Classified - Top Secret
Million Dollar Secrets of a NWMing “Insider" - by “Captain Dave” the 1st BOOK written for NWMing Executives
© Copyright 1988 - 2010 David Klaybor / PowerLine Systems
The 1st BOOK Designed Specifically for: Owners – Executives – Administration – Top Leaders
The Networking Industry has CHANGED a ton the last decade… and it’s going to change a lot more this next decade… and you had better learn how to CHANGE with it – or die !
You need to read this Book: - BEFORE you Launch your NEW Company… - BEFORE you Re-Build your existing Operation… - or BEFORE you make one more IMPORTANT DECISION…… - the very existence of your Company could depend on reading this !
- What is the Average “Fall-Out Ratio” for a Direct Sales Operation of your category/type…?
- What is the Average “Activity-Ratio” for your type of Company…?
- How many Distributor’s does a Co have to run through their computer in order to gross $1M/month… ?
- What is your current “Average Monthly Company Payout” ___% percentage…
- (this is the HARD NUMBER, not the PR marketing figure)
- What should your average company product/service mark-up be in order to pay-out 45% to the field?
- How many Customer Service Staff do you need for the size of the Sales Force…?
- How many Conf Calls where made, and how many prospects witnessed your preso this week ?
- How many auto-responder emails went out and how many prospects were “closed”?
- What ___% of your Member/Client’s use your online web features: daily/weekly/monthly/never …?
- What is the Average Amount of Cash Spent /per Distributor /per month in your part of the industry
- What are ALL the Demographics’ of: your most productive Business Builders… your retail customers…
- How many Companies, just like yours, witness “RAIDER’s” trying to steal their sales force…?
- Do you have a plan in the event 1/3 of your Top Leaders LEAVE your company…?
- Should your firm give “SPECIAL DEALS” to Builder’s, or your policy is to: NEVER GIVE DEALS
- Should you focus on a SMALL Group of Products/Services… or expand into the hundreds…
- Does your Operation have the right/proper product-mix
- Should your new company have a “Master Distributor” Position or many front-line leaders…
- What _% of your rep’s are using: 3-way, Conf Calls, Webinars, Auto-Responders, + to build Co Sales ?
- Do you perform “marketing research” BEFORE you make important decisions, or you don’t TEST ?
- How many MLM Company’s Launch each year _____ ? ( that’s about __ /a day ! )
- What is the Average MLM Company Total Investment in order to reach $1M/month in Sales…?
- Have you actually analyzed, “studied”, researched your Industry, BEFORE you launched or made edits?
- There are 100 more powerful – important questions/issues that most mlm leaders rarely address…
this is the major reason why 96% of ALL Direct Sales/Party-Plan/NWMing Co’s fail within 3-4yrs…
Most Entrepreneur’s launch mlm company’s with little knowledge of how these unique firms actually operate/grow/build/succeed… if DK asked you to show him your research, your analysis, your Business/Marketing Plan… or to answer the simple questions above… how well would you and your team do? You need to really, truly know your “craft/trade”… DK can help you overcome your weakness’s in this area ;-)
If you think these questions/issues are: unnecessary - un-important – irrelevant, there’s no reason for you to read this material, or contact DK, you know what you are doing, and we wish you the very best
But you would be SHOCKED how many MLM Leaders trying to Build Company’s,
…do not know the answers to these simple yet vital questions about their Industry…
Let DK Help YOU and your TEAM better-understand:
1- what issues BUILD company sales, and drive the Company forward….. and,
2- what issues hold a company back, preventing the operation from GROWING..
· Wouldn’t you like to know the “real insider stories” behind the Success’s and Failure of thousands of Direct Sales Companies ? ! It would be extremely helpful if you got the “hard-facts” from the actual people who knew what went on “inside” an NWM operation, that looked pretty strong in the beginning, and then blew-up without a trace... you could have learned some important info had you have been the “fly on the wall” watching how everything went-down, DK was that fly !
· Can you see the value of getting a handle on what strategies were initialed correctly... as well as what decisions caused catastrophic failures in operations that seemed pretty solid in the beginning... ©Copyright 1988 - 2010
· Wouldn’t it give you more confidence if you knew what the “silent killers” were that slowly eat-up a company from the inside-out... nobody knew that there was an UNSEEN PROBLEM that was brewing and slowly” destroying the finances of each members future... and this damage could have been AVOIDED!
· Wouldn’t it be great if you could learn from the historical reflections, and insider knowledge shared by 500 + NWM owners, founders & executives... - their administrative staff... - all the vendors who supplied/serviced these co’s.... - as well as top distributors who built the companies sales force... what if ALL these leaders could give YOU their insights, thoughts, suggestions with their RARE insider information on why NWM operations Succeeded or Failed?
Let’s start by establishing the credibility of the Market Researcher whom made these observations over the last 26 years… this man is eminently qualified to submit the statistics submitted herein… and DK collected most of the research in this document.
Here is a Quick Look at just some of his accomplishments:
DK is blessed that over the last 2.6 decade’s… he has achieved Record-Breaking Historical Experience… which has in-turn produced a BIO that has established him as being maybe 1 of the Top 100 NWM Expert Leaders in the world: i.e. David is honored to have...
- had his name on the top of 6 huge distributorship positions, one after the other... and still communicates with many of his former associates who have also gone on to become Great Leaders in their own right...
- DK is honored to have held the titles of: Creator of the Industry’s Finest Business Planner… Expert Consultant… Right-Hand-Man… President… VP... Director of Communication… Director of Training… “Confidant”… as well as the Master Distributor, Business Builder, Author-Copywriter-Columnist… Key-Note Speaker-Teacher-Trainer… Spin Doctor-PR-Market Researcher… Company Designer-Visionary… MLM Historian… Sales Aid and Kit Designer…
- DK has been instrumental in launching/designing/re-building many operation’s...
- he’s created/modified Comp-Plans, Designed Distr. Kits, created tons of sales aids/Tools, been a script/copy writer, designed
logo’s, performed 100-’s of conf.calls, designed Auto-Responders/FOD/vMail/Webinar programs/Lead Mgt Systems, Designed Exciting Conventions, Edited eZines/Magazines/Brochures/Website Copy... he has created tons of Training Materials, etc, etc, etc…
- David has one of the most elaborate and complete Historical Research Records on over 1,500 NWM oppty’s...
- DK has an amazing contact-list of top distributor’s, NWM company owners/admin.’s, suppliers, industry
celebrities, Doctor’s, Mfgr’s, laboratories, Industry Trainers, Author’s, Attorney’s, and 11 Million Prospects on CD ! etc...
- DK was not only an Airline Captain, but he was also an active partner/owner a Regional Airline...
- to this day you can still witness the impact he’s made in the industry: i.e. just one example was
his introduction of the Business Planner System seen in most NWM operations everywhere...
- his “Tools” were sold by the biggest catalog’s and listed on the Order Forms of many of the largest Companies in the industry…
- his “teaching technologies” have been endorsed by many industry celebrities...
- he co-hosted a radio talk show program with a celebrity expert on business and NWM...
- DK’s honored be a speaker for the last 6 yr.’s at the “Starting & Running the Successful NWM Co.”
Seminar... and much, much, more to share about this man in his BIO online at: http://www.davidklaybor.com/
This book will stimulate your mind like no other… because herein you will find DK’s reflections on almost 3 decades of research. His conclusions herein are derived using many perspectives:
- from the point-of-view of the Industry Press, the consultants, and Data Processors’
- from the Legal Minds of Counsel
- from the Manufacturing and many other Vendor-Suppliers perspectives...
- from the Top Field Leaders, as well as the Executives/Administrators in-house
- as well as the average representative’s working in the field.
ALL these people saw the: rise/fall - success/failure – good/bad sides of the industry as a whole, from many different advantage-point / angles. And this provides for some very accurate conclusion’s herein.
... This book started as a hobby… and transformed over-time, into the POWERFUL Historical Insight Information you will find herein.
Most of DK’s data was gleaned from companies that failed… from distributor’s and executives who lost their businesses... this is just the nature of the Industry as a whole.
This has become a rare look at some of the most back-room… secret insider statistics ever accumulated/assembled. Information that many other company Leader/Owners/Exec’s, (like you), would love to know. – are we right !? - of course we are… read on.
Mr. Klaybor had/has an odd habit of Researching/Analyzing/Studying Direct Sale Companies Operations… he picked-up a routine of evaluating a Firm’s Complete Structure/Design every time he ran into any operation… he investigates the pro’s/con’s of each comp plan… enjoys talking to each Companies vendor/suppliers… DK listened to the Companies distr.’s regarding the good, the bad and the ugly things they encountered (from their field perspective)…. DK witnessed what happened after Company Executives edited/modified their Companies direction… DK listened to the Administrator’s “insider reflections” of all the stuff that went on from their unique perspective… ( from creation/inception/before they launched… - to the initial growth phase… - and after the momentum either: never came, rocketed skyward, perhaps slowed down - reversed or stopped all together.
The bullet points below are a compilation of the most common statements these owners/administrators/vendors/top distributor’s collectively made when looking back at: “what they thought the company did right , and what the firm did wrong”. – This is some pretty amazing information that you will not find on the web ! So thanks DK for HIS reflections and his insights as well… these ideas herein could be worth MILLIONS to you and all the folks who follow your path …
Up until this point… this was all just the set-up/intro … now lets get into some
POWERFUL LEADERSHIP MIND STIMULATION !
=========== Chapter II ===========
The data: (note that there will always be a big distinction between a novice distributor, who doesn’t know much, is relatively excited, loyal and eager… verses the next level of member who is now a more seasoned mature representative of your operation… they better- understand that MLM world is not a panacea, and will take a lot more hard work to achieve their goals… vs. a proven Business Builder “veteran” distributor who knows the ropes from a leadership point of view. The comments herein will be MUCH DIFFERENT when talking about these different groups - there are many variances between these two distinct groups
· Categories with the strongest performance will include: Health and Wellness will remain STRONG the next decade, with a majority of the sales dollars under this class… while Technology, Telecom and other Web-Based Mall-type Operations will be solid performer’s in an operation that is run RIGHT, with the good financial backing these types of operations require… these firms will comprise about 30% + of the industry… while the remaining tiny piece of the pie will be allocated/comprised of maybe 3-5% crazy products/services that confound rational predictions by defying logic … about the same % will be from some un-seen / super-amazing product/service that dazzles the public and rises to the forefront !
· Industry Growth: The Direct Sales/NWMing/MLM/Party-Plan Industries will collectively grow about 8-12% this decade… most of it International Growth.
· Gender Demographic’s: Women dominated the industry 60/40 throughout 2000/2010… will switch to 60men/40women 2010 + decade…
· Paperless Systems as well as Debt-Card Commission payment systems will grow significantly
· The importance of Distributor Kits will change in
· Manual Day-Planner / Business Planners Systems will remain a strong part of the industry…
· The popularity of PERSONALITY COLOR-TYPE Training will become a much bigger part of the industry… as more and more Successful Distributor’s start accrediting much of their progress to knowing someone’s COLOR TYPE … you need to learn more about this if you want to double sales revenues !
· TRENDS: the “Exotic Juice” Revenue’s will continue to decline… prices of these types of beverages will decline… they had a great run… and every trend comes to an END… and the Smart Entrepreneur’s look for the next FUTURE TREND to get on board. Use DK to Position your operation to capture your next big “chess move”
· UniLevel Marketing Plans will remain the dominant commission pay-plan because they continue to attract the… Some Binary Compensation Plans will remain, but stay in the minority for reasons you need to share directly with DK – Break-away fades away… - one-line one-off unique comp plans will come and go… there won’t be a comp plan created that is worth being “patented”, but a few big-shots will pay for this pointless piece of paper anyway
· A Movie will be made about Network Marketing.., it will gain popularity in Magazine/eZines… mlm’s reputation gets better this next decade !
· Industry in Peril: Warning: a challenge to the very existence of the NWMing Industry will crop up from a Government Agency toward the end of this decade… unless the Industry Bands Together to fight as a Team… the Industry could suffer a great set-back (but never go away)… be sure to join the DSA, MLMIA and other groups that support our Industry. Get to know other OWNERS and Top Leaders as a hobby… it will pay-off in great dividends one day !
· Golden Handcuff’s: Car and Vacation Bonus Programs will remain popular as part of a healthy Comp Plan… House, debt pay-off, and College Programs will remain viable as long as they are packaged/presented and then trained (installed into your field rep’s) correctly…
· Wall Street will embrace the Multi-Level Marketing Industry more and more… their numbers listed on the board will grow and be up 20% this next decade, due to the strong performance of the well-run operations
· 1-3 companies will be destroyed by scandal this decade… and this could have been avoided… but for the lack of focus on the important business principals. Big money, combined with HUGE EGO’s… will deal some bad cards to the un-prepared “lackadaisical” complacent managers…
· AGENCY: A Business Builder Leadership “Management Company” will become popular… just like athlete managers… this will seem bad this decade and become professional and smart in the long-run…
· The MLMIA will gain power… receive continued improving image… and WILL help the industry become more accepted with the PUBLIC and Government Authorities…
· RAIDING will increase this decade and become more sophisticated… mlm owners BEWARE ! Executives’ need to heed this warning and implement design-feature Communication Systems that lock-in their Leaders. Golden Handcuff’s will become more and more popular ! Bring in DK to design your long-term retention programs…
· On average, 1-2 companies will try to launch /per DAY this decade… - that’s about 400+ new MLM Companies that will continue to launch each year (or about 5,000-6,000 oppty’s this decade will give it a shot !!)… - WHY WILL YOUR Oppty SUCCEED, WHEN SO MAY FAIL ?! - What do you have that all the others do not ? - about 96.5% of them will NOT last more than 2-3 years… the companies that DO survive will only earn on average $500k to $900k/month in gross revenue… - they will average about $79/month /per Distr… - they will run about 25k members through their computers before they flatten-out… - while only about 30% of these individuals will remain active after 3yrs…. (give or take) …
· But do not forget that 1 to 1.5 Companies will fail each day on an annual basis… this means that 96.5% of all mlm operations will fail within 3 years… and that means YOU have less than 4% odd’s to survive… and less than 1% will thrive ! … and only about 3-5 companies per decade will ever reach the huge sales levels $10M-$15M-$30M /month Gross Revenue… these odds are small. So you’re operation will be very successful if it ever attained $1.5M/mo within 3yrs… if you can achieve 5k-10k rep’s your first 18 months, praise the Lord, you’re odds of survival have done up 69% ! A rule of thumb would be to increase sales by about $1M/mo every 18-24 months – this is a VERY COMPLICATED formula… by most executives OVER PREDICT their sales on 99% of the Business Plans I read. Get DK on “Retainer” asap to dramatically increase the odds of your succeeding.
· Most MLM executives make 3-5 HUGE mistakes embedded within their overall Company Design… avoiding these mistakes oftentimes determines the inevitable life/death of the company 6-9-12 months before these flaws surface, (like a growing cancer that surfaces one day… while if was growing for years… ), NEGATIVE DESIGN FLAW ISSUES can kill more “Successful Companies” than any other challenge’s… not the FDA, not the FTC, not the press… it’s an ENGINEERING PROBLEM woven into the fabric of the operation during it’s inception that destroys the “good ones”. This problem is tasteless, odorless and invisible to the un-trained eye… Acquire someone who have the expertise and VISION to see the invisible killer that may be lurking within your midst !
· In the new decade, RETENTION ISSUES will become tons more important then they have been the last 70yrs… Loyalty runs THIN within the ranks of your Downline. Never forget that the Life-Blood of your Company, your Sales Force… is ALL VOUNTEER… if THEY don’t perceive YOU as treating them right… or they don’t earn at least $250-$300/month within 2-3 months… they will disappear from your “active roll” management report
· REMIND YOURSELF each morning when you go into the office: that 90% of your “worthwhile”, active, auto-ship distributor workforce members will be tempted to LEAVE YOUR COMPANY at least once every few weeks … so, like your spouse, you had better treat the people closest to you, with RESPECT monthly... or they will find a new LOVE somewhere else. There is very little loyalty in business… the Grass IS always Greener on the other side of the Fence !
· In a new company, with many veteran mlm leaders joining your operation.. the activity-rate will initially be very high, 70% to 99% for months… but these financial numbers will DROP-OFF by the end of the 12 month cycle, to values below 70% … and these numbers will KEEP DRIFTING DOWN month-after-month (yr/yr), over time, until they flatten out around 30% (or even less in poorly run companies), within 2-3-4-5-6/yrs… all-depending on a ton of “factors”… it’s a complicated see-saw formula, some figures going up, while others are drifting down… but these are the general stat’s to take to the bank ! This factor alone accounts for many owners thinking they will be achieving higher projected sales figures than they will actually glean… so talk to DK about all this so you “get-it”.
· In a MATURE OPPTY, the average person enrolled (newly exposed to our industry, by simply signing the application), only 30% will do anything other than their initial purchase, and perhaps up to 6 months of auto-shipping... that means 70% do NOTHING = $0 gleaned by your firm (when they could have produced $1000’s over years)
· the average Sign-up fee is $20 (some are free/others are $99) …
· the average initial purchase is $79 (ranging from about $30 lows to approx $1,000 on the higher side)
· a distr. who stays in the industry more than 18 mo.’s usually gets hooked for life... (although they may quit for a year or more, once bitten, old mlmer’s always come back). And this doesn’t mean they will stay in YOUR Oppty… most distributor’s only last about 3-6-9 months in one oppty at a time (ask DK about all the factors that influence this number)
· the average Entrepreneur who identifies themselves as an “mlmer”... signs-up/re-enrolls in
about 2 NWM co.’s a year.. (a majority join 3-4 oppty’s/yr- while a small % stay loyal to 1)
· 90% of your mlm veterans, are also signed-up “on the books “ in at least 3-5 different NWM companies at the same time as yours... they are usually only active in 1-2 co.’s... and then focus on the 1 oppty that seems to be working for them at the moment...
· the average Veteran Business Builder/Leader receives 2-3 calls per week from competing distr.’s who are trying to take them away from your operation to other firm...
· 60% of the mlm veterans expect some kind of “special deal”... the more experienced, older and more successful the veteran is/was, the more they expect some kind of “incentive” package in the recruitment process... (60% will receive some kind of sign-on bonus “offer” 2-3 x’s a year... i.e. stock, conf. calls, extra comm %, free samples, airline tickets, co-op advertising, leased car, rented office, etc. Your relationship needs to overcome this urge every time it happens !
· the average veteran distributor will be working your program for only a few weeks (2-6) to TEST YOUR OPPTY OUT, and see if anything will happen for them as promised... and if they do not witness any results (from their retailing or sponsoring efforts), then most will STOP THEIR PUBLIC DISPLAY of promoting YOUR COMPANY… and will dramatically reduced their sponsoring efforts.............. - 60-70% of these folks may keep buying your products on Auto-Ship for about 2-3 more months (but only if they were on auto-ship)… and then they will canceled the auto-deduct... – 10-20% will still buy an occasional product “now and then” and within 9-18 months they will be completely dropped out... (telecom co.’s will do about 6 x’s as well)
· the avg. auto-ship distributor spent around $299 before they dropped out... (let me show you how to get 10 x’s that!)
60-70-% of your NEW ACTIVE distributors “PLAN” on staying with your operation for a long time. They think you are the best co. in the world, they’re ultra-loyal to your firm and believe everything the co. says... they will defend the operation like they would their religion... BUT THIS WILL CHANGE - oddly, 80% of these “good distributors” (veterans who’re the life-blood of the industry), also distrust the industry as a whole! This % number drops significantly after a distributor has been with your operation for 6-9 mo.’s... and even more as time goes on. © Copyright
· conversely, only 20-30% of your new distributors who are “VETERANS” believe that they will be with your co. for more than 2 years... ©Copyright ‘88-’10
· although 40-60% of your distr. know how to use a computer and/or own one at home, only half (20-30%) actively use their computers for NWM business (letters, flyers, contact lead mgt., etc...) very few attribute their NWM success to the use and implementation of their computer systems or programs... only 10-18% of your active-members might buy leads
· under duress, 30%, a minority of your distributors will follow the company executives, while the majority (70%) of your field, will follow the direction of your Top Distr’s... your control/influence is “limited”, no matter how much the field seems to admire the exec’s during the course of normal business… so, if the Top Leaders are loyal to the owners… then things will remain solid/stable. Your goal is to stay in a rock-solid relationship with your leaders.
· And know that, know matter what a Top Distributor tells an owner… they are loyal only so long as their income continues to grow… they maintain friendships and have conversations with other leaders who are bent on STEALING them away from your operation… ask DK how to maintain a healthy relationship with your Field Leaders… because if 1-2 big-ones leave, they usually withdrawal about 30% of your monthly sales volume on average and take it with them (could be more…) And applying controlling policy rules/restriction’s, is rarely the right solution ! Constant respectful communication, with an open-door/open-minded policy is the answer.
· although 80% of your distr.’s log-onto the web to review/search/email information, only a small group, 15-20% actively attempt to use the internet to prospect for distr.’s to sponsor or retail product... these members say they thought their online system would work, but after reflection, realized that only a 1% minority of distr’s could ever succeed at earning big money using the web... the web is NOT your solution… it is just another tool… be sure your distributor’s get trained on the basic fundamental’s on how to grow a Downline the “old-school way”.
· if a newbie joins your company because they were “pitched” on the promise of a high-income, most distr.’s become more and more disenchanted, discouraged, dissatisfied, cold, distant, negative, and hardened over time - as they discover that they did not witness huge earnings. And then they blame the Company 1st, their upline 2nd, themselves 3rd...and the entire industry 4th...
· if a distr. isn’t making long distance calls to promote his/her business, they’re not serious about your oppty. and will be dead in 4-6-8 weeks... you’ve got to get them using the phone... the bigger the phone time - the bigger their check! Get your members using some kind of unlimited flat-rate service ©Copyright ‘88-’10
· 99% of all your reasonably active distr.’s know what Conference Calls / 3-way calling is... but only 20-30% use these technologies at least ONCE a week, and less than 5% use your TOOLS 4-5 x’s a week… less than 1% use them daily ! This situation/condition is holding your operation BACK from growing like your oppty could/should ! This is also true for many of your other TOOLS… i.e. using Replicated Website’s, Webinar’s, Regional Events, Hotel Meetings, Brochures, Post Cards, Business Cards, Auto-Responders, eZines, National Convention’s, Car Programs, Award-Bonus Programs, etc, etc…
· For most of the last 7 decades, mlm distr.’s primarily used home-party demonstration’s and belly-to-belly presentations… then flip-charts, hotel meetings and fax machine’s… then they passed-out vhs/cassette tapes… and now the web is used more-and-more to primarily transfer the Storyline Preso-information... - your Training Systems need to teach your members how to use email and auto-responder type systems to spread-the-word! DVD’s, CD’s, email, and various web technologies are: simple, affordable, fast, effective, duplicatable, and measurable ! But how many of your members used any of these tools this week… a tiny minority…. maybe 10-20% of your active members if you’re lucky. This number needs to be doubled/tripled… as DK to help you !
· most distr.’s would SPEND MORE… stay “active” longer on auto-ship… and become more-involved with your overall operation… if they were making at least $300/mo.... this seems to be the magic amount at this time in history... these members would remain on your auto-ship program 2-4 times longer if this were the case... recruit a few more members. But they also say they would eventually leave YOUR COMPANY to earn more somewhere else... so they will improve their performance… but most-likely take their loyalty to another company where the “grass looks greener”
· women used to make up 80% of the NWM/direct sales industry... But this trend is changing... women are still on top due to Mary Kay, Avon, Discovery Toys, Tupperware and make up 60+% of the industry… the men are about 40%... the ratio will be 50/50 over the next 3-5 yrs & keep reversing... until men are 60, women 40 ...
· 85% of your distr.’s say they do a very poor job at following-up on their prospects... what does your company do to improve this condition ? Most Companies get a D- grade in this area
· 95% say they never made their (100-200 name) “prospecting list”... and fewer ever worked it properly... what does your operation do to improve this statistic… ? THIS IS THE CORNERSTONE of every serious distributors recruiting efforts. A professional NWMer uses their LSIT as the FOCAL POINT of their Business Building Efforts. A salesperson CAN NOT SUCCEED WITHOUT working their Prospect List ! And they also need a Continuous PIPELINE to keep feeding more and more leads into their Recruiting/Retailing System.
· Next… few distributor’s every get taught HOW TO CONVERT LEADS INTO Cash-Flow ! - Closing your prospects is another HUGE VITAL issue, that is not dealt with properly at most company’s… this will hold an mlm company back from growing normally…
· 85% of the distr.’s say they have very poor time management and organizational skills... rarely ever “prioritized to-do items”… and hated this kind of Success Principal anyway ! This is another HUGE REASON why most mlm co’s fail ! DK can help in all these areas !
· 90% say they do not give away samples regularly to build their business,(except of a few in the 1st couple of weeks)... 98% had no system to keep track of the samples they gave away...
· 80% did not want to talk to their “warm market”, they were afraid to talk to their friends, neighbors and family... and these same folks stated that they were afraid to BUY LEADS because they didn’t want to spend the money, nor did they feel qualified to CLOSE these prospects and convert them into CASH-FLOW….
§ ©Copyright ‘88-’10
· 20% of the distr.’s polled said they would sign a contract to buy: 1- quality leads, 2- if they were at free/cheap/fair prices... and 3- if they had super training that was PROVEN to help them convert there suspects into an income stream… (if you could do this, 30-50% more would buy them !)
· 98% of all distr.’s tested, admitted that they did NOT have any current “Written Goals”...! Shame on you owners… your trainer should be scolded
· 70% of all distr.’s admitted that they did not have a business bank account set-up... and they added that they did NOT follow the simple IRS requirements to GAIN THE FANTASTIC Tax-Deduction Benefits mlmer’s can receive… and this is just sad. An average mlmer’s with a job is said to be able to benefit from a $5k to $10k/annual savings ! This is mega-powerful and super-worthwhile for every mlm company to support/promote/teach and make sure their distributors receive these incredible savings !
· 55% of your distributor’s said that they did not even have business cards or stationary...! You’re NOT in a Home-Based Business until you can hand someone your Business Card … it’s a “state of mind” that an Entrepreneur needs to be in… get your members behaving, acting, and actually doing what people with their own business DO ! How basic is this issue... it is no wonder so many mlm operations fail. They also need to advertise, buy shirts, car magnets, hats, pen give-away’s… you get the idea… marketing STUFF to expose to the world that they are indeed in business !
· fewer than 15% of your members ever actively attended Conf Calls, online or hotel leadership meetings, training events, and/or oppty briefings “regularly” ( those that DID only lasted 3-6 mo.’s max)...
· over 75% of all distr.’s did not have an office to work out of, or home office location set-up to work their bus... they stated that no one had ever taught them how to run their business like a bus... © Copyright
· if one of YOUR members was asked to rate/grade him/herself on their performance, ( if they had to “pitch me” right now in front of the seminar group on your product), how well would they say they would do...? Most individuals gave themselves a C or a D at best... this means that your distr.’s are going into the retail/recruiting “fight”, already believing that they’re going to LOSE that fight ! ... they are expecting to do a poor job and anticipate being rejected by their prospects... This is no way to grow your business ! This is NOT GOOD for you, them or the prospect !
· 95% of all NEW distr.’s said that there company provided great training… a year later, these same Distributors suggested that, now that they had witnessed 12 months of weak personal success… said that they now wanted “BETTER TRAINING”. Most concluded that they were not provided with adequate training they required to succedd. They now were in a position and conceded that they might be willing to actually pay for REAL PROFESSIONAL NWMing “SCHOOLING” (not the amateur seminar stuff going on every weekend in all mlm firms)... why do you think there are so many 3-party/independent outside trainer’s doing well in our industry… i.e. Dale Clvert, Dani Johnson, David Butler, Richard Brooke, Dr Joe Rubino, Jerry Clark, Jack Canfield, Sandy Elsberg, Michael Dulughy, Art Jonak, Jim Lutes, Hilton Johnson, Kim Klaver, Jack Zufelt, Brian Tracy, Dennis Waitley, Jackie Ulmer, Tim Sales, Don Faila, Tom Schreider, Dale Mahony, Mark Yarnell,
· 90% of the veterans said they were not happy with their personal performance, their overall success to date, their level of accomplishment, they had not achieved their aspirations and were willing to do more to achieve their goals... none of the life-blood category/“average” distr. Group thought that they reached their income GOAL, or didn’t win the bonus to drive a free dream car, or build their dream house, or wind-up taking their family on a dream vacation (as they saw in the Brochure’s/heard at the oppty meetings... they felt like they had FAILED… - you need to deal with the negative emotion state of some of your rep’s… if you DO, many of your member could attain more of their goals…. They just need some hand-holding so they follow your proven SUCCESS PLAN
· POOR CUSTOMER SERVICE … right or wrong – perception IS EVERYTHING… thus a whopping 65% of industry distr.’s said that their company staff and administration over-worked and to over-loaded to ever deal with their challenges effectively… the FIELD perceives the “company staff” as NOT getting back/or follow-through on promises made or help them with their problems, thoughts or concerns. The majority of the veteran field rep’s rated overall company service as fair/weak to poor... over a third said they had received awful/terrible service and were considering calling the BBB, Atty. General, or the FTC to get revenge for the co.’s lack of follow-up ! THIS IS NOT COOL for your company at all… because you see all the NEW rep’s that think you’re customer service is wonderful. MLM Owners need to deal with this issue BEFORE it gets out of hand. This is why sales slow down… this is another reason why co’s never reach their potential.
· 35% of mlm veteran distributors said that there company had a tendency to “over-promise and under-deliver” on it’s commitments, promises and future programs... DK will tell you how to turn this around !
· 37% of the average/smaller rep’s said that they felt a bit over-looked and “ignored” by the executive’s… and that the company didn’t have a very good “communications system” in place relating to THEM and their issues... this is why many slow-down their recruiting/retailing efforts… and this accounts for another reason why most mlm firms never reach their potential.
· yet only 10-25% of the active distr. force ever signed-up for the companies conventions, auto-responder systems, or voice mail systems... and of those who did register to pay for ANY sales-aid service’s offered, only a tiny minority ever used the system to communicate with their group, use it in their recruiting efforts or participate in co. sponsored voice mail activities... therefore DK concluded that unless a co. implements a very serious training program, it will only receive a fraction of the potential benefits afforded by the implementation of a any Business Building Tool System!
· when put on the spot, 82% of most distr.’s could not clearly articulate and explain their NWM companies products/services… or describe the “USP’s” (unique selling perspectives) of the best-selling products. They also could NOT answer the all-important questions: “why me, why my company, and why now” presentations to their prospects. Most rep’s could NOT share with a prospect what features/benefits made their oppty: fresh, alive, new interesting, different and worthwhile to a prospect... Most Distributor’s also could not share with DK their all-important “personal testimonial story”. Bottom-line, 87%, the majority of accompanies Sales Force, have WEAK presentations – very POOR Skill Sets – a very weak ability to present your Opportunity and then RECRUIT a Prospect or MAKE the
· 80% of most distributor’s admit that they do not use conference call technology on a regular basis. They may have been exposed to it or even used it a handful of times… but few of your rep’s ever maximize this Business Building Tools potential in their lives.
· most network marketing distributors had NEVER EVER taken a class/seminar/program on “Networking” ! Every Chamber of Commerce in the world offers these classes several times a month... but our industry seems to be avoiding the most obvious educational requirements...
© Copyright 1988-2010
· most distributor’s felt that the company policies…the rules/regulation’s… and the distributor/company agreements, were very one-sided against the rep. Upon re-registration, mature distributor’s reflected/realized deep-down, that the distributor arrangement was a bit pro-company. They did not feel that the company was as much of their “partner” in business as they did in the beginning. Most also thought that they did not have much “representation” regarding the constant changes instituted by the firm... Field Leaders representing the “field” to the corporate executives, perceived themselves and their issues as not being well-represented. ( do you think this condition could hold-back a companies growth… YES is the correct answer. Short-term, a company can get-away with discounting issues important to the field… long-term, ignoring these concern’s can/will stifle your growth or even kill your operation… )
· 85% of most veteran rep’s think that the Distributor Kit is basically un-used and thus rather pointless/useless... virtually no one is using the kit as a teaching tool, a learning aid or as an educational system for retailing or sponsoring new people... and this could negative condition could be REVERSED 180 degree’s with the design of a worthwhile kit filled with useful tools and sales aids…. Ask DK to help in this area ! This could add 30% more gross sales to your bottom-line. ©Copyright ‘88-’10
· fewer than 1% of all active company distr.’s ever attend the same co.’s convention more than once! THIS IS TERRIBLE. The majority of rep’s who attend your convention are usually NEWER to your firm and usually greener to the industry… with a minority of leaders “Shepparding” the rookies around the event. Most distr.’s are not planning on attending your major co. convention... they do not seem to understand the importance of establishing airline and hotel reservations 3-9 mo.’s in advance... and most people who did attend your companies regional/national convention in the past, say that they do not have the time or money to invest in another convention anymore... additionally -most people did not know what a travel itinerary was - nor did they know the value of creating one!
· 95% of your active distr.’s polled, did not keep simple/basic IRS business records in order to maximize their tax benefits afforded them by the US Congress... virtually no one was using a real business planner type system to glean the $5000 to $10,000 worth of Small Business Owner Benefits afforded to them by the US Congress. This is just foolish.
· DK is amused when an MLM Leader shares with him that they negotiating with some other companies Leaders to MOVE THEM over to “their opportunity”. They brag about some big-shots who are flying-in to tour their facilities and talk about potentially making a MIGRATION… first off… DK points out that he saw some of THEIR TOP LEADERS doing the EXACT SAME THING at ANOTHER MLM COMPANY last month. So RAIDING is going on back and forth every week… one company to the other… like the tides on the ocean, moving one giant Distributor-MASS from one beach to another. So don’t get relaxed, complacent or “comfortable” with your Sales Force… people are moving and being-moved in a constant state of flux. Distr’s are calling other distr.’s to get them to “move” from their NWM firm to another every hour of every day... What are you doing, how are you behaving, what are you saying to prevent your sales force from leaving your firm...?
· 80% of most distributors admit to being lazy... but say they would work harder if they had someone to MENTOR THEM… help them/make them/force them follow a PROVEN PLAN for SUCCESS. Distributor’s are just like children… if you allow them to make their own decision’s or design the rules… they will do a POOR JOB and FAIL. (what does this tell you ? - your company needs to LEAD in this area… Training is critical ! )
· Sometime in the a distributors relationship with your company… 30-40% of these rep’s say that they would purchase your company stock if they had been presented with the opportunity to do so… - And/or, rep’s want a bonus program in place, that enables them to earn EQUITY through their performance and productivity... make this happen !
· 80% of all veteran distr.’s say that they did not/will not USE the free benefit programs offered by the company… these include rep-benefit program’s like: eyewear, coupons, insurance, telecom, etc... Yet they’d all like to receive the “benefits” of the benefit program if they were REAL – attainable ?!... so this means that better training and better education is missing in order to make these programs work like the “Golden Handcuff’s” they were suppose to be !
· 95% of all active distr.’s, DID NOT ASK FOR… nor did they receive, any prospect “referrals” on a regular basis (2 referral’s a mo. or more). This is horrible ! This means the company and accountability systems are working poorly… and thus, the company is NOT gleaning the gross revenue’s they should be receiving. This also means that the fall-out ratio is HIGHER than it should be… the activity-ratio is LOWER than is suppose to be… and that the company is not as productive as it would be if this issue was addressed ! Hire DK to solve this problem asap !
· 68% of all veteran distr.’s think that the retail prices of the products they represent are a little over-priced, and have a bit less quality than the best possible non-mlm competitor... most think that the wholesale price is more inline with conventional products retail prices... thus – every effort should be made by an mlm owner to lower there prices as much as they can… the cost of the product as compared with it’s gross/wholesale price paid by a distributor, should be about 6-to-1 mark-up on the low-end. A company can live with this… but, a 10-to-1 mark-up is getting a bit greedy and pushing it… there are exceptions to every rule… but you get the long-term idea for survival. This is complicated issue.. discuss your exact situation with DK to design your course of action. Your Company Average mark-up should be about 6.6 to 1 in order to have a 45% Average Monthly Company Comp-Plan Payout formula that will keep you competitive on BOTH ENDS of running your business. Keep in mind your retail customer… your distributor earnings… your company earnings and the trends in the marketplace.
· in the beginning, 85% of all active distr.’s consume their companies products or services... but after 6-9 mo.’s this falls off to 40-60% 10-18 mo.’s, then drops way down to 20-40% thereafter...
distr.’s do very little retailing... this could be improved with better training and better leadership in this area... © Copyright 1988-2010
· 97% of all distr.’s can not take credit card purchases...
· 85% of the distr.’s have not used the automated higher tech. systems offered by the firm... (ordering by phone, using the internet to order products, sign-up new recruits, or see downline activity, etc...)
· we witnessed that at least 90% of the unsuccessful veteran distr.’s did not effectively use any kind of: trail close... closing line... answer a normal objection... or ask good qualifying questions... mirror the prospect... or use any other professional sales technique when pitching their prospects... (although we all agree that a simple duplicateable formula should be used initially with a prospect... ultimately any person involved in sales for a long time, should learn to use at least a handful of phrases, or questions to use when trying to communicate effectively with a client)...
· there are only between 125 - 275 top distributor’s world-wide earning a seven-figure/yr. income (must be at this level for at least 12-18 Mo.’s) ... divide that by 14 million and you’ll see how many top distributors there really are overall in the world.
· 90% thought they should be classified as a career professional network marketer... but sadly - less than 25% would come close to qualifying in my book. ©Copyright ‘88-’03
· your productive distributors and active leaders are being called at least 2-4 times a week on average, and they’re enticed to leave your firm for a competing firm!
· the average income of 80% of your distributors is a negative -$150/mo.,
... while 15% of your distributor force will earn a part time income of $300-$2,200/mo.,
... while 4.5% earns $3k-$8k/mo...
... while .05% of the distributor force of a mature operation will earn $100k+ yr. not per mo!
· average Distributor stays “active” in your company 6 weeks...
· the average mature NWM operation’s Activity-Ratio ranges between 3% on the low side to 30% on the high side... (not counting telecom or similar operations)
· 90% of your total sales force will not initiate even one prospecting call or one oppty. preso per day ( average 365 calls/yr.)... the average was closer to 2-3/wk for your active distr.’s and about 1 a month on average for the total group... less than 5% of your sales group would make 90% of all the outbound calls for your firm...
· the average distributor will only pitch 5-10 prospects before they quit, while active working distr.’s will only perform on average 20-30 preso’s yr.!
· 48% quit after the 1st prospect call... 25% stop after the 2nd call... 12% will make 3 attempts... when the industry research indicates that 80% of the sales are made after the 5th contact! ... thus 10% of your sales force is doing 80% of the sponsoring/retailing...! ©Copyright ‘88-’10
Wasn’t this the most incredible data you’ve ever received ! Do not ignore these points & call DK for more.
====== lets invite DK back on stage for some “encore” information ======
· believe it or not, over 60% of Industry Leaders said they did not have a proper business plan created when they launched, and even if they did, most said they did not follow or use it as a tool to build their business because it was WAY OFF TRACK ANYWAY... almost all said “they flew the company by the “seat of their pants”... thus, many owners contribute their failures, slow growth or small size to NOT DOING THEIR HOMEWORK, knowing there Industry better… and sticking to a written plan... (we can assist you in finding an expert who can help you develop a realistic marketing or business plan, or assist you directly ourselves)... © Copyright 1988 - 2010
· an astonishing 70% admitted that they were very NEW to the concept of NWM when they conceived the Company Story-Line and overall company design... since they were inexperienced in the ways of the NWM industry, obviously they all said that they had learned most of their lessons the hard-way! COSTLY MISTAKES made again and again regarding the comp plan… legal… data-processing… customer service… product manufacturing… distributor relations… special deals, etc.etc.etc. ! - In the end, they reflected on their actions/decisions and told DK that their naiveté’ cost most of them their operations... the average owner lost hundreds of thousands of hard personal dollars… the company investors lost a lot more… everyone lost many years of their lives… and it cost most leaders their respect/credibility… and lost/damaged of relationships with peers. Only a very tiny percentage of these brave individuals have ever tried to build another NWM firm again! - Many of those who did try it again, came back as an employee of another new company. The moral: 1- Study the industry in great detail BEFORE you launch… 2- seek out and bring on to your firm as many industry veterans as you can. Ask any past owner of a failed operation, and he/she will suggest that you form some kind of agreement with the experts who know the answers to the problems you are going to encounter. Never try to figure the industry out all by yourself as you go along ! - It’ll cost you 100-1,000 times more than if you had paid the expert up-front... because if these individuals/firms are truly experts, they will save you millions, while assisting you in making tens of millions! They will save you lots of time. With proper Professional-Expert Guidance… you can DO in 3-5 yr.’s, what it would have taken you 8-15 years to figure out on your own! Attracting highly skilled and talented experts will also reduce the amount of “stress and pressure” building your dream… and it will be more fun during those burdensome launches (or re-builds)... (Mr. Klaybor can help you find the experts you need as well as directly participating in helping you make the right business decisions, do not make them on your own, it cost too much if you make a mistake or choose unwisely)...
©Copyright 1988 - 2010
· 85% of mlm executives thought that they could advance, build and grow the company with the “positive cash flow” that was certain to fill their bank accounts after they launched ! This was based on their knowledge of a few Successful company’s they knew about who’s owners had started with under $100k seed capital. These same people later found out that launching a NWM company with less than a million dollars rarely works these days... thus, if you talk to any current/past owner… or any competent consultant… they will tell you that you need a lot more money than you think you need to survive, let alone “prosper”... heed this advice. (David has many creative ideas that will assist you in securing the necessary funds you’ll require to launch your unique company)... here is the rule: Your Capital requirements are in direct proportion on your ability to recruit large groups of rep’s.
· over 80% of mlm owners said that in the beginning/initial phases of building their company… that they were: over-confident, too arrogant, their ego was too big, and that they rarely listened to others like they should have. They conceded that they micro-managed all aspects of their operation… they thought they knew more than everyone else around them… and never passed-on enough responsibility to others like they should have. They trusted in themselves way to much, and not enough on others. This was in-part because they trusted themselves and didn’t spend the money to bring-on other brilliant minds to help them launch. They figured that they would spend the money to get better talent once the company was bringing in lots of cash-flow. And sadly, this phase never came to be… and the company failed due to its inability to handle all the complicated unique “stuff” that an mlm company throws at their handlers. (you need to allow at least one trustworthy expert who sees your business from outside the fishbowl, to study your company and provide you with hard advise. Let this person inside your inner-sanctuary, an individual who can tell you the cold hard absolute truth about your business decisions without repercussion... a person whom you rely on and allow to tell you when you’re going the wrong direction)...
· 60% said, in the beginning, they paid too much for the HARD COST their products... nor did they did not know the proper mark-up ratio to use... ask DK for the answer
· almost all of the owners who lost their companies, when looking back at the distributor force they “had” at one time, realized that they DID NOT focus as much as they should have on training the individuals they already had on their team. Instead, they realized that they may have focused too much on sponsoring MORE DISTRIBUTORS. Instead, they had a large group of UN-trained representative who were NOT plugged into a duplicable success system designed to last for the long-haul. This group then became easily distracted, uncontrollable, disenchanted, and they started slowing down and began drifting away from the herd… and became more and more inactive… until the company was dead ! This is usually when an owner calls DK… and its virtually too late to save the operation or picl-up the pieces and re-launch ! Don’t be this person. ©Copyright 1988 - 2010
· 40% said that they designed a marketing plan that ended up paying “too little” money to their sales force... this left these operations struggling to survive as the company administration kept modifying the comp plan… and making it a confusing/cimplicated MESS… very hard to promote, teach and understand. This is what you find in most mlm companies ! Getting it right the 1st time is Golden.
Conversely, if you over-correct and then start paying a little too much to the field... you will discover another hard mlm principal: “you can never take any money away from your sales force once you’ve given it too them”, if you do, it’s the kiss of death!
· 85% of these owners stated that they had to make changes to their comp plans at least 2 times a year... many made even more! An operation can get away with this a few times and gain some momentum (if they’re adding cash to distr. income)... but leading distributors are smarter today then they were 10-5- even just 3 years ago… so each time you have to edit your comp plan… it disrupts your business more than you know. It erodes your credibility, breaks down confidence, diminishes loyalty and after too many changes… it’s just like pulling the parking break on while the car is driving down the highway. NOT GOOD.
· 80% of the owners admitted many years down-the-line… that sometimes they never really understood the reason why company revenue’s increased… or why sales fell-off. It’s like the industry has a FICKLE mind of it’s own. You take intelligent actions you feel “have to boost sales”… and they don’t. And then you do something silly, and sales go up the next month !
· MLM can be a mysterious business… but you MUST always keep your eye’s open so you are CONSTANTLY learn from other companies mistakes… there ARE CLUES EVERYWHERE that could save you millions - and make you millions… you just have to STUDY YOUR CRAFT… and not complacently sit on your butt counting your new recruit’s on your management report sheet
· Most owners always felt that their National Conventions were a “hit”... find out from DK why this may be the wrong viewpoint. – ps -- most admitted that they spent too much money on the wrong things at the conventions...
© Copyright 1988 - 2010
· 80% never realized that their distributor kits were rarely read, rarely internalized, rarely used… and thus were basically worthless in helping their distributor’s retail, sponsor and train... a futile waste of time, money and effort. This condition can be REVERSED and improved for FREE !
· If you get an owner to sit down with you many years after they launched… they will admit to you that for most of the beginning years… they never really knew much of anything about the “health” of their most important asset - the sales force!
· They never got back into the trenches with the troops to do all the things the field does… i.e they rarely ever went out and sponsored someone to see what the field is going through… they never read the training manual or kit materials to see how relevant they were 2-3years later… they forgot to get their hands dirty and get out and participate in all the distributor activities… to see their company through the rep’s eyes once in awhile.
· most executives said that they did not know how many 3-way calls were made in any given week… or to whom... - or how many oppty. preso’s were given… how many samples were given away… or how many referrals were received by his companies distributors in any given month... in other words… they got to involved in all the back-office stuff and stopped focusing on what goes on in the real world. The moral is… do what you did, that got you were you are… and you will continue growing. Do not get into the “management rut role” !
We could go on for another 100 pages… but you have read enough to give you the PROPER PERSPECTIVE of who you are, where you are.. .why you’re company is performing the way it is… and tons of steps you can initiate THIS WEEK to improve your operation. Why not contact Captain Dave and talk about all this… it’s worth MILLIONS in increased gross sales to you if you DO !
All the best in building your operation…
The Industry needs more companies to Succeed… more moral owners to build credibility to the public…
Join your local BBB, Chamber, the MLMIA and the DSA … +
Email your STORY (good or bad) to DK, he would love to hear from you…
Send DK your insider story… the lessons that you learned… he will add your lesson’s to this manual.
Schedule a GOLF OUTING to discuss your project / problems…
PowerLine Systems / Captain Dave Klaybor -