September 18th, 2006

How Many Recruits & Customers Do You Need To Earn The Income You Want?

By Michael Dlouhy

How can you set an income goal when you have no idea how many people you need on your team?

I ask people that question all the time, and most of the time, I get a blank look. They don’t have a clue. They’ve never figured it out.

But the fact is, every income goal set by any rep with any company requires a certain number of recruits. What is that number in YOUR company?

If you don’t know the answer, you don’t have a prayer of achieving any income goal.

I asked a guy this question recently, and he said, “Oh, I need 5,000 people to make $10,000 a month.”

I told him that was a very quick answer. How did he know it?

“Well, we make a dollar a bottle. And everybody goes on a 2-bottle autoship, so I’ll need 5,000 people to make $10,000 a month.

How does this play in the REAL world? First of all, 5,000 people … you KNOW not everybody will be on 2 bottles of autoship. Not everybody will be on autoship at all. So you’ll need way more than 5,000 people in the plan. How realistic is that?

But you’ve got to know those numbers.

Lots of people set income goals, but there’s no reality to it, because they don’t go that next step to figure out exactly how many people it will take in their organization to meet those goals.

They don’t know if they need 1,000, 2,000, 5,000, 10,000, 100,000 … they just don’t know. Once you know the formula, you can apply it to any goal you want. You can have a $1,000 a week goal or a $5,000 a week goal. You just need to understand what type of group you want to build.

We Appreciate You!

Michael & Linda Dlouhy
Call 1-352-799-8779 (anytime)
Get my FREE ebook: Success In 10 Steps
“Be A Mentor With A Servant’s Heart!”

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Posted in MLM Compensation plans, Marketing your MLM business, MLM Sponsoring system, Choosing a MLM company | No Comments
September 16th, 2006

If Your Company Leadership Is Bad, You’re a Goner!

By Michael Dlouhy

Before you join a network marketing company, be sure to check the background of the company leadership to make sure they have MLM experience, with integrity. A simple Google search will often surprise you.

Not doing this background check is a common mistake, often fatal to your business. When the management team has built a downline themselves, they respect you. Companies are nothing without us - the reps. If they could sell their products themselves, they’d just put some magical ad on the internet somewhere and people would come to buy in droves.

But it does not happen.

Why? Because it takes you and me to build the relationships with the prospects, so they buy from us.

And how do you know if your company leadership has integrity? Simple. Read their company Policies & Procedures. Then you will know.

99.9% of the people you talk to want to build a business and then retire and enjoy the fruits of their labor.

But these companies have come in the backdoor like snakes in the night. They’ve changed their Policies & Procedures, adding phrases like “ongoing sales”, “ongoing recruiting,” “continuous”, “regular meetings.” You cannot retire – even though they’ve promoted early retirement as one of the main benefits of their business! It’s amazing.

If you retire, they can legally terminate you!

Does that show any integrity? Does that show any respect for the reps who built the company, who brought the business to them? Absolutely not.

Your Policies & Procedures are THE contract between you & your company. They are written by the company lawyers. You’d better know for certain what YOUR P&Ps say.

We Appreciate You!

Michael & Linda Dlouhy
Call 1-352-799-8779 (anytime)
Get my FREE ebook: Success In 10 Steps
“Be A Mentor With A Servant’s Heart!”

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Posted in Marketing your MLM business, MLM Company leadership, MLM Business Models, MLM Company Policies & Procedures | No Comments
September 14th, 2006

You Don’t Produce More Milk By Squeezing Harder

By Michael Dlouhy

Network marketing companies are like a dairy farm. If you needed more milk, would you squeeze harder, or would you get more dairy cows?

Companies call it “raising the bar.” Suddenly, distributors have to buy MORE product to qualify for commissions. So the company forces the distributors to pay for the new $28 Million Home Office. Or the 100 new operators in the Call Center.

Companies that charge reps $19.95 or $29.95 or $39.95 a month for the website to look at their downline genaeology … THAT stuff should be free.

That $20 or $30 or $40 a month is virtually 100% profit to the network marketing company. They want to increase their bottom line. But instead of getting more cows, they squeeze harder.

More Squeezing

Companies that change compensation plans are squeezing harder. They know their reps have built to maximize rep income from the current comp plan. So a totally different comp plan will ALWAYS throw a monkey wrench into the rep’s design and increase the income to the company.

Companies that want more milk start changing comp plans, they charge for more Back Office doohickeys, they force you to order more product to qualify for commissions.

Or they do the RIGHT thing, and get more cows.

Which way does YOUR company play it?

We Appreciate You
Michael & Linda Dlouhy
Call 1-352-799-8779 (anytime)
Get my FREE ebook: Success In 10 Steps
“Be A Mentor With A Servant’s Heart!”

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Posted in MLM Compensation plans, MLM Company leadership, MLM Products, MLM Business Models, MLM Company Policies & Procedures | No Comments
September 8th, 2006

The Big Myth of Sponsoring MLM Distributors

By Michael Dlouhy

In the real world, when you talk to 100 people, you will get 10 retail sales and 1 new distributor IF you have a value-priced product.

Think about this. You talk to 100 people. You get 10 customers, 1 distributor. If you’re in a business model that is all about getting distributors, because the payplan does not drive the behavior of getting retail customers …

You Are Losing BIG-TIME!

If your payplan is only about recruiting, and your products are over-priced compared to the same product at Wal-mart and your payplan does NOT pay you 30% or 40% on retail sales, then your chances of long-term success are very, very small.

THAT is the road of destruction.

So ask yourself 2 key questions:

1. Are my products priced competitively against the same thing (or similar) at Wal-mart?

2. Can I earn 30% or 40% commission by retailling product … or does all that money flow to the upline?

For long-term network marketing success, you need to be able to answer “Yes” to both questions.

We Appreciate You
Michael & Linda Dlouhy
Call 1-352-799-8779 (anytime)
Get my FREE ebook: Success In 10 Steps
“Be A Mentor With A Servant’s Heart!”

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Posted in Getting & handling MLM leads, MLM Compensation plans, Marketing your MLM business, MLM Products, MLM Business Models | No Comments
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