Tag Archives: Mlm Company

Why Isn’t Building a Business as easy for me as it is for others?

QandAsmallI received this question in my email box the other day from a reader.  He gave me permission to answer the question here on my blog, but wanted to remain anonymous.

I am going to try to make this a new blog segment so if you have questions pertaining to your business, feel free to ask them in the comments or send me an email.  The email me link is over on the right side of the blog ==>

 
Hi Roxanne,

I joined my mlm company in 2008.  I watched a presentation that said I could fire my boss and basically told me that I would be making money in no time.  I never heard of mlm or network marketing before and was sucked in by the video and my sponsors excitment.  I joined and started talking to everyone I know about the products and business.  I signed up three people in two months.  The up front money was ok, but then when the next month came around, they had excuses why they couldn’t place another order.   Money, they already had too much product, etc..  That was like a kick in the pants because I had quit my job in month two when people were joining and I was starting to make some money.  After that, I signed up a person here or there and some would stick around for a few months, others were gone month 2.  It just seemed like everyone around me was building but I couldn’t.  I went to all of the company calls and team calls.  The team calls had a thing called a 30 day cleanse where you clear your mind and life of everything negative and just focus on you.  I learned a lot during that time, but that wasn’t making me any money.  By the end of the 30 days, things were so bad that I had to go back to work or my wife was going to divorce me.  That was in 2009.   From 2009 until now, I’ve been working a job 40 hours a week.  My commute is a half hour each way and lunch is an hour so I’m really gone from home 10 hours a day.  That doesn’t leave much time for building a business.  I really want to make this work, but I don’t know how.  I don’t have the money to spend on coaching right now.  I’m still buying product every month because I can’t get the small commission check that I do get each month without doing that.  Is there anything you can do to help me?

Anonymous

Hi Anonymous,

I can definitely feel your pain in your email.  Unfortunately, your story is all too common among network marketers and other entrepreneurs.

Normally the first thing I would do is recommend a Breakthrough Session to help get your business up and running properly.  However, in this case, I would like to answer your question here on my blog first because it is a story that so many people are smack dab in the middle of.

First of all, I’m not a fan of “sign up today and fire your boss”.   When we bring people into the business based on hype, we have to find a way to keep them hyped up continuously in order for them to continue to build.   It is much better if we educate people before we bring them into the business.  Let them know that this is a real business and it takes real work.  It’s not a “get rich quick” scam.  It is a business and should be treated as such.   You wouldn’t go out, buy a Burger King franchise, rent a building, hang up a sign and expect to be making enough money to retire next month or even next year.  Every business has a learning curve…a time when you are making little to no money while you are learning the proper way to work it.  In my case, and in the case of most network marketers, the learning curve is “on the job” and most go years with no income while they are doing the whole “trial and error” thing to see what works and what doesn’t.  This is especially true if our sponsor is new as well.

I’m not saying don’t bring anyone in until you’ve spent a few years perfecting your approach.  I’m saying, you have a couple choices, as does your new business partner.  Those choices are:

1.  Invest the time to learn on your own through trial and error

or

2.  Invest a few dollars into learning from someone who has been through it

After you learn how to build your business by choosing one of the two options above, you then have to find at least an hour a day to work your business.  More time = quicker return on investment of time.

We are all given the same 24 hours in every day.  No one gets less.  No one gets more.  24 hours every single day of our life.  You spend 10 hours/day working & commuting.  Let’s say it takes you 1 hour to get ready for work each day.  Then you come home and let’s say you have 2 hours to decompress and eat dinner.   If you are a typical person, you get less than 8 hours a night sleep, but we’ll deduct 8 hours just to be on the safe side.  That leaves 3 out of 24 hours.  Now, let’s give you 2 of those hours to devote specifically to family time (this is in addition to meal time).  That still leaves you with 1 hour per week day to work on your business.

Now, let’s move to weekends.  You have a full 48 hours on the weekend.  Don’t jump in here and say “Well…this is MY time.”  You need to figure out if you are building a serious business or if you want a hobby that you can fit into your free time.   If you are building a business, you may need to make a few sacrifices for a while.  Just like if you had your own franchise.  You wouldn’t tell your employees “Don’t bother me with work stuff on the weekend.  That’s MY time”.  So…let’s get back to the 48 hours every weekend.  You sleep 8 hours/day and let’s say you spend 4 hours/day doing yardwork, housework, etc…  and you spend 2 hours/day with your family.  That still leaves TEN FULL HOURS PER DAY on the weekend that you can invest into your business.

If you learn what to focus your time on during that time, you can realistically expect to have your income see a huge increase within just a few short months.

WHAT?  A few months?  Why not a few weeks?

Any method of prospecting that is worth doing takes time.  Remember…we aren’t going to “hype people into the business” we are going to build relationships and educate them so they are around for the long haul.

You say you don’t have the money to spend on coaching right now, but you really can’t afford to NOT get help and move your business forward.  I challenge you to find any success story out there who made it without a coach.  Without ever getting help from someone.  Find someone who did all on their own with no one.  If you do find that person, they will be very few and very far between.  The majority of successful people in the world have had a coach.  They have had someone to work with them and help them move forward.

I’m not saying this to talk you into coaching with me.  Choosing a coach is a very important endeavor.  Just like entering a network marketing business…do not invest in coaching based on hype.  Go read what coaches are saying on their blogs.  Check out every piece of free information they have.  See if their teaching style resonates with you.  THEN, only after you find someone whose coaching style you are comfortable with, ask for a consultation to see how they can help you.  Some will do this free, but most will charge you a small fee for it that will be applied to the coaching investment should you choose to move forward with them.

I wish you the best of luck!!  Please keep me posted on your progress!!

Coach Roxanne

 

 

 

 

Why Most Network Marketers Fail

There is a very high failure rate among those in network marketing/MLM.

One of the biggest reasons I see for failure is the “I can’t afford it” syndrome.

The average cost to join an MLM company is $500.  The average monthly product requirement is $100.  So, by month three, the average network marketer has invested $700 into his/her business.  At that point, they have exhausted their warm market.  This is the point where most people give up and quit. 

They claim they have invested too much money so far and “can’t afford” to invest any more into learning how to properly market their business beyond their warm market.

HELLO??

If anyone seriously thinks they can start a business for $700, not market it properly, and make it a success, they are nuts.

We need to stop marketing MLMs to people who do not have the resources to make it into a successful business.  This is why network marketers get such a bad name.  People who are building a business lie to their prospects and tell them it’s easy.  They tell them that they can “fire your boss tomorrow” among other things.

Are you ready to stop lying and learn how to attract those who can afford to build a business?  If you won’t put money out to make your business successful, don’t expect those you bring in to do it either.  You really can’t afford to NOT spend money on your business.  Your return on investment – IF YOU IMPLEMENT WHAT YOU LEARN – will be huge if you go to the right person to learn.

 

What is MLM or Network Marketing?

I had not intended to actually begin my business until December 1, 2012.  I had a few things that I needed to finish up during the month of November before I could concentrate fully on getting my new business up and running.

That plan, however, was derailed, but it was derailed in a good way.  I have had quite a few people already ask if they could join my new business.

THIS  is what I teach people.  People join people they know, like and trust.  I’ve positioned myself over the years in front of these people.  They didn’t even know yet what company I was joining, but said “I want to be on your team”.   That is powerful.  My new business is an MLM (Network Marketing) company.

What is MLM or Network Marketing?

Let me first explain what happened to me in 1985 shortly after I graduated high school.  I was approached by a gentleman who was involved in a company called Amway.  He explained the business to me by drawing a bunch of circles on a white board and talking about leveraging the time and efforts of others.  He explained a business where you not only get paid on your efforts but on the efforts of everyone you bring in as a business partner and everyone they partner with and so forth.   I LOVED that concept.  I’m always looking for ways to work smarter, not harder.

However, I was young and didn’t really understand what I had.  I tried this whole thing called Network Marketing or MLM (Multi Level Marketing) and it just didn’t work so I quit.  I joined a few different companies over the years, but really didn’t know what I was doing or how to do it.  About 12 years ago I decided to buckle down and really learn this business.  I got involved with a home party company called Petra Fashions.   I would go to people’s homes and do parties for them and sell lingerie.  I loved it!!  I had fun, I made money and it was great.  After a few years, my friends and their friends and everyone I talked to had more lingerie than they knew what to do with and the business just kind of fizzled out.

That’s when I realized if I was going to do this and have it last, I needed products that people would want to purchase over and over again.  Consumable products.  Over the past 10 years, I joined a couple different companies and learned a LOT through trial and error.  Most was error, but that taught me what doesn’t work.  In 2005 I joined a company and took all that I learned over the years and implemented some strategies (still learning more as time went by) and built a good sized business.  I was having fun and making money and it was the best of both worlds.  During that time, I was also teaching classes for people who were building businesses just like me.

In 2010, I decided that teaching was what I felt led to do.  I also, however, felt that being involved in my own MLM company while coaching others would be a conflict of interest.  I didn’t want my clients to feel uncomfortable thinking I may want them to join my business.  So, I left my network marketing company and began my coaching business.  Over the past two years I realized something.  I was teaching others to be successful in THEIR businesses and they were making more money than I was doing coaching.

So…after some soul searching and talking to others, I decided to get back into MLM because I was leaving a lot of money on the table.

Here’s the best part about working an MLM company…I get paid a commission on anything that people purchase from my site.  Just like any other sales person in the world.  The difference is that I get a larger commission than most salespeople do.  Most times, a salesperson sells a product and they get a very low percentage of the cost of the product.  This is because in order to bring the product to market, the product generally goes through channels.  The more people and advertising involved in bringing a  product to the end consumer, the less commission can be paid to the salesperson.  Even large stores like Walmart or Target or Wegmans, etc… have costs involved with bringing their products to the end consumer.  This means either the price goes up or the store gets less money.   With MLM, the product generally goes direct from the manufacturer to the consumer.  The person who introduces the consumer to the product gets a bigger portion of the pie because there are no other channels involved.  No advertising.  It’s all word of mouth by the independent representative (rep) to the consumer.

There is a popular program out there by Direct TV.  If a Direct TV customer recommends the company to a friend and the friend starts their own service, Direct TV gives a $10 credit for 10 months to the person who referred the new customer.  BUT…in this case, they are capped at the amount of their bill.   If their bill is $50/mo and they refer 10 friends, they only get a $50 credit for 10 months.  After the 10 months, they are done.  But…with MLM, I continue to get paid a commission (actual money, not just a credit on my products) as long as the person remains a customer or a rep.

What is the Best Network Marketing / MLM Company?

I’ve been asked that question a lot lately. Here is my take on it:

There is no perfect MLM company. All network marketing companies have issues. Look at it like this…my husband is the perfect spouse for me. But…he may not be the perfect spouse for someone else. We are a perfect fit for each other. When you are looking for a network marketing / MLM company, you should look for the perfect one for YOU. Not because someone else said it’s the best, but because it’s a fit for you.

Here is what I feel are the things to look for in a company:

1. A product that is reasonably priced in the marketplace.

I spoke with someone the other day who had a very high priced product. I asked her why the product cost so much and she said “Well, first of all, it’s better than anything on the market and second, it’s sold through an MLM company so they have to charge more in order to be able to pay commissions.

WHOA!!! Stop right there…MLM companies can afford to pay commissions because they do not have the traditional costs of advertising that the average product has. All advertising is word of mouth. The price does not need to be jacked up to pay commissions.

Next, there is one question you should ask yourself in relation to your product. This is a question the government will ask if the company ever comes under scrutiny by them. Here it is… “Would you buy your product(s) for the price you are paying IF THERE WERE NO INCOME OPPORTUNITY ATTACHED?” That is the million dollar question. Think long and hard about that one.  Answer honestly.  There is no income opportunity. Would you still be buying the required monthly amount of your companies product(s)?

2. Low barrier to entry.

Can the average person join your opportunity?  Remember, average people are living paycheck to paycheck and most have under a few hundred dollars they can get their hands on.   Many opportunities out there cost anywhere from $250 on up to $5,000 to join.  That is a CRAZY amount of money to ask the average person to come up with to start an MLM / network marketing business.

3.  Products that appeal to the masses

What percentage of people use your products?  Think about this for a minute.

Let’s say you sell a nutritional drink.  Now, what percent of people in your neighborhood do you think use a nutritional drink?  Maybe 15% or so?

What about candles?  Maybe 20% or so?

What about diet products?  Maybe around 35 to 40%?

What about things like toothpaste, shampoo, household cleaners, laundry detergent, etc…  I’d say 100% of the population are already using these things on a daily basis.  That is a product line I, personally, am interested in.  I would rather have 100% of the population already using the same type of products that my MLM sells rather than any other percentage.  Here’s why…all I have to do is help people buy the products they are already buying at a new store.  I don’t have to try to convince the other 50 to 90% of the population to start using these types of products.

4.  Company History

This, to me, is very important.  Most companies do not make it past the first 3 years.  I, personally, would never join a start up MLM.  You don’t know what is going to happen to a company less than 5 years old.  Once a company makes it past the 5 year mark, it’s a good indicator that they will be around a while.  Some people claim that you shouldn’t join a company that is older than 15 or 20 years.  That is ludicrous.  If you have a good company, it SHOULD grow to be over 15 or 20 years.  It should continue to grow indefinitely.

So…where does your company fall in this short list of criteria?  Notice I really did not address compensation plans?  That is on purpose.  I believe that if these things are present in your company, obviously you have a company that is creating paychecks for it’s reps or it would not still be in business.  There are a few more things on my list of criteria that I took into account when looking for my MLM company.  If you are interested in hearing what they are, email me at roxanne at roxannegreen dot com and let me know when we can spend a few minutes on the phone and I will be happy to share the rest of the criteria with you.

Today is the first day of the rest of your life. What will you do with it?

The Grass Is NOT Always Greener

I’ve recently heard from quite a few people who have been led to believe that they should leave the MLM company they are working with and go into affiliate programs to sell leads. What is wrong with this picture? If someone can’t make an income in an MLM company by calling leads, what makes them think they can be successful SELLING leads? And who are they selling leads to? They are selling them to people who are desperate for success in their company just like they were a few weeks before.

If you are buying leads from these unscrupulous companies, be sure that you know ahead of time that the ones selling the leads are the only ones making money. However, they are making money by taking advantage of good people.

Sometimes it’s a “system” that people will try to sell you. They will tell you that they can teach you how to have success in your company. When you follow their “system” and have no success, they talk you into leaving your company and joining their affiliate program to sell their system. The problem is…the ones talked into selling the leads through the affiliate program are there because they weren’t able to achieve success using the “system” taught to them.

If they had just learned to simplify and focus in ONE direction, they would see that they could have an amazing amount of success. Jumping from one program to the next or one downline to the next has never worked for anyone. Unfortunately, there are unscrupulous people out there who look for those who are struggling and prey on them like vultures.

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Today is the first day of the rest of your life.
What will you do with it?

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