I would do too.

However, what I am interested in is residual income and not just to sell you on the products or the opportunity. If I wasn’t interested in residual income (please believe me) I wouldn’t be doing Network Marketing! I want to live in this building a long time “rent free.”

In my opinion, Network Marketing is more along the line of looking for a spouse, learning to play “a good game” of golf, or building a house. I’ve already talked about building a house so let’s look at dating with the idea of getting married.

I ask you out on a first date and of course I put my best foot forward. I’m saying and doing all the right things so that you will be impressed with what a wonderful person I am. And so, the evening goes very well and we get to the front porch. You think, yes I might kiss this guy good night (come on, please humor me I haven’t dated in several decades). Instead, I ask you a question: “Will you marry me and promise to live with me until death do us part?” And of course, you say: “YES!” Sound logical? Perhaps I’ve missed a few layers of conviction? And so, my good looking friend Tom comes along and she says, “I think I like Tom better–goodbye!” What’s missing here? What do I not understand about this woman? It’s called “CONVICTION” and “RELATIONSHIP” and “COMMITMENT” and it takes a lot of “LAYERING.” Do I even want to be with this woman?

So much for women, so now I move on to the game of golf. I go out with a golf pro and start getting some great tips. He thinks its time for me to play a round of golf and using the tips he’s given me: “I SHOT MY FIRST GAME OF PAR GOLF!” Yeah, right. It’s such an easy game.

I sell you some nutritional products and you lose (9) LBS–that’s one layer.

When you think about Network Marketing think about this: “If it was easy everyone would be doing it, earning residual income, and making $1 million a year.” You should be glad it’s not easy because the potential for serious income is serious. Time, practice, and layers of conviction may get you there someday.

“Methods (techniques) are many, principles (fundamentals) are few; methods change often, principles never do.”

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