Learn How to Burn Your Ships Behind You!
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  • Welcome to the first post of The MLM Old-Timer Blog.

    Posted on December 11th, 2009 Roy 1 comment

    The goal of this blog is to try to give new comers (as well as Old-Timers, such as myself) of the world of MLM (a.k.a. Network Marketing) insight into what mistakes not to make as they go about building their business. I have over ten-years of experience (mostly in the “what not to do” category ). It hasn’t been until recently that I seemed to have turned a corner. This is not to imply that I’m now making millions of dollars in residual, walk-away income from my company…heavens no, at least not yet…but for once, I’m actually making a modest (AND growing) profit.

    To get the most from this blog…I have one caveat for the reader:

    You MUST have gone through your initial training (i.e., Fast Start) with your sponsor/upline.

    • This means that you are familiar with your company’s product line.
    • You have made your initial list of 100/200/1000 friends and family.
    • You have attempted to approach a few people into joining your organization (or have tried to sell your product). I’m realistic here…if you’re like most then you probably got rejected by most of your family and friends (the few that your sponsor strong-armed into signing up are not going to be big producers…Usually, since there are exceptions to every rule.

    This blog will tell some of you things that your sponsor/upline will tell you doesn’t work. This blog will give you insights into the ‘why’s and how’s’ of what MLM is all about; things that you might never have heard before. Heck! Let’s be honest here: This blog might even contradict everything you ever heard about the industry…told to most of you by your sponsors/upline/company leaders. NOTE: I’m not saying that anyone’s sponsor/upline/company leader is lying outright, but what I am saying is that a LOT of folks have learned and taught a lot misguided ideas and concepts that don’t work for ‘Joe Average Networker’.

    For instance: One of the first thing I do with a new recruit is to train them how to get 100 Customers in their first 100 days (preferably all on auto-ship…but auto ship is another post for another day). NOTE: I said “CUSTOMERS”, not “RECRUITS”!

    First: I want to make sure the new recruit is familiar with the products. As Randy Gage teaches: “Become a Product of the Product.”

    Second: We market products! To call it anything else is disingenuous at best, lying at worst. I want to totally eliminate the whole ‘SHARING/PRODUCT SELLS ITSELF’ mindset that permeates this industry from the mind of my prospects.

    • If you share something, then you should not get paid…sharing is FREE. When we were in 1st grade, and we shared our PB&J with our best friend, did we charge them anything for it? If we understood that concept in 1st grade, why do we insist on calling selling sharing? So if you want to call it SHARING then give it away. Let me know how your bottom line looks at the end of the year doing that.
    • As for the idea of the PRODUCT SELLS ITSELF…go buy $10,000 worth of your company’s product tomorrow. Have it delivered to your home and dropped off on your front lawn. Pull up a lawn chair, and just sit and watch the pile. Go ahead and stare at it for a few hours, than call your bank to check your bank account. Let me know how that works out.

    Third: Maybe 1 out of 1,000 prospects become marketers (part of your organization). Perhaps 1 out of 100 need the product we sell to improve their lives. Which one of these options do you have a better chance at getting?

    Fourth: There’s a maxim that is prevalent throughout this industry that says: “No one gets paid until someone sells the product.” In my last two companies, I lived and breathed this concept. Again, I’m not rich by any stretch of the imagination, but I consistently turn a profit month-after-month.

    Fifth: You do the math. If you consistently had: 100 customers every month buying one of your products at retail…what would your bottom line be? In my primary comapany, just using the difference between the retail and wholesale price, I make about $5 per average. 100 customers at $5 / month equals $500 / month. Of course, your results could be more or less depending on your compensation plan. Using my numbers, that’s an extra $6,000 / year. Can that make a difference in the lives of you / your recruits?

    Am I saying, “Never learn to prospect/recruit for new distributors”? No, I’m not. I’m just saying that new recruits need to learn how to sell first, recruit second. Tom Schreiter tells of the study done that shows on average for most American families, an extra $300 / month can be the difference between just getting by and living an improved life style of comfort (I’ll look for the old newsletter that tells this story if anyone is interested). The quickest way to get this is to sell the product. Besides, imagine the posture your recruits will have when they move into prospecting business builders and they get asked the question: “Have you made any money in this thing?” Also, it tends to help retention of my organization, who wants to leave $500 / month sitting on the table?

    Well how do I train them to get 100 Customers in 100 Days? I tell them to go to the Klaver General Store and download “3 Scripts 100 Customers 100 Days 5 CD set + If My Product book combo” for $57  (you can get an MP3 + e Book combo for $47 if you are tech savvy and have printer that can print out the e book). I work with my recruits on creating their 3-scripts, work with them in cold-cadaver calls, and help them hone their scripts into something that works for them.

    The good folks at the FTC require me to disclose that I am an affiliate of the  ‘Klaver General Store‘ and that the Kim Klaver Organization will compensate me if you purchase this CD/book combo. I have actually purchased (and used) a copy of this system and it has my highest recommendation.

    Since I just joined my new company, and I want to make sure I’m duplicated correctly throughout my new organization…this means I am generating my list of family, friends, and acquaintances. I am also generating my 3-scripts mentioned above. My main goal for the next 100-days (why don’t we set a date of 31-March 2010), is to get 100 Retail Customers. I have other goals for recruiting, and self-development, but those will be posts for another day.

    That’s all for now…

    Roy
    The MLM Old-Timer