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Four MLM Truths MLM TRUTH #1: If your Goal in Network Marketing is Long Term Residual Income, You must work with a company that has been in the MLM Business for at least 4 Years! Ok...I know this is a bitter pill to swallow! But why not look at the facts: The MLM industry is over 50 years old. Literally tens of thousands of MLM start up companies have gone Out of Business with only about 30 surviving over 5 years!! Those of you who have put your blood, sweat, tears and $ into a MLM business that is now Out of Business know what I'm talking about! You also know that it is a myth to think the market is "saturated with a particular MLM business just because it's been around a few years! The "Reality Sandwich is that when you work with a company less than 4 to 5 years old, you have Incredible Odds Stacked Against You!! It's like going to Las Vegas....... Here are just a few examples of how Deception and "Carrott at End of Stick company propaganda pulls people into start ups: "Get in on the Ground Floor! Security of working with a 20 Year Old established company with new MLM Division Sounds Good? WRONG! Deception at it's finest! An upstart MLM division has little to do with an established conventional business! Just because a company manufacturers footballs does not make them experts on running a Football Team!!! We've seen countless companies use this tactic......sheep to the slaughter! Here's another often used one: "Wouldn't you have liked to have been in at the Beginning of Amway or Herbalife or NuSkin? Chance of a lifetime prelaunch... This very enticing come on should also have "full disclosure and tell you what the factual odds are for this "up start to be around in 5 years! MLM TRUTH #2: The Compensation Plan is The Most Important Factor in Selecting a Network Marketing Company next to the company having a profitable 4-5 year MLM History! The subject of Compensation Plans is such a Science that it would require MUCH more than can be included in this small report. The deception and lies used in compensation plans is by far the #1 thing to look out for in MLM !! The good news is that there is a relatively Simple Formula for cutting through all the comp plans "smoke & mirrors?! But before this is given, let's lay some ground work: Fact : The Majority of People in MLM are: A. Part Time B. Not salespeople & don't want to learn "sales ! C. Not "recruiter types With these facts in mind, it's also important to remember that the vast majority of people in MLM will only sponsor a few people and have a downline of around 15-20 people!! So, here is the bottom line that also reveals the deep dark secret of 99% of MLM Companies...... If the compensation plan does not pay out 60-70% on the first three levels, do NOT get involved! Why??!! Because otherwise the majority part timer will never make solid residual income and quit within a few months! Here is the Formula for Seeing how much a comp plan pays: Let's use a real world example. There is a MLM Company called "TPN ....The Peoples Network. So we can compare "apples to apples , let's assume $100 of business volume generated by each distributor per month. And let's say a person has 4 people on their first level and each of those people get 4.....giving 16 on the second level. NOTE: This "20 Club Formula uses "third grade math - empowered with this formula: my 12 year old daughter (with calculator!) figures out which company pays more to the average person within minutes! So can you!!..... TPN: 4 people on 1st level X $100 each X 5% = $20 16 people on 2nd level X $100 each X 5% = $80 Total paycheck on 20 people ($2,000 volume) is $100 !COMPANY X: 4 people on 1st level X $100 each X 15%= $60 16 people on 2nd level X $100 each X 45%= $720 Total paycheck on 20 people ($2,000 volume) is $780! For the same amount of people, the same amount of work, the same business volume, what do you want to be paid.... $100 or $780? ! Note: Company X is NOT theoretical. Do you know how companies lure people into choosing the $100 instead of the $780?? Here's how: They deceive people by selling the POTENTIAL of the payplan! What does that mean? They use the income of the minority (exception to the rule) distributor as "Recruiting Bait to lure in the new person! Here is a classic example on how they HYPE us: "Mary was a waitress and now is making $8,000 per month with TPN! Anyone can make it in this business! Paul Harvey would have a field day with this one! Here is the"rest of the story : They didn't tell you that Mary got to a point where she was so "sick and tired of being sick and tired that she would do anything it took to succeed! Through EXCEPTIONAL desire, Mary became a "1%er . She spoke to hundreds of people, banged the phones, used $4,000 from her sisters credit card to fund her business etc etc etc. In other words, Mary did what 99.9% of people will NEVER do, yet the company used her story as recruiting bait to sucker people into their opportunity! Mary was the EXCEPTION to the rule, NOT the rule! Here is just one example of what happened to me: In the last MLM Company I was with, I worked day and night around the clock and within 90 days had 1,200 people in my downline. In one month that organization generated $27,000 in volume. My total check was a measly $1,212! and I met all "qualifications ! That same volume through the same levels would have paid me around $9,000 with the company I work with today! Here is the diabolical Truth: MLM Companies intentionally bury the $ payout deep within the compensation plan instead of putting the $ "up front in the reach of the regular part time person! The only people who will make good money are the super recruiters and salespeople as well as the Company! This is why you commonly hear "Only people at "the top make all the money! I've seen this from the "inside as a former MLM company owner. It does not have to be this way! And this knowledge goes hand in hand with the next critical principal........ MLM TRUTH #3: Never chose a MLM Company Simply because of their "Great Products or Services ! Why? Let's heed the advice of legendary marketing genius, Jay Abraham. For the past 25 years, marketing guru, Jay Abraham, has helped over 20,000 businesses (including Microsoft, AT&T etc) to get more customers and increase their revenues by a staggering $5 Billion!! Listen closely to what Jay says!!!: Misconception #1: Having the best product or service guarantees success...this simply is NOT true! Get it out of your head that you can succeed just because you have the best product or service!...... "Times have changed, old strategies don't work. Businesses in the 90's have no other advantage than marketing. Because of the sped of information and growth of technological advancement, NO ONE PRODUCT IS MUCH BETTER THAN ANYONE ELSE'S! #1 Marketing Expert Jay Abraham It goes without saying that you must have a quality, reasonably priced product or service. But here is the hard reality: If people don't make a net positive cash flow within a few months, they won't have the extra money to buy the product! Remember those 1,200 people in my downline? Guess how many were still buying our life changing, patented, Doctor endorsed products 9 month later? Less than 1% !! Why? Because they were in a compensation plan that made it next to impossible for the regular part timer to make a net positive cash flow! So, no extra $ meant no justification to spend the extra $ on the product! In magic, the classic technique to pull off a trick is called "misdirection . In other words, you take a persons attention off of one thing to distract them from the reality of the trick. This is exactly what most MLM companies do. MLM companies quickly take your attention off of how you really get paid and onto the "great product line or crusade of their service! The old slight of hand works very well! MLM TRUTH #4: The Perfect Synergistic Combination of the 3 Major Ingredients Makes for a Successful Long Term MLM Business!< In other words, The "Whole is More Than the Collection of the parts! Let me explain......... Buying a good automobile has many considerations: Excellent mechanical features such as a good engine and safe construction are mandatory. Economy, miles per gallon is another factor. Company warranty and customer service is another. All major factors must be there! A good engine with poor customer service doesn't fly. Excellent miles per gallon with a poor warranty is no good either. The same goes for an excellent Network Marketing Business Decision!! You must have a Long Term company, with a Compensation Plan that rewards the part time person with a compressed pay plan and providing quality, market based products! It's easy to copy a compensation plan, not easy to copy a 4 or 5 year old successful MLM company! It's easy to copy products, it's not easy to put that together with customer service and a long term business! Just like buying a car, make a solid business decision & DEMAND that all of the key critical factors are there! The consequences of "letting your guard down and not demanding these many key ingredients is pain, frustration and financial loss! MLM TRUTH Report and Free Bi-Weekly On Line Newsletter http://www.magic-city.net/mlmtruth
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