Network Marketing – Fact vs. Fiction

I have given you the 12 steps to identifying a valid Network Marketing Company.

Now do you have the guts and business saavy to determine fact vs. fiction within Network Marketing?

C’mon, be honest with yourself. Anyone who has gotten involved with Network Marketing has been told or promised something that was a far cry from the truth. I am not saying ALL Network Marketing Companies are unethical. Many are but not all. More common is distributors being unethical and sugar coating whatever possible to get that “Sign Up.”

There are those scammers and manipulative geniuses that may make big money in the short-term using fiction as a selling tool; however, if you want LONG-TERM SUCCESS and to be known as ETHICAL, you need to identify fact vs. fiction. Here are a few examples and points to get your minds rolling:

1. You can make long-term residual income: Fact or Fiction. Well, that depends. Usually Fiction. 9 out of 10 Network Marketing companies are either built to sell off within 2-5 years, or they are missing vital components and fail off before most distributors make much money. In other words, most MLMs will sell off or fail off making long-term residuals fiction. Read ALL 12 POINTS to know which your company is.
2. Just sign up and we will build for you: Fiction. OK PEOPLE! GET REAL HERE! If you do not work you will not get paid. Most compensation plans are set up to reward those who meet enrollment requirements. GOOD! You should expect to work. You might get a few people put under you but the money will never TRULY come in without your efforts, organization, and marketing.
3. All you have to do is sign up 2, they sign up 2, etc…then you are set: Fiction. If this were true than millions of Network Marketers would be set. There is SO MUCH MORE. This is a business!
4. We have the best product: Fiction. This is easy. That means 5000 Network Marketing companies all have the best product. They ALL say so. WAKE UP! Your product may be good but there is always something better. If you don’t’ believe me than you do not understand business. You will fail and then come back and read my blogs. Product is only 1/12 of the equation. Many have great products but the truth is that the product is not what will make or break your success. I agree a great product is vital and must be in place but It is Marketing and Organization that ultimately make or break you. Be careful to not ignore product because it needs to be a great product to be ethical.
5. Our system will work for anyone. Just do it: Again, fiction. No system is proven to work for anyone. What is proven to work is sound marketing and being in the right organization.

These are just a few of the many fact vs. fiction aspects of Network Marketing. So what do you do moving forward?

Have your brain always process promises, statements, and situations in this manner. Fact vs. Fiction. This is a business. Analyze it as such. Be wise in your decision making and where you jump.

Also…just becuase 2 or 3 people experience results does not mean you should put all your eggs in a basket.

It is OK to research a little before jumping. It is also OK to jump off a sinking ship. There is no shame in moving on from a bad operation. I have done it. I have learned these hard lessons…DO NOT make the same mistakes.

Good luck in your business ventures and BE WISE.

Network Marketing – Blind Leading the Blind

Network Marketers want to find the proverbial Golden Ticket to their business. Whether its trying to find the best attraction marketing system, talking to friends and family, purchasing e-mail lists, or a dozen other things. I commend many network marketers for their dedication and hard work. I have met some of the most dedicated and persistent people EVER in Network Marketing. I wish I could knock some sense into these good people! There is such a HUGE disconnect in Network Marketing. This disconnect is business savvy…or business sense. Why the heck can’t Network Marketers snap out of the hypnotic trance of compensation plans and unrealistic promises and be REAL BUSINESS PEOPLE!? Whatever you want to call it. These good people work like crazy and dig their own graves. Why?  They are blind to the realities of business. The blind recruit and train more blind and the cycle continues. Here are a couple reasons.

One - Most parent companies in Network Marketing are short-term. They build to sell off. Right when distributors begin getting traction the parent company dies or sells off. I have seen it happen dozens of times! Chose a company that can sustain long-term. Read my 12 Points.

Two - Just as important as the parent company is your organization. Network Marketing IS ALL about relationships and holding organizations together. If you do not have a system and platform in place to GLUE your organization, YOU WILL FAIL. This is a business!

I watch so many Network Marketers focus solely on product to try and grow. This is a formula for failure! I am dead right on this. For example: Taco Bell and McDonald’s. Do they have the best food in their industries? 1 out of 100 may think so. You are sick if you are the 1.  What makes them so immensely successful!? You want to say Marketing and that is true; however, marketing is only one piece of the equation!

It is organization and structure! They have amazing organizations, mentoring, structure, training, etc… You can walk into any McDonald’s or Taco Bell and the organizations are the same across thousands of locations! They hold together with the glue of a real ORGANIZATION. This is the key to you being successful in Network Marketing. I agree that product is important. On the same note, there are hundreds of Network Marketers that are successful with piece of crap products! They are organizational masters! They are unethical due to product integrity, but they understand organizations.

Caution! Watch out for MLM group jumpers! They may understand organizations but they are greedy and not loyal. They will take you on a ride of unethical company jumping and people always get hurt.

So don’t fall into the trap that 90% plus Network Marketers fall into. THE BLIND LEADING THE BLIND. Seek out organizations that can create systems, processes, and marketing platforms that hold organizations together! If you are blind or your upline is blind, there is no shame in moving on and finding success.

Read the 12 Points if you really want a roadmap to choosing the right parent/vehicle company and organization.

Network Marketing – Success Point 12 – The Right Comp Plan/Opportunity

Point TWELVE of The 12 Points to a Successful Network Marketing Company.

The Right Comp Plan/Opportunity!

Let’s face it…NO ONE would do Network Marketing if the opportunity to make serious money did not exist. People get that adrenaline rush from seeing the potential in the compensation plan. The power of synergistic residual opportunity! 20 years ago a select handful of Network Marketing companies existed and drawing circles on an easel was what most experienced. Get someone to a meeting at all costs! Be vague and get them in front of you! Crooks began seeing opportunity. Hundreds of illegal ponzi pyramids tainted the industry and forced harsh regulation. The opportunity and compensation of MLM has evolved. Illegal stuff still exists and many companies, even though legal, are extremely unethical in their opportunity plans.

Now the game of compensation plans has become more confusing than ever. Binaries, trinaries, no breakage, retail profits, bonus profits, pool profits, matching bonus, level bonus, executive bonus, promotion bonus, etc…   You get the picture.  It can be confusing. So how does one know if their compensation plan is a good one? I will give a few tips and things to look for. The first thing to look for is how the compensation plan came about. What is it’s story? Who created it? Here is what to be cautious of:

Most compensation plans are created and set up to benefit those at the top!

Yes! Because the top guys get paid to create them! Either that, or they refuse to join if they do not get to stoke their greedy egos! If you want to ignore this often looked over fact, that is your choice. Everyone thinks their comp plan is the latest and greatest. In reality most are just the greatest piece of crap. There are some great comp plans out there on the same note. Not all are crap but many are. All plans have bonus pools for top people. That is OK. The problem lies within the fine workings and plumbing of most plans. They make it so very few can achieve any level of REALISTIC success and so that profits and unclaimed commissions roll straight to the top people and/or executives. So what do you look for? What plans are the best? Here are a few tips…remember, I am just one opinion!

1. Binary plans are the best! Yes I said it. Binary! Don’t jump down my throat…just read on. It is all about FOCUS and POWER! Creating power legs with depth (see #2 below).  DEPTH! The most successful Network Marketers go DEEP! They do not shotgun all over the place trying to develop 15 legs. Most binary plans pay on the weak leg forcing distributors to actually work. This is good! Binary plans that pay on both legs usually kill synergy and depth because they cap the depth. If your plan is not binary, make sure it has unlimited depth and focus on that depth. Do not worry about developing more than a couple deep legs. Too many people depend on you helping them get deep. Focusing on too many legs dilutes everyone’s efforts.
2. Unlimited depth! Comp plans must be infinite. That means you can go 200 deep and still get credit on volume on that guy 200 levels down. I dislike plans that cap on 4,5, or 7 levels down. Ridiculous!  Short-sited! Long-term companies have unlimited depth plans! Some people make short-term big money in level-cap plans but they lose synergy and die off after a couple years. What if the best guy is 8 levels down? Too bad for you!? Unlimited depth may mean that there will be caps on commissions. This is OK as long as the caps are generous. The point is that you want residual depth and incentive to BUILD EVERYONE not just 7 down!
3. No Breakage! This means that any commissions that are unclaimed or unqualified to receive, stay in the distributors pockets. They flow up to the next qualifying distributor instead of into executive pockets. Many executives selfishly kill themselves and distributors here.
4. Make sure your product is quickly consumable and competitive! The auto-ship you sign up for should be easily consumable by you and your family in 1 MONTH. The price should be competitive as well. If one or both of these do not apply, then you are setting yourself and group up for failure. Many companies have products that are consumable but take too long to use. Either that, or the price is much higher than the competition and you are out priced to do any realistic volume or retail sales. Did you know that the FTC requires that distributors eventually have 10 retail customers each to be legal in MLM?
5. Watch out for tiered buy-ins! Tiered buy-ins essentially mean that the more money you spend when you sign up depends on how you get paid within the comp plan. This is RIDICULOUS! If your comp plan doesn’t give EVERYONE an equal playing field despite their buy-in then welcome to being scammed. Just get out now. It’s ok if there are different packages to give you more product, but it SHOULD NOT be what determines how many levels you get paid.
6. Stay away from expensive buy-ins! So what is too much? That is debatable. If you are serious about owning a business than don’t expect to spend $30 and hit the ground running. On the same note don’t get in over your head. My general rule of thumb is a buy-in between $200 – $500. Much less than that means you are not getting ANYTHING VALUABLE. What to watch out for are the companies that push the $1000-$5000 buy-in. Why? Because they are short-sited. It is all about signing up 3 people in an expensive package just so you can get a quick check. I call this “SIGN AND RESIGN.”  Meaning, you get signed up and either resign to failure after a few months with too much product in your garage, or get little upline support because they are so concerned about signing up the next 5k sucker.
7. Nickle and diming stinks! Many parent companies want to nickle and dime the life out of distributors. Buy this replicated site, buy that CD, buy this book. Why not include the technology and replicated site in the price of the buy-in? Makes sense. Don’t get caught up in motivational materials to the point where you over-spend to be motivated. Instead of motivational spending focus on working to succeed. Read a book a month and get your butt to work!

Make sure you and your upline are in this for the right reasons! To succeed and help others succeed!

Companies with unethical compensation plans usually draw in unethical people and vice versa. Align yourself with ethical, hard-working, and service-oriented people. These types of people are more loyal and will help create long-term residual income. READ ALL 12 POINTS!

Do not get sucked into the wrong opportunities! Do your research and watch out for the red flags I have discussed. Most important, is to make it happen. No matter how great a company is, your success is ultimately up to what you put in it! Good luck in your careers! If you have any questions feel free to contact us:

We are developing a number of tools and lead generation techniques that will take Network Marketing into 2009 and beyond.

Team Nuclues – goteamnucleus@gmail.com

Network Marketing – Success Point 6 – The Right Executive Team

Point SIX of The 12 Points to a Successful Network Marketing Company.

The Right Executive Team!

It’s the catch 22 of every company today. With Corporate greed and selfish purposes, it is difficult to know who is being honest and who isn’t. I don’t have any official data to prove it but 80-90% of all Network Marketing companies start up with a 2-5 year exit strategy to sell off. It is the simple truth! Look into the history of various companies and you will see this obvious truth. Here is the problem!

Is Network Marketing the right industry for the sell off executive mentality? Is it fair to distributors? Motivate, excite, and promise long-term residual possibilities with the goal to sell off in 2-5 years?

The obvious answer is NO IT IS NOT! Network Marketing has become a platform for executives to quickly grow and sell despite how this may hurt distributors. They treat distributors like employees rather than independent business owners. To be bought and sold. Executives can be so worried about their sell strategy that they deceive and care less about distributors other than short term necessities. Simply ask executives what their exit strategy is. Do they plan to sell? Are they in it for the long haul? Recognize when they skirt around these questions and run fast if they do. WHY WOULD YOU START AN INDEPENDENT BUSINESS IF THE PARENT COMPANY IS SHORT-TERM AND WILL SELL OFF UNDERNEATH YOU ONCE YOU HAVE GROWN? If you thrive from jumping from company to company and live off of the world of short-term business life cycles, I certainly hope you do not preach the principle of residual income to your downline. This would be the greatest unethical ploy and lie you could make to others. Residual income is all about long-term sustainability of your organization and the parent company. So does this mean 80-90% of Network Marketing companies are unethically teaching residual income? You decide.

The next piece of the puzzle is EXECUTIVE EXPERIENCE.

Do the executives have vast experience and proven track records of growth?…or…Is this a first attempt at Network Marketing for them. Ready! Set! Go!

I personally know a handful of people that have started Network Marketing companies with little to no experience in the industry. Simply put…they have all failed, are failing, or sold off out of desperation. Scrutinize the executives and their experience. If they are new to the industry, do not fall prey to their own learning experiences and failures. Make sure your company is rich with experience and proven track records.

You are investing time, money, reputation, and emotional energy in Network Marketing. Is the Executive ship you are in stable and built soundly or is it a structure that will sink as soon as some heavy waves hit? Be wise, choose the right company with a sound executive team, and your odds for long-term success will be greatly increased.

Success Point 7 in my Next Blog: “The Right Funding.”

Network Marketing – Success Point 4 – “The Right Team/Motives”

Point Four of The 12 Points to a Successful Network Marketing Company.

The Right Team and Motives!

These are your direct upline and team above them. Ever been involved in a business deal where you are left hanging? Network Marketing is a commonplace for the quick sign up with little to no followup, support, or training. I was shocked when a friend of mine explained how he had signed up for a $5,000 buy-in package for one MLM and had never received communication from upline again. Even worse is that he knew about 5 other people who experienced the same thing with the same company? This company eventually folded…what a shocker!

Before joining any MLM you should know the motives of your sponsor and upline? Do they preach the expensive signup and shotgun sponsoring or do they FOCUS ON INDIVIDUALS AND SUPPORT, TRAIN, and BUILD THEM?

Run fast and never look back if you have any notion that you may be signed up and then left without support. If you do not have a team that is working together for success you will get discouraged and eventually be another attrition stat. Building an MLM is just like building any small or medium business. It must be done honestly and ethically. MLMs have gotten a bad rap for dishonest business practices and the fact is that there is a lot of dishonesty in MLMs. There is a lot of good as well and that should be a criteria in choosing.

Make sure there is a culture that will create long-term distributors and success. Watch out for the programs that only reward those who buy in at high prices. The playing field should be equal and based off of hard work and building a large downline, not large buy-ins.

Collective service and success must be a primary motive or individual failure and attrition occur quickly.

Here is to success in your businesses and in choosing and creating teams with the Right Values and Motives.

Success Point 5 in my Next Blog: “The Right Story”