My name is Ty Tribble and I would like to welcome you to the MLM Blog. I launched this site in 2003 as a journal of my thoughts and opinions on Network Marketing.
While I write about many companies, I am only active in one, if you would like more information about myself or my business, visit my personal web site at TyTribble.com
If you have story ideas, comments or questions, you can contact me at ty (at) tribble (dot) org.
MLM Podcast No. 2 from Seattle
Show Notes:
Intro music by Seattle band, Reverse - from their 2005 Demo. Song is titled Cheech Kabab.
Co-Host: Ty Tribble - MLM Blog
Co-Host: Dave Stone - Network Marketing Today
Guest Speaker: Bo Short - Leading With Impact
Exit Mash Up: DJBC - Tom Shizzo
(Rush vs Jay Z)
Former Quixtar Diamond Bo Short:
However, what I found when I went diamond was inconsistent with the teaching. Most of the diamonds I knew were as busy at diamond as they were in their previous careers. With the exception of a "very small" handful of more-tenured "larger pins", I would contend that diamond is not freedom. Many people are taught that if you stop working your business at the diamond level, it keeps on working without you. I would caution you that this is not true either. I would estimate that more than 90% of the diamonds must keep working their businesses in order to maintain them. It takes an immense amount of work to do just that. Now, your diamond may say that my statements are not true. Monitor their schedule. Judge for yourself.
MLM Podcast No. 1 from Seattle
Show Notes:
- Welcome
- What you can expect from MLM Podcast
- MLM News
Tupperware
Matchmaking meets Network Marketing
- Motivation from Cliff Stockamp
- Michael Lemm of Best MLM Resources suggests www.goarticles.com
- MLM Podcast and Passport LLC present a free conference call:
Endorsed by Zig Ziglar and Jim Rohn, Doug Firebaugh is a successful entrepeneur and an expert in MLM and Network Marketing.
August 11th at 9PM Eastern
(641) 478-5008 (access code 491560#)
Other:
Intro Mash Up: DJBC - BeastGees (Beastie Boys vs Bee Gees)
Cliff Stockamp Intro: Big Ruckus - It Takes a New Sensation
(Rob Base vs INXS)
Exit Mash Up: DJBC - Tom Shizzo
(Rush vs Jay Z)
Fair use elements from The Breakfast Club, Weird Science, 16 Candles and Pulp Fiction.
In the next few days I will be moving the MLM - Network Marketing Podcast back home to the MLM Blog. When I first launched the Podcast, Typepad did not support Podcasting, so I went with Blogharbor. Blogharbor has been a good host, but due to the growth of the Podcast (over 4,000 unique visitors/listeners in August), I feel that Typepad is a better solution.
I plan to have a slow but smooth transition and will continue to post the Podcasts at the old feed for some time. I will post the new feed information soon.
In other news, I have teamed up with Dane Carlson of Business Opportunities Weblog to produce the MLM Business Opportunities Blog, (get yourself a sneak peak...the official launch is next week). The new site is less about commentary and opinion and more about news and links.
You may also notice that I have put a chat interface in the left panel. This interface will allow readers to ask me questions in real time. I don't have a schedule yet, and I have only placed the program on one of my computers, so catching me may be hit and miss, but I think it might be a cool way to interact with the folks that read this blog. We'll see. I kind of consider it a beta thing.
That's my update and I'm stickin' to it.
Update 9/30: I just got an email from Blogharbor about this very post. I am going to listen to what they have to say before I complete this move. That simple email may have saved a customer. MLM lesson here?
The following is Part II in the MLM Blog periodic series, Unbiased Observations of Network Marketing.
AL6400 Blog - Business and Finance:
With some newly acquired knowledge about the (Network Marketing) business model, I now had a better understanding on what the common theme was in terms of the negatives and positives of the industry. As I went through my regular routines, because of the research that I had done I became more aware when I saw a company utilizing a multi-level type of compensation structure and was surprised when I realized that a lot of the affiliate marketing and web publishing programs that I used to promote large and reputable sites actually had this type of recruiting compensation structure in place. Basically, you start by publishing various ads on your web site and are compensated for page views, clicks or sales and as an incentive for signing up others to do the same you receive a percentage of their efforts as well.
There is nothing wrong with training. Having spent 14 years playing football I am a firm believer in training. In fact, in the course of writing my books I have spent countless hours with great leaders in all areas (sports, politics, business) that are as adamant about preparation and training as I. However, I believe there is something wrong with a training program that does not seem to produce results.
Remember, three questions:
- How long have you been in?
- How much do you spend each year learning how to do it? (books, tapes, seminars)
- What was your last bonus check?
If you are only attracted to the social aspect of your business then the answers do not matter. However, if your rationale is business-driven then your answers mean a great deal.
I hear entirely too many people saying, "Well, we learned a lot even though we did not make any money." At what price did you learn it? How many missed birthdays, nights away from home, etc. I would remind you to revisit why you started in the first place. Are your results consistent with your initial intentions or are you finding yourself consistently spending more than you make? At what point does someone cap his or her expenditures?
Look around the room at your next convention. How many new diamonds do you see being recognized? Where are all the new diamonds? Why are the same faces on stage while the ones in the audience seem to change periodically? As an independent businessperson, do you ever think in these terms? If the system was working so well, then one would assume there should be a steady flow of diamonds convention after convention, year after year. If there is not a stream of diamonds after this many years of training then, in my opinion, the training is not only inefficient but possibly even improper.
Since leaving Quixtar, Bo Short has founded his own company based on the principles he believes most Network Marketing distributors care about most.
The combination of teamwork, your independent thinking, Passport's tremendous support, and the current market trends all add up to mutual, shared success.
MLM - Network Marketing Podcast No. 3 is now available.
Dave Stone of MLM Today and I discuss Network Marketing on the Internet.
Show Links:
MLM - Network Marketing Podcast Listening Instructions
Viral & Buzz Marketing Association
Harness The Potential Of Internet Marketing
Build Your Business with an Opt-In email List
Former Quixtar Diamond IBO, Bo Short:
Prior to our decision to leave (Quixtar), I tried unsuccessfully to force change in several areas. In fact, during private meetings with the corporation and its representatives it was apparent that they were very aware of the problems that were being raised. In one particular meeting a corporate representative stated, "...The Corporation had been looking for a solution to the BSM (Business Support Materials) challenge for 35 years..." What some people consider a "challenge", I view as a breach of trust. It seems to me that 35 years is an awful long time to look for a solution and not find one.
On multiple occasions I witnessed very distasteful (to say the least) confrontations between those individuals considered to be "leaders". It was my conclusion that many of them proclaimed to want things corrected but were not willing to make the changes necessary because it affected them personally. Then again, it is easy to simply say you want things to change, while doing little to change them.
When attending meetings with the "Corporation", I shared my views quite emphatically. However, their responses were less than satisfactory. I remember telling the president of Quixtar, North America, that I was tired of being "painted with the same brush" as those people whose behavior I found offensive. Having spent a decade of my life, the last 4 -5 years of which seemed full of "promises of change", and having exhausted all of my options, I resigned.
During my last conversation with a company representative I stated the following, "In my opinion, what you have demonstrated to me is that your volume is more important than who you say you are. What I am demonstrating to you is that my word, my name, and the relationships I have built are more important than your paycheck."
A study shows that direct selling, blogging, and web forums rated higher in trust value than any other form of advertising.
Global PR Blog via MLM Business Opportunities Blog:
A 2004 Intelliseek study 1 (PDF) found that consumer–to-consumer recommendations—even online consumer postings to forums—carry a higher trust factor than virtually all other forms of advertising, including TV, radio and print. That did not come as a surprise to many long established businesses. In fact, one of them always understood the value of consumer recommendations; its entire sales strategy relies on turning customers into brand ambassadors and capitalising on their social networks to influence others to purchase.
That company is Tupperware and it made a fortune by understanding word-of-mouth’s power 50 years ago. Since then, WOM has been reengineered as “Consumer Generated Marketing” and thanks to blogging, its persuasion power is making business media headlines again through a series of high profile customer relations disasters.
Former Quixtar Diamond Bo Short:
I have received countless calls from very kind people asking me about my leaving Quixtar. They have been very sincere regarding their desire to know my rationale for resigning. People have asked why I left, did I actually resign or did I sell my business, what were the particular issues that led me to this decision, etc. I will attempt to address as many of their questions/comments as possible.
Let me first say that most of the time I spent in that business was spent around wonderful people. The overwhelming numbers of IBO's are good, hard-working people. My leaving is in no way a statement about them.
It is also important to point out that I own another company in the same industry. Out of respect to those reading this, I do not want to give its name because I do not want to use this forum for any other reason than the purpose I have stated above. I do believe however, that it is important to disclose this fact.
I am not a fan of many companies within this industry. I see too many people spend too much money only to be disappointed in their results. It is my opinion that many of the companies in the industry share the same flaws: compensation plans that reward the select few, products that are over-priced, a hierarchy of distributors, many which lack basic leadership skills and demand unearned loyalty, and a business of training that is oftentimes the prime moneymaker for the "success stories".
People need value. Not just quality, but value. The average person is looking for a real home-based business that they can build. They want to make more than they spend, move products that are fairly priced, and enjoy the experience. In a recent newspaper release I said, "...not everyone will succeed, but they should not lose either."
I understand the role that focus and passion play in building any business, especially this type. If someone had shared the following information with me during my "running" years I might have dismissed it as well. However, many of these issues were not apparent to me at the time. When I achieved the diamond level there were approximately 57 others that did so the same year. Sometimes success masks problems. It is not my desire to dash anyone's hopes. If you are uncomfortable reading my opinions, then simply do not. I respect your decision.
Bo Short's Amway/Quixtar Experience:
"On behalf of the Quixtar development team, I would like to congratulate you on being the very First Independent Business Owners to place a live order via Quixtar.com! The opening of the Quixtar beta test today is truly an historic occasion, and you are now a part of history as the IBOs who placed the first live order via the Quixtar Web site. Thank you for participating in our early testing, and congratulations on being a part of Quixtar history! Sincerely, Randy Bancino, Senior Manager, Internet Business Group, Quixtar."
Fax received August 6, 1999 1:43pm:
Read more about Bo Short.
This post is the first in the MLM Blog series of unbiased observations of the Network Marketing industry.
AL6400 Blog - Business and Finance:
The (Network Marketing) industry seems very black and white as you have one side that condemns anything and everything that has to do with multi-level marketing and the other side which swears by it as a viable form of business. For the side that condemns it, I was able to perfectly see how they formed their current opinions as the constant deception of easy money and exploiting the people that you know can ruin one’s personal life and financial future. For the side that was in favor of it, I was also able to see the business model and how it is suppose to work from their point of view and in many ways it did seem like a viable way to move products and services.
Last Friday (Sept. 16) a Missouri Federal Judge denied Quixtar's motion to compel the infamous "Hart Lawsuit" to arbitration. The ruling by District Court Judge Richard E. Dorr could have long-term repercussions for Quixtar by jeopardizing the ironclad BSMAA.
Judge Dorr's 26-page decision (pdf) is a lot to digest but it's well worth the effort and doesn't disappoint. For those with shorter attention spans, the lawBlawg provides a few highlights from the order. What I found most interesting begins on page 23 (pdf):
It is this Court's opinion that the procedure utilized by Defendants to screen, train and ultimately hand-pick their panel of arbitrators does not come close to passing any reasonable test of fairness and neutrality required for a legitimate arbitration proceeding.
Focus on your "Purpose" which is to discover, in these circumstances, if...
- They still need help?
- They are prepared to be helped? (Even if you don't have the correct solution for them!)
- They are prepared to help themselves?
You do this with the "Process Of Discovery" (covered in detail in Chapter 12 of my book) giving them the space to talk about their present circumstances and whether they are acceptable to them.
Depending on each person you reconnect with, find out...
- Why they became a customer or partner with you?
- Why they dropped off?
- Is there is anything you can do to rectify the situation?
- Have their circumstances changed or are they the same since the last time you last spoke. I bet in most cases nothing has changed. (For those who didn't do anything with you in the first place, you could start here.)
- Have they done anything about changing their present circumstances?
- If they have any idea of what to do to start changing?
- Are they happy to stay with what they have or would they like to give your solution another go... if you can address their needs and criteria more keenly?
Reprinted with permission from Michael Oliver, Natural Selling® Sales Training. http://www.naturalselling.com
Herbalife has entered the energy drink field with a twist (or maybe a plop, plop, fizz, fizz).
"Herbalife proudly introduces a new kind of energy! Liftoff™ is an effervescent energy drink tablet that does more than give you your body a boost—it’ll shift your mind into high gear!"
This is a very different product than Quixtar's XS Energy Drink, (probably not as usable or convenient), but it certainly solves the problem of expensive shipping charges.
Quixtar News From On The Road With Dave:
We at Quixtar are deeply saddened by the tragic loss of life and devastation that has occurred as a result of Hurricane Katrina.
Through our parent company, Alticor, we contribute annually to the American Red Cross Disaster Relief Fund and donate products for use by International Aid. Both organizations have been mobilized to help victims in the region affected by Hurricane Katrina.
We now invite all employees and Independent Business Owners powered by Quixtar to contribute to the American Red Cross at Quixtar.com. Alticor will provide a dollar-for-dollar match on employee and IBO contributions up to a corporate total of $250,000.
Quixtar has also announced the suspension of product delivery to Zip Codes effected by Katrina. UPS, FEDEX, and the USPS will simply not deliver to those areas at this time. It probably should be noted that every company in the U.S. has similar restrictions at this time. Quixtar is not alone.
Pastor Mark Driscoll via The Seattle Times:
The barren apple tree in my front yard has become one of the most powerful metaphors God has ever delivered to me.
The tree had not been pruned for dozens of years and was so overburdened that its branches had drooped to the ground, producing but a few small sour apples. A friend recently pruned the tree so severely that the branches became stubs with no green leaves left at all. He explained that the tree, while traumatized, would again blossom and bear much sweet fruit.
His words reminded me of one of Jesus' parables about gardening and life. Jesus said that people, like trees, grow wild and, without pruning, become sick and unproductive. God is the gardener who prunes us back into health and fruitfulness.
The shears in God's hands include failure, hardship, discipline, suffering and illness, which can leave us in such shock and pain that we are unable to see ahead to better times. Sometimes the pruning simply hurts like hell, and keeping a positive outlook in the face of such trauma can seem hollow and trite.
Read the good news.
Trendwatching via Business Opportunities Weblog:
Increasingly, consumers are participants instead of passive audience members, and this mega-trend manifests itself in a variety of ways. In fact, the more we hear about GENERATION C making money from its creations, and the more we focus on the financial rewards consumers are reaping from participating in CUSTOMER MADE projects, the more the myriad of other entrepreneurial undertakings by ordinary consumers makes sense.
We have dubbed this trend ‘MINIPRENEURS’: a vast army of consumers turning entrepreneurs; including small and micro businesses, freelancers, side-businesses, weekend entrepreneurs, web-driven entrepreneurs, part-timers, free agents, cottage businesses, seniorpreneurs, co-creators, mompreneurs, pro-ams, solopreneurs, eBay traders, advertising-sponsored bloggers and so on.
In recent years, the Internet has experienced an amazing transformation. The aftermath of the MLM fraudsters, who gave our Industry such a bad name is now disappearing. As law enforcement agencies merge and the world becomes a much smaller place through the advancement of technology, their schemes now get exposed very quickly.
That is great news for our Industry and now making money on the Internet is back where it belongs - In the pockets of honest people who work their online businesses.
The new technological advancements in the Industry are now making marketing much easier for both the novice and professional marketer. Now anyone can make money on the Internet by using advanced automation and the companies who produce this expensive software are not likely to run off with the funds.
Do you embrace the ability to choose when you want to work, where you want to work, how long you want to work, what you wear to work and how you work? If these decisions appeal to you then you have the great beginnings to be a top network marketer. Nothing beats being able to work full time hours one day and then scale back to part time hours the next based on you lifestyle. Freedom of choice can be a very exciting and powerful motivator to succeed as a network marketer.
Inflated Earnings Expectations
There are many millionaires in the Network Marketing Industry. There are also many millionaires in the NBA as well, but how many schoolyard ballplayers make it to the NBA? VERY FEW! This is the case in Network Marketing and those who become millionaires as well. While a large number home based business owners earn a great part-time income. The average individual spends more time dreaming about what they are going to do, or spends their time in fruitless activity. Realistic expectations for the average part-timer should be an extra $400-$500 per month. Don't sell anyone else the millionaire line. It may happen, but it simply is not the average.
Network Marketing is not a viable business opportunity for the average person.
Why? Probably two reasons.
1. The average person is not willing to put forth the effort it takes to be an entrepreneur.
2. If she (the average person) is willing to put forth the effort, than she is being taught to do the wrong work (by a scam artist), like attending excessive meetings and purchasing weekly CD's that say the same thing over and over.
All it takes to make money in MLM is sell products and sponsor people.
Doug Firebaugh explains further:
You cannot pretend your way into success in MLM.
You MUST make the phone calls.
You MUST talk to people.
You MUST do the presentations.
You MUST engage the basics of this business to have any type of basic Success in MLM.
If you are not talking to at least 2 new people daily, following up on at least 2 people daily, and not collecting at least 2 new leads a day and making 2 sales a week....
You are pretending to be in this network marketing business.
MLM Critics were recently overheard debating whether or not "Roses Are Red". Long time critic, Mr. Not-Gonna-Ever-Believe-A-Thing, stated, "Another round of information claiming that roses are red and I don't believe it."
Mr. Not-Gonna-Ever-Believe-A-Thing was then shown a color wheel clearly showing the roses are indeed red. Another critic Mr. PWWWWWW, pointed out that the color wheel was "outdated and unverifyable", then requested to see the color wheel's Schedule C.
No news on whether the MLM Critics have accepted that the earth is round yet.
If you have been around Quixtar and Amway for any amount of time, you have undoubtedly heard this saying, "You have to treat the system like a college education and invest in your future".
That sounded logical to me so I decided to compare Quixtar training with college, not in income, (we'll get to that later), but in success or "graduation" rates if you will.
According to Quixtar, .0076% of active IBO's attain the level of diamond and less than 1% attain the level platinum or above. Source (see page 2)
In other words, the "graduation rate" of the Quixtar training systems is less than 1%. Meanwhile, the graduation rate at the University of Washington is about 70%.
If you were told that the chances of graduating college was less than 1%, would you go?
(Originally posted on August 19th, 2004 - post was removed while "tinkering" with MLMBlog archives...now it's back.)
I just came across the September/October issue of Quixtar's Achieve Magazine. For the old school Amway people, Achieve is the new Amagram. This issue features a nice looking Korean couple on the cover, new Double Diamonds Seung Ho and Hyunja Kim.
As I thumbed through the magazine, looking at the folks that had attained the different levels in Quixtar, I noticed something interesting...very few Caucasian people. It was so striking to me that I decided to count the number of non-Caucasian vs. Caucasian people that had reached Emerald or above in this issue.
Non-Caucasian: 19
Caucasian: 1
I'm not saying that is a bad thing. I am just baffled at the numbers. Any ideas why?
This is an interview I did in October of 2004.
In this third and final part of my interview with Fred Johnston, Fred let's us take a peak into how he builds his Quixtar business. If you missed part I and II of the interview, the links are below.
What can we all do if we have a passion in Direct Sales? How can you build a Quixtar or ANY direct sales business without being caught up in the motivation, training and tool scams?
1. Get back to the basics. Find a mentor - be wise, pick wisely - don't be deceived by the charismatic pitch artist. Tie in with someone upline and get close. Take them out for dinner. Fly to see them. Stay in
contact constantly by phone and email and in person if you can. If they want you to PAY to get to a meeting, find out who and how anyone profits from that meeting. If they do -- you are in the wrong LOS and the wrong business organization (regardless of contracting company).2. How I build my business is through networking. Learn to say 'hi' to someone new every day. Contribute to others. Join charity organizations. Volunteer at your kids school. Start an online community
discussing a topic of your choice -- something you love and can stay with REGARDLESS of whether you make money. Learn to ATTRACT others to you! Don't sell. Network. There are hundreds of ways to network. That's how you build a networking business! Don't be passive, business will never come to you! But, don't be shy either -- offer your time, effort and money and get involved -- opportunity always presents itself if you are actively involved with others. Don't expect to win the lottery in Direct Sales (find someone that will go do it on their own). It might happen, but you might win the lottery too. Don't expect it, you do the work.2. Use current technology as Dexter did when he started to train and motivate those you sponsor and help create sales (because you learned to create sales). Dexter had a tape deck! You have the internet.
Empower your organization through online communities. As an organization, you can do exactly what Dexter did to build the biggest network in the world -- pass on knowledge very quickly through
technology. Matter of fact, if you are passing on the right information, you can do it faster than Dexter because information flows faster! One 'recording' today can go out to thousands! Do you have
something that's worth hearing? If not, bad information flows just as fast as good information and can be a disaster if you don't know what you are doing! It's VERY easy to get sucked into chasing the end of the
rainbow on the Web. Be careful and be sure you know what you are doing.3. Reading is part of a good life and a good business. We have a very, very serious reading program. You can tell right away who is going to be successful by their reading habits. Very successful people in all
industries consume large numbers of books -- sometimes several a week!4. Learn and teach money management and savings. Have your organization be on a savings program that leads to an investment program (the analogy between business residual income is nearly exactly the same as investing -- it needs to be taught). If someone is new to savings have them start with $5/week -- a fast food meal. In order for someone to be successful networking, they need to have confidence they are on the right path to create wealth -- then they can connect with others on that issue. Someone saving $5/week for a year can give someone a HUGE confidence boost and it's amazing how fast and comfortable they can get by being involved with wealth development (and understanding how you
live off of residuals from your money and efforts).This is exactly how I build my business using Quixtar as a contracting company and we have absolutely zero overhead and zero tool costs. We invented the system first, then added Quixtar.com to the fold. This was not a spin off the AMOs. But, it is based, at it's core, on what Dexter Yager did 25 years ago to build the biggest organizations in the world. But, that fundation is the base of all successful business. Each organization you develop will modify the above 'system' slightly to match their personalities, ideas, interests -- but the core concept of networking, and saying hi daily to others is and will always be the
foundation to starting a Direct Sales or Network Marketing business.Take care,
Fred Johnston
freddmf@makingtherun.com
The following is Part II of an interview that I did in October of 2004.
In Part One of my interview with Fred Johnston, he gave us an overview of Direct Sales. In Part Two, of the three part series, Mr. Johnston discusses the Amway/Quixtar Motivational Systems in detail.
Fred Johnston continues:
The Amway Motivational Organizations were created by Dexter Yager. Initially, what Dexter did was do meetings, record them on this new device called a cassette tape, then go home, make copies on this wonderful hi tech device, and give them to his top leaders in the organizations. Then, they would listen to these tapes, make copies and pass them on. This system created personal growth and real sales volume at a VERY low overhead. The results are impressive -- the largest Direct Sales organization in the world (when initially Dexter could not hold a Diamondship -- this system solved that and it grew from there).
Here is what went wrong. This 'system' developed into a tape of the week, videos, weekly meetings, seminars, and conventions -- all these mediums used to create the tapes that are then passed on at a cost of several thousand a year to NEW distributors. And, adding to the problem the upline was and is making a fortune off the 99% failure rate of these systems! This is NOT just a Quixtar problem, this is a Direct Sales industry problem. It's important to understand that Direct Sales will NOT change the number of people that are successful, but it can give those without the means to start a traditional business (or that don't want to invest a lot of capital) the means to start their own business.
This entire motivational concept that was a non-profit center, turned into the MAIN profit center for those that were charismatic enough to become speakers. This has grown into an industry of it's own the last
20 years and infiltrates nearly every Direct Sales company.I'm VERY anti profit systems -- but this AMO system is and was genius! Dexter built and held the biggest Direct Sales organization in the world. And, nothing has rocked that success for over 20 years, even the
added abuses (because enough success is still created with these systems). He has been on an upward trend (with a few bumps) ever since. Furthermore, just about every major Direct Sales company has tried to model this system either in part or in whole!Sadly, this type of model (where money is made from NON-retailable products and services) is a pyramid scam. And, as mentioned the success rate is very low -- less than 1%. This practice of selling and profiting from tools (selling the dream) has dominated Direct Sales for the last ten years.
What exactly went wrong? The business model no longer focuses on sales. But, those companies that have build product lines in line with consumers have done well (regardless of motivational organizations). I have to give the industry some credit. If Amway would have stomped out this problem 15-20 years ago, there would not be near the options in contracting companies.
In Part Three, Mr. Johnston will give us specific answers to the following questions:
What can we all do if we have a passion in Direct Sales? How can you build a Quixtar or ANY direct sales business without being caught up in the motivation, training and tool scams?
You can contact Mr. Johnston directly at: freddmf@makingtherun.com
The following is an interview that I did in October of 2004.
I asked Fred Johnston of small business forum, Making The Run, to answer a few questions about the way he builds his business. Mr. Johnston was so thorough that I did not need to ask any follow up questions. I will be posting his answers in three parts due to length. I want to thank Mr. Johnston for taking the time to provide a thoughtful repsonse. If you are a reader of MLMBlog, you know where I stand with regards to my opinions about Quixtar and it says something about Mr. Johnston that he would trust me enough to do this interview. I may not agree with everything that Mr. Johnston says, but you will find that we likely agree more than we disagree.
MLMBlog: I understand that you are building a Quixtar business without "plugging into" one of the traditional motivational groups such as Britt, Yager, WWDB, or TOD, will you briefly explain how you build your business?
Fred Johnston: Yes, but I want to first define Direct Sales.
Direct Sales is an industry where about 90% of the successful companies have a multi level commission plan where you make money selling products and services (not recruiting or selling training systems - even though some of these companies have SIDE business (the AMOs) where people have taken advantage of the tool selling schemes -- more in a second). Historically you can clearly see which plans work, and which plans don't. In a nut shell, you need to build SALES volume to be successful in Direct Sales. You need to keep your overhead LOW to make profits and decrease attrition in the organizations. You will make about 10% wholesale, and 30% gross retail on most core line products (same as you do in any industry).
What the training a tool schemes have done industry wide is make Direct Sales a very inefficient business model. You can clearly see from attrition numbers and the cost of 'joining' many of these matrix and binary pyramid schemes have driven the costs up so high that even if someone joins and does not want to build a business, they can't afford to be a customer. This is why most of these MLM schemes go under - eventually (I'm talking about legitimate companies, not the lotions and potions).
The best systems are those that create sales volume (wholesale (downline) and retail (outside of the network)). The days of 'selling the dream' are over. People are smart because of the Internet.
Hopefully you are not caught up and hooked into the dream. Don't get me wrong, the dream is very important -- but you can't sell a legitimate business opportunity selling the dream and expect it to last (as everyone in Direct Sales has figured out).
Part two of the three part interview will delve into the Amway/Quixtar Motivations Systems and Mr. Johnston's perspective on their history and current perspective on the business model employed by these systems.
You can contact Fred Johnston at: freddmf@makingtherun.com
Show The Plan.
Dream.
Buy From Yourself.
Books.
Tapes/CDs.
Standing Order.
Seminars.
Motivational Meetings.
Part I - (Wife tells her story (usually cries)
Part II - Husband tells his story (usually yells alot)
Voicemail.
White board.
Freedom.
J.O.B.
2-5 Year Plan.
Tape Recorder.
Suit & Tie.
Question: If your "team" is so different, why does it have so much in common with every other team?
What do these people have in common?
Jeffery Combs
Todd Falcone
Michael Oliver
Cliff Stockamp
Bo Short
Doug Firebaugh
Answer: They are some of the top speakers and trainers in the world of Network Marketing and they have all participated in Passport's Free Training Program.
Pssst. Hey You.
Yes You.
The Quixtar IBO that secretly reads this blog behind your upline's back...
...you can listen to this great training too at MLM - Network Marketing Podcasts.
I promise not to tell your upline, even though he listens too, right O.W.?
« August 2005 | Main | October 2005 »
Recent Comments