So people ask to look at their business “deal” and give them my opinion. Interesting way of showing one’s business plan, ask for an opinion. But do they really want my views? Really? So here’s the short version of the comp plan
Below are the potential MONTHLY figures based on the compensation plan payouts.
Level People Income Per Level Monthly Income
1 3 $18.00 $18.00
2 9 $54.00 $72.00
3 27 $162.00 $234.00
4 81 $486.00 $720.00
5 243 $1,579.50 $2,299.50
6 729 $4,738.50 $7,038.00
7 2,187 $17,496.00 $24,534.00
8 6,561 $52,488.00 $77,022.00
9 19,683 $157,464.00 $234,486.00
10 59,049 $472,392.00 $706,878.00
11 177,147 $1,417,176.00 $2,124,054.00
12 531,441 $4,251,528.00 $6,375,582.00
Interesting, so here was my reply,
So in the company I work with the levels would be as such, of course it depends on how you build your team because its not based on so many at certain levels.
6. 729 ppl 11,290.00
7. 2187 ppl 54.675.00
8. 6561 ppl 164,025.00
9. 19,683 ppl 492,075.00
10. 59,049 ppl 1,476,225.00
11. 177,147 ppl 4,428,675.00
12. 531,441 ppl 13,286,025.00
Now keep in mind we do all levels deep and wide to infinity so the above numbers would be for total team members no matter width or depth. Again this is based upon 400 ppl earning you 10k. Basically 3 times the money plus a duplicatable system for building, mentors with over 30 yrs in the industry, part timers receiving checks which is great for retention. Just some facts and figures…and I hate doing numbers!!! all the best to you and everyone involved!!
I AM NOT A NUMBERS GUY! But I do know which one of these is better. Plus this was a 3×12 matrix, I want to be paid on everything that happens on my team! If you have been reading my blog or are just starting to follow me you will see that MY business is not mentioned. WHY? Because it is not about ME it is about YOU. That’s what we do in mentoring for free, help you become a critical thinker so you can make decisions based on FACTS not anything else.
So after I sent my reply this was the response,
“Awesome, I want to set up a time to talk to you and tell you in detail about everything and then get the ball rolling for you. This is huge and it won’t be a ground floor opportunity for long. my cell is xxx-xxx-xxxx”
Ground floor? 98% of start up’s fail in the first year..FACT and another 1% in year 2. Do you really want to do all that work just to start over????
So after giving this person the “Facts” or numbers, they came back with awesome lets talk so I can get you started? Where did that come from? So many people just see what they want to see, in love with the company or product or the guru at the top that they can not even read a short paragraph. “OMG he answered me I have to get him signed up today!!!” Believe me there is a better way to grow your income and help others do the same! So if this happened to me, how many times does it happen to you, or how many times have you done it to someone else? Scary huh? You can make the money you want and deserve and help others without all the pressure and continually hammering your program at people want to know how……? I can help you with that, take the first step and learn for free what makes and breaks success in network marketing by reading “Success in 10 Steps”
This post is for all of you that are still being taught or teaching
HOW TO CLOSE!!!
Think about it…….then download Success in 10 steps from the bottom of the post and I’ll show you how to really build residual income!!!
Here’s one word picture for every person who closes a prospect.
Have you ever been to a funeral for a friend or loved one and watched them close the
casket? They crank the handle down and that seals the casket … forever … never to open
again.
That’s what you get when you close a prospect. You close them. You’re done. They’re
done. They’re toast.
The truth is, if you sell a prospect and close them, then you will need to call them up
every month and close them again to get them to ever actually DO anything. “Closing” is
why so many people have such a high drop-out rate. It does not work in network
marketing. Each person in your group must, must, MUST sell themselves. THAT is what
duplicates.
I know of no other subject that when used correctly can have such a positive
impact on your life and your business. This stuff works.
People fall asleep when you say “phlegmatic, sanguine, melancholy and
choleric”. But they understand colors. And you can easily learn to color your way
to the top.You can get the full training CD at:
Yellows make up 35% of the population. They are nurses, schoolteachers, UN
workers … the nurturers. They give from the heart. They don’t have time for
themselves, because they give to everybody.
Yellows have built some of the largest organizations in network marketing …
WHEN they have the belief they can do it.
How To Sponsor A Yellow
To color your way to the top, you need to learn to be a chameleon.
Yellows don’t want to be sold. They don’t like pushy, aggressive salespeople.
When you talk with a Yellow, become a Yellow. Slow the pace. Contain your excitement.
Lower the volume. Yellows see excitement as hype, you trying to sell
them. Don’t tell a Yellow about making $10,000 a month, because they’ll turn
right off.
Instead, visit with them. Skip the business. Talk about their family, their kids,
their vacation.
Yellows cannot work in stair step breakaway-type compensation plans. They
have to be in a plan where you can put people under people and people under
people. They’re best in any kind of “infinity” plan that pays them to work deep,
deep, deep.
They’ll never be happy in a unilevel or a stair step breakaway plan where you
put 5 people on your front line, until you hit a certain volume amount, then you
put another 5 people on your front line, etc.
Success in this plan requires all your time spent on massive
first level recruiting. This doesn’t work for Yellows.
MLM industry stats show the average network marketer only ever sponsors 2.7
people.
So if your Yellow sponsors 3 people … if they have to go 5 wide, then they
haven’t done anything. But at 2 wide, then they can put 1 of their 3 underneath
somebody.
And other average people can sponsor 3.
Now you’ve got some spillover. And then here and there you get a serious business-
builder who sponsors 8 or 10 people a month, and you get more spillover.
When more people work together, you get more synergy. So THAT compensation
plan works great with the Yellows.
Blues
BLUE’s “just wanna have fun.” They’re 15% of the population. They’re always in
a sales business of some kind. They jump from program to program to program,
looking for fun. These are the planet’s most creative people.
A Blue sees the big picture instantly. They don’t need or want all the details.
Blues can eat an elephant, but not at one meal.
How To Sponsor A Blue
They’re same as the Yellows as far as the comp plan. In the same comp plan,
they can go deep, to create massive spillover and a lot of stuff happening quickly
for them. That gets them excited, and they’ll stay in the business.
With a Blue, talk excited, get excited. Talk about going scuba diving, sky diving,
having fun, fun, fun. That’s what they want. “Hey, when you meet me at the airport,
I’ll be wearing a Hawaiian shirt. You’ll know me. I’ll have a big, funny hat
on.” That’s what they want to talk about.
They’ll talk about vacations & family, but most of all they want to talk about fun
things to do.
Greens
Greens are 35% of the population. They’re the analytical people. They analyze it
to death. They’ve missed millions of dollars in opportunities because they analyzed
it too long.
Greens can take Blue’s idea to the next level. They work well in any type of
complicated compensation plan. They like to figure out the Super Star Space
Commander bonus that’s paid out on the 3rd, 9th, & 12th levels, every other full
moon.
How To Sponsor A Green
Greens believe they’re the smartest people on the planet. With a Green … in 2-3
minutes, you’ll know you have a Green. They want ALL the details.
You are NOT going to sell them. Don’t even try. They have to sell themselves.
They’ll go to the web site, they’ll listen to the conference call. Then they’ll go to
the next website and the next link. If you have 27 links on your website, they’ll
go to every one. They’ll read all the testimonials, all the articles, etc.
Enunciate all your words correctly for a Green. Don’t speak too fast. Don’t speak
too slow. Be upfront. Give them all the information. Answer all their questions.
Give them more websites to go to.
If you call in the meantime to answer questions, they’ll be abrupt. They see that
as you being pushy. Let Greens analyze the information at THEIR pace.
In a week or 2 or 3, they’ll call back for more information or ready to start.
They’ve sold themselves; decided this is the perfect business.
Greens want to feed a Blue the elephant in one meal. And that’s the way the
Green will build the business.
Reds
Reds are 15% of the population. They are money-motivated, money-focused.
Don’t bother talking to them about your family or your vacation. They don’t
care.
They know if you get married, you’re supposed to have kids. If you have kids,
you’re supposed to go on vacation. End of story. Don’t want to talk about it.
How To Sponsor A Red
They want to talk about the money, the money, the money.
Reds do well in a stair step breakaway compensation plan, because they think
network marketing is a sales business. For them, it’s sell, sell, sell. In a stair
step plan, they can put 5 people on their front line. If only one produces, they
never go back and put somebody underneath them. They’re just looking for producers,
somebody who will build, build, build.
The Red knows that once that first productive person in the first group of 5 hits
$50,001 volume, they’ll then break away. And the Red’s override drops from
15% to 5%, because the other 10% goes to the person who built it.
That’s fine for the Red, because they understand their job is to find another Red
and keep getting those 5% retentions. For them, it’s a sales business.
Reds are the corporate CEOs, the “get-the-job-done” people, the ones
everyone in network marketing is looking for.
But it’s a fallacy. Reds are just 15% of the population, and they are absolutely
not coachable. They have the biggest egos. They order people around. It works
in corporate America, but not in network marketing.
When a Red demands that people get on conference calls, he drives his people
away.
On the other hand, Reds are well-connected. You want to sponsor Reds because
they’ll put you in contact with powerful people. They know business owners,
governors, leaders, etc.
So target Reds. But don’t dare think you’re going to coach them or mentor them
or tell them what to do, because it’s NOT going to happen.
Let them do it themselves. You really have no choice, anyway.
But network marketing is NOT a sales business.
It’s a teaching and mentoring business.
That’s what I learned early from Tom “Big Al” Schreiter.
When you find people massively successful in a stair step breakaway type comp
plan, they are the Reds, the salespeople. But with that type plan, retention is
very low. If they recruit 100 people in a year, they’ve got just a handful left by
the end of the year.
But with a Yellow, if they get 100 people in the business, they’ll teach & mentor.
They’ll work down deep in the organization and they may have 60 or 70 still active
after a year.
No matter what you learn in this lifetime, nothing will be more emotionally or financially
rewarding than learning about people.
It’s worth your while to spend time with people you don’t know, who do jobs
you’d never dream of doing, just to listen to them, find out about them, ask
questions.
I’m not talking about recruiting. I’m talking about relating.
Any time you spend now getting to understand other people & how they think,
will reward you many times over in the future.
Work Smart – Fail Forward
If you could work for 3 years and build something that pays you $50,000 a
month, wouldn’t you rather do that than build something that only pays you
$5,000 a month?
Linda & I started in 1978, and we just “failed forward.” We worked until the
wheels got knocked out from under us for one reason or another.
Then we went at it again.
It took time. We failed forward until I finally found a mentor in 1991. I found
someone who was successful, who had already done it. I bought every tape,
book, etc., that he ever did.
Nail Your Prospect’s Passionate Sweet Spot
I learned everything from Tom “Big Al” Schreiter. I plugged in, absorbed it all.
I’d listen completely to his albums while driving. I’ve made a ton of notes driving
down the Interstate.
Never crashed, either.
One question I’d hear over and over was,
”Why Do Some People Succeed, While Others NEVER Do?”
And the answer that kept coming up over and over again was, successful people
made the effort to understand what really makes people tick … what motivates
them … why they make the choices they make.
That is what really led me into the personality studies.
400 years before Jesus Christ, the Greek physician and philosopher Hippocrates
wrote about the four basic personality types.
In 1921, Dr. Carl Jung wrote the most detailed book ever on this subject. He
called the 4 personality types Feeler, Sensor, Thinker, and Intuitive.
Florence Littauer later named them Phlegmatic, Sanguine, Melancholy, and Choleric.
Since then, many others have written books and recorded audiotapes on the
subject, including:
Michael O’Connor
Kathryn Briggs
Dr. Tony Alessandra
Jim Cathcart
Tim Lahaye
Dr. Bernice McCarthy
Jerry Clark
My personal thanks to all who have contributed to the personality-type knowledge
base. Their research & conclusions are the basis for our mentor training.
In MLM, I see people all the time who study, study, study, research, research,
research … to find the PERFECT product. Some spend months or even YEARS
preparing to actually DO something!
It sounds crazy, I know. But I swear, it’s true.
Fact is, there are a TON of products in the MLM world that are 90%-great, or
better. And whether you have a 91%-great product or a 96%-great product has
ZERO bearing on whether you are successful or not.
So just pick a good product. TODAY!!
Then spend your time studying people … and learn how to find
the people STARVING for what you offer.
What do your distributors & customers want most passionately?
How do their desires drive them to a buying decision?
What gets them in a frenzy when they look for an opportunity? What makes
them turn away and look for greener pastures?
Do you REALLY think it’s your product or your compensation plan?
MLM is first and foremost a people business.
Period.
It’s you and me together creating an effect much greater than just the sum of
the parts.
It’s profitable because your people use your products. And you also get paid
when THEIR people use your products, on down a few levels.
You have been recommending and promoting products & services since you were age 5.
You could look at it as a spiderweb you have created – lines here, there and everywhere
to many different people. Your spiderweb will attract to you the people, the places & the
products that will lead to your success in life … if only you build & nurture it.
We recently had 35 team members attend Tom “Big Al” Schreiter’s Power Marketing
Workshop. They learned techniques that will change their lives and change their
business. But it wouldn’t have happened without the spiderweb effect.
They joined Mentoring For Free. We put out an email promoting the Workshop. And
these people said, “Yes! I need to expand my knowledge base.” Because of the spiderweb
effect, they are able to do that.
They are opening their eyes. They walked away from that training with brand-new,
brilliant marketing concepts.
Five years ago at a Power Marketing Workshop, I came up with the idea for Mentoring
For Free. It’s in my notebook. THAT is a spiderweb.
Let me lay some numbers on ya!!! or should I say some stats about some internet marketing companies/ no names please!!!!! so look at this!!!
We spent a long time looking at the pay plan with a Xxxxx presenter. Bad bad bad. one of the worst in the industry. Some levels no commissions. Must have full levels to get any check at all. We calculated that you could have over 300 reps in incomplete levels and get paid NOTHING! The presenter agreed that was true. Caps on checks. Binary part requires balance – max of 60% of volume in one leg. Infinity bonuses don’t kick in until 10K volume balanced. PNP bad too – termination clause, ongoing required, no retirement, can bequeath but heir must fulfill all duties. Annual renewal.
We met a rep who has been in Xxxxx for eight months and has made $7.00.
PNP’s have responsibility gotcha clauses – training, accompanying, bona fide supervisory role, etc. Company must approve sale/transfer of biz, so you don’t own your own business. Company may award territories !!!! No class action suits. Terminated positions will go to the company. Bad bad pnp’s.
Commissions of 4.25% or $5.10 per rep = 1961 reps for 10k. You do not get paid on your own purchases. Retailing is impossible because of high prices. AND YOU DO NOT GET PAID COMMISSIONS UNTIL YOU SPONSOR THREE PEOPLE! Can you spell ‘failure’? attrition?
Reselling worthless e-info. Money can be made without actually selling anything. Scam. Stay away. One rep told us that all the stuff was useless. You can buy packages for $47, $97, $247, $947, $997. Pay someone’s way in for 47 and leverage up. Give away first two sales in upper brackets. All money is paid member to member. Red Flag!!! / Aussie 1,2,3 up SCAM!!
Liquid Multi Formula. Check the Involuntary Termination. “An IR can be terminated immediately, at the sole discretion of “company name “, and will be informed of such decision in writing.” OUCH! At least they’ll send you a Dear John letter. It’s amazing what’s in writing / Need 10k-25k ppl to make 10k residual a month.
Wealth created by the movement of money. From your pocket to theirs. Copy on website was written with a shovel. Apparently the Universe wants us to collect $100 bills.
You must sponsor three people before you get a check!?! $170 to join? Sponsor one = $50, two = $50, three = $70, then $70 for each rep sponsored after that. Web hosting costs $50 per month. Some spend $80 to $100 per month on advertising. Reps get a few dollars per signup on 9 levels. No focus on retailing. All recruiting. Average is about $5 for signup bonuses. NO RESIDUAL.
One of the most complicated pay plans we’ve seen. The chart shows commissions of 1% to 3% ??? Help! 6% commissions, but how do you get there?
No PNP’s so far. Not five pillar – startup. With The XXXXXX at the helm, would you expect to have reps placed first?One of the most complicated pay plans we’ve seen.The chart shows commissions of 1% to 3% ???Help!6% commissions, but how do you get there?
International Space Commander Director must bring in $1050000 in revenue to get paid 25000. That’s 2.4%!! If you generate $140000, your commission is $3000. That’s 2.1% commission! You need three sales of $350 in each leg to earn $20?!?!?!
a Xxxxxx rep in Seattle. Making 15K per month on 4800 reps, some not active. We used conservative and generous numbers to calculate 2500 for 10K. Looks like nine levels averaging just over 5% commissions. 5, 5, and 10% on first three levels. Personal conduct clause in pnp. “6. I will fulfill my leadership responsibilities as a Sponsor by training, assisting, and otherwise supporting the Distributors in my Downline Organization.
EVERYBODY GETTING THIS??? LET ME HELP YOU FIGURE OUT YOUR COMP. PLAN AND P&P’S!!!!! IN MANY OF THESE PROGRAMS YOU NEED FROM 2000 TO 25,000 PEOPLE ON YOUR TEAM TO CREATE $10,000 A MONTH IN RESIDUAL INCOME….DON’T YOU REALLY WANT RESDIUAL INCOME??? REALLY??? AND IF I TOLD YOU IN MY HOME BIZ YOU ONLY NEED 350-400 TO MAKE 10k WHAT WOULD YOU SAY??
Let’s say you & I are each opening fast-food restaurants. And we make a side
bet about who can sell the most hamburgers.
What advantages would you most want to help
you win our bet?
You want Grade A Black Angus beef?
Sesame seed buns?
You want a tasty veggie burger for the non meat-eaters?
The best, crispiest fries?
Ambience? An atmosphere where people love to come?
Or maybe uncomfortable chairs … so they eat and get out in a hurry?
A playground for the kids?
Lowest price? You want THAT, too?
You are one tough cookie. That is for sure.
But OK. Done, done, done, done, done, done, done, and done!
What’s that? You say I’m holding back?
You want the best location, too?
Oh. My. God! You’re killing me here!
OK, fine. You get the busiest crossroads in town.
Matter of fact, I’ll give you ALL OF IT!
Every advantage you want, you’ve got!
Satisfied?
Good for you.
Myself, I only want ONE advantage. And if you give it to me, when it comes to
selling hamburgers, I’ll whip the pants off you.
The only advantage I want is … a MOB OF STARVING PEOPLE! FIND WHERE THE MOB IS RUNNING TO AND PUT YOURSELF THERE!!
FIRST LET ME SAY NOTICE WHAT IT SAYS AT THE TOP OF MY BLOG “LET ME SHOW YOU HOW TO THINK NOT WHAT TO THINK” THIS IS SOME VALUABLE TRAINING FOR YOU IF YOUR SEARCHING TO OWN YOUR LIFE. I WOULD SUGGEST YOU GOOGLE LIKE THIS “FTC” “COMPANY NAME” SEE WHAT YOU GET!! NOW FOR SOME INFO FROM THE FTC…..READY?????
Just because they are paying does NOT mean they are LEGIT for one and it “matters” because even if people do “get Paid” and especially if you live “in the states” then YOU yes…even YOU “can” be prosecuted as well if you actively promote a program that is a scam and make said claims about said SCAM. Check with the FTC site and you will see. FACT!
Multilevel Marketing Plans
Produced in cooperation with the North American Securities Administrators Association
Multilevel marketing plans, also known as “network” or “matrix” marketing, are a way of selling goods or services through distributors. These plans typically promise that if you sign up as a distributor, you will receive commissions — for both your sales of the plan’s goods or services and those of other people you recruit to join the distributors. Multilevel marketing plans usually promise to pay commissions through two or more levels of recruits, known as the distributor’s “downline.”
If a plan offers to pay commissions for recruiting new distributors, watch out! Most states outlaw this practice, which is known as “pyramiding.” State laws against pyramiding say that a multilevel marketing plan should only pay commissions for retail sales of goods or services, not for recruiting new distributors.
Why is pyramiding prohibited? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people — except perhaps those at the very top of the pyramid — lose their money.
The Federal Trade Commission cannot tell you whether a particular multilevel marketing plan is legal. Nor can it
give you advice about whether to join such a plan. You must make that decision yourself. However, the FTC suggests that you use common sense, and consider these seven tips when you make your decision:
1. Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.
2. Beware of plans that ask new distributors to purchase expensive inventory. These plans can collapse quickly — and also may be thinly-disguised pyramids.
3. Be cautious of plans that claim you will make money through continued growth of your “downline” — the commissions on sales made by new distributors you recruit — rather than through sales of products you make yourself.
4. Beware of plans that claim to sell miracle products or promise enormous earnings. Just because a promoter of a plan makes a claim doesn’t mean it’s true! Ask the promoter of the plan to substantiate claims with hard evidence.
5. Beware of shills — “decoy” references paid by a plan’s promoter to describe their fictional success in earning money through the plan.
6. Don’t pay or sign any contracts in an “opportunity meeting” or any other high-pressure situation. Insist on taking your time to think over a decision to join. Talk it over with your spouse, a knowledgeable friend, an accountant or lawyer.
7. Do your homework! Check with your local Better Business Bureau and state Attorney General about any plan you’re considering — especially when the claims about the product or your potential earnings seem too good to be true.
Most “pyramid” schemes are illegal – ones where you give someone above you money (even for “services” like mailing lists, etc.) and your income is derived from people below you sending money to you, a portion of which you give to the person above you, for similar “services.” The hook is, as each person below you picks up more people below them, and so on, your “network” grows, and so does the money you get.
Unfortunately, these schemes are doomed to fail and are unsustainable, as they rely on constant recruitment of new suckers.
Some similar programs involve reselling a product or service – like tap water filters, or websites – where you buy the goods or services, to resell at a markup, from someone who’s bought them from someone else and is selling to you for a smaller markup. Be wary of these, for the above reasons. You often can’t deal directly with the manufacturer or distributor, but only with your “salesperson” who gets a cut of everything you buy/sell, who is likely in turn giving a cut to someone above them.
They sometimes operate in a gray area, while technically not illegal in many states (it’s not illegal to buy goods to resell), and very difficult to enforce existing laws when business is conducted over the internet
LEARN HOW TO FIND THE TRUTH!!!!!! ASK ME I’LL SHOW YOU HOW!!!!!!
Tom "BigAl" Schreiter
http://fortunenow.com
One of my Mentors, among many. If your going to follow someone follow someone that wants you to succeed. Join me in success!!! Learn from the top generic MLM trainer in the world, just a regular guy, you'd be amazed how simple success is! Now Tom is a green personality, NO HUGGING ALLOWED!!! BUT 2 OF MY MENTORS SAID GIVE HIM A BIG HUG FROM US SO.........BE CAREFUL WHEN YOU HUG A GREEN!!!!!
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