Tuesday, August 08, 2006

Business Models Drive the Behavior in the Field.....

If you're in a network marketing (mlm) company, take a look at your business model. Do you get compensated for retailing (selling) your product? Or do you only get commission on the distributors/business builders that you sign up? If your compensation plan pays the majority of commissions for sponsoring business builders and not for retailing product, the behavior in the field that will drive is recruit, recruit, recruit.

With the
5 Pillars company I have partnered with, we get compensated (commission) based on anything we sell. It does not matter if those sales came from customers or business builders. Customers are just as important as business builders are in the company I have chosen to work with.

I recently read a book by a wonderful woman named Kim Klaver. The book is called
If My Product's So Great, Why Can't I Sell It? Kim Klaver (Ms. Stud) teaches us not to be the pushy, aggressive salesmen that most people run away from, but to help others by introducing them to our products.

The majority of network marketing companies out there have good products that can actually help people. BUT, if you wouldn't sell that product to your mom/dad at retail, then you are in the wrong company. The reason a lot of network marketing/mlm companies have to charge so much for their products is overhead. If a company boasts that they have hundreds of people taking orders and a massive building, that is where the money is going INSTEAD OF INTO YOUR POCKET as a distributor.

As a
Mentoring For Free success coach, I look at the policies and procedures of network marketing companies every day. I also evaluate compensation plans. Some of these companies out there don't even pay you if you retail your products. They only pay on business builder volume. That's SAD!! And it's possibly criminal.

Speaking of Policies & Procedures, have you read yours?? This is NOT your Terms and Conditions, it is the Policies & Procedures and EVERY network marketing company must have them. This is your contract with the company. I've heard people tell me "They were over 20 pages of very small print and I wasn't about to read all that." I've also (after pointing out that the company's P&P's say you can be terminated at ANY time for ANY reason) had people tell me "Oh - but they won't do that to ME". Believe me, many people have been done in by that clause. I don't know about you, but I want to build a business that will be there to pay my children's children.

At the end of your rope? Tie a knot and SWING!!!

Roxanne Green
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