network marketing survival

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NETWORK MARKETING SURVIVAL

Choosing the Right Company &

Alays Ma!ing "#o$it %#om Them All

Neto#! Ma#!eting S#'i'al ( ) (






TA1LE O* "ONTENTS

The %hocing Truth& '

Why Would "ou #e (hoosing An )*) In The +irst Place

Types -f People Who Are *ooing +or -pportunities /

What Is The )*) 0ungle *ie 1

23posure To The Industry 4

The Team 56pline, %idelines, even the (ompany %taff7 1'

The Trend of Time 1

There Is 8o %uch Thing As A Perfect )*) 19

An )*) That Would %uit "-6 1:

#eing Aware -f The !iss 4/

;etting %tarted -ff The !ight +oot 41

In A 8utshell 44

!ecommended !esources < #onuses 4=

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Neto#! Ma#!eting S#'i'al ( , (

Network Marketing SurvivaHow to Survive in the Network Marketing Junge

!"hoo#ing the Right "o$%an& ' Awa&# Making (ro)it

*ro$ The$ A+,






THE SHO"KING TRUTH+

If you are reading this boo, let me first congratulate you if you are a newcomer to theworld of )*) and allowing me to impart my e3periences on the industry to help you in

taing the first step into this fantastic industry.

)y intentions of writing this boo is to help and provide people generic information that

would apply to any company regardless on their mareting>compensation plan, product,

team, country or even offline or online&

It is indeed a shocing truth to find out that over ?'@ of networ mareters or home

based business owners are operating their business at a *-%%&

ow scary if you are reading this for the first time.

Well thanfully if we all worshiped statistics fanatically, most people today will be afraid

to drive cars or even go to school 5e.g. the percentage of road accidents and how many

students in a class Bmae itC in getting distinctions7

We all want to be smart people and rather be in the top '@ being the ones maing the

money now, donCt weD -f course we do.

It is sad that countless of poor victims join the industry, uninformed, and when they run

into problems, they usually put the blame on the company, the team or even the industry

itself&

That is why we hope to avoid such unfortunate circumstances.

2ven if you have been involved, this information is invaluable because it might teach you

things you have missed out or information to help your downline.

Let2# %ro0ee-3

Neto#! Ma#!eting S#'i'al ( - (






Wh& Wou- 4ou 1e "hoo#ing an MLM in The *ir#t (a0e

)*) survival. *etCs face it, the world out there is lie a jungle. )ore particularly so in the)*) world. It would be easy to say, since it is that difficult, letCs just forget about the

whole )*) or networ mareting deal in the first place 5then this boo would not be

necessary at all7. That action would be selfEdefeating.

There is good news for all of us. %o let us instead start from a positive note.

The purpose of this boo is not just about teaching you to choose the right )*)

(ompany but also how, by being properly educated about the industry, you will be able

to re0eive .ene)it# from every opportunity you invest your time and money in. The

information here will be completely generic and neutral. I am not endorsing any company

over the other as there i# no #u0h thing a# the %er)e0t MLM but rather 0hoo#ing anMLM that i# SUITA1LE )or 4OU+

Whatever your reasons may be, let us mae a few assumptions about it before we

proceed 5or else you wouldnCt pay for this 2Eboo in the first place7

57 )aing money

517 %aving money on products

547 )eeting new people

5=7 ;rowth and development

Making Mone&

5a7 *ooing for fast money

5b7 #uilding a long term business with money coming in long after you have BretiredC

5c7 Investing in the product itself

+or people looing for fast money, there are pros and cons to this ind of thining.

%ome people are W2** T!AI82F salesmen. They have built the relationship with their

clients, customers and all sorts of people. People trust what they say and will trust

whatever they are selling. They may sell the product itself 5sometimes, in largeGuantities7, or they may sell the opportunity 5the money maing part of it7 or both. Are

"-6 this ind of personD

+ast money is not impossible, but it (-6*F be for the short term only. (onsider the

facts that :/E?/@ of people in the world are 8-T built for sales. If a salesman sponsors

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a nonEsalesman, would the nonEsalesman be able to do the same thing as his uplineD

Foes that mean that I would spend most of my time looing for the /E1/@ of sales

typesD

The ne3t type of money is the long term type.

When I define long term, it does not have to mean that you might not see money right

away. It differs from company to company. #ut as a general rule of thumb, it involves

1UIL5ING A NETWORK OR AN ORGANISATION/

The ey to building a large organization as Guoted by Zig Ziglar , H"ou will get whatever

you want in life if you will just help enough other people get what they want. In other

words, if you will help enough downlines get enough downlines, you are on the road to

networ mareting financial freedom. The ey is to help others.

There is one more category of people who BinvestsC in networ mareting companies, not

to mae money through retaining or networing, but rather investing in the product,

position, or depending on the company, appreciation of their BassetsC. A few e3amples

would be inve#ting in a %ro-u0t, so that in the future, its value will appreciate, so you

can sell it to other people at a very high margin 5sort of lie old comic boos.7 -thers

might %ur0ha#e the a00ount or -i#tri.utor#hi% from you 5depending on the

compensation plan of the company7 while some Internet companies actually pay you to

BinvestC in their company, sort of lie .u&ing a #hare of the company.

Saving Mone& on (ro-u0t#!etailing of a product is very important to an )*) business. *ac of 5or even nonE

e3isting7 retailing could be harmful to the distributor or the company as certain states

have outlawed BheadhuntingC and have their own policies.

8evertheless, saving money on an )*) product is one of the most wonderful ey

features of joining an )*) company if recruiting is not your forte.

In certain compensation plans, repeat purchase of the products you buy from the

company gives you more rebates or bonuses. In essence, the more you buy, the

cheaper it becomes. This becomes an even greater pleasure if you are totally in lovewith the products or you have already set aside a budget for those products 5which

means you are now buying from the )*) company or your upline instead of buying from

the supermaret, pharmacy, grocery store, etc7

There are some important aspects to tae note however, if the company reGuires you to

purchase the products in bul 5hence the term J frontloading7, is there a 5EMOTION in

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your achieved position in the company, is there MAINTAINAN"E reGuired, or how much

are the renewal fees for membership. All these will be further discussed in the later

chapters.

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Meeting New (eo%e

This is one of the many reasons why people join )*) companies 5even if the first two

reasons discussed above donCt even concern them7. There are all types of people in theworld. %ome lie the positive environment. -thers lie the social events the company or

team organizes. %ome loo for a potential life partner there&

*ots of people even go all out to join these ind of businesses to get more contacts for

their -W8 #6%I82%%2% 5maybe even T2I! -W8 )*) #6%I82%%7. #ear in mind

one thing. There is this old saying that goes, you scratch my bac, I scratch yours. If you

participate in their activities but donCt go full force in their company>team vision, donCt

e3pect them to join you or buy from you. There may even be negative repercussions

5such as being banned from coming bac to the company7.

Growth an- 5eveo%$ent

-ne of the biggest reasons why I would recommend joining an )*) company and doing

the business is opening your mind to positive thining and achieving your full potential.

There are many companies out there who have the best training courses, motivational

rallies, sharing sessions and whopping transformation camps that will not only fire you

up but tae your business building to the ne3t level.

I will not touch much on this subject e3tensively here. There are so many companies out

there that will do a fantastic job in terms of training.

!emember that growth is a journey and not a destination.

Neto#! Ma#!eting S#'i'al ( 1 (






T&%e# o) (eo%e Who Are Looking *or O%%ortunitie#

!emember that people join )*) companies for their own reasons. owever, thecharacter or intention of a person will determine how far they want to go in )*). ere

are classic e3amples of different types of people

57 ;enuine business opportunity seeers and builders

517 Product consumers

547 The supporters

5=7 )*) junies

5'7 // syndrome

;enuine business opportunity seeers are the most important people in building a large

business. They are the bread and butter. 8ot all are leaders but leaders are not born,they are developed. This group of people also can be product consumers.

Product consumers are people who join an )*) and buy from them because they lie

the product and enjoy the service of their upline. They are not necessarily genuine

business opportunity seeers or builders yet for many builders, a lot of their income will

come from this group. The good thing about them is as they learn more about the

product, the company and interact more with their upline, their e3posure to )*) grows

and they might convert to opportunity seeers and then builders.

The supportersC category is Guite a mi3ed match of people. When their close friends or

relatives build an )*), they will join under them to Bsupport their businesses. owever,the conseGuence of that action varies according to the individual. +or e3ample, I would

join my friendCs organization but it could be purely out of obligation and not for any

genuine reason. This could potentially lead to resentment 5when you mi3 business

dealings with friendship7, confusion and even loss of friends. -thers might even join to

see if their friend or relative is involved in a scam to try and pull him or her out. In order

to prevent any potential disaster, mae sure your intentions for joining an )*) are very

clear cut.

)*) junies are the sort of people who jump from )*) to )*) 5some people even call

them )ultiE*evelE)oneys7. They attend a tal, get hyped up about the opportunity, and

build the business on euphoria. %ooner or later, they lose steam and find problems withthe company 5when the real problem is themselves most of the time7 and jump to the

ne3t %)-KI8; -T business opportunity. It is not wrong to be a member of many )*)

companies 5depending on your budget7. #ear in mind, certain companies discourage or

even forbid you to join other companies 5then their business practices should be

e3amined7. If you are a member of many companies, it is o to do a good survey and

Neto#! Ma#!eting S#'i'al ( )2 (






attend trainings, but the ey to remember is you must focus on -82 good )*) for the

long run and the others can operate on a referral basis 5lie recommending a friend to

buy a product from another company while building one main one7.

This leads us to one more category of people who could be )*) junies as well J the

667 #&n-ro$e. #asically they want to be the first to start building a business in a brand

new startEup. They want to be the pioneer. There are many pros and cons to assess

about a new company lie their bacground history, financial status and product maret

rather than just focusing on the income potential. There are many more challenges to be

faced for people who are sponsored directly under the company and new companies

donCt usually have a timeEtested worable system in place.

If you fall into one of the above categories 5or even some or all of the above7, these will

give you a general guideline on how to improve your choice selection of )*) companies

before we go in to the details about compensation plans and product demand. #y

nowing yourself better, you can do a better assessment.

Neto#! Ma#!eting S#'i'al ( )) (






What i# the MLM Junge Like

There are thousands of )*) companies out there& ere are a few categories of )*).These will help you determine which company suits you.

(ro-u0t8Servi0ing

Tra-itiona MLM

"on0e%t

(h&#i0a %ro-u0t

Internet MLM

5igita (ro-u0t

The main difference between traditional )*) and Internet )*) is the method used to

recruit or sponsor. Traditional )*) relies mostly on oneEonEone prospecting 5lie at a

)cFonalds or %tarbucs7, home party, opportunity meetings or rallies. Internet )*)

does the recruiting through eEmail, newsletter, forums, websites and sales letters. This

minimizes the human interaction part and may be more suitable for those who are not

very good at taling to others.

Two main types of traditional )*) are one that is heavily concerned with retailing,

consumption or distribution of a physical product. Typically one with a high volume of

repeat sale 5lie vitamins or sin care products7 and good testimonials of the productwith high visibility 5e.g. loo at my sin, the product has cured all my pimples&7.

(oncept )*) doesnCt focus as much on products compared to its former counterpart.

They usually do have a product, but it doesnCt have as high a repeat sale as those

mentioned above. )ost of them run their business lie a club. %ome are lie lifestyle

clubs. -thers conduct their business with a high degree of professionalism 5they all

dress better than an office worer7. -ften they will sell their people a dream or molding

them to a particular image to convey the image of the company for attracting more

recruits. ItCs the sizzle that sells the stea.

In Internet )*), there are distributions of two types of products. A physical productdistributed through the Internet means that the Internet does the selling and recruiting,

taing the orders, and the shipment of the product are done offline. Figital products

remove the headaches of physical product distribution. This usually gives the company a

better margin due to lower overheads 5no warehousing or shipment7.

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E9%o#ure to the In-u#tr&

In the )*) industry, there are a few factors to consider when considering which

company to build a long term business.

(ro-u0t .a0kgroun-

Marketing or "o$%en#ation %an

The tea$ :U%ine; Si-eine#; even the 0o$%an& #ta))<

The tren- o) the ti$e

+irst off$ It has been said in the past J your 6P*I82 chooses the first company you join.

It still is the case today for many who are either une3posed and their friends or relatives

who join an )*) first approaches them.

The une3posed might oblige their upline and if they are not careful, will cause a very bad

first impression on the industry.

Today, you donCt need to be piced by someone else. "ou can choose first. Fo a good

survey based on the guidelines above. As a matter of fact, you donCt even need to join

the first person who invited you in a company. "ou have a choice to choose someone

else to be your upline within the %A)2 company.

Products are very crucial in )*). 0ust because one company says our product is the

BbestC doesnCt mean that it is. 0ust lie any other business, people seriously building an)*) will only say good things about their own product. They will even give fantastic and

even outrageous testimonials about how the product can help them.

)any are very sincere and wellEmeaning, but the rule of thumb to remember is J yes,

you say the product is the best, but that is also because you havenCt tried any others

because you are in this business&

I firmly believe that most )*) products are of e3ceptional Guality. That is because the

product must wor then only can the distributor give good testimonials due to the nature

of the distributor doing direct sales 5dealing directly with the prospect>customer7. There

are companies that FI%(-6!A;2 their people from using products from a competitor)*) 5some even as you to stop buying from the supermaret and buy from your Bown

businessC instead7.

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1eware$ some even go as far as to tal down about the products of other )*)

companies. )ost people, in their zealous zeal to recruit others, may use this tactic. This

is often perceived as rather unprofessional.

#ear in mind$ in )*), if you tal bad about other )*) companies or their products, you

are taling bad about the entire industry as a W-*2 5you mean to say that only your

company, product, compensation plan, team is the best in the world and the rest of all

the other companies are of inferior GualityD )anL I donCt want to be in this industry.7

(an you imagine if every networ mareter is doing thisD 8o wonder the industry has a

bad name&

The Marketing or "o$%en#ation (an

The plan is very important. It shows how much wor you need to do to get paid this

much. All mareting plans have their own advantages and disadvantages. Fifferent

companies offer different margins for their products. The ey to remember in margin

comparison, if the company pays the distributor too low, you might not surviveM if the

margin is too e3orbitantly high, you might earn a lot, but your retail customers will suffer

and the business might not be long term.

#efore I share with you a few more popular type of mareting plan to give you an idea

about what company will offer what, I wish to highlight two things in every plan$

5EMOTION an- MAINTAINAN"E

5EMOTION means dropping from one )*) position to a lower one 5usually resulting in

a loss of future potential income7 or your remainder Guota reGuired to reach a certain

target is increased 5the volume achieved in the past do now count towards the grand

total anymore7 Femotion is an important factor to consider in every mareting plan as

someone who suffers demotion suffers a sudden loss in income and could be very

embarrassing to others.

MAINTENAN"E 5sometimes called autoship7 is the minimum amount of sales volume

5usually every month7 a distributor or serious business builder has to buy either his own

personal volume or combined with group sales in order to maintain his ran, be eligible

for bonuses, overriding commission or sometimes even maintain his distributorship.aving maintenance or no maintainance all has its pros and cons. I will highlight 4

scenarios to give a clearer picture.

A< MAN5ATOR4 MAINTENAN"E

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%ome companies reGuire you to purchase products every single month. This is

good if you have built a large organization and it ensures you have guaranteed

income every month. 8ot good if you are forced to maintain and you are not

maing money in your business. If you are in love with the product and donCt

mind paying for it every month then it is fine. #ut this can cause a person who is

not seriously building or is still struggling with his business some pressure and it

is one of the main causes of drop out in )*).

If the maintenance is too e3pensive, people might shun the company. owever,

the upline with a lot of people in his group can build a large stable income this

way. %ome companies may not reGuire you to maintain at the early stages and

increases the maintenance after they achieve a certain ran.

1< NO MAINTENAN"E

This is very good for people who have just started their business or for people

who is just casually Btrying outC an )*). There is no pressure and a person can

be in an )*) for years but still at the same ran.

The bad news is that it might not be good for the long term 5because no

maintence means no downlines need to buy anything7 unless your group is in

love with the product or if you and your downlines have built a solid customer

base and the demand of the product it there.

"< O(TIONAL MAINTENAN"E

This is also very good for people who just started or the casual type. They will

only as you to buy a certain volume of products when you want to override your

commission from the company. This is also very good in the sense that you are

not %re##ure- to %a& $aintenan0e and &ou on& %a& when &ou are $aking

$one&.

There is one problem with this, however. Among the serious business builders if

the downlines are not producing any sales, even having a large organization will

not pay you well if not at all 5just lie a zero maintenance company, no downline

sales means those in the middle will not maintain, causing a chain reaction all the

way to the uplines at the top7. This is a hollow organization where your ran>title

means nothing without income.

Ne9t; I wi go in -etai a.out the $ore %o%uar t&%e# o) %an#3

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7< The Stair#te%

=< The Unieve

>< The 1inar&

?< The 1reakawa&

@< The Matri9

< The Au#traian Two U%

B< The H&.ri-

7< The Stair#te%

;rand

2mperor

2mperor

(hampion

*eader

8oble

Peasant N Purely for illustrational purposes only, not actual

The Stair#te% or step and ladder plan is a simple plan that has reGuirements that you

must meet to get up the H%tairs of %uccess 2very step is a promotion usually based on

achieving a certain volume and each promotion or ran gives you a larger cut.

Femotion in stairstep plans to ensure a distributorCs group commits to a certain volume

every month. It gives a particular ran a guaranteed income. Femotion in this case

means that you must either maintain a certain volume every month 5or Guarter or fiscal

year7 in order to maintain that ran. *et us say for e3ample, Anthony achieves a sales

volume of O1//,/// in his entire team 5for a certain timeframe7 and that promotes him

from Leader to Champion, certain companies reGuire him to eep up that same sales

volume the ne3t time or else he will be demoted bac to a leader. In certain plans, there

is no demotion in ran, so the group sales are accumulated for reaching the ne3t level.

Neto#! Ma#!eting S#'i'al ( ). (






)aintenance here plays a ey factor how building a solid group will loo lie. If there are

low repeat sales for the product being mareted, e3pect the $ini$u$ entr& )ee to be

higher than the average )*). This is because low repeat sales means less

maintenance hence the majority of the income comes from recruiting new blood. If

nobody does maintenance in a %tairstep plan, having a high ran doesnCt earn you

money so donCt be a fool if someone tells you that the BminimumC income for a Bgrand

emperorC is O//,/// a month J it all depends on the volume generated. -n the

contrary, plans with maintenance involved do guarantee an income or else you will not

be in that ran.

This type of plan is one of the oldest and longest plans around. The advantage of

climbing the ladder gives major incentives for distributors to wor harder and fight for the

target. The larger your group the more you override even up to infinity levels as long as

your downline is of a lower ran than you. There is also a fair system involved lets say if

your downline wors harder than you and sponsors more people, he can actually have a

ran higher than you and that is when .reakawa& in certain plans come into play

5discussed in the breaaway plan below7

The disadvantage however, is once a downline reaches a certain ran 5lets say you

need 4 directly sponsored leaders to Gualify as a champion7, one of them becomes a

leader while you focus on maing the remaining 1 groups to become leaders, the first

leader might be neglected in the process. The other disadvantage is if the downline is

too far deep in the organization 5lets say your downlineCs downline all the way down /

generations7, some distributors may neglect helping them because the monetary

incentive is too small.

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=< The Unieve

The 6nilevel is a simple H8umber of levels that the company will pay you, and usually

there is no promotion or ran. "ou mae money by getting a certain override off of the

volume, and usually there is a reGuirement of volume to Gualify for a chec.

The advantage here is you donCt have wor your butt off during certain seasons to fight

for that ran. "ou can sponsor as many people as you can and your income comes from

a large volume of people in your organization. +or e3ample, you can personally sponsor

' people, and these ' will loo for '. after = generations you will have ' to the power of =

in your organization 59:/ people7 and the calculation of your sales volume will give you a

straight forward income.

The disadvantage however, is there is no incentive for developing many different groups

5called legs7. In spite of conditions in a plan imposed by the company 5that you have to

sponsor a minimum number of legs7 some unilevel people tend to let the BstrongC

downlines do all the wor as in wait for their downlines to sponsor )-!2 people than

themselves, which is a poor reflection of leadership.

In the 6nilevel, there is no demotion 5the only demotion is leaving the company7 and

maintenance plays a ey part in the long term income.







>< The 1inar&

The #inary is an interesting design for a (omp Plan. It usually has 1 Hlegs that you can

have H#usiness centers in, and you have a volume reGuirement to get paid on each leg.

There is what is called Hbalancing. in the #inaryLyou must balance the volume from

each both A and # group to mae sure you ma3imize your commissions. In the

illustration above, the A group is the strong leg 5or the giant leg7 while the 1 group is

called the wea leg 5or the profit leg7. A has more people than # 5assume they all

produce the same volume per person7. # needs to find 1 more people in order for U to

BbalanceC hence ma3imizing U2# income.

The main advantage of this plan is spill over. Allow me to illustrate

U sponsors 1 friends. In a binary, the company limits each distributor to have a

)AI)6) of 1 people. A and 1 were previously recruited by U. U needs to BbalanceC his

group by helping 1 find 1 people. #ut let us assume that 1 is not actively building the

business at the moment, so what does U doD e finds and sponsors 1 people I)%2*+


6

A #

A

1

A

6

A #

A

1

A

6

A #

A

1

A

#

#

1






and places both of them under 1 and they become # and #1. This is called

S(ILLOVER.

The advantage of spill over is that when everyone wors as a team, the tree will fill very

fast as all uplines and downlines wor together to balance each otherCs networs. It is

also immune to the problems in unilevel or stairstep plans with downlines being too deep

in the organization. A binary can be balance depending on which #i-e the downline is in

and not how -ee%.

The disadvantage however, is that this plan is particularly attractive to lazy people who

donCt do any wor and e3pect free handouts from their uplines. Imagine what will happen

if everyone waits for their upline to place people under themD It doesnCt develop

strength.

?< The 1reakawa&

This plan has been said to have become somewhat unpopular in the industry, as you

could lose the business you build, once it gets to a certain level of success, and it

Hbreas away to no longer be a part of what you get paid on. It usually appears in

stairstep. *ets use the e3ample above in the stairstep illustration.

If I am a Champion and my downline builds his organization faster than me, and Gualifies

as an Emperor before me, 1 things might happen.

Fepending on the companyCs pay structure, I will not be eligible to receive overriding

commissions from my downline Emperor’s group. ence the BbreaawayC his bonuses

will be Bpassed upC to )" upline Emperor or Grand Emperor . In some cases, the

28TI!2 group breas away and join )" upline so even if I do Gualify as an Emperor

later on, I will not receive bonuses from his group& %elfish people might even involve in

%A#-TA;2 as in trying to slow down his downline from breaing away or overtaing

him.

Today, more and more companies are acnowledging the breaaway problem and will

start awarding leadership development bonuses 5such as a fi3ed bonus percentage over

that entire group even those they have broen away7. This system has still wored out

well in the past though, because it gets people woring harder to prevent the breaaway

from happening.

In )*) 5just lie in life7, companies reward P2-P*2 who wor hard to build their

groups. If a downline wors harder than his upline, he should get paid more J hence it is

more fair to them. %o in this case if an upline doesnCt wor hard enough, he shouldnCt

blame the company if the downline breas away.

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@< The Matri9

The matri3 or sometimes called a *OR"E5 MATRIC is lie a preEorder tree. A computer

driven plan puts into your group by computer, and they go in the ne3t available slot.

6sually this plan is combined with some form of a #inary 5sometimes 4 by ? or ' by 1'

matri3 depending on the ma3imum BwidthC allowed7, and it does wor well if there are a

lot of people that are recruited and WORKING TOGETHER TO *ILL THE MATRIC .

When you recruit someone, the computer searches down for the ne3t open slot, and

positions them there. There are some plans that allow you to override the commission of

those that you personally sponsor even though they are not positioned directly under

you within the tree.

ow the computer wors is lie this$

5 sponsors a new friend. That new friend doesnCt get slotted under 5 but rather fills the

last position which is the dotted line under ". -nce they fill up to a certain level, the

distributor gets paid a lump sum.

-nce again, the advantages here is that every single distributor in the tree all wor

together to fill the matri3 and the duplication result is fantastic& Imagine if everyone finds

1 and everyone does the same thing, the matri3 will be filled very fast. This means that

even if you donCt loo for A8"-82 to join the company, you will get paid when the tree

reaches a certain level.

The biggest and most obvious disadvantage is everybody waiting for everyone to fill the

tree thining that they will get their money waiting for others to fill it. This ind of thining

is 2T!2)2*" W!-8; and will ruin the company. +urthermore, unless there is a cut

off system in the mareting plan, 5for e3ample, after the si3th level the person at the

highest position will have to reinvest again at the bottom of the tree7, the guy who Bcame

firstC will get all the commissions and not do anything. #y placing a cut off point,

everyone who reinvests again will fill the tree faster as the deeper you go down the tree,

the more people are needed to fill each level.

Neto#! Ma#!eting S#'i'al ( *) (

A

# (

2F +






< The Au#traian Two U%

This is a mareting plan that is very uniGue. #asically, the two people you recruit are

BgivenC to your upline sponsor and the rest of the recruits are yours. ere is an

illustration$

Assume that each person you recruit, you are eligible to earn O//. U sponsors D7; D=;

A an- 1/ "ou earn -8*" on A and # but not on Q and Q1 as those sales go to your

6P*I82 %P-8%-!. Q and Q1 are your Gualifying sales. #asically by finding Q and

Q1, you have basically Gualified to earn from A and # and subseGuently (, F, 2 and as

many as you would lie.

%imilarly,

A recruits A7; A= an- / The sales of A and A1 goes up to U and the sales of goes

up to A/ As long as U eeps D7 an- D= going, he is eligible to earn as wide as he wants

and as deep as he wants& 5A and A1 is now part of UCs group. This will multiply by 1

each time it goes deeper enabling him to earn income up to Infinity levels&7

Neto#! Ma#!eting S#'i'al ( ** (

U

1AD7 D=

U

1AD7 D=

A

7

A

=






The biggest disadvantage of this plan is that sometimes people are selfish and will only

leave U with BweaC distributors 5for e3ample, Q and Q1 are slow learners7 while

capitalizing on the stronger ones in A and # 5leaving the strong ones for themselves7.

%ome might even purchase dummy accounts 5nown as Bcats and dogsC or BpotatoesC7

This leaves their upline with nonEmoving legs and creates a hollow organization. %ome

companies deal with this problem by giving bonuses or special overriding mechanisms

where you get special bonuses for building them, or even removing the BGualifiedC status

should Q or Q1 drops out.

B< The H&.ri-

A hybrid is a combination of any of the above features. An e3ample would be a +orced

)atri3 with 6nilevel benefits 5ensuring that those who actually W-!K to fill the tree gets

paid more7, or an Australian Two 6p with %tairstep advancement 5to offset the

disadvantages of distributors being too deep in an organization7

)any companies that are combining the advantages of many plans to help distributors

ma3imize their income.

REALIT4 "HE"KF Regar-e## o) how goo- an& %an $a& #oun-; NONE O* THESE

(LANS WILL MAKE 4OU MONE4 I* 4OU 5ON2T S(ONSOR AN4ONE AN5

5EVELO( THEM/

-nly "-6 can mae the plan wor for without you, the plan is dead.

F- 8-T get too complicated about (ompensation plans. Keep it simple while e3plaining

to your prospects and mae sure you understand that you (A8 )AK2 )-82" with it if

you wor your plan.

The > Genera Area# to $ake $one& in an& MLM %an/

7< The *ir#t area i# Retai (ro)it/

"ou must show the prospect that they can earn a retail profit with your products

and services. The margin can be anything from /@ to '/@.

=< The Se0on- Area i# Tea$ Overri-e#/

This is where, just lie a !eal 2state broer, or Insurance agency, you get to

develop your own sales team. B%ales )anagersC get paid a certain @ of override

off of them, just lie the !eal 2state and Insurance Agents do. "our goal is to

help your people do the same thing. People donCt understand that you have to

Neto#! Ma#!eting S#'i'al ( *+ (






help people or help your team in order to succeed. If they achieve success first,

then only you will succeed.

>< The Thir- Area i# Lea-er#hi% 1onu#e#/

This is where you help develop %uccessful leaders in your group, and you get an

additional bonus or override form your group. "ou get rewarded by helping

others develop their leadership potential. -nce your leaders are in place, your

)*) business will go on autopilot.

Neto#! Ma#!eting S#'i'al ( *, (






The Tea$ :U%ine; Si-eine#; even the "o$%an& Sta))<

0oining the right team is also crucial in )*). 8o man is an island in this world. 6plineswill always be there to help but the attitude to be adopted is that I a$ in .u#ine## )or

$&#e) .ut not .& $&#e)/ %ince I am in business for myself, I am the master of my

fate, I create my own luc, and I am the author of my own boo J it all boils down to )2.

aving an upline to help you is considered a #-86%. If you were to run a traditional

business, would you e3pect other people to open shop for you and close the shop for

youD %ame goes in )*).

*ie wise, you have to be a good, responsible upline as well. 8o one has succeeded in

any industry without learning and )*) is no different. It is the uplineCs responsibility to

guide, train, teach and motivate the downline. 8ew people in )*) without guidance are

lie sheep wandering into a wild forest J what are their chances of survivalD It is nowonder ?'@ of 8etwor )areters fail to brea even. The upline must lead them,

empower them but must never spoon feed them. 6plines must not be abused. If you

give a $an a )i#h; he wi )ee- hi$#e) )or a -a&/ Tea0h hi$ to )i#h; an- he wi )ee-

hi$#e) )or i)e+

%idelines or (rosslines are people not in your line of sponsorship. Why should I bother

with sidelinesD They are all somebodyCs downline. %omewhere BupC the line they are

probably in one of your uplineCs group. )any companies now encourage sideline team

support. #ecause you will always have more sidelines than uplines and downlines, it is

crucial that side lines help one another. -ne upline has limited time and resources, but if

sidelines wor as a team, you leverage on more people.

Feveloping a good relationship with the company staff is also necessary for success.

Imagine if you are holding a team meeting and you need them to arrange or prepare the

rooms for you. ;etting shipment on time for your productsD (hec with the staff. If you

have a good relationship with the owners of the company, it is also a great advantage for

moving in the same direction together. This is even more so for pioneers with a new

company, the first batch of distributors and the owners of the company must wor

closely together to bring the company to success.

Neto#! Ma#!eting S#'i'al ( *- (






The Tren- o) the Ti$e

-ne last aspect to consider about a company is the state of itCs current maret trend.)any people at one time or another has heard about aggressive mareting and

campaigns on certain companies based on the need for their product and how hot the

opportunity is at the moment.

They could be in the pioneer stage, mareting the latest health products to a growing or

maturing maret 5for e3ample, aging baby boomers7. %ome could be in a mature stage

after surviving in the maret over / years.

The comparison of the new, smoing hot companies over the mature, or aging

counterparts have its pros and cons. 8ew companies are not vulnerable to saturation.

(ollaboration with new companies put you in positions of power where you cannegotiate with the management team on the direction of the company or even enhance

the mareting plan. People who has heard of those new companies may jump on the

opportunity and it is generally easier to create a large group in a short time.

This does not mean you should not join older companies. -lder companies are more

stable and has survived the times. They have run a time tested system which has helped

many people to succeed. International companies are even more reliable as they have

the manpower to tap the international maret. Thin of )cFonalds. They have been

around for so many decades yet people are still profiting from them today because they

all follow a system.

Neto#! Ma#!eting S#'i'al ( *. (






There i# No Su0h Thing a# a (er)e0t MLM

In spite of all there is discussed above, certain companies may claim they are the best.Fifferent companies maret different products and they all claim to be the best in their

line. 2ach claim to be selling the best sin care, nutrition, aromatherapy, insurance

programs, investment opportunities or even online digital products.

*etCs face it. There is no such thing as a perfect )*), just there is no such thing as a

perfect church or perfect government. )*) companies are just lie normal companies in

the sense that there will always be management problems, staff problems, cash flow

problems, shipment difficulties and product faults.

Tae the sin care industry for e3ample. There are many sin care products that have

long histories, e3tensive research, powerful testimonials, and so on. #ut no matter howgood the sin care is, they will not benefit 2R2!" %I8;*2 P2!%-8 -8 T2 P*A82T.

We are all different. %ome has drier sin. %ome are more sensitive. "ou canCt prescribe

a drug that will cure everything for everyone.

*iewise with teams. (ertain teams are more suitable for younger crowds with all the

e3citement and the hooEhah going on. -thers are for a more mature crowd.

All this I am highlighting will lead to my ne3t point in the ne3t chapter which is$

Neto#! Ma#!eting S#'i'al ( */ (






An MLM That Wou- Suit 4OU

6nderstanding this principle could save your )*) life. )any people label everyone who

joins more than one )*) company a BjunieC. It is true that there are junies that goes

around recruiting their friends when he tries (-)PA8" A, dies a natural death after a

while and joins (-)PA8" #. e starts taling to the same friends how good

(-)PA8" # is and always tal bad about (-)PA8" A. Then he Guits (-)PA8" #

after running into some struggles and joins (-)PA8" (, does the same thing

promoting ( while taling bad about A and # and goes on and on.

8o. I am not teaching you to be a junie.

I have e3plained in the previous chapters that even the Bbest companyC in the worldwould not be suitable for everyone. I may *-R2 supplements for my health and buy it

from the Bbest health supplement opportunity in the worldC but my passion is being on the

Internet& FonCt get me wrong, the supplement company would have a +A8TA%TI(

T2A), a %-*IF (-)PA8" #A(K;!-68F, and even an 68#2*I2RA#*2

(-)PA8%ATI-8 P*A8. #ut I prefer to sell digital products. I donCt care if I donCt get to

meet or socialize as many people in person on my Internet )*), I donCt even care if I

donCt operate at an office& I am maing money at my Internet )*).

I thin we get the picture nowL

ere is another scenario. What do you do when you are already in one )*) and a goodfriend approaches you for anotherD Fo you refuseD !emember, you must not treat your

)*) business lie a !2*I;I-8. I donCt refuse because I will always find benefits in

every )*) company that I join. I may lie the products there. I can %A!2 these

products 5for e3ample, supplements7 to friends who do not believe in buying on the

Internet& 8o single company will cover the 28TI!2 maret so we have to be realistic. I

may even join that company so I can build relationships with them and get them to try

my own )*) products too& If I donCt eep an eye out for other opportunities, I donCt feel

that I am a good business man. #ut you must +-(6% on one business, some may say.

"es, I focus on one, but I also open the door to many other potential customers too.

Always be open to new opportunities and cross sell& ThatCs where you put the BnetworCin networ mareting. #ut donCt mae the mistae of joining every opportunity just to get

people because it costs you time and money and only join different )*)s if you see a

tangible benefit.







If you donCt mae it in your first )*), donCt despair& People mae mistaes and they

5hopefully7 grow wiser the ne3t time they choose again. This is what I hope for all who

read this boo because you must never give up when you fail the first time. )ost people

donCt mae it in their first )*) but they might succeed in the second or third.







1eing Aware o) the Ri#k#

In any business dealings there are always riss J %ame in life. Frive out the door today

and there are always riss of accidents. ow to minimize your riss also depends on

your own judgment.

#efore joining a company, you must always remember in )*) that if you want to mae

serious money, you must be prepared to be in for the long haul. There are people who

tell themselves, if I can mae O'// to O,/// part time>on the side, I would be happy.

They do not set their goals high and what happensD They give only part time or half

hearted effort which often doesnCt even help them mae the O'// that they wanted in the

first place&

-thers thin to themselves, that if they can find that -82 opportunity, ICll be one of their

first and loo for 1E' downlines, which will do the rest of the wor 5networ building7 then

I will be set for life. )*) reGuires A!F W-!K. )*) is a business that appreciates in

value -R2! TI)2. Which would you rather earnD

O/,/// a day every monthD

-!

O/./ doubling every day per monthD

Ten thousand a day would seem lie a lot of money on the first day compared with

getting one cent on the first dayD )ost would choose the first option, but consider.

O/,/// N 4/ days is O4//,///. If 4 days, then it would be O4/,///

cent doubling every day would product a whopping O',4:,9/?.1&&&

If we add one more day the total will be over / million&&&

FonCt despair if you donCt mae substantial money over the first months. Those are

your T!AI8I8; months. !emember again, 8- -82 %6((22F% I8 T2 )*)

I8F6%T!" WIT-6T *2A!8I8; A8F A8F% -8 2P2!I28(2.

*earn to pace yourself. !ome is not built in a day. #ut do it at a proper pace where you

now your financial limitations. As yourself$

57 (an you afford the joining feesD

Neto#! Ma#!eting S#'i'al ( +2 (






517 Are you prepared for the obvious overheads lie petrol, food and training

materialsD

547 If you donCt mae money in the first si3 months, can you surviveD

5=7 Are you prepared to cut down on your lu3uries so you can wor out your

businessD

5'7 Are you prepared to *2A!8D

Neto#! Ma#!eting S#'i'al ( +) (






Getting Starte- O)) The Right *oot

-nce you have answered all the Guestions in the previous chapter, you begin your journey.

Attend trainings repeatedly and listen to your upline. If your upline is not Gualified, the

eep going upline until you find someone who can coach you or mentor you.

-nce you have downlines under you, you must be prepared to be a leader and duplicate

what your upline has taught you. 5U(LI"ATION is the ey to building a long term

business because your downlines are able to do the same thing you are doing. )any

successful leaders in )*) are fantastic speaers on the stage and powerful trainers in

the field and even write boos on how to succeed. -ne of the biggest mistaes a new

distributor usually maes are buying a ton of boos thining they will be well eGuipped togo Bout thereC and create a sponsoring e3plosion. "ou may try to imitate your leader, tal

lie them, loo confident or even wal lie them. #ut the tricy part is duplicating the

charisma or having the same influence. 2ven after reading all the boos on selfE

improvement, the tactics might not wor because you donCt have the same charm as the

author&

I am not saying donCt read boos or buy boos. +actual information or education is

usually more helpful in maing a good decision. I have compiled a reading list at the end

of this boo that will give good facts. #ut trying to become lie another person and using

his or her BtechniGuesC will often lead to disappointment with the boo itself& They

become disillusioned and go on to buy another Bey to success in )*)C boo and thevicious cycle repeats itself again. 2ventually they become disillusioned with boos and

they will stop reading all together.

KE4 (OINT TO REMEM1ERF

LEA5ERS ARE NOT 1ORN; THE4 ARE 5EVELO(E5 OVER TIME/ THOSE

WHO SU""EE5 IN MLM WILL HAVE TO (A4 THE (RI"E O* LEARNING

AN5 GROWING/ THOSE WHO SU""EE5 DUI"KL4 IN MLM HAS ALREA54

(AI5 THE (RI"E OR WERE LU"K4 ENOUGH TO *IN5 5OWNLINES WHO

HA5 ALREA54 (AI5 THE (RI"E/

ARE 4OU (RE(ARE5 TO (A4 THE (RI"E

Neto#! Ma#!eting S#'i'al ( +* (






In a Nut#he

)*) is not an easy road to wal on and there will be many obstacles along the way.That is why choosing the !I;T company is of utmost importance as the journey of a

thousand miles begin with the first step so I hope everyone reading this will tae the first

step in the !I;T direction.

!egardless of success or failure, )*) is a journey worth traveling on because of the

things you will learn along the way. It is priceless.

It is with my sincerest wishes that all who read this boo would achieve tremendous

success in the )*) journey.

Neto#! Ma#!eting S#'i'al ( ++ (






#rought to you by$ uni$ite-)ree.ook#/0o$

Neto#! Ma#!eting S#'i'al ( +, (

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