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Is network marketing a residual income business opportunity?

In today mlm training, I would like to discuss this hot topic.

Is network marketing a residual income business opportunity?

Last Saturday during the 5 pillars to success presented by Mentoring For Free Michael Dlouhy stepped on some toes which pissed off lots of people.

I decided to open this discussion because it is a major issue for success in network marketing. If you are measuring success as having the financial freedom and time freedom a.k.a you are getting a fat check regularly even if you stopped working, then you should be in a company that allows you to retire!

Seems obvious, right?

Most network marketing companies and ‘opportunities’ do NOT represent residual income business opportunities and they do not allow you to retire!

You are shocked. Dr K did get shocked himself when he stopped getting his check with orenda international as soon as I took a break.

You may make lots of money with these companies but the check will stop as soon as you stop working!

How the heck this happened to me and may happen to you?
How network marketing companies steal your check legally ?

1- Breakaway in compensation plans:

Breakaway broke my heart
This is the small trick that they have in their compensation plan that they forget to mention to you in their hype presentation. They told you they have the greatest revolutionary compensation plan! At least that’s what I heard from them and their integrity.

Dr K will give you the exact example in orenda international.
“They have lots and lots of breakaway to steal your check. I will describe the two major ones that I am aware of!

- If you are not sponsoring a ‘manager’ or selling $2.000 worth of products monthly, you get paid NOTHING on your downline - nada - zippo!

When I took a small break, my check stopped, I got paid $0.00 dollars on 3 thousands dollars volume monthly from people I introduced them to the company and the products.

-The compensation plan is the typical old compensation plan called: “Stair Step breakaway compensation plan’ where only couple of people gets paid the big checks and the rest fall in the breakage!

In this particular company, you never get paid on any downline below the third level unless your group is selling products for more than a whooping $25,000!”

If your company compensation plan is a stair step breakaway compensation plan, then forget about any network marketing success unless you are a ‘red’ personality.

2-Policies and Procedures

Most network marketers are completely ignorant and sign those policies and procedures without reading them, they get excited that they are getting rich without analyzing anything.

Dr. K was guilty of doing so with orenda. He say, “I got smarter now, lol.”

Ok. What poisons they add to the policies and procedures so they steal your check legally?

-Ongoing or continuous sponsoring and sales
They will tell you very obviously, that ‘you must have ongoing or continuous sponsoring and sales independent from your position in the company’ - ‘you must have ongoing supervision to your downline’
Dr. K actually removed this phrase almost exactly from the policies and procedures of a major nutritional company with great products that boost the immune system. The products are great but obviously, you are not allowed to retire here!

Some of orenda products were great but this was a sales business not a residual income business opportunity

I remember Jim Rhon saying on one of his Cds, read the policies, take your time, don’t sign too quickly. He tells a story about him missing the word: continuous that cost him 250.000$ (one quarter of a million dollars for missing one word)

- The company has the right to terminate the distributor with or without any reason!
That means that if the company needs some money and you are making a decent check and you are not working anymore, they will kick your ass so they pay for their cars and homes
You signed it, right?

Why would you think they have this phrase for?

Go and check this ‘new’ and ‘hot’ opportunity called Beontop and see for yourself the policies and procedures.

-The company has the right to cancel the compensation plan in 30 days notice

That means when the company decides to get rid of the distributors they can do and the check is gone with the wind.

This junk makes me depressed.

Feel free to give me your opinion and comments on this post.

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MLM Secrets - Are you swimming against the flow?

In today’s MLM training, I would like to share with you one of the MLM secrets that you must understand in your network marketing business.

Presented to you by Mentoring For Free

You should follow your personality type doing the business and not change your personality.

Let me explain. I did talk to two people this evening.

Both ladies are ‘blues’: that means they like to have fun, they are open and direct.

One of them is very successful in her business and sponsoring people everyday.
The other is struggling big time and getting depressed!

The successful lady is in a travel business and she is having fun doing the business! No wonder she is able to sponsor people. She will never stop working in her MLM and she will never quit!

The other lady is struggling big time and why?

Because her upline and her network marketing company ‘leaders’ told her to chase her friends, family and cold call her neighbors.

What is she getting? Rejection and Pain!!

If you are following my posts I have discussed with you that #1 lesson you must teach your distributors is: Rejection Free Prospecting!

If your distributors are having fun and they are not stressed out, they will stay with you for hundred years even if they don’t make money!

Forget this piece of the puzzle; your distributors will get plenty of pains and rejection. No wonder they quit. Your distributors will never want to talk to anyone anymore, they are going to hide in the closet; their self esteem is in the mud. Then they will tell you that MLM is just a scam!

Do you understand where this objection is coming from?

Did you remember also in prior post how crucial is the self esteem in this business?

How do you expect to be magnetic with poor self esteem?

What is the purpose of sponsoring people if they keep quitting on you?

Where is the duplication? Are you duplicating the pain!

Feel free to comment and give me your opinion.

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Is your MLM sick?

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MLM Secrets - Have you heard about the internet?

In today mlm training I would like to teach you about a mlm secrets called the Internet!

The best lead generation tool ever created is the Internet. It will allow you to target your market. It opens up the whole world for you 24/7. If you are not using the Internet for your lead generation effort today then it is as if you are still fighting with a sword.

Anyway, one of the major questions I get is: How to drive traffic to my website?

I have plenty of tips in the post archives

I will remind you about the basics: (Look for the details in the post archives)

1) Make sure you send your visitors to a website (lead capture page) where they can receive something free. This way you will have to chance to contact them by phone or follow-up with them automatically through an auto responder.

For example, when you visit my blog here I offer you a free e-book MLM Success in 10 Steps for this reason

2) There are two major ways of getting visitors to your website: Paid and Free.

It is going to cost you either money or time!

You have to judge which one do you have more?

What are the FREE ways of getting visitors to your website or lead capture pages?

-Forums: by visiting forums and getting involved in discussions, you are allowed to have your signature file. If you help other people and provide information then they want to know about you and they will visit your website.

-Visiting blogs and commenting on them: For example, if you comment on my blog you are allowed to have a link to your website and you can get some of my website visitors to check your website. You can visit multiple blogs easily and comment on the posts.

Go to blogsearch.google.com or to any other blog search engine and you will find plenty of blogs about your particular interest.

If you are commenting on my blog, you better have a nice comment

-Article writing: You can write articles about your product or your opportunity and post it in the article directories and send it to ezine publishers.

-Get a blog like this one and start writing your ideas about the products of your network marketing company or your opportunity. You can have one for free if you are short on money; there are plenty of places to make your free blog. Check www.blogger.com and www.wordpress.com

-Traffic exchanges such as traffic swarm and instant buzz: this will allow you to click on other people’s advertisements and you get credits and other people will see your advertisements.
Beware of all the spy wares though. Time wasting

All these methods will cost you time.

What are the paid ways of getting traffic and visitors to your mlm company or better yet to your lead capture page ?

Whenever you want to pay for advertisement, you have to do some math (sorry).

You have to have a budget. For example: you are paying $30 for one type of advertisement and you get 10 leads but no one signs up, then you never want repeat this process again. But if you pay $30 for another type of advertisement and you get 3 highly motivated leads, and one signs up then you made more than $30. This you repeat again and again.

That’s what you call Return on Investment. Repeat what’s makes you money and stop what’s waste your money. (Make sense but most people waste their money on repeating advertisements that do not work!)

That’s called testing in marketing: sometimes you have to waste money till you find the best formula for you. Expect it to happen and if you can not live with this idea then use the free ways till you make some money that you can use for testing.

-Paid per click programs such as Google adwords, overture and other minor ones.
Paid per click advertisements are those advertisements on your right side that you see in search engines under the ’sponsored links’. Paid per click will allow you to bid on ‘keywords’ and the one who bids higher, will gets their ad placed first on the search engines ads. This method will get you immediate traffic but may waste your money! Check Perry Marshall 5 free email lessons before you get into pay per click deals.

- Newsletters advertisements: You can find ezine or newsletters about your topic of interest and you can place an ad. You can use top sponsor ad or a solo ad. Before you pay any ad for any ezine, subscribe to it so you appreciate the quality and the type of people who are reading it. Again you test and evaluate!

-Press releases: You can make a press release about your products or your opportunity. There are free press releases but I found them ineffective personally. When you pay something like $80, you can get significant exposure. One of the major press releases websites is www.prweb.com

What do I use personally right now?

I use a blog and article writing. This is how you arrived here
I have used forums, blog commenting and traffic exchanges but it wasted too much of my time.

I hope these would help you generate your leads.
Get a lead capture page if your mlm company website sucks, most of them do, including my own network marketing company, lol.

Feel free to comment and give me your opinion.

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