MLM Mythbuster by tyndale


									 Health Discovery                       Bobby Black's "Share The Wealth"Newsletter                         0208B

                                                          MLM Mythbuster
                                                          The product sells itself!
                                                           My question is this: "If it sells itself then why do they
                                                           need YOU?" So since we know that it dosen't
Scientists discover a brand new         sell itself, we need to maximize OUR efforts at selling it!
group of phytonutrients known as        It’s often said that the three most important factors in choosing where to
Xanthones in the Mangosteen             open a brick and mortar business is:
Fruit ...                               (1) location, (2) location, and (3) location.
                            MORE >      In order for your endeavor to turn out profitably, you have to keep the
                                        main thing the main thing. Well just like in a storefront, when it comes to
       Team Sponsorship                 running a highly-profitable Network Marketing business, a similar formula
                                        needs to be applied. Namely the most important factor of all is…
                                        (1) Marketing, (2) Marketing, and (3) Marketing!

                                        You Can Have The Most Ground-Breaking Product In The World, But
                                        If You’re Not Using Effective Marketing, No One Will Know And No
                                        One Will Care.
                                        Effective sales & marketing is bar-none the most important function of a
                                        business. Sales is the only activity in a business that actually brings in the
1st company in US history to            cash. Every other activity uses up that cash.
sponsor jersey of major league sports   The product, the compensation plan, the timing, the people, the
team is MLM...                          leadership, the management…all crucial aspects of a business…but none
                           MORE >       of them are income producing activities.
                                        The revenue brought in from sales is what makes it all possible. It’s the
      Health Trends Turn                driving force behind everything. Marketing on the otherhand is what
                                        brings in the clientel to sell to! And that’s why you need to be more
                                        concerned about the sales strategies and marketing plan you’re using
                                        than anything else.

                                        You Can Make A Lot Of Money With An Awesome
                                        Marketing Plan And A Mediocre Product. You Will Never
                                        Even Come Close To Making As Much With An Awesome
US trends show intrest in healthier     Product And A Mediocre Marketing Plan.
lifestyles and holistic health          Don’t believe me? Ask Robert Kiyosaki. In his book ‘Cashflow Quadrant,’
solutions                               (p.27,28) Robert talks about how he has people
                              MORE >    approach him all the time about starting a new business or how to raise
                                        money for a new project. He can instantly tell whether that person’s focus
        Amazing Growth                  is on the product or the system of business by the words they say. Things
                                        like: “This is a much better product than company xyz makes.” “Nobody
                                        else can compete with this product.” After listening to their pitch, he slowly
                                        asks them, “Can you personally cook a better hamburger than
                                        McDonald’s?” So far, everyone he’s asked that question has said “yes,”
                                        they can.
                                        He then asks, “So, if you can cook a better hamburger, why does
                                      McDonald’s make more money than you?” Some people see the
                                      difference immediately and some just don’t get it. The problem, as
                                      Robert explains, is that most people focus on perfecting their skills at
                                      making a better hamburger rather than the skills of selling and delivering
                                      the hamburger. McDonald’s may not make the best hamburger, but they
                                      are the best at selling and delivering a basic,
                                      average hamburger. He then goes on to say how the absolute most
                                      important skills a business owner can ever develop are sales and
MLM achieves in 5 years what most     Or as Seth Godin, former Vice President of Marketing for Yahoo!, says:
companies take 50 years, if ever to   “Marketing is all there is. You don’t win with better shipping or
accomplish.                           manufacturing or accounts payable. You win with better marketing…”
                           MORE >     Why I am I telling you this? What’s the lesson for network marketers?
                                      Simply this: Your product (or your opportunity), no matter how good, will
                                      not sell itself and will not make you rich.
      1st Time Partnerhip             Also, keep this in mind:
                                      You May Believe With All Your Heart
                                      That Your Company Is The Best, Hands Down…
                                      But So Does Everyone Else.
                                      Therefore, the person who succeeds is not the one with the best
MLM partners with Wild Flavors™,      company, but the one who can do the best job communicating the idea of
the World's Largest Flavoring and     their company.
Manufacturing Company, best           I am not saying that your product doesn’t need to be top-quality. It does. I
known for inventing Capri-Sun™.       am a firm believer that the only way to do business is to provide a product
                           MORE >     or service that far exceeds your customer’s expectations. Both for ethical
                                      reasons and for the obvious business reasons of getting repeat business
                                      from satisfied customers.
         The Jet$tream                Anything that you sell to anyone should always be of enormous
                                      value in comparison to what they paid you for it. It should always
                                      An unbeatable combination therefore, is to have a killer marketing
                                      strategy and a killer product. You want the best of both worlds.
                                      One to one selling gets you just that one sale. Duplication must BEGIN
                                      with marketing, why reach one prospect at a time when you can reach 20
                                      or 200...It takes the same amount of time to "introduce the product" or
                                      "show the plan" to 1 person as it does to 1000 if marketed properly.
Cutting-edge MLM strategy allows
everyone to work as a TEAM,
placing ALL new customers and         Due Diligence- JUST DO IT!
members in one single vertical line   Put it to the 5 Pillars test.
creating maximum teamwork and
                                      In the network marketing arena, a person should look for the 5 pillars of a
                                      company to help the distributor become successful. The 5 Pillars to look
                           MORE >
                                      for in a MLM company are as follows:

             SPONSORS                 1) MLM Company Management with Experience and IntegrityYou’ll fine
                                      this by reading your policies and procedures

                                      2) Timing in the MLM Company and MLM Industry, the product MUST be
                                      in current demand.

                                      3) Products- The Company has its product priced so that distributors can
                                      sell them at retail, with flexible sales parameters to allow for retail sale

                                      4) Compensation plan that works for part-timers as well as full-timers. The
vast majority of MLM distributors are part-timers.

5) A proven lead generating system that doesn’t rely primarily on family
and friends, with flexible advertising parameters to allow for marketing

Each person chooses their MLM company based on choices that are
important to them, but if the goal is to build a successful network
marketing organization for themselves, the above 5 pillars should be the
major consideration for successful network marketing.

Network marketing is much like the dating world in that many people fall
in love with their products first without consideration given to the business
model or company itself. When dating, people are attracted to another by
looks first. It is fine to be attracted by looks, but after the initial attraction
we must look deeper to determine if we have enough in common and if
we can move to the future together.

When we look at our network marketing future, we need to consider the
company we are about to “marry” because they will help to determine
our future network marketing success.

Beware The "Front End Loading" Plan
How much do I 'need' to buy?
“Front-end loading” is the name given to the self-defeating practice of
having new recruits buy huge amounts of product on sign-up in order to,
supposedly, push them to higher bonus and/or leadership levels quickly.
The arguments are always much the same:
“If you increase your credit card limit and buy this amount of product,
you’ll qualify for this leadership/bonus/discount level and you’ll make
LOTS more money!”
The number of people I talk to who’ve fallen for this fallacy becomes quite
depressing. Like the old pyramid selling days of the late 1960s and early
1970s, there are thousands of people out there with garages full of out-of-
date products they bought at a big discount — but have never been able
to sell or consume. Remember… pyramid selling is not a structure. It’s an
ATTITUDE! And it still persists in any industry where there’s a lot of
money to be made.
“Front-end loading” generally rewards the SPONSOR (very temporarily)
and penalises the recruit. Sure, they buy at a bigger discount, or earn a
bigger bonus… but “front-end loading” flies in the face of these
fundamental principles on which MLM depends for success.
You only profit from selling — not from buying.

100% of nothing is still nothing!

“You can’t reap the fruits if you poison the roots.”

Your people will do what they see you do

Greed, laziness, ignorance, fear, selfishness and stupidity are MLM
business killers.
Let’s take them one at a time. The reasons why “front end loading” is so
suicidal should become abundantly clear, very quickly.
1. You only profit from SELLING — not from buying
It doesn’t matter how cheaply you buy something, until you SELL it (for
more than you paid for it… any fool can sell it for less), all you have is
more product than you need or want and less money than you had before
you bought it.
There are no rewards for mere ACTIVITY in MLM. You only earn rewards
for RESULTS. BUYING product is not a result for you. It’s an activity.
Selling it at a profit is a result. So the only rewards for you buying all that
product go to the company and your upline. Not you. The real worry when
you join a network that encourages “front end loading”, apart from your
very real financial loss, is that you’ve joined someone who is either
greedy, lazy and selfish, or ignorant and stupid. (See No. 5.)
2. 100% of nothing is still nothing
There’s a common proposition amongst networks that practise “front end
loading” that goes like this (the figures are for example only, not
necessarily actual):
“Once you reach the top discount/bonus level, you break out and become
head of a new organisation. When your people do the same, you earn
overrides on their volume. In our company, you earn 5% override on each
breakout level up to four deep. So if you sponsor people, get them to buy
that breakout volume, then get them to do the same, you’ll make the full
5% on each level and you’ll be rolling in money every month!”
What this proposition conveniently overlooks is that you have to keep
buying at that level each month or there’s no volume on which to pay
those overrides. And it’s the same for those downline recruits.
The problem is, your “organisation” or “personal group” consists of just
one person. You. So you have to either consume or sell that amount of
product each month — something that’s virtually impossible to achieve.
So, whether the override payment is 1% or 100% becomes irrelevant…
100% of nothing is still NOTHING.
You downline “leaders” — all heads of organisations consisting of
themselves — are no better off. And, just as it dawns on you that your
sponsor is either selfish, greedy or lazy, or irgnorant and stupid, your own
people begin to have the same thoughts about YOU.
Is it any wonder that these organisations tend to collapse from within?
And that MLM takes the undeserved blame for the actions of terminally
stupid people who don’t understand it?
3. “You can’t eat the fruits if you poison the roots”
Only a fool would plant an orchard and then systematically poison the
roots of the trees. MLM is no different. You plant your money tree and
nurture it until it becomes a self propagating orchard that just keeps on
bearing fruit for you, endlessly.
But so many “leaders” poison the roots (downline) of their businesses by
exploiting and abusing them, or feeding them a constant diet of negative
comment — about the products, the company, the reward plan, their
upline leaders, etc — that it’s often amazing that they last as long as they
The key to MLM success is the quality and durability of the personal
relationships involved. They’re the roots and the trunk of your money tree.
“Front end loading” is a foolproof way to accelerate the poisoning
4. Your people will do what they see you do
This is probably the most fundamental axiom of the MLM industry. And it’s
the reason so many organisation, with stunning potential, dwindle and
disintegrate. Because, good or bad, your people will do what they see you
So if your sponsor advocates “front end loading” (or any other self-
defeating practice), chances are that you’ll do the same and so will the
people you sponsor… and so it goes on down the line. The only real
difference will be deciding the motives involved — greed, laziness and
selfishnes? Or ignorance and stupidity?
5. Greed, laziness, ignorance, fear, selfishness and stupidity are the
biggest MLM business killers.
You should be able to see clearly by now how true this statement is —
and why.
Not one of them is a valid reason for doing anything in this industry.
Remember… network marketing (MLM) is the most enlightened, honest,
ethical, highly leveraged system of free enterprise. But ONLY when it’s
operated by people who are enlightened, honest, ethical and understand
the importance of leverage. And the most critical form of leverage is the
quality and durability of your personal relationships. Not one of these six
attributes will enhance a single relationship.
If anyone tries to persuade you to buy up big on start-up, they
immediately identify themselves as someone you don’t need or want as a
sponsor, because they have nothing to offer you except grief and
It’s rarely the companies who encourage “front end loading” – in fact,
most reputable companies have systems in place to try to prevent it
because of its illegality and the damage it does to their businesses.

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