Word #1: probably the biggest scam ever run on people in MLM network marketing is the powerline.

The worst thing you can ever do building your business is to create fear of loss. It’s the worst way to build your business. Oh, yes, it definitely works … to get people in. But you have a totally false business, because you’ve got a bunch of people, and none of them ever does anything.

Word #2: Many companies that do a powerline - or even a binary or a matrix - focus their promotion talk on spillover. Now, I have met people who have gotten spillover, definitely. BUT - none of the people that were spilled over on them ever did anything! Why?

Because the promise of “spillover” creates a welfare mentality. What happens when you tell people, “Oh, get in NOW, and you are going to get spillover!”

They’re afraid of losing something for nothing. So they do get in now … and then they sit and wait for all that spillover to make them rich.

Isn’t That A Wonderful Business Plan?

It’s like joining a binary because you can get a position that already has $1 million volume in the strong leg. The reality is, you don’t make a dime, unless you build the weak leg, But people get so worked up about losing that “$1 million position”, they join … and never do anything, and never earn any income.

So never forget those words, powerline & spillover. Anytime you see them, their purpose is to promote the welfare mentality. Something for nothing, something for nothing, something for nothing.

The fact is, you are in network marketing. Network marketing is a business that takes work. It’s net-work marketing, ok? it’s not net-free marketing. It’s not net-spillover marketing. It’s not net-zero marketing, it takes work. Anything you do that promotes the “something for nothing” mindset will not work. End of story.

But you will draw in a bunch of couch potatoes who are convinced that you are going to build it for them. Matter of fact, you can even give them your bank account number, and you’ll just pass the money directly to their account. They don’t have to leave the couch. They can stay on the couch, drink their beer and watch a football game. No problem.

Use Those Two Words As A Tip

Whatever company or whatever distributor is saying them to you, that is not the company or the person you want to depend on long-term. They will not be successful. Keep on looking. There are lots of good companies & MLMers out there. Keep looking, and you’ll find the right mentor.

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!”

Most MLM companies rent their software. But they can never tweak it to fit their business model, and the distributor base suffers.

Let me give you a story on that. I was consulting for a network marketing company out in Utah.  They had a binary compensation plan, in other words a 2-legged plan - one left, one right. Real simple, right?

But the software they leased could not be changed from left to right, to reflect the binary. They tried.

They Had To Pay The Programmers To Come Back In & Reprogram It!

You would think that was a simple, simple, simple fix. But it couldn’t be fixed over a 6 month period.

Here’s what happened. Let’s say you already have your strong leg going well. Now you go into your back office and put all your new sign-ups on your weak leg.

And you’re building, building. You have ads running on the internet. People are joining you and your business is growing. And you think they’re going on your weak leg.

All of a sudden, you find out they are all going on your strong leg. And in a binary, you only get paid based on your weak leg production. So this is a real problem.

Now You Have To Fight With The Company To Move Your People!

And what was so amazing about that process that I witnessed was, the company went out and hired more and more and more customer service people to handle the paperwork to move these new reps. And then they started charging the distributors $10 each to move the people that the company messed up on in the first place. 

Finally, they got so overrun with people wanting to change these positions back over to their weak leg where they should have been in the first place … that they finally said, “We are not switching anybody anymore!” They couldn’t handle all the influx of people needing that done.

Now that’s a perfect example of buying your software and not being able to tweak it at all.

And when you rent the software, you better read the fine print, because you don’t own the database.

You Do Not Own The Database!

About a year and a half ago, I saw a downline genealogy for sale on the internet. I happen to know the owners of the company. I called them up and said “Hey! What’s going on? My gosh, your company is doing good, isn’t it?”

“Yeah. Company is doing great. But we couldn’t afford to buy the software, so we leased it. And part of the lease deal is, the software company owns the database.”

And this software company thought it would be great to make an extra $100,000. So they put the genealogy for sale on the internet and sold it to 10 companies for $10,000 apiece. So they made a quick $100,000 selling the genealogy. And right in the Policies and Procedures, it said that the software company owned the genealogy. It was right there, right in black and white. How would you like to build your business and then have your organization for sale on the internet?

So before you build big with some company, ask them who owns their software. If they don’t own it, then you could lose everything in a heartbeat.

The big reason they rent it is because it costs them about $2 million to buy it. They can rent it for about $10,000 a month. Most companies don’t have the 2 million dollars to spend up front. 

But the other thing is, if you really truly, understand your business and it functions, doesn’t it make more sense to have someone program your specific software? Then you can work with them.

You Want a Company That Has Built Their Software From The Ground Up! 

When the company has built it and owns it, the distributor base is protected.

Instead, these guys get the idea to start a network marketing company, and 10 minutes later, they are in business. So they call the software companies and find out it’s 2, 3, 4 million dollars to buy the software program, but you can rent it for 4, 5, 10 grand a month and you’re in business!

Now they know this is a tough business, and there’s a very real chance they won’t even be around 2 years. Taking on a $2 million obligation doesn’t make sense to them. $10,000 a month is definitely the way to go. Problem is, you’ve sold your soul to the devil.

An Evil Secret

Another thing that software companies will do is - and this is a very well kept secret - they will be in partners with that MLM company. So there is a downline organization, a leg being built by the MLM company for the software company.

That creates a retirement income for the software company on the bacsk of the distributors.  How hard is it for the owners of the MLM company to move all their orphan distributors  underneath the software company and build them a nice check? That’s a very, very, very tightly kept secret,

It’s just one more reason you need to build your future with a company that owns its own software.

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!”

Ninety-five to ninety-seven per cent of your team will be part timers. Your compensation plan needs to focus on the part-timer, not the Heavy Hitter.

Let me tell you a story about that. There is a company out there that’s really rocking and rolling right now. They have a single product. Talking with the top distributor in the company, his group is growing fast. They added 13,000 brand new distributors last month. Only problem is, 14,000 dropped out the back end.

I Call That “Vampire Networking!”

Vampire networking means, you look for new blood. You are always, always, always looking for new blood.

So why is it that these people drop out? The reason they drop out is, they are not making money. Part-time people are not making money. That’s why the network marketing companies need to focus on the part-timers.

And don’t tell me that your super star space commander guru leader is making $200,000 a week. Tell me you have 10,000 part-time people making $200 a week. Because again, 95 - 97% of your group, no matter how big you build it, how small it is, 95-97% are part-time people.

These are part time people, working a 2 or 3 hours a week, maybe 5, 7 hours a week. A half-hour here, an hour there, building their business. Those are the people that have got to get a checkk.

Most Compensation Plans Focus On Recruit, Recruit, Recruit

Problem is, only about 3-4% of the population can recruit. The rest of the world can share.

What’s so amazing about this is, people their whole lives have recommended and promoted. They recommend and promote a good book, good movie, good restaurant. And when they get into network marketing, all the sudden it’s top secret. They don’t tell people about their amazing product, because some idiot Heavy Hitter told them, “You got to start selling people!”

See, they have been sharing their whole life. It’s not a problem. They have recommended and promoted their whole life.  since about age 5. Now all the sudden they get into a business and they can’t do that anymore.

Now all the sudden it’s about sell, sell, sell, recruit, recruit, recruit … when in reality, all it is is recommend and promote.

Part-time people can do that. They’ve been doing it since age 5. Just let them do it. But the Heavy Hitters try to change people into this person that they are not.

And it doesn’t work.

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!”

Several people have asked questions recently, and I’d like to answer them here.

Most important, you need to understand that I, personally, do not get asked these kind of questions, because I do not target these kinds of people for my business. I don’t talk to people who don’t believe in network marketing.

It’s crucial to your success that you target market. Target the people who already believe in network marketing. Offer them the Success In 10 Steps ebook. And when someone raises their hand for more information, they will NEVER ask you questions like these.

OK. The reality is, not everyone is going to do that. And they will get some tough questions like

Question #1: “How much money did you make in your business?”

So I do coach people on how to answer questions like this. And your response to this question should always be, “I don’t have a clue. I haven’t finished collecting it all yet.”

See, you never know how much of an ongoing ripple effect you’ll get from what you did yesterday and the day before. How can you know how much money you’re going to make when you sponsor somebody into your business?

Today, you’re making $5 a week. Next month, You’re making $50 a week. And the following month, you’re making $500 a week … all from the business-building efforts of that one person you signed up today.

MLM is a business that will pay you a lot next year, and 5 years from now, and 20 years from now … for work you did today. The person asking you this question does not understand the amazing phenomena of getting paid every week for work you did 10 years ago.

Question #2: You’ve just started in network marketing and the person asks, “If this company you’re promoting is so great, then why aren’t you making any money from it?”

Again, this question comes from a person who does not understand or believe in network marketing. And so here you are, in the impossible position of trying to convince this person.

Building any business takes some time to build a network of customers buying your products. Someone says, “Well, a couple years ago, this guy online sold $1 million of a product the first day he offered it.”

And that’s true. But what you lose sight of is that his “opening day” was in the planning stages for many months, as he lined up dozens and dozens of internet marketers - each of whom had a list of thousands of subscribers - to promote his product.

If you trace that “$1 Million Day” to its origin, it goes back many years, to when all these component lists were being built.

Is it possible to make a profit immediately, from your first day? Sure. But you get the greatest network marketing rewards by training others to move your products … a result which will show up big in future paychecks.

Question #3: “Someone likes my company, but would rather join under a Heavy Hitter who knows what they’re doing. How should I respond?”

The problem with joining under a Heavy Hitter is, most of them don’t have time to talk to you. They don’t have time to help you build your business. Many of them - you’d be astonished to learn just how many - were actually GIVEN most of their organization by the company, to “prove” how big a person can build. And many Heavy Hitters are hard-core salespersons. They do stuff you & I could never do in our wildest dreams (and still sleep at night!).

Heavy Hitters are not into hand-holding. When you sign up with them, they expect you to get to work and build. If you don’t, no problem, there are a hundred others waiting in line behind you to join with a Heavy Hitter.

If you need any kind of coaching, mentoring, or training, most Heavy Hitters will never do that. They consider you “dead wood.” You’re in their way, and you need to be swept aside, in favor of someone who already knows what to do.

As we coach people to be successful, we focus on how you need to build a relationship with people. You can’t ask them to join your business before you have a real relationship with them. It will not work. And if you’re getting Question #3, then you are talking to people with whom you have NOT built a relationship.

If you’re not building a relationship with them, you got no chance. A friend would never choose some “Heavy Hitter” over you. If you’re having that problem, you need to learn the “Colors” technology and focus on making a friend first. That strategy works long-term, it’s easily taught, and it’s something anyone can do.

When you target the market and then talk to people who raise their hand, you will not get these kinds of questions.

Question #4: “I don’t have much money to drive around town looking for prospects. How can I conentrate my efforts to expose people to my MLM Business?”

The problem here is, your upline has got you driving around, trying to pounce on people and slam them into your business.

Network marketing is a relationship business. You should be target-marketing online. It doesn’t cost any gasoline money to do that. You need to

1. Target your ideal market.
2. Get the right people to raise their hand.
3. Build a relationship with them.
4. And when the timing is right for them to be in business, they will call you.

THIS is how success works. You cannot slam people into your MLM business and have any hope of long-term success. Period.

The best way to target market is to use the pro version of the Mentoring For Free system that we have devised. Many individuals are using this system to successfully build their own network marketing business.

If YOU have a question, just click here and I’ll be happy to answer 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!”