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The 80/20 Rule Explained ... Why People Join
& Quit
by Robert Blackman
Don't
you just hate it when somebody "quits" your MLM program?
Don't you hate to see your genealogy with a bunch of people with
a big fat -0- next to their sales volume for that month?
I used
to.
But,
I don't anymore.
Why
not?
Because
I've learned after 12 years in this Industry what the 80/20 rule
REALLY means.
Let
me explain.
I've
been in sales most of my life.
And,
I've been self-employed in one way or another most of my life, too.
I've
always been able to stick with something and "close" the
deal.
Why?
Do
I know some secret that you don't?
Is
there some magical "script" that I use or body language
that my prospects see that makes them say "yes" and sign
on the dotted line?
No.
I'm
not that good of a salesman. Really, I'm not.
If
fact, I hate COLD calling anyone.
Instead,
I've designed a system where people call ME and ask for information
or ask questions instead of me hounding them down like a pack dog.
Why?
I hate
selling. Really. And, I hate being SOLD.
I went
to the mall here in Norman last night.
ARRRGH!
I went
in a furniture store looking for a few outdoor chairs and cushions
for my back porch.
I wasn't
ready to "buy" at that time, but I had about $100 bucks
floating around in my head that I would drop if I found the right
stuff.
I saw
him coming.
I tried
to ignore him.
I tried
to melt into the woodwork as I heard him say in a cheesy voice,
"Can I Help You Sir!"
I thought
to myself, "Hey, I'm 6'3" and weigh 200lbs, why am I such
a whimp when it comes to sales people?"
Why
do I cringe on the thought of being "sold?"
Why
did I want to "bolt and run" out of that store? Especially
since I was in desperate need of some
outdoor furniture!
And,
I had a $100 bucks to spend.
Go
figure. Ever been there before?
You
leave the house all "pumped up" about your little "buying
adventure". Then, a slick, cheesy sales person goes and ruins
it for you.
Huh.
Now
you can understand what over 80% of your prospects for your MLM
go through in their mind when you're talking to them.
Women,
you know are different. They cut through the bull when it comes
to "buying".
I think
they were created with "buying" in mind, if you know what
I mean! No offense ladies!
My
soon to be wife, Sheri is a classic example.
When
she walks into a store she goes and finds what she wants. Sees if
she likes it and if she can't find it she asks for directions from
a sales clerk--unlike men!
And,
she actually LISTENS to the sales person and when the sales person
goes down a path or suggests something she doesn't like she'll kindly
say:
"No,
I'm not looking for that."
She
always brings her sales person back to square one.
I got
to thinking that maybe this is just a gender thing.
Women
vs. Men.
But,
then I started thinking that when it comes to MLM I'm just like
Sheri.
I'm
assertive. I know what I want. I ask questions. I listen
So,
why do I feel like such a "fish out of water" when it
comes to buying clothes, jewelry, and furniture.
I guess
it's because I know absolutely NOTHING about them and I am afraid
that I'm going to be SOLD something that I really don't want or
like.
And,
I don't think the sales person has my best interest at heart.
I think
he or she is just interested in making a commission off of me.
And,
because I know that I know NOTHING about the furniture, he or she
could pull one over on me and I'd never know the difference.
Would
I feel better just blindly buying something and then get it home
and it fall apart?
Yes.
But,
I'm a prideful man. And, at age 38, there is little hope of that
changing.
I'd
rather just take Sheri with me and watch her GO!
So,
Robert. How does all this relate to the 80/20 rule in MLM.
Simple.
You
see, once you start understanding why YOU buy and why YOU don't
buy, you'll start understanding the whole buying/selling process.
You
see, when I "do" MLM I act like I'm selling myself.
I want
facts, figures, all that sort of good stuff.
And,
I want to sleep on it and contrast and compare that MLM deal with
any others that I may either be in already or am looking at.
If
the furniture guy would of come up to me and said:
"Hi,
I'm Nick (offered his hand and gave me his business card) let me
know if I can help you."
I would
of asked him a question or two and would of probably dropped my
$100 there instead of at another store later that same afternoon.
Yes.
My own insecurity drove me to his competitor.
He
didn't blow the sale.
I blew
the sale for him.
I didn't
even give him a chance.
And,
unless my "buyer" by the name of Sheri was there with
me, I wouldn't of stayed--and I didn't.
So,
why did I eventually go to another store an hour later and buy that
$100 of patio furniture.
Fear,
dang it.
Fear.
I told
Sheri that I would take care of it before she got home and if I
didn't I knew she'd be upset with me!!! (gulp)
The
honest truth in buying is that we ALL bring a whole bag full of
"conditions" that have to be met before we fell comfortable
buying.
It
depends on our balance in our checking account.
It
depends on your "mood" that day.
It
depends on whether or not your kids are screaming bloody murder
and you can't wait to get out of the store!
It
depends on whether or not it is raining outside.
It
depends....
Getting
the point yet?
You
CANNOT control the actions and attitude of your prospects or your
downline members.
They
are a "volunteer army".
Heck,
most employers have set up rules and conditions to try and control
the attitudes and actions of their employees and go to great lengths
to terminate those who violate those policies.
And,
that doesn't even work all the time!
You
see, the ONLY thing you can control is YOUR attitude and actions.
And,
when you TRY to control the attitudes and actions of others, well,
frustration is an understatement!
So,
again, Robert, how does this apply to the 80/20 rule in MLM.
Easy.
Buying
and selling in MLM is no different than retail.
MLM
is a business.
Yes,
it's a niche when considered in relation to the Gross National Product.
But,
it's a very PROFITABLE niche, now isn't it?
That's
why so many people are drawn to MLM.
It
has the "allure" of working hard once and making money
forever.
That
seldom happens, but the lifestyle that you can create (and I said
create--as in work at) is unlimited.
I know.
The
80/20 rule states this in sales:
80%
of your sales volume in any given month is brought to you by 20%
of the workforce.
So,
if you have 10 sales people, and your office did $100,000 in sales
that month, $80,000 of that
revenue would of been generated by only 2 of those sales people.
The
other $20,000 was generated by the 8 remaining so-called sales folks.
Don't
believe it?
I didn't
either.
I'd
been in MLM for 7 years and then this happened to me (you see, I'd
never "done" the numbers on the 80/20 Rule before. I thought
it was a myth or some old MLM wives tale. But, this my friend, blew
me away).
In
1996 I brought in over 500 people in a MLM program in 31 days. No,
I didn't sponsor them all. I sponsored about a dozen and those turned
into 500.
At
the end of 60 days I had 1,000 in my downline.
At
that time I had invested into a MLM downline tracking software that
I used to process the applications and forward them to the home
office.
We
were running a "Matrix" program at that time and I was
in charge of all the "placements" so the software was
a necessary "evil" to make my system purr.
At
the end of each month this software had a report that listed the
"Top Recuriters".
I thought,
"Hey, neat, now I can actually see who's doing all the work
and who's doing all the talking!"
I was
shocked.
No,
I was devastated.
I couldn't
believe my eyes. So much so, that I ran the report 5 different times
just to make sure I hadn't screwed up somehow.
All
5 reports read the same.
Here
are those numbers:
1,000
sponsored
210 sponsored 1 person or more
790 hadn't sponsored even 1 person
Hmmm.
Should I call it the 79/21 rule?
Close
enough.
But,
the point remains. The 80/20 rule works.
And,
it works for a reason.
One
I'll explain in a minute.
The
reason I was so shocked is that the program I was promoting at that
time had a 30% monthly bonus on everyone you personally enrolled.
You
enroll someone at $100 you make $30 a month from them!
Sponsor
10 and you're making $300 a month just from that one bonus!
That
one point alone, I thought, would of motivated those 790 to sponsor
at least one! Wouldn't it?
Plus,
we promoted a matrix which had the element of spillover.
And,
with a 3 x 7 Matrix we told and trained everyone to sponsor at least
4 a month to make the "spill" happen.
It
didn't work.
No
matter how much training I did, no matter how loud I screamed, no
matter how many hours I spent on the phone the 80/20 Rule, RULED!
I was
its SLAVE!
Or,
was I?
How
could I do a "Tony Robbins" and turn this thing around
and ask myself a better question?
You
know. Tony says that the quality of your life is determined by the
quality of the questions you ask yourself.
So,
I looked at my report, dazed, and asked myself this question:
"What's
good about this?"
It
took me about 5 minutes of mindless staring, but it hit me like
an Oklahoma Tornado:
"I
HAD CRACKED THE CODE!!!"
The
code, Robert? What's that?
The
"code" is your mind, my friend.
You
see, expectations, or the lack there of, are what keep most from
being in the top 20% of this equation we call sales--and in life
as well.
I had
EXPECTED about 50% of those in my group to sponsor one person or
more.
They
hadn't.
Only
20% had. And I felt like a failure. Can you believe it?
I had
over 1,000 people in my group--800 were on AAA ship (another lesson
coming soon) and I was making more money than I ever had in my MLM
career.
And,
I was depressed.
Go
figure.
Our
minds do wondrous and not so wondrous things.
Just
don't forget you are the programmer of your mind and only YOU can
crack the "code" to your mind.
Now,
how did I turn this around into a positive?
I sold
it, I taught it, I lived it.
And
more importantly, I EXPECTED IT!
I developed
entire ad campaigns with it.
I developed
entire recruiting strategies and set my monthly goals by it:
Sponsor
10.
2 will
duplicate.
They
each sponsor 10.
That's
20 more.
4 of
them will duplicate.
They
each sponsor 10.
That's
40 more.
8 of
them will duplicate.
Get
the picture?
I was
no longer walking into my office and "expecting" miracles
to happen in my downline.
Instead,
I created them!!!
How?
By
teaching and training those who I talked to about the proper expectations
they should have.
By
treating my MLM like a business instead of a day at the track experience.
Or,
worse yet, a day in line at the $40 Million Lotto.
You
see, the worse thing you can do is to expect something that will
never happen.
That
is a sure-fire formula for failure.
Why
do people Join your MLM?
They
either know, like or trust you.
Why
do people quit your MLM?
They
had the improper expectations and somebody else in another deal
uses their bad experience with you as a sounding board to say, "you
can do what you want over here!"
So,
Robert, how do you live and make money with the 80/20 Rule?
Simple.
First
understand that it exists in every pay plan and with every product
line.
Sure,
you may get to 70/30 or even have a 90/10. But the point is that
it's PEOPLE who are in your MLM program, not charts and graphs and
4-color brochures.
PEOPLE
are the variable in every program that throws your expectations
off.
I like
to say this to those who call me and are having a problem in their
MLM program:
"John,
if you had 10 brand-new application in your hand right now for your
MLM program would what you're talking about with me be a problem
or not?"
If
he says, "Yes", then we discuss it.
If
he says, "No", then we move on to the task at hand-- sponsoring
new people.
Sponsoring
NEW people is the answer to 99% of your problems/challenges/improper
expectations in your MLM program today.
Trust
me.
Try
it.
Forget
your problems for a minute and imagine having 10 new apps. in your
hot little hand right now.
How
does that make you feel?
"But,
Robert, that's my problem, I can't sponsor anyone!"
Positive
self-talking aside, that could be your first and ONLY problem.
I've
found that whatever you THINK happens.
My
mind is a magnet to what I think about and focus on all the time.
I want
a pizza. I focus on it. I smell the cheese. I taste the sauce.
Within
24 hours "Pizza Boy" is at my front door.
Amazing
how that works, isn't it?
I think
about quitting my MLM because my upline didn't return my call last
night. Or, my product was late. Or, the conference call started
late and everybody was laughing.
Or,
(insert excuse here)!
If
You Don't Want It In Your Life, Don't Think It!
At
least don't DWELL on it.
Sure,
you've got to think about your mortgage. And, I'm sure my article
won't persuade your Banker to forgive you the balance.....
Robert's
Rule #1 In Life:
Whatever
You Think About & Dwell On You Get!
Everything.
And I mean EVERYTHING that has happened to me in my life I thought
of it before.
Good,
bad, indifferent.
I'd
thought of it before it happened.
The
80/20 Rule exists because it's a measuring device of our species.
Human
Nature = 80/20 Rule
It's
a universal law.
So,
don't go trying to change it.
You
might slice a few percentages off of it for a while, but over your
lifetime in your MLM program the 80/20 Rule will be there--it won't
go away.
Learn
to live with it and learn to use it.
Most
of my "hitters" are those that like the truth.
They
aren't afraid of "working" and when they hear about the
80/20 Rule they say:
"That
makes sense. You're treating this like a real business, I like that.
How do I get started and what do I do first."
The
distinction is that I live to attract the 20%.
I set
dinner for them.
I send
a limo to get them.
I call
their name out at night.
I pandor
to them.
I design
my entire campaign around finding them.
Then,
once I do, I teach them how to "sell" our wares to the
80% who do nothing but "buy" our stuff.
Pretty
simple when you sit down and think about it.
The
80/20 Rule.
Check
it out with your own downline report.
You'll
be amazed.
Visit:
www.FreeMLMNewsletter.com today for leads.
You
need them.
I've
got them!
Robert
Blackman
(918) 335-3726
www.FreeMLMNewsletter.com
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