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The Art of the MLM Deal
How
To Build The Best Team of MLM Leaders that Money Can Buy
Leonard
W. Clements
Have
you ever wondered how so many heavy hitters in this
industry make such obscene incomes in such a short period of time,
while you work your butt off for months only to produce a $250 check?
After all, you are duplicating their methods and systems, right?
Youre mailing out the cassette tapes, youre on the training
calls, youre paying for the ad co-ops, youre doing the
three-way calls, youre attending the meetings, youre
handing out the product samples like candy on Halloween night --
so if thats how they did it, why isnt it working for
you?
Maybe
its because -- thats not how they did it.
Please
understand right now that there are Leaders in this
business (a term I prefer over heavy hitter) that do
achieve substantial success, starting from scratch, in a relatively
short period of time using all the basic techniques described above
-- because they are exceptionally good at it.
Lets
be honest, some folks are just better at network marketing than
others. However, one of the greatest aspects of this industry is
its way of leveling the playing field. Even those that are not very
good at it can still succeed, over a longer period of time, by slowly
acquiring the skills necessary with the help of those who preceded
them on the road to success or by enrolling someone else who
already possesses these skills. I in no way want to diminish the
achievement of those who genuinely earned their income with effort
and commitment to what they truly feel in their heart is the best
MLM opportunity. If they honestly build their downline in a manner
that is duplicatable by those in their downline, they are not the
subject of this article. If you object to, or are personally offended
by, anything that is written here, well, if the shoe fits wear it!
Otherwise, throw it away.
Its
not yours.
Except
for the rare phenom who, like sports stars Tiger Woods or Wayne
Gretzky, achieve monumental success quickly due to sheer, natural
talent, the vast majority of those who achieve five- or six-digit
incomes in MLM in fewer than six months accomplished this in one
of three ways:
1.
They moved a large number of an already existing downline over from
another, usually failing, MLM program. Certainly not an immoral
or unethical practice, as long as there is full disclosure on the
part of the high earner. In other words, as long as he or she informs
those they bring in that their high degree of initial success is
totally unduplicatable. Of course, this disclosure is rarely provided.
2.
They are in a money game or front load program where thousands of
dollars are paid up front. A $1,250 payment for a $5.00 package
of material can generate a lot of up front commissions -- and a
lot of Cease and Desist orders from Attorney Generals.
3.
They made a deal with the company. Either they were offered some
extra bonus or overrides, were provided with a large number of already
existing distributors, or they are receiving a base
payment from the company (a set dollar amount over and above the
standard commission system). Or, perhaps all three.
Now,
in the case of number 3 above, one might ask, So what?
Shouldnt an MLM distributor have the right to market themselves
to the highest bidder just like professional athletes or corporate
executives? Sure. As long as there is, once again, full disclosure.
If
you make a deal with an MLM company and you subsequently tell prospects
that you joined it because you determined it to be the best
network marketing opportunity -- you are lying!
If
you make a deal with an MLM company and you subsequently declare
that those you bring into your downline can duplicate
your success -- you are lying!
If
you make a deal with an MLM company and you deny that you did, obviously,
you are lying!
Not
only that, but what does this say about the company itself? If they
are going to do this for you, how do you know that they are someday
not going to do this to you? Think about it. Doesnt this practice
of corporate dealing mean that the company itself is also recruiting?
It is very unusual for a wheeler an dealer company to place
their bought leadership more than two or three levels
deep beneath the company. Usually these leaders go front
line. Theres a good reason for that. All the sales volume
moved by those first level to a company are totally non-commissionable.
There is no upline to the sale to pay commissions to. If a plan
pays, lets say, 10% down six levels (60% total), then even
the volume that moves on the companys second level would only
require that they pay 10% of it in commission, thus saving them
from paying the other 50%. Companies could easily afford to pay
a leader two or three times the normal pay out and still
end up saving money by placing them directly below the company.
So, essentially, you are in competition with your own company for
the best talent! How can you ever expect to recruit a heavy hitter
if you cant compete with your companys deal?
Also,
it would seem to imply that the opportunity is not great enough
to attract talent and leadership based on its own merits.
If its a genuinely great opportunity, why would they have
to bribe people to join it?
If
you were looking for a good MLM program to join, and a good upline
sponsor to join under, wouldnt you want to get involved with
one that honestly felt they were in the best MLM opportunity? Or,
would you want to be sponsored by someone who was just looking for
the best deal? Sure, I suppose its possible that both could
be true. But what are the odds that, out of over 1,500 MLM programs
in the U.S., the one that they truly felt in their heart was the
very best MLM opportunity for themselves and those they enroll just
also happened to be the one that offered them a great deal? Petty
slim. In fact, of all those out there who are known for deal making,
most are pretty weak programs.
Do
only rinky-dink, desperate companies offer deals? No way. There
are at least three good MLM companies that I know of personally
that really dont need to make these screwy deals to attract
leaders, yet they do anyway. While others make a point, rather proudly,
that they dont do deals.
Interestingly,
what appears to be three of the hottest, fastest growing companies
right now are among those that refuse to make deals! Perhaps its
because true professional networkers, those who deserve the title
of leaders, dont join the company that offers
them the best deal, they look for the best MLM company. And the
best companies are the ones who get only the best.
Have
I ever proposed a deal to an MLM company? Yes, I have. And they
accepted it -- and I did not go forward with it. The little angel
on my right shoulder wouldnt shut up, and the little devil
on my left shoulder decided to give up.
Have
I ever been offered a deal? Several times. One company paid me a
$2,000 monthly base income for what was supposedly my compensation
for being their National Training Director. After several
months of watching the president and VP wander around the country
doing training while I sat at home, I finally got it through my
thick skull that I was simply bought off.
I resigned
from that program. Within 30 days I had offers on the table from
two well known MLM companies. One offered double the compensation
plan and the other offered to move their largest distributor
leg into my downline.
Another
declared to me, literally within minutes of arriving at their home
office, that they dont do deals. All they can offer is a great
network marketing opportunity. Thats the company I joined.
(And, again, there are other good companies that do business the
same way). Now, I can claim, with a clear conscience, that what
I built was built from scratch using the same techniques that my
downline can use, and in an MLM program that I sincerely believe
is a great opportunity (theres no such thing as the
best since the best would be different for each
person depending on a myriad of personal factors).
Im
often asked by prospects if I made a deal with the company.
Thats a good question. You should also be asking that question
to your prospective upline hitter. You should also be concerned
if your company is making these deals. You shouldnt have to
compete with them for MLM leaders.
Besides,
if your MLM company is a truly great opportunity, it shouldnt
have to pay people to join it!
Leonard
Clements has concentrated his full-time efforts over the last nine
years on researching and analyzing all aspects of Network Marketing.
He is a professional speaker and trainer, and currently conducts
Inside Network Marketing seminars throughout the U.S., Canada and
Mexico. He is also the publisher and editor of MarketWave Alert
Letter, an analysis and "watchdog" newsletter focusing
on the MLM industry. Mr. Clements is the author of the controversial
book Inside Network Marketing (Prima), an objective, no-holds-barred,
insider's look at MLM industry. He is also the host of the live
talk radio show of the same name (KSCO am 1080). Len is also the
author of the best selling cassette tape Case Closed! The Whole
Truth About Network Marketing, which has been labeled "the
best" generic recruiting tape by six MLM company presidents.
Mr.
Clements has been actively involved in the MLM industry for fourteen
years and is a successful distributor for a prominent MLM program
(which is never mentioned in either the book or the cassette tape).
To
receive additional information about MarketWave and its products,
please call 1-800-688-4766, write to MarketWave, Inc., 2406 Canberra
Ave., Henderson, NV 89052 or visit www.marketwaveinc.com.
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