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This entrepreneur got
involved with a multi-level marketing
company about 20 years after he was
first introduced to the MLM industry. He
was fascinated by the fact that a person
could make money from the efforts of
thousands of other people in what is
called a “downline.” When someone
introduced him to a health product that
worked for his son, he decided to start
his own MLM company simply by asking
other MLM owners how they started . Here
is his story.
Tell us how you got involved in the
multi-level marketing industry. Then I
want you to tell me how yau signed up
1,000 distributors, but also teach me
how to start my own vitamin MLM company,
if I want to?
I had looked at MLM for about 20
years, but never really understood it.
All I saw were people calling to get us
to come to meetings, then telling us how
much money we could make, and then
pressuring the heck out of us to join.
You never even tried it?
Actually, we went to an Amway
meeting the very first time we were
approached. It was held at a doctor's
home, but at the time we weren't told
this. We joined and actually got fired
up until we went to a high school friend
and started telling him about it. The
first words out of his mouth were, 'This
isn't that Amway crap is it?" Needless
to say, we never said another word to
another person about it, and were
through with MLM for the next 20 years.
What changed your mind after 20 years?
I met an impressive
businessman.
He told me he was a full-time network
marketer, and then he told me he was
making about $14,000 a month selling
vitamins for a company out of Florida.
Once he proved to me that he was, in
fact, making that much money a month, I
let him explain how MLM works, the good
and the bad.
What
was it that got you interested enough to
join an MLM company and work with it?
The compensation plan was good. The
product was a weight-loss product that
was OK, but I felt like almost anyone
could make a nice little income each
month if they marketed it differently
than most MLMers market.
Before you tell me how you made money in
MLM, now that you are no longer in the
multi-level marketing Industry, what do
you think of the industry as a whole and
what would you say to anyone getting
involved In it?
The concept of MLM is incredible. On
paper, it is the greatest thing going.
Think about it. Build a downline of a
thousand people and then get paid for
their efforts each month. Incredible.
As far as me telling you my feelings
about the industry as a whole, that's
hard to do. I think there are a small
number of companies and products that
are great, and I think the majority of
companies are not so great. People have
to do their homework before they join a
company. If a company will not help them
market or sign up people, most
distributors will fail. Marketing is the
key in this industry. Always remember
that.
What would I tell someone wanting to
join an MLM company? I actually think
making money in MLM is the hardest thing
in the world to do. Your success doesn't
depend on you or your skills, but it
depends on the skills and work habits of
those people you sign up. The majority
of people who get involved in MLM want
you to do the work for them. If a
company tells you that you will make a
fortune just by sending out some
postcards or putting up a web site or
talking with your friends and families,
run.
You sound down on the industry?
Not really. I dearly love the
concept of multi-level marketing, and
people have made a lot of money doing
it, but it is a tough industry. I think
I am down on some of the people in the
industry. They sell the industry as easy
money. They get people involved by
telling them how easy it will be for
them to make a lot of money. People get
involved, fail, drop out and then talk
negative about the industry. Plus, to be
honest, most people are lazy and they
want to find that great marketer, put
him in their downline and let him do all
of the work while they collect the
money. No business works that way.
You told me with your first venture into
MLM, you were making about $6,000 a
month by the sixth month. What did you
do to make that happen?
In the beginning, I was told to make
a list of my friends and people I knew
in business, and go to them and sell
them. Since I hated people to approach
me, I decided 1 couldn't go to my
friends, so I decided to find a way to
sign up people without actually talking
to them. Plus, I knew my success in MLM
didn't really depend on me, but my
success depended on the people I signed
up. If they were told to go to their
friends and family also, I was pretty
sure the whole thing would grind to a
halt, because I feel 99 percent of the
people don't want to do that either.
How do you sign someone up that you
don't know and you don't talk to?
You set up a process or a system
that a person can go through and
eliminate them self any step of the way.
I don't understand?
Let me tell you what I did and you will
understand. The first thing I did was
determine that most people were
interested in making money. They were
also probably a whole lot like me and
had a negative feeling about multilevel
marketing. They also would probably not
want to approach family and friends, and
if that were the case, they wouldn't
have a clue what to do. So I had to set
up a system for every single person that
would sign up people, but didn't depend
on them and their sales ability to sign
up other people.
I then looked at all the MLM
advertisements in all of the magazines
and determined that most ads did not
appeal to me or someone with my mindset.
The ads would not get me to call in
because they were too vague, promised
too much money for too little effort or
gave me all the information, therefore
giving me everything I needed to say
"no" to their offer before I actually
knew any-thing about it. Plus, I didn't
want to call a phone number in the
advertisement and have someone answer
the phone and then "sell" me to death
about his or her product or company. So
I had to eliminate all of those problems
at the same time.
The
NonThreatening System:
o three-line ad
o 24hour recorded message
o prospect leaves address
o mail information to prospect
o prospect calls
o prospect joins
Tell me what you did and why you did it.
I first put an advertisement in the
"business opportunity" section of the
local newspaper. It was three lines and
a phone number. It said, "I have been
successful for 20 years. I have made
$200,000 a year for 20 years. I've been
stupid for 20 years." Then I had a
tollfree number followed by the words,
"24hour recording."
I wanted people seeing my advertisement
to call, so I didn't put anything in
there about MLM. I wanted them to know I
had been successful for a long time, but
I wanted them to wonder why I thought I
had been stupid for all that time also.
They had to call the toll-free number to
find out why. The "24-hour recording"
was to let them know that nobody would
answer the phone to "sell" them on
something. Nonthreatening.
Once they called the number, they would
listen to a message that I had recorded.
If they listened to the whole message
and wanted more written information,
they were told to leave their name and
address, and their phone number was
optional. Again, Nonthreatening.
The message they listened to told them
everything I would have wanted to know
when I was totally turned off by MLM. I
talked about the hype, the room full of
people standing on chairs clapping and
chanting, the going to friends and
family and the negative responses the
family and friends would give them, how
I had been turned off by MLM for 20
years, and things like that.
Why did you do that?
So they would identify with me. I
wanted them to know I was one of them. I
was not an MLM guy trying to "sell" them
my product or company.
After I told them all the negative stuff
about MLM, I then told them I had
finally taken the time to find out about
and study MLM from a man who was making
$14,000 a month and wasn't a salesman. I
told them a little about the company and
the product, but then I told them I had
been stupid for 20 years because I had
never concentrated on making residual
income, which is what you make in MLM. I
then told them I had come up with a
system that anyone could use to sign up
prospects. A system where they would not
have to talk with anyone, friends or
family, until a prospect called them and
had a few questions or they just wanted
to sign up. It didn't matter who they
were, if they had ever sold anything or
not, or their age, color, creed or sex,
they could sign people up and make
money, regardless of whether they had
succeeded or failed in any other MLM
company.
Did you really have this system in place
where they could sign up people without
talking to them and then they could do
the same thing? If you did, explain it
to me.
Sure I did. Here is the system. I
put the three-line advertisement in the
paper. People called the 24-hour
recording and listened to the whole
message, or they didn't listen to the
whole message. Those that listened to
the whole message had the choice to
leave their name and address so they
could receive more information. Those
that did were mailed specific
information about joining me. Those that
received the information had the choice
to call me or not call me. Those that
called needed a few questions answered
or they wanted to join. Those that
joined were then told how to join, and
then I set up their system for them.
I now see how they were able to
eliminate themselves each step of the
way without you having to hear a "no"
from them.
Absolutely. They always had choices.
When they read the ad, they had a choice
to call the number or not. They then had
a choice to listen to the whole message
or not. They then had the choice to
leave their name and address, and on and
on and on. Those that kept going all the
way through the system had a choice of
joining or not, but I was never mentally
dragged down by hearing any "not
interested" from anyone.
One question. What did the information
say that you sent them?
It again briefly talked about the
product and company, but I really
concentrated on how they were going to
be able to sign up people without
talking to anyone. I described the
marketing system more than anything. In
fact, I would tell them they were in the
middle of the system at that very
moment. They called the number in the
paper. They listened to the message.
They left their name and address. They
were reading the information and after
they were through, they could make the
decision to call me or not call me.
Either way, it was up to them.
Why not go into detail about the company
and product?
Because to the majority of people,
they don't care how good the company is
or how good the product is. They just
want to make money, and they want to
know how you are going to help them do
it. Now, I'm not downplaying the product
or company, and I think everyone should
try to find a good solid company and a
product that works, but marketing is the
key to everything.
How could they use the same system you
used to sign people up?
Let's say you sign up. I would send
all the instructions to you in writing.
It would tell you where to call to get a
toll-free number with a voice mailbox
that could accommodate a five-minute
recorded message when someone called the
number. You would get a passcode to
enter your mail box so you could listen
to your messages. You would then give me
your passcode and I would go into your
mail box, from my phone in my home, and
record the same message you listened to
when you called my toll-free number.
Then you would put the same three-line
advertisement that I used in your
newspaper or any paper of your choosing,
and you would put your toll-free number
beside the 24-hour recording line. You
would be given the exact packet of
written material to send out to anyone
who left their name and address so you
could make copies of it. Instead of my
name and address on the front of the
material, you would put your name and
number down so the people could contact
you if they were interested.
How well did this system work?
Within six months, my check was
around $6,000, and I had over 1,000
people in my downline. That three-line
advertisement was in over 150 newspapers
and in USA Today.
The
NonThreatening System:
o three-line ad
o 24hour recorded message
o prospect leaves address
o mail information to prospect
o prospect calls
o prospect joins |