80% of your business should come from retail sales. You are either selling the product yourself, using it, recruiting customers, or most likely, a combination of these. With most company product/comp plan structures, out of 100 interested people you talk to it is likely that only three will be interested in the business side. The other 97 will be product users.
Think of this: If you had a weight loss product and introduced it to 100 people who just enrolled at a gym with the goal of losing weight, chances are your success rate at retailing product would be much higher than recruiting business builders. You will get a few satisfied customers that may refer others, and you can even tell your customers how to get their product for free every month (by referring whatever number of people your company requires to do so) but with a product targeted audience like this if you went with the business plan first you would have minor, if any interest.
The FTC (which as of this writing is closed due to government shutdown, but will most likely re-open and continue to hound MLM distributors and companies who violate laws — see also Commandment 2) also requires a strong retail percentage of a company. In other words, you have to be selling something that would sell anyway even if their were no compensation.
2. Thou Shalt not Falsely Advertise Earnings or Product Claims
Income disclosures are meaningless. The average person in the average network marketing company earns zero dollars and zero cents, and that’s because the average person does zero. But you are different, right (at least I hope)?
Everyone in this business starts out at the same place, zero.
Everyone in this business has the same earning potential.
It is entirely up to you as to how much you make. Not your sponsor, not your upline, and not claims made by anyone else.
If your prospect asks how much you make (even if you are pulling down five-figures a month), tell him/her you started at zero like everyone else and the only person you divulge your income to is your accountant.
Attracting business based on hype will result in a stampede for the exit doors and ruin your reputation.
Hyped up income and/or product claims will get you into trouble.
3. Thou Shalt not Refrain from Real Sales & Marketing Training
This is a business of sales.
I don’t care what your sponsor told you, what you saw in your presentation to join (which may have been the tool doing the selling), but this is a business of sales. In fact, something has to be sold in nearly every income opportunity so why would this be different?
The good news is that it doesn’t have to be (and shouldn’t be) high-pressure sales. You can learn simple techniques to get started right away and continue to improve your skills and grow with the business over time.
4. Thou Shalt not Spend Money on False Teachers & Trainers
Lots floating around. I’m all for trainers and support many, but — those that are actively working the business. I don’t want to learn from someone who did it 30 years ago, retired, and is now earning a living preaching techniques that may have changed or no longer work. Seek reputable trainers that actively work the business who also have no hidden agenda to recruit you into their business. Without being biased toward myself, Todd Falcone is one of my favorites. His courses are rock-solid (I own nearly every one of them and have known Todd since the days of ProSTEP back in 1995).
I am also a HUGE believer in materials outside of the Network Marketing Industry (as you can probably tell by my recommended books). Network Marketing is a business of constant expansion and growth. If you don’t grow, you can’t grow your business.
Plain and simple.
Self-Improvement and courses that are more generic in nature help your overall growth and also force you to think about how to utilize the principles taught in your specific business, rather than becoming a robot and following along.
If you want a sneak peek at what I am using now, head on over here and check out Connection Mastery by Larry Benet. This is the MOST POWERFUL training on connecting with influential people in any industry. I’m only half-way through it (implementing as I go) and will do a full review when done, but I have to tell you, using these techniques for prospecting in your MLM business is like killing a mosquito with a bazooka. The course is targeted toward people looking to connect with Fortune 500 executives, Celebrities, Millionaires, Billionaires, etc.. So I figured why not use these strategies in our industry and shoot for prospects higher up the socio-economic ladder? It has worked with astonishing results.
FYI and FTC disclosure (not that it matters since they are shutdown as of this writing anyway): The two links above ARE NOT affiliate links. I don’t earn a dime if you buy their products. Just giving them to you because I can recommend them with utmost confidence. I’ll make less than a buck if you buy any of the books through links on this blog (you would still pay the same price directly through Amazon).
5. Thou Shalt not Fill Thy Brain With Useless TV Drivel, Negative News, & Negative People
This requires an entire book to explain (and many have been written). Understand, you are (or are striving to be) in an elite group of people — Only a small percentage of the population think like us, act like us, and get results! Everyone else will drag you down. The books you read, the TV shows you watch, and the people you associate with have a tremendous impact on what you think, how you act, and ultimately, your results.
Who, and what media, do you want influencing you?
It’s been said that your income can be determined by the average of your five closest people. So, hang around with broke folks who will give you all the reasons it can’t be done and guess where you will be?
If you can’t physically be around uplifting people (and preferably millionaires) read their material and attend their events. It will make a dramatic difference not only in your Network Marketing business, but your life.
Feel Free to comment, and Stay Tuned For Part II….