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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!

ing "#o$it %#om Them All

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

NETWORK MARKETING SURVIVAL How to Survive in the Network Marketing Jung e


!"hoo#ing the Right "o$%an& ' A wa&# Making (ro)it *ro$ The$ A +,

LEGAL NOTI"E
The Publisher has strived to be as accurate and complete as possible in the creation of this report, notwithstanding the fact that he does not warrant or represent at any time that the contents within are accurate due to the rapidly changing nature of the Internet. While all attempts have been made to verify information provided in this publication, the Publisher assumes no responsibility for errors, omissions, or contrary interpretation of the subject matter herein. Any perceived slights of specific persons, peoples, or organizations are unintentional. In practical advice boo s, li e anything else in life, there are no guarantees of income made. !eaders are cautioned to reply on their own judgment about their individual circumstances to act accordingly. This boo is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to see services of competent professionals in legal, business, accounting, and finance field. "ou are encouraged to print this boo for easy reading.

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

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TA1LE O* "ONTENTS
The %hoc ing Truth& Why Would "ou #e (hoosing An )*) In The +irst Place Types -f People Who Are *oo ing +or -pportunities What Is The )*) 0ungle *i e 23posure To The Industry The Team 56pline, %idelines, even the (ompany %taff7 The Trend of Time There Is 8o %uch Thing As A Perfect )*) An )*) That Would %uit "-6 #eing Aware -f The !is s ;etting %tarted -ff The !ight +oot In A 8utshell !ecommended !esources < #onuses ' , ./ .1 .4 1' 1, 19 1: 4/ 41 44 4=

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

Network Marketing Surviva


How to Survive in the Network Marketing Jung e
!"hoo#ing the Right "o$%an& ' A wa&# Making (ro)it *ro$ The$ A +,

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

THE SHO"KING TRUTH+


If you are reading this boo , let me first congratulate you if you are a newcomer to the world of )*) and allowing me to impart my e3periences on the industry to help you in ta ing 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 mar eting>compensation plan, product, team, country or even offline or online& It is indeed a shoc ing truth to find out that over ?'@ of networ mar eters or home based business owners are operating their business at a *-%%& Aow scary if you are reading this for the first time. Well than fully 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 Bma e itC in getting distinctions7 We all want to be smart people and rather be in the top '@ being the ones ma ing 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

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

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


)*) survival. *etCs face it, the world out there is li e 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 mar eting 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 an MLM that i# SUITA1LE )or 4OU+ Whatever your reasons may be, let us ma e a few assumptions about it before we proceed 5or else you wouldnCt pay for this 2Eboo in the first place7 5.7 517 547 5=7 )a ing money %aving money on products )eeting new people ;rowth and development

Making Mone&
5a7 *oo ing 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 loo ing for fast money, there are pros and cons to this ind of thin ing. %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 large Guantities7, or they may sell the opportunity 5the money ma ing 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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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All
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 loo ing 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.I In other words, if you will help enough downlines get enough downlines, you are on the road to networ mar eting financial freedom. The ey is to help others. There is one more category of people who BinvestsC in networ mar eting companies, not to ma e money through retaining or networ ing, 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 li e old comic boo s.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 li e .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 features of joining an )*) company if recruiting is not your forte. ey

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 love with 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 supermar et, pharmacy, grocery store, etc7 There are some important aspects to ta e 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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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All
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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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

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 the world. %ome li e the positive environment. -thers li e 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 TA2I! -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- 5eve o%$ent


-ne of the biggest reasons why I would recommend joining an )*) company and doing the business is opening your mind to positive thin ing 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 ta e 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.

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

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


!emember that people join )*) companies for their own reasons. Aowever, the character or intention of a person will determine how far they want to go in )*). Aere are classic e3amples of different types of people 5.7 517 547 5=7 5'7 ;enuine business opportunity see ers and builders Product consumers The supporters )*) jun ies //. syndrome

;enuine business opportunity see ers 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 li e the product and enjoy the service of their upline. They are not necessarily genuine business opportunity see ers 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 see ers 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. Aowever, 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, ma e sure your intentions for joining an )*) are very clear cut. )*) jun ies are the sort of people who jump from )*) to )*) 5some people even call them )ultiE*evelE)on eys7. 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 with the company 5when the real problem is themselves most of the time7 and jump to the ne3t %)-KI8; A-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

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All
attend trainings, but the ey to remember is you must focus on -82 good )*) for the long run and the others can operate on a referral basis 5li e recommending a friend to buy a product from another company while building one main one7. This leads us to one more category of people who could be )*) jun ies as well J the 667 #&n-ro$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 li e their bac ground history, financial status and product mar et 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 wor able 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.

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

What i# the MLM Jung e Like


There are thousands of )*) companies out there& Aere 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 5li e at a )cFonalds or %tarbuc s7, 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 tal ing 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 5li e vitamins or s in care products7 and good testimonials of the product with high visibility 5e.g. loo at my s in, 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 li e a club. %ome are li e lifestyle clubs. -thers conduct their business with a high degree of professionalism 5they all dress better than an office wor er7. -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 product distributed through the Internet means that the Internet does the selling and recruiting, ta ing 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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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

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 .a0kgrounMarketing or "o$%en#ation % an The tea$ :U% ine; Si-e ine#; 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 pic ed 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 li e 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 supermar et and buy from your Bown businessC instead7.

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All
1eware$ 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 tal ing bad about the entire industry as a WA-*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 mar eter 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 mar eting 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 mar eting 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 mar eting 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. Aaving 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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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All
%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 ma ing 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. Aowever, 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 li e 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%u ar t&%e# o) % an#3

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

7< The Stair#te% =< The Uni eve >< The 1inar& ?< The 1reakawa& @< The Matri9 A< The Au#tra ian 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 %uccessI 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.

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All
)aintenance here plays a ey factor how building a solid group will loo li e. If there are low repeat sales for the product being mar eted, 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 wor s 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 brea away 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 ma ing 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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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

=< The Uni eve The 6nilevel is a simple H8umber of levelsI that the company will pay you, and usually there is no promotion or ran . "ou ma e 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.

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

>< The 1inar& 6

A .

A 1

The #inary is an interesting design for a (omp Plan. It usually has 1 HlegsI that you can have H#usiness centersI in, and you have a volume reGuirement to get paid on each leg. There is what is called HbalancingI. in the #inaryLyou must balance the volume from each both A and # group to ma e 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 6 6

A .

A 1

A .

A 1

# .

# 1

U sponsors 1 friends. In a binary, the company limits each distributor to have a )API)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 Ae finds and sponsors 1 people AI)%2*+

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All
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 wor s as a team, the tree will fill very fast as all uplines and downlines wor together to balance each otherCs networ s. 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 Hbrea s awayI 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 Emperors group. Aence the Bbrea awayC his bonuses will be Bpassed upC to )" upline Emperor or Grand Emperor. In some cases, the 28TI!2 group brea s 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 brea ing away or overta ing him. Today, more and more companies are ac nowledging the brea away problem and will start awarding leadership development bonuses 5such as a fi3ed bonus percentage over that entire group even those they have bro en away7. This system has still wor ed out well in the past though, because it gets people wor ing harder to prevent the brea away from happening. In )*) 5just li e in life7, companies reward P2-P*2 who wor hard to build their groups. If a downline wor s 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 brea s away.

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

@< The Matri9 The matri3 or sometimes called a *OR"E5 MATRIC is li e 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. Aow the computer wor s is li e this$ A

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 thin ing that they will get their money waiting for others to fill it. This ind of thin ing is 2PT!2)2*" W!-8; and will ruin the company. +urthermore, unless there is a cut off system in the mar eting 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.

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

A< The Au#tra ian Two U% This is a mar eting 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. Aere is an illustration$

D7

D=

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 li e. %imilarly, U

D7

D=

A 7

A =

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

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All
The biggest disadvantage of this plan is that sometimes people are selfish and will only leave U with Bwea C 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 5 nown 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&.riA 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 ma e 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 ma e 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 li e a !eal 2state bro er, or Insurance agency, you get to develop your own sales team. B%ales )anagersC get paid a certain @ of override off of them, just li e 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

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All
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.

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

The Tea$ :U% ine; Si-e ine#; even the "o$%an& Sta))<
0oining the right team is also crucial in )*). 8o man is an island in this world. 6plines will always be there to help but the attitude to be adopted is that I a$ 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. Aaving 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 )*). *i e 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 li e sheep wandering into a wild forest J what are their chances of survivalD It is no wonder ?'@ of 8etwor )ar eters 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 )eehi$#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.

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

The Tren- o) the Ti$e


-ne last aspect to consider about a company is the state of itCs current mar et trend. )any people at one time or another has heard about aggressive mar eting 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, mar eting the latest health products to a growing or maturing mar et 5for e3ample, aging baby boomers7. %ome could be in a mature stage after surviving in the mar et over ./ years. The comparison of the new, smo ing 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 can negotiate with the management team on the direction of the company or even enhance the mar eting 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 mar et. 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.

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

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 mar et different products and they all claim to be the best in their line. 2ach claim to be selling the best s in 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 li e normal companies in the sense that there will always be management problems, staff problems, cash flow problems, shipment difficulties and product faults. Ta e the s in care industry for e3ample. There are many s in care products that have long histories, e3tensive research, powerful testimonials, and so on. #ut no matter how good the s in care is, they will not benefit 2R2!" %I8;*2 P2!%-8 -8 TA2 P*A82T. We are all different. %ome has drier s in. %ome are more sensitive. "ou canCt prescribe a drug that will cure everything for everyone. *i ewise 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$

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

An MLM That Wou - Suit 4OU


6nderstanding this principle could save your )*) life. )any people label everyone who joins more than one )*) company a Bjun ieC. It is true that there are jun ies that goes around recruiting their friends when he tries (-)PA8" A, dies a natural death after a while and joins (-)PA8" #. Ae starts tal ing 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 tal ing bad about A and # and goes on and on. 8o. I am not teaching you to be a jun ie. I have e3plained in the previous chapters that even the Bbest companyC in the world would 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 ma ing money at my Internet )*). I thin we get the picture nowL Aere is another scenario. What do you do when you are already in one )*) and a good friend approaches you for anotherD Fo you refuseD !emember, you must not treat your )*) business li e a !2*I;I-8. I donCt refuse because I will always find benefits in every )*) company that I join. I may li e the products there. I can %AA!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 mar et 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 Bnetwor C in networ mar eting. #ut donCt ma e the mista e 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.

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All
If you donCt ma e it in your first )*), donCt despair& People ma e mista es 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 ma e it in their first )*) but they might succeed in the second or third.

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

1eing Aware o) the Ri#k#


In any business dealings there are always ris s J %ame in life. Frive out the door today and there are always ris s of accidents. Aow to minimize your ris s also depends on your own judgment. #efore joining a company, you must always remember in )*) that if you want to ma e serious money, you must be prepared to be in for the long haul. There are people who tell themselves, if I can ma e 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 ma e 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 AA!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 li e 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 ma e substantial money over the first , months. Those are your T!AI8I8; months. !emember again, 8- -82 %6((22F% I8 TA2 )*) I8F6%T!" WITA-6T *2A!8I8; A8F AA8F% -8 2PP2!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$ 5.7 (an you afford the joining feesD

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All
517 Are you prepared for the obvious overheads li e petrol, food and training materialsD 547 If you donCt ma e money in the first si3 months, can you surviveD 5=7 Are you prepared to cut down on your lu3uries so you can wor businessD 5'7 Are you prepared to *2A!8D out your

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

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 spea ers on the stage and powerful trainers in the field and even write boo s on how to succeed. -ne of the biggest mista es a new distributor usually ma es are buying a ton of boo s thin ing they will be well eGuipped to go Bout thereC and create a sponsoring e3plosion. "ou may try to imitate your leader, tal li e them, loo confident or even wal li e them. #ut the tric y part is duplicating the charisma or having the same influence. 2ven after reading all the boo s on selfE improvement, the tactics might not wor because you donCt have the same charm as the author& I am not saying donCt read boo s or buy boo s. +actual information or education is usually more helpful in ma ing a good decision. I have compiled a reading list at the end of this boo that will give good facts. #ut trying to become li e 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 B ey to success in )*)C boo and the vicious cycle repeats itself again. 2ventually they become disillusioned with boo s 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"EG

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

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;AT company is of utmost importance as the journey of a thousand miles begin with the first step so I hope everyone reading this will ta e the first step in the !I;AT 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.

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

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

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NETWORK MARKETING SURVIVAL Choosing the Right Company & Al ays Ma!ing "#o$it %#om Them All

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