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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.

What would you like me to write about next?

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MLM secrets of recruiting leaders ?

What are the secrets of recruiting mlm leaders who never quit?

I have already discussed in my prior post that leaders are readers, offer them a book to read and if they read it, these are the leaders that you want to work with and sponsor.

I will explain to you the wrong way of doing it also.

Are you doing this?

One type of mlm training teaches you to create the urgency. They tell you to buy your product now or they create urgency to join their company today.

These are the same people who lead with hypes and lies in most of their advertisements.

This is the same mlm training that claim to teach you how to add 20-30 people/week to your downline.

Ann joined such a mlm training program, she learned some stuff but most of their teaching is based on cold calling, hard selling and closing techniques. Those guys taught her how to make money on the behalf of people instead of helping people. They make their money by taking someone else’s money. Their techniques work for only hard selling, red personality guys. I call this mlm training, dream stealing.

If you get a call from somebody who asks you: “Would you like to learn how to put 20-30 people in your downline/week?” RUN AWAY! They want your money. They will give you all the big fat lies about their written guarantee that doesn’t exist!

Consequence: Even if this is true and you sponsored 20-30 people/week, your new people would soon quite. You took their hard earned money! They will hate you!

What is the value of those 20-30 people in the future? = nothing - nada - zepo

Are you looking for residual income or just to scam people and take their money?

What I do and I learned this from mentoring for free is completely different.

I ask people not to join me!

I teach them how to analyze companies, I ask them to go and see all the other companies then come back!

They will join only after being completely convinced then the attrition rate in my organization is very low. I do not have to deal with unstable mlmers who keep jumping from company to company looking for the next big thing. This is a business that requires commitement.

Another trick: I never sell a get rich quick scheme!

I never send them to a presentation full of hypes and lies!

I hope you are not recruiting this way! Otherwise, now you know why no one is sticking around.

I will teach you briefly how to analyze the policies and procedures of any company. Stay tuned.

I will teach you how to read minds

I will teach you how to predict the future

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MLM secrets - How to spot a leader

One of the MLM secrets is Time management.

We all have 24h/day! That’s the most expensive asset you may ever have.

I am going to tell you some paradoxical thoughts.
I will not sponsor anyone anymore if I don’t see them as a leader.

I made the mistake long time ago of sponsoring one person. I wasted hours and hours on the phone with her and she ended up doing nothing!

Those guys who keep joining a company after a company, and they do not take the time to learn, grow, and analyze your company and they just want to join. They will waste your time and effort and then they will find some scam deals in the future, or some other shitty companies pre-launch and other B.S. companies that promise them ’spill-over’

Before you waste your valuable time, you should sponsor only those who deserve your time.

How to spot then a leader who deserves your time?

This is one of classic Big Al secrets: Ask them to read a book!

Leaders are readers: this is universal.

The way I generate leads for my business is by offering a free e-book to download, if this person doesn’t download this e-book and read it then he is not a leader and I do not want to waste my time with him.

You can use this trick to test your current team members to spot who are the real leaders that you want to spend your time with! And you will see that those readers even if they were not making any money they will grow and become very successful in the future.

Please comment on this post and give me your opinion.
What would you like me to write about next?

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