Making Income Claims in Your MLM Business

In today’s post I want to talk to you about making income claims in your network marketing business.  This is a topic I am very passionate about, because it is such a huge problem in our industry.  Some top earners reveal their bonus checks to impress their prospects and get them to join.  Some folks do it out of ignorance (they don’t know any better).  And some people even lie about how much they make with their business.

To clear the air, lying about your income is downright wrong and unethical.  You should never skew the numbers to try to impress someone.  In addition, I don’t see much value in revealing your real income either (more on that in a moment).

I cannot find a source to cite, or I would, but I have been told by several “credible” sources that it is actually illegal to make income claims in our industry.  By all means, if you know which law it is, I would love for you to share the information in the comments section below.

I don’t personally know of any other industry in the world where it is illegal to tell people how much you are making.  Anyone in any job or business that I know of, has the legal right to share their income with you.  Not so in network marketing (from what I have been told).

That being said, for most people, their income is a private matter that they do not discuss with others.  That is the mindset I have about this issue.  How much I make is really no one else’s business other than my wife’s, and the IRS.  When people ask me how much I make in my business (which doesn’t happen often) I simply say it’s personal matter and I don’t feel comfortable sharing it with others.

Other leaders in our industry are more open about it.  Once again, it’s really a personal decision.

As I see it, there are several reasons you should never make an income claim about your network marketing income.

# 1 It isn’t allowed

As I mentioned earlier, making income claims (whether true or false) is not allowed in our industry.  Flashing your check on Facebook is a quick way to get terminated from your company and even get your company in trouble with the FTC.

# 2 It can be misleading

Income checks are misleading.  There are a lot of variables that people don’t talk about when they flash their income check, or make an income claim.  First off, there is a huge difference between net profit and gross revenue.  Flashing a $20k check does not mean you actually made $20k.  By the time you factor in expenses, the person probably made a lot less than that. In addition, you don’t know how long the person flashing the check has been in the industry, in the company, how much time they invest in their business each week, how hard they have worked, what skills they have, etc.

# 3 It has no impact on how much your prospect will make

To me, this is one of the most important lessons on this page.  How much you make has no reflection on how much your prospect will make.  Just like how much your successful upline makes has no reflection on how much you will make in the business.  Individual results will always vary.   When your prospect sees your check, they automatically think they will make that much, and normally within a few months.  That’s why it’s so important to tell your prospect that individual results will vary.

# 4 It really is no one else’s business

Once again, your income is no one else’s business.  Why anyone would want anyone else knowing how much they make is beyond me.

A Simple Alternative

Here is a simple alternative that could fix this problem once and for all.  Rather than talking about your income, share the average earnings disclaimer from your company. Show your prospect how much people at each rank in the company make and how long it took (on average) to get there.  This is a much better picture to portray to your prospect than flashing your own check.

Final Thoughts

The bottom line is that making income claims in your network marketing business is prohibited, and shouldn’t be done anyway.  How much you make is your business and has no impact on how much someone else can/will make in the business.  Individual results will always vary.

What do you think about making income claims in the network marketing industry?  Leave a comment below to share your thoughts.  I look forward to hearing from you.

Monthly Checklist for Serious Network Marketers

Today, I want to share the top 10 things that serious network marketers do every single month to move their business forward, so you have a better understanding about what it takes to be successful in this industry.

I’ve studied many successful people in this great industry and I have definitely noticed some specific trends and similarities.  Although everyone has their own strategy for building a business, and puts their own twist on things, there are many “similar” things that all serious network marketers do every single month.  They are listed below in no particular order.

1.  Prospect 60 to 150 People

Serious and committed network marketers meet two to five new people every day, no matter what.  Their number one focus is to meet new people.  They do this in different ways such as Facebook, face-to-face, generating leads online, attending networking groups, etc.  They know that they need new people to share their business opportunity and products with so they make sure a day never goes by unless they have prospected minimum two to five new people.

2.  Show 12 to 30 Presentations

Because serious network marketers are always talking to new people each day, they always have someone to share their business and products with.  Typically, about 1 in 5 people you approach will listen/watch a presentation, if you approach them the right way.  Assuming you are talking to two to five people per day, it would be very easy to do 12 to 30 presentations each month.  Keep in mind you don’t have to physically do these presentations yourself, but you do need to ensure at least 12 to 30 new people are watching a presentation each month.  I simply share a short 16-minute video with people myself, and don’t meet anyone face to face (so it doesn’t take me much time).

3.  Sponsor 2-6 people

Assuming you are showing 12 to 30 presentations each month, you should have no problem sponsoring 2-6 people per month.  That assumes that about 1 out of every 5 people who see a presentation ultimately joins your team.  From personal experience I have found that the magic number is 4.  Most top earners consistently sponsor 4 new people every month, which breaks down to about one per week.  This is doable, even for a part-timer, if you have a game plan and work smart.   To succeed, you MUST sponsor new people each month.

4.  Find 3 to 5 customers

When people tell you no to the business opportunity, you should ask them to try out the products. Customers are a very important part of your business.  All serious reps maintain at least 10-20 active customers and they are always finding new customers each month.  This gives you instant profit and helps you build a sound business.  If you are showing 12 to 30 presentations each month this won’t be hard to do.

5.  100% Product Use

Serious distributors never ever use a competitor’s product, EVER.  If you were to walk through their house you would quickly see at least 20 to 40 of their company’s products.  They are serious product users.  They’re on auto-ship.  They try new products every single month.  If their company makes it they use it!  They are their own best customer.

6.  Read Every Day

Leaders are readers and readers are leaders.  Serious reps read minimum 15 to 30 minutes every day.  They focus on books that will teach them new skills and make them better leaders. They read books about network marketing, business, entrepreneurship, communication, leadership, lead generation, marketing, sales and more.  Check out my reading list.

7.  Enroll in Automobile University

Serious distributors don’t listen to the radio in their car.  Whenever they are driving they are listening to some type of training or personal development course that will teach them new skills or make them a better leader.  They listen to at least an hour of audio training each day. This includes audios on a variety of topics such as leadership, network marketing, entrepreneurship, sales, marketing, communication, and more.  Learn more about automobile university.

8.  Attend All Events

Serious distributors attend their company’s events.  This includes local meetings, regional meetings, conference calls, webinars, etc.  In fact, most serious distributors do their own training for their own team, even if they aren’t top earners yet.  Events are very powerful and are a great way to keep everyone plugged in.

9.  Counsel with Upline Mentor

Serious MLM Distributors counsel with their upline mentor a few times each month. They mastermind, ask questions, talk about what is and what isn’t working in their business, and get new ideas to help them move their business forward. In addition to their upline, they also have several other mentors who help them improve their skills.

10.  Work Closely with Team

Serious distributors work very closely with their serious team members.  This is typically no more than five to ten percent of their team.  They help their new team members get started right.  They provide insight and guidance.  They are accessible to their team.  They help people on their team develop game plans and answer their questions.  They chase the business and work with the willing.

Final Thoughts

There you have it folks.  This is my list of the top 10 things that serious network marketers do every single month.  This is actually a pretty basic list that anyone can follow.  The only thing that might vary a little bit is HOW you prospect people.  Each person can use a strategy that works for them.

What do you think?  If you are a serious and committed network marketer, what do you do?  Is there anything I didn’t mention?  Please leave a comment below to share your thoughts.  I look forward to hearing from you.

What to Do if Your MLM Sponsor or Upline Quits

Today, I want to share my thoughts on what you should do if your MLM Sponsor or upline quits the business.  This is actually a very common trend in our industry.  Since our industry has a high turnover rate, like most other selling professions do, there is a high likelihood that at some point in your career your sponsor or upline will leave the business.

This happens for a variety of reasons to include change of priorities, divorce, new goals and interests, health challenges, life changes, burnout, frustration, changes in company leadership, and more.  It seldom has anything to do with the company or industry, and usually has something to do with the person involved.  You should know that just because your sponsor quits, it doesn’t mean your company or the industry is bad.

When your sponsor or upline quits, it can be very frustrating and discouraging, especially for the newest distributors.  In many cases, when the upline quits, everyone on the team quits.  I’m not sure exactly why that happens, but it is a common reality.

If you ever have to deal with this situation, here are a few of your options:

# 1 You Can Quit – Once again, this is what most people do.  I don’t think this is the best option for most people, but it is an option.  If you only joined the business because of that person, you could follow them to their new company (if they switched) or leave the industry for good.

# 2 Take Responsibility for Your Own Business – This is hands down the best advice I can share with you.  You need to remember that no one cares about your business as much as you do. Man up or woman up and take 100% responsibility for your own success.  I would argue that until you do this your business won’t grow much anyway.

# 3 Find a New Mentor – Finding a new mentor is not hard to do.  For most people, just by making a few calls in their upline, they can find a new mentor.  Even if that’s not an option, you have other choices.  With YouTube alone there are more than enough mentors out there to help you learn what it takes to become successful in your business.  You can also read books, read blog posts like this, and mastermind with people in other companies.  You can also find mentors outside of the network marketing industry.  Most of my mentors I’ve never even met in real life!  Most of my mentors are from books.

# 4 Press Forward – I think this is a great option.  Keep moving forward.  Once again, it’s your business.  I believe that ultimate success is the sweetest revenge.  Show your former sponsor or upline what they missed out on by leaving the business!

# 5 Have Several Mentors – My final piece of advice will help prevent this problem altogether. I suggest you network and build friendships with several successful people in your upline, right from day one in the business.  Meet several people in your upline who are successful and willing to help you.  Build strong relationships with all of them.  That way if one of them leaves the business there won’t be much of a transition period for you or your team.

Final Thoughts

The bottom line is that you need to be prepared for this situation, because there’s a high likelihood that it will eventually happen.  Following the advice listed above should help you get through the experience with any setbacks.

What are your thoughts?  Have you ever had your sponsor or upline quit the business?  If so, what was the experience like?  Can you share your thoughts and recommendations?  Leave a comment below to do so.  I look forward to hearing from you.

Top 33 Arbonne Facts

Guest Post by Greg Boudonck

Arbonne has become a recognized force in network marketing. With top ranked leadership, this company has faced some battles both in financial aspects, and with “MLM haters” head on. Arbonne has shown their business methods and their products are safe and fair. While some may say that the Arbonne prices are high, I will rebut that with the fact that you do “get what you pay for.” If you purchase low cost products, you normally get the quality that comes with low cost…terrible. Arbonne seems to make high quality products, and in doing so,production and ingredient costs are higher.

In today’s post, I am going to provide you with the top 33 facts about Arbonne. I am not affiliated with Arbonne in any way, nor is anyone I am closely related to except for occasionally using some of their products as a consumer, and not as a distributor.

We welcome your comments or questions at the end of this article, but please be respectful.

Fact #1

The founder of Arbonne was Petter Mørck of Switzerland. His idea was to develop the highest quality, and safest skin care and cosmetic line in the world. Petter passed away in 2008, but his son Stian is ManagingDirector of Arbonne International.

Fact #2

In 1975, Petter’s idea became reality. The Arbonne Institute of Research and Development was established. AIRD began producing formulas that would become the Arbonne products. Even today, AIRD is always testing and developing to provide new products.

Fact #3

In 1980, Arbonne was introduced to the United States. Independent Consultants could now demonstrate and sell the first Arbonne cosmetics and skin care products.

Fact #4

The 5th best selling product in the Arbonne line is the Arbonne Makeup Cosmetics Primer. This primer uses natural ingredients that include:

  • grape seed extraction
  • horsetail extraction
  • green leaf tea

Fact #5

The 4th best selling product from Arbonne is the RE9 Advanced® Smoothing Facial Cleanser. This cleanser rids the face of oils and other materials to leave the face soft and smooth. It is recommended that a person should use the other RE9 Arbonne products for the full advantage.

Fact #6

The 3rd best selling product in the Arbonne line is the RE9 Advanced® Intensive Renewal Serum. This product renews and rejuvenates the skin using beech tree extract.

Fact #7

The 2nd best selling Arbonne product is the RE9 Advanced® Corrective Eye Crème. This makes eyes that feel old feel young again. It has alfalfa seed extract and hydrolized lupine protein as its primary ingredients.

Fact #8

The best selling Arbonne item is the RE9 Advanced® Restorative Day Crème SPF 15. This product is full of Vitamin C to help restore your skin. It also is a sunscreen at SPF 15 to help protect against Mother Nature.

Fact #9

Arbonne’s United States headquarters are located at 9400 Jeronimo Road, Irvine, California. They can be reached by dialing the toll free number: 1-800-ARBONNE.

Fact #10

Arbonne is a member of the Direct Selling Association (DSA), and they are also accredited with the Better Business Bureau. When you visit the BBB website, you find that Arbonne has a great reputation.

Fact #11

Arbonne has some great leadership. These include:

  • CEO Kay Napier
  • CFO Gretchen Price
  • CCO Michael D’Arminio
  • CSO Heather Chastain
  • CIO Guy Thier
  • CLO Ashley Good
  • Chief Scientific Officer Dr. Peter Matravers
  • Senior VP International Joe Wojcik
  • Senior VP Global Human Resources Karen Stout
  • Senior VP Operations Glenn Klages
  • VP Financial Planning Gregory Colbert
  • VP Controller Geoffrey Pankau
  • VP Research and Development Dr. Bob Bianchini
  • Managing Director Stian Mørck

Fact #12

Arbonne is engulfed in helping to save the environment. They have a mission to use biodegradable products when possible. Paperwork is online instead of mailed. They use products that are recycled and renewable for shipping and packaging purposes. Arbonne is always looking for new and better ways to help save the Earth.

Fact #13

Arbonne has become recognized globally. While having their headquarters in California, Arbonne also has offices in:

  • Mississauga, Ontario, Canada
  • Northampton, England
  • St. Marys, Australia
  • Poland
  • and soon to open in Taiwan.

Fact #14

Arbonne also gives back. The Arbonne Foundation picks up on many causes and helps through a plethora of ways. The majority of causes involve children. When people purchase Arbonne products, some percentages go to helping in areas that greatly need that help.

Fact #15

Not all Arbonne products are for women. The product that won the magazine best product of 2014: Reader’s Choice Award was Arbonne RE9 Advanced for Men Post-Shave Balm. I haven’t tried it yet, but I believe I will.

Fact #16

Arbonne has a team of scientific advisers to guarantee the products are safe for the consumer and the environment. They include:

  • M.D. & F.A.C.O.G. Laura Fortner
  • M.D. Janellen Smith
  • M.D. Howard Maibach
  • Christopher Zachary
  • M.S. & R.N. Carleeta Nelson
  • M.D. & P.H.D. Nora Zorich who is the Scientific Advisory Board Chair

Fact #17

Arbonne has a parent company. That company’s name is Natural Products Group and the subsidiaries underneath include Arbonne International LLC and Levlad LLC.

Fact #18

In 2000, Arbonne introduced their baby care line of products that made mothers worldwide quite happy.

Fact #19

In 2011, Arbonne stepped into a new playground. They added Arbonne Essentials which is a large line of nutritional products. They carry shakes, energy bars and much more. Arbonne Essentials have been a huge hit especially in weight loss.

Fact #20

Arbonne found Facebook as a friendly place. When I last checked, Arbonne had 225,330 likes on their Facebook page. It is a great place to follow and find out when new products are released or any other news. Just click the link to follow Arbonne on Facebook.

Fact #21

Arbonne International is also on You tube. They have a wide range of videos that explain the products and other bits of information you will find helpful. At this moment in time there are well over 14,000 people subscribing to Arbonne’s You tube channel. If you click the link, you can subscribe too.

Fact #22

Arbonne is all about caring for their consumers. This means that Arbonne’s personal care products do not contain:

  • PABA, which stands for Aminobenzoic Acid
  • Animal by-products or products
  • Petroleum based products
  • Parabens
  • Formaldehyde based products

Fact #23

As in the cosmetics and personal care, Arbonne has the same stringent care on their line of nutritional products. Arbonne’s nutritional and weight loss products do not contain:

  • Artificial colors
  • Trans fats
  • Artificial flavors
  • Saturated fats
  • Artificial sweeteners
  • Cholesterol
  • Animal by-products or products

Fact #24

The compensation averages are a huge question of many people who are considering a home-based business. I discovered these figures for Arbonne:

  • Independent consultants: 63% of members are in this category. Average annual earnings are $561 with the top 50 average being $5,060, and the bottom 50 being $10.
  • District managers: 27% of members are in this category. Average annual earnings are $3,390 with the top 50 average $19,315, and the bottom 50 being $100.
  • Area managers: 7% of members are area managers. Average annual income is $17,595 with the top 50 average at $56,420, and the bottom 50 being $2,425.
  • Regional vice presidents: 2% of Arbonne members are here. Average annual earnings are $64,610 with the top 50 average being $132,725 and the bottom 50 at $17,325.
  • National vice presidents: 1% of members are National Vice Presidents. The average yearly earnings for them are $256,790 with the top 50 being $565,615, and the bottom 50 at $85,500.

Fact #25

The 2014 number of active Arbonne consultants averaged at 242,000 worldwide. Arbonne paid out over $219 million in commissions, bonuses and overrides in 2014.

Fact #26

At the end of 2014, preferred clients numbered 530,000. This shows that Arbonne products are highly favored.

Fact #27

There were rumors circulating that Arbonne may file bankruptcy. While they may have been in a financial bind for a short time, the leadership reduced overall debt by approximately 80%, and had annual revenues topping $350 million. As with any business, the right leadership can create diamonds from dust. This means that independent consultants could feel safe with their Arbonne home-based business.

Fact #28

As an independent consultant for Arbonne, a person can attract other consultants to join in their downline. That consultant will earn 4% of their total down line’s team sales. This can add up quickly when a consultant builds a large team.

Fact #29

Every month, independent consultants must have at least 150 Personal Retail Volume Units to be able to get paid on downline and other commission sales. This ensures that consultants are also using the products they are selling to others. 150 PRV units is actually a low figure and is easy to attain. This system seems to work better than some other MLM companies, in that consultants do not have to over invest just to get paid.

Fact #30

Arbonne provides an extensive training program that will help independent consultants gain success. It is called Arbonne University, and it is all provided online. Arbonne University focuses on 7 areas, and it also offers elective courses on public speaking, setting objectives and goals and other helpful subjects. The 7 focus areas are:

  • Proper business conduct
  • Attitude and motivation
  • Product knowledge
  • Boundary setting
  • Basic consultant training for new recruits
  • Personal development and growth. This delves into budgeting and time management
  • Management and leadership training

There is always someone to answer any questions an independent consultant may have. Arbonne International understands that by helping their consultants gain success, they have more success themselves.

Fact #31

In January of 2015, Arbonne celebrated being in business for 35 years in the United States. To give that 35 years more meaning, Arbonne released 3 new products. They were:

  • RE9 Advanced® Intense Hydration Overnight Mask. This can help your skin gain a smooth, hydrated feel so you awaken feeling refreshed.
  • RE9 Advanced® Instant Wrinkle Filler. As we age, wrinkles seem to multiply. This helps erase those wrinkles.
  • Arbonne Cosmetics For the Sun of It Illuminating Bronzer & Kabuki Brush Set. This bronzer and brush set would make a great gift for someone you love, or even for your own pleasure.

Fact #32

Arbonne is a privately owned multi level marketing business. Do not search for stock on the stock exchange, as there is none available since it is not a public company.

Fact #33

Arbonne has well over 200 products in their line. Whereas other companies offer fewer products for their consultants to sell, Arbonne provides a huge advantage to their consultants by offering a much more diverse line of products. The different categories of products in the Arbonne line are:

  • Skincare
  • Bath
  • Body
  • Hair
  • Sun
  • Cosmetics
  • Fragrances
  • Nutritional
  • And general merchandise that consists of tote bags, charitable foundation necklaces, gift wrap, and more.

Final Thoughts

I spent many hours investigating and studying Arbonne’s business structure. I must admit that overall, I give Arbonne a big thumbs up for the plan they offer independent consultants, and the way they treat, and take care of preferred customers.

I also highly commend Arbonne on their work with those who are less fortunate with the Arbonne Foundation. I also am impressed by their care for the environment and using recycled materials for packaging.

Yes, it seems to me that Arbonne would be a great opportunity for anyone seeking to start their own home based business.

At that, I would like to ask any of you who are currently Arbonne Independent Consultants to tell us more. How long have you been a consultant, and is it going the way you expected?

We are always open to comments and questions. Just post in the comment section below.

As I mentioned at the start of this article, I am in no way affiliated with Arbonne. I do not receive any compensation from anyone with Arbonne for this post. In the same way, I must also tell you that Online MLM Community is not affiliated with Arbonne either. This is an independent post.

If you want to know more about Arbonne, or become an independent consultant, you can visit their website at Arbonne.com.

References

1: http://arbonnehaven.weebly.com/arbonne-history.html

2: http://www.arbonnemarketing.com/pluggedin/PDF/au/FunFacts_AU_03.pdf

3: http://www.arbonne.com/discover/

4: http://www.arbonne.com/discover/company/leadership.shtml

5: http://www.arbonne.com/discover/company/aboutus.shtml

6: http://www.arbonne.com/discover/company/offices.shtml

7: http://www.arbonnefoundation.org/

8: http://www.arbonne.com/discover/company/news.shtml

9: http://www.arbonne.com/discover/promise/science.shtml

10: http://directsellingnews.com/index.php/view/arbonne#.VdoxaJdeMk-

11: https://mindyletterman.wordpress.com/2013/01/31/33-facts-you-might-not-know-about-arbonne/

12: http://s3.amazonaws.com/arb_docs/US/US_ICCS.pdf

13: http://mlmrehab.com/arbonne/

14: http://mlmrehab.com/arbonne-training/

15: http://www.dsa.org/news/direct-selling-in-the-news/individual-direct-selling-in-the-news-article/arbonne-celebrates-35th-anniversary

About the author

Greg Boudonck is a freelance writer and the author of over 50 books. He writes on many different topics, but business subjects are one of his primary areas of writing expertise. You can see more about Greg and his work by visiting his website at Lancerlife.com.