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Saturday, July 04, 2009
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Archives
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Buying Leads Is a Scam!!
So, you’ve tried and tried, and worked and worked, and paid and paid! I know, I’ve been there. I’ve lost a lot of money and was frustrated at my lack of success. But Network Marketing can and does work. But you have to know what you are doing, you have to learn the ropes, and you have to be with a good company, where management has the higest integrity and is looking out for you.
You want to be successful and financially free. And Network Marketing is a good way to accomplish this. But there are lots of scams out there. Or companies that are just not looking out for their reps.
Are you buying leads for hundreds or thousands of dollars each month. Trust me, buying leads does not work!! I know, I’ve tried it. I once spent $1,275 on leads in one month, and you know how many people I signed up? Zero!!! Yep, that’s right, a big fat zero!
There is a way to make money in this business, but you have to know what you are doing, and you have to work with great people who know what they are doing, too. And nobody should charge for this information. A good mentor will mentor you for free,
So, where do you go from here? Well, you need to be educated, and you need a great mentor.
Check out my links for a free e-book called Success in 10 Steps, and the Mentoring for Free site.
Seven Steps to Remember When Building Your Network Marketing Business
Why does success in network marketing seem so difficult?
Let’s agree to start teaching “The Seven Steps” of network marketing success to those who actually want to create the life of their dreams, and leave the rest of the world alone. After all, we’re involved in a great industry, with terrific people, offering unlimited opportunity. And we should be proud to speak the truth .
1) Network Marketing is a business.
Networking is a unique form of enterprise, and you’ve got to understand the game you’re playing. Therefore mentally consume every page of your distributor manual the day it arrives. Listen to your training tapes again, and again, and again. Like a song on the radio, you learn the lyrics by hearing the music one more time.
2) Freedom by the numbers.
Understand the numbers, and your compensation plan. Start by involving three or five people, whatever number your plan dictates. By your fifth year, the commissions paid on your invested efforts could well equal a mid six-figure annual income. After that, the sky’s the limit.
3) Attend every live event.
The weekly presentation is part of the process. You need to be in attendance every week, to see the presentation again. Remember the music? You need the association, and the environment to showcase your company for your prospects. True, not everyone attending every meeting earns $10,000 a month. However, everyone earning $10,000 a month attends every meeting. Now that’s a refined study of the obvious.
4) Work only one company.
Leaders understand this truth, because no man or woman can serve two masters.
5) Have a compelling written “Why?”
Success in Network Marketing is 20% how to, and 80% why to. The best part is, if your reasons are strong enough, you’ll learn everything you need to know along your journey.
6) Invest in yourself first.
Some people are still trying to earn 2008 money using a 1982 education. It can’t be done. If you want to earn more, you’ve got to learn more. Therefore, read all the books, attend all the classes, and learn everything you possibly can.
7) Decide in writing you’ll be here a year from now.
Long-term written goals possess the power to pull you right to the top of your company. Put your dreams for your future on paper, and begin building your dream life!
These “Seven Steps” will take you to the top!
Read the Policies & Procedures of Any Company You are Thinking of Joining
From Anna & Bob: Policies & Procedures (P&Ps) are legal contracts that people are required to sign when they join a network marketing company.
The problem is that the majority of people either don’t read them or didn’t understand them. (Some companies’ P&Ps can run to 30 or more pages, and it’s pretty boring legalese.)
Policies and Procedures, Terms of Service, Consultant Agreement, and Independent Sales Rep Contracts are a few of the names MLM companies call the legal binding contracts they require you sign when you join their company.
Does this look familiar to you?
“I have read, understand and agree to the Terms of Agreement, the Policies and Procedures, and the Compensation Plan.”
How many people read the entire contract all the way through?
Probably not too many.
If you hired a lawyer to read it first and explain it to you in layman’s terms, then you would have a clear understanding of whether or not you wanted to sign that contract. But who is going to go to that kind of trouble and expense. And besides, you are saying right now, “my awesome network marketing company would never cheat me out of my business! It is a totally honest company!”
They want you to think that signing the P&Ps is just a simple formality. Think again.
Here’s a little story.
Joe and his wife Mary joined a great network marketing company. Things were really going great for Joe and Mary. In just a few short years, they were able to quit their day jobs and build their home business full time. They were so happy to be living a life that had always dreamed about.
Then one day, all the happiness and success came to a screeching halt.
Joe and Mary received a letter in the mail from their network marketing company. When they read the letter, they tried to make sense of the devastating news: the company told Joe and Mary that their affiliation with the company had been terminated. No reason, no apologizes, just terminated.
Joe and Mary were very upset, of course. They spent years building a great organization of honest, hard working people. They helped the company train people and gave seminars. They gave everything they had to this company.
They took all of their documents to a lawyer to find out what they could do legally to stop the company from terminating them.
The lawyer sat reading through the company’s Policies and Procedures that Joe and Mary had signed when they joined the company. After reading the document, the lawyer took out a red marker and circled something on the paper and handed it to Joe and Mary.
Joe and Mary looked at it and read:
AGREEMENT TERMINABLE AT WILL
You may terminate your relationship with [company] at any time by providing a signed written notice to [company]. [Company] may also terminate the relationship with you (including any partnerships, corporations or other entity) at any time by providing written notice. You or [company] are not required to have any reason, nor do you or [company] have to claim or prove any cause to terminate this relationship. If and when the relationship is terminated, you shall have no claim against [company] nor any right to claim or collect lost profits, lost opportunities or any other damages. Termination will result in the loss of all benefits as an [company] Independent Consultant.
There wasn’t a thing they could do about it. The loyalty and dedication they had shown the company had not been reciprocated.
Please, if you are thinking of joining a network marketing company, read the Policies & Procedures, don’t become another victim of heartless companies. You deserve more than that.
This free e-book will help get you on the right path to learning the skills and knowledge you need to be a complete success in this wonderful industry. There are great companies out there that will never do this to you. But you have to learn how to identify an honest company! If you are in a company already, read your P&Ps, if you don’t like what you read, then you definitely need to read this ebook!
Best of luck to all!
More Scams - Protect Yourself
From Sarah: These headlines are from MLMwatchdog.com…
FEDS WANT $55 MIL ITV - MLM PARENT
7 Aug 2008 — Federal rules against ITV
AD SURF DAILY: FEDS GRAB $53 MILLION = SCAM
5 Aug 2008 — Owners houses seized/searched and offices records taken.
CALIFORNIA AG HITS YTB $25 MILLION
This morning 5 Aug 2008 - As WatchDog Predicted numbers just don’t run
You can read these at mlmwatchdog.com
Mentoring for Free has been trying to spread the word that if your in an MLM compnay, YOU need to:
- READ Your policies and procedures
- Understand the Company’s Business Model
- Know if You are in a “5 Pillars company”
You have to protect Yourself and your money! The only way to do
this is to learn what defines a “valid” company that You can
build and not worry about losing it when the Feds shut You
down. Valid not Legal.
Mentoring for Free can help! We teach, mentor, and coach folks for FREE and we can show you how to properly evaluate Any Network Marketing
company.
We do this so that the average person can become successful
at Network Marketing. This is a Great Industry, and network marketing can and does work. But you have to learn how to do it right, and how to pick a good company!
Do you realize that when these three companies topple, that nearly
200,000 people — thats Two Hundred Thousand Distributors — will be affected ? They will lose everything!
If Your are in one these companies, or you are not sure about your company, and If you want success, Please, Please download my FREE e-book and then I can answer any questions you might have.
It is Later than you think! Read this e-book today!!
Do You Have Questions?
If you’re like most people struggling to succeed in network marketing, you’ve asked one or more of the following questions:
From Anna & Bob (again, thanks guys!):
- Why am I struggling so to make this work?
- What are the secrets to recruiting?
- Should I be using closing techniques?
- Where are the best places to find interested people?
- What’s the best MLM recruiting system?
- How do I find the top ten mlm companies?
- How can I avoid a scam?
- What are some good MLM strategies?
- Does my network marketing company have the five pillars?
- How important is a good product?
- Should I try for multiple streams of income?
- Should I buy leads?
- What’s wrong with me?
- Why am I losing so much of my downline?
- Where’s my sponsor?
- Why can’t I find good workers?
- Should I try a ground floor opportunity?
- Am I treating people like numbers?
- Why doesn’t anybody want my product?
- Why are my friends and family avoiding me?
- Is this sales?
- Why am I not making the money I expected?
- How can I improve my phone skills?
- How can I improve my people skills?
- Are there inexpensive ways to advertise?
- Where can I find a mentor for network marketing or MLM coach?
- Why do so many people fail at MLM?
- How do I figure out my company’s pay plan?
- Are all MLM compensation plans the same?
- Should I have read my policies and procedures before joining?
- Where can I find help in my MLM business?
- Am I doing something wrong that I don’t know about?
If you want answers to these questions, and any other questions you might have, read this FREE e-book, Success in 10 Steps. It is a guide for those weary, frustrated network marketers looking for answers! Save yourself years of failure and frustration. Also, check out my Mentoring for Free website. Everything is free, so you have nothing to lose and everything to gain!
Calif. AG: "YTB Is a Gigantic Scam"
My mentor Sarah posted this on her blog to expose these pyramid schemes.
Do Your homework before you commit to a company or program to avoid pyramid schemes and scams. You need to know what to look for to do the analysis - When You know this it is like having your own crystal ball. You will be able to predict whcih companies are Scams and Pyramid schemes .
California Attorney General Brown said:
“YourTravelBiz.com operates a gigantic pyramid scheme that is immensely profitable to a few individuals on top and a complete rip-off for most everyone else, Today’s lawsuit seeks to shut down the company’s unlawful operation before more people are exploited by the scam.”
The above quote comes directly from the office of the Attorney General for the State of California. Industry leaders in the network marketing industry immediately reported YTB, or Your Travel Biz, as being a pyramid scheme. They had the knowledge to properly analyze YTB, and to see behind the curtain.
Another example is Burnlounge, they too were a publicly traded illegal pyramid. The Attorney General sued them and they terminated the MLM program within a few short days - All of their distributors lost their entire organizations.
Did you know that YTB has released plans to change to a franchised operation. You need to find out if your MLM company’s pay plan is similar to YTB’s. Read your company’s policies and procedures and the compansation plan. Once You have read these, compare it YTB’s P&P and comp plan, see if they are similar, I have seen many network marketing companies that have YTB mirror-image compensation plans .
Typical companies with low profit margin products and services using YTB mirror-image plans are usually service and education or technology-based operations.
As these companies grow, the number of people that get scammed increases, when the pain level increases and distributros atart screaming, the state Attorney General has to act. This is Why these companies last for only 2 or 3 years.
You can learn and watch for reports like this one by signing up for Rod Cook’s MLM Watchdog newsletter at http://mlmwatchdog.com
My axiom “Get educated, or get scamed!”
You can further your education here for Free! Check out my Mentoring for Free website and this Free e-book, Success in 10 Steps.
Are You Frustrated by Your Lack of Success in Network Marketing?
A big reason for the effectiveness of this FREE e-book, Success in 10 steps, is THAT keyword - Frustrated!
This e-book answers all the questions of frustrated network marketers … who REALLY want their questions answered. It’s eating away at them, why they just haven’t made it big. They are so darned … FRUSTRATED!!!!
Use that word, FRUSTRATED - when you are advertising and talking to your leads. Pound, pound, pound on “frustrated.” That word is worth its weight in gold.
Things change over time. It may not always be this way. But it definitely is true now. MLMers are frustrated right now, and they want answers now. Use that knowledge when you advertise to them and when you talk with them.
Success in 10 Steps targets people who are frustrated by their MLM failures. Tell your leads that “It Is NOT Your Fault!” When they hear those words, they will feel so much relief!
When you can show a person how he or she got into a position where he/she could not possibly have been successful, that giant weight lifts off him/her. These people will realize, “Hey! It really wasn’t my fault!” And now, these leads will be free to work with you and pursue MLM success with a much greater knowledge of what it takes to achieve that success … and with the understanding of how to evaluate one network marketing opportunity against another, to choose the one where they have a real chance to achieve their dreams. In essence, those 5 Pillars companies!
THAT can make all the difference in the world to these folks … and to your business-building results.
The Best Network Marketing Prospects AreAlready in the Business
When you are trying to find leads in a very competitive market, you should only focus on people who are actively looking to make money from home. In fact, people who are already in a network marketing company or thinking of joining one will be your best prospects. It is a waste of your time to pursue anybody who has not recently demonstrated that desire.
There are two types of people who “want to make money from home:”
1. Those who have experience in MLM
2. Those who don’t
People in group #1 are frustrated! This is a group that you don’t have to explain MLM to. They already understand the concept. (For some people not involved in the industry, the idea of and the reason for seeking residual income isn’t always easy to grasp.)
You could come up with a lot of other reasons, but the bottom line is that group #1 is just a lot more targeted. And there are millions of names in that group. It’s just a matter of finding the ones who are looking NOW for the right opportunity.
So, you do not want to target:
entrepreneurs
work-at-home moms
business executives
investors
coaches
home business people
Now, some of the people you attract will fall into one or more of these categories, and that is great. But you want to advertise to them ONLY if they have experience in MLM.
If they don’t already understand MLM, trying to sell them on it will be a waste of their time and yours.
Start with this FREE e-book to learn more.
What's Wrong with Asking Friends & Family?
Good question. Here’s how this works.
Most businesses, over 90%, fail. You and your friends and family are no different. And when your friends and family fail, who are they going to blame? YOU!
Once you have your business working and you are making money, then go for it, ask friends and family. You probably won’t even have to call them - they will hear the good news, and they will call you. They will want in on your business and they’ll want to know how you did it. And then you can teach them exactly how you read this free e-book, Success in 10 Steps, to find the strongest leads in the business to build your network marketing income.
So don’t lose your friends, and alienate your family. Read Success in 10 Steps and get good training and get good at building your business. Make your mistakes with the people you don’t know. You can ask friends and family later, after you have achieved success.
That will make for a much happier Thanksgiving dinner!
Explanation of the 5 Pillars that a Network Marketing Company Must Have for You to be Successful
Before you get involved with a network marketing company, make sure it has these five key qualities before you sign up (and, of course, before you invest any money!)
If not, run like heck (in the opposite direction!)
Pillar 1. Does the company management have integrity?
Do a Google search on the company owner(s). If the owner has had any experience in building a network marketing downline then the compensation plan will keep the distributor in mind. The plan will make it easy to build a business and there will be an excellent support system in place.
If, however, the owner(s) have never built a downline, the compensation plan will put the company before its distributors. The plan will make it very difficult for the distributors to make money, if they can at all. Another thing to consider is the Policies & Procedures of the company. If the company does not make the P&Ps readily available to read before you sign up, they may have something to hide (like lots of extra hidden fees, etc.)
Pillar 2. Timing in the company. Timing in the industry!
Approximately 92% of new companies fail. If the company does not own it’s own software program, they will have problems with it most of the time. They will have to hire someone to tweak it here and there, they will not be able to maintain the website themselves. This can be very costly. It is much better to join a company that has been in business for two years or more.
Timing in the company - if your current company is past the growth phase, then it will be very difficult to build a large business - the right company should be entering or in the momentum phase of its growth.
Pillar 3. MLM products!
Most companies do have remarkable products. But you have to ask yourself this question: “would I buy the products if there was not a business opportunity involved?”
If you join this company, do you get a discount on the products? If so, what is the product really worth? This type of behavior indicates a recruiting mentality. If you are only recruiting, you are only building a temporary paycheck. There must be retail sales to develop a true residual income.
Pillar 4. Network Marketing Compensation Plan.
A good compensation plan is one that pays the most with the least amount of people in your downline. Does the plan pay on your total volume, or does it pay on specific numbers of levels, or stop after a set depth? Does it pay part-timers? Do you make money on retail sales? If it is less then 7%, that will kill you!!
There is a simple formula that will show you exactly how many people you will need in your organization to make your desired monthly income:
How much money do you make per person, per spot, and divide that by your desired monthly income. This simple formula will give you the exact number of people you will need in your organization. Once you have that figure, ask yourself if this is something you think you can reasonably achieve. Then ask yourself if this is something that your team will be able to achieve as well.
Pillar 5. MLM Systems for Success!
It is absolutely imperative that you have a system that is duplicateable. People are not duplicateable, systems are!! So when your new distributor asks, “can I do this, and will you help me” will you be able to? Network marketing is about building relationships and trust. People join people, they do not join companies!! If they do, they don’t stay long.
For more information on how to succeed in this business, check out my Mentoring for Free Web site and download my FREE e-book - Success in 10 Steps. Best of luck with your network marketing business!
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