Relationship Marketing by Steve Thompson: Quotes and Lessons Learned

I recently ordered a copy of Relationship Marketing, a book by Steve Thompson, who happens to be a seven figure income earner in the network marketing industry.  One of my mentors suggested this book, so I ordered a copy from Amazon.

The book was so good I read it in one setting.  And then I re-read it again.  The book is one of my top five favorite network marketing books of all time and I highly recommend it to every network marketer I talk to.  Overall, I give it a 10 of 10.

What I want to do in this post is share a few of my favorite quotes and lessons from the book.  I will turn this post into a mini-series.  Each one of his quotes are in bold and italics. I will provide my insights after each quote.  The lessons are listed in no particular order.

# 1 One important thing I learned was to check the backing of the company very closely.  The company you choose to partner up with is VERY important.  Do your due diligence and learn everything you can.  The more you can find out the better.  Read more about how to evaluate a MLM Company.

# 2 The only way to accumulate and grow wealth is to become personally more valuable and to give that value to others in exchange for wealth.

# 3 If amassing money is important to you, never listen to poor people!

# 4 Work on your personal development every day.  One of my favorite things about the MLM Industry is the personal development.  Who you become is just as important as the money you make.  It really is its own Personal Development Course.   Read more about personal development.

# 5 Wanting something for nothing is not even a good dream.

# 6 You cannot succeed your way to success.  You must fail your way to success.

# 7 After years in MLM I can tell you that you really can’t say just the right thing to the wrong person.

# 8 The biggest change in my MLM career came when I quit spending too much time with the wrong people.

# 9 For any business or job you must have a plan and start at the beginning.

# 10 There are two kinds of people you do not want to work with: lazy people and negative people.

# 11 You can make excuses or you can make money.  But you can’t do both!

# 12 Just as only 20% will ever look, of the ones that join, only about 10% to 20% will do very much.

# 13 Each day you must be identifying and reaching out to help and mentor those showing leadership potential.

# 14 People will frequently do more for recognition than they will for money.

# 15 Human nature is to band together.

# 16 Don’t use Facebook and Twitter to try and sell.

# 17 The evening hours from 5 p.m. until 9 p.m. are the most valuable hours in your day.

# 18 Do not spend more than 10% of your time managing even the people you bring in.

# 19 One should always have three personally recruited consultants that deserve their time.

# 20 Never stop recruiting.  It is not a start and stop process but an ongoing daily process.  When you stop recruiting you stop growing.

# 21 Frequently the best leaders occur deep in your downline under a string of average business builders.  Look for and identify these legs or team leaders.

# 22 Until you reach the highest level you should always be dividing your time between 3 or 4 legs and your recruiting time.

# 23 All great businesses have a business plan.

# 24 There is nothing more important to your success than building leadership.

# 25 Let leaders learn to lead.

# 26 Although some sales techniques are helpful, if you convince people to join you have little chance of them engaging and going to work.

# 27 The top earners with huge teams were usually not salespeople.

# 28 Never forget that you may be just one person away from a life-changing breakthrough.

# 29 I do not spend much of my time talking about products, services or sales.  I spend most of my time talking about learning more, helping more and from that process, getting closer to your dreams.

# 30 Make sure that the teacher has the success to back up his or her teaching.

# 31 Never neglect to help a team member because of his placement in your compensation plan.

# 32 The 3-Way Call is one of the most powerful tools in MLM.

# 33 Never try to sell or pitch strangers unless you need a good lesson in rejection.

# 34 You can generate more leads than you can ever use just by getting to know people and asking for referrals.

# 35 I recommend contacting two prospects a day.

# 36 The members of your team that attend company events will be your true leaders.

# 37 The business is as much social as it is work.

# 38 Your business and your company will rise and fall on leadership.

# 39 I have been in the industry for over 18 years and while I had some good success over the years, it was sticking around that made me a Top Earner.

# 40 There is no free ride to success.

# 41 Never let anyone steal you dreams by turning your focus to what won’t work.  Lead from the front and others will follow.

# 42 All successful business people have a system.

# 43 Never quit working with a winner because of coding.

# 44 Recruit up, but do not neglect people.

# 45 Drill down for success.  Work the bottom.

# 46 Quit chasing people.

# 47 Massive action over a several year period of time will change the course of your history.

# 48 Some will find success quickly.  Others will take longer, but only the quitters fail.  Get excited, stay focused and never quit.

# 49 Nothing compares with calling people you know or meeting people in person and establishing a relationship.

Video with Steve Thompson

Final Thoughts

I hope you enjoyed these Steve Thompson quotes from his book “Relationship Marketing: View from the Top and What It Really Takes to Get There.”  If you have never read this book before I HIGHLY recommend it.

I would love to hear from you.  What is your favorite quote on this list?  Leave a comment below to let me know what you think.

Book Details

Relationship Marketing is published by Pirate Publishing, LLC.  It is copyright 2013.  The book comes in paperback format and is available anywhere books are sold. It has 153 pages.

Connect with Steve Thompson

 

 

 

How to Be a Good Steward of Your Money in Your MLM Business

Today, I want to talk about how to be a good steward of your money in your MLM Business.  Let’s face it, your MLM Business is a REAL BUSINESS, even if you don’t currently treat it like one.  One of the biggest challenges new distributors deal with is treating their network marketing business like a real business.

In most cases, new network marketers have NEVER owned a business before, so they don’t know what to do and they don’t know much about business finances.  My goal today is to help eliminate that problem and share some helpful tips that will enable you to manage your business finances wisely.

These are some tips I have learned through trial and error that have really helped me in my business.

# 1 Open a Second Checking Account – Your business needs its own checking account.  If you conduct business out of your personal account, your finances will get messed up.  If you haven’t done so already, open up a separate checking account for your business and deposit $500 to $1000 in it to help get your business started.  Only use this account for business transactions and deposits.

# 2 Monitor Your Monthly Cash Flow – Probably the number one reason businesses close down is poor cash flow.  As a business owner, you must monitor your monthly cash flow. Track how much money is coming and how much money is going out each month.  Keep a monthly profit and loss statement to monitor your progress.  You can use Microsoft Excel like I do or your can use QuickBooks.  Either program will do.  This will give you an eagle’s eye on your money each month and you can look for areas of improvement.

# 3 Have Income Projections – All successful businesses have income projections.  Each year, you should forecast what your expenses and income will be.  In the beginning of your business, this might be a little bit tough to do, but give it your best shot anyway.  It’s better to have a goal or benchmark, than not to have one.

# 4 Don’t Spend Money Just to Spend Money – You must be smart with your working capital.  If you are like most folks you are working on a limited budget.  Of course, there will be some business expenses.  Just make sure that you monitor every dollar you spend.  Try to only spend money on things that will give you a positive return on investment, such as business education, samples, and marketing/advertising.

# 5 Never Loan Money to Your Team Members – This one should be common sense.  You are not a bank for your downline.  Never loan money to anyone on your team, EVER.  That is just bad business and it’s a quick way to ruin relationships with someone.

# 6 Have Realistic Expectations – This is quite perhaps the biggest mistake that new network marketers make.  Most businesses take a year just to get profitable.  Some take even longer than that.  I am not telling you that it will take you that long to get profitable, but don’t expect the cash to just be pouring in right from month one.  If you’re doing things right, you should be profitable each month by the end of your first 90 days in the business.

# 7 Pay Yourself Retail – One cool tip I learned during my time in Amway many years ago was to pay myself retail.  If there is a wholesale-retail markup on your products, pay yourself retail from your personal account and deposit that into your business account.  Next, make your purchase from your business account and let that wholesale-retail difference fund your business expenses.  This might just be one of the easiest things you can do.

Final Thoughts

There you have it folks.  These are seven simple things you can do to be a good steward of your money in your MLM Business.  Follow this advice with your business finances and you will be well on your way!

What are your thoughts?  Leave a comment below to let me know what you think.

The Three Pillars of a Healthy Online MLM Business

Today, I want to educate you about the three pillars of a healthy online MLM business. Please keep in mind this advice is ONLY for people building their network marketing business online.  If you are just using old school methods (which still work great) than please IGNORE this advice.

I’ve been building my MLM Business online for a few years now.  I’ve done more things wrong than most people, and that’s one of the reasons I’ve become successful.  Each mistake has been a learning block.  I make it a point to mess up a lot, but never make the same mistake twice.

Through the years I’ve learned one VERY valuable lesson, mostly through trial and error, but also from my mentors.  That lesson is that a healthy online MLM business has THREE PILLARS of success. Each pillar is separate and unique from each other, but works well when combined with the other pillars to build a successful online network marketing business.  In the paragraphs below I will cover each pillar in greater detail.

Pillar # 1: Your Blog

The first pillar is your blog.  This is your hub of operations, your base camp.  This is where you post content on a regular basis.  This is where people find you online.  This is where you send leads and visitors.  This is where you build your brand.

There are several reasons you should have a blog.  First of all, it provides multiple streams of income.  Next, it sends you free traffic from the search engines, which gives you visitors and LEADS.  Most importantly, it is a business ASSET that you can sell one day (if you want to).

As a network marketer, you don’t need a network marketing themed blog to succeed.  In fact, I think it’s much better to build a blog geared around your product line, or the benefits of your product line.  For instance, if you sell energy drinks, make a blog about energy drinks, not network marketing.  If your company specializes in coffee, make a blog about coffee, not network marketing.

If you are trying to build a long-term “sustainable” online MLM Business you should really have your own blog.

PIllar # 2: Affiliate Products, Training Products and Systems

I like to define this pillar as the multiple streams of income pillar.  It is very difficult to build a profitable and sustainable online network marketing business if you are just building your MLM Company online.  You need to promote multiple things, specifically, affiliate and information products, in addition to your MLM Company.

Here’s what you should know.  No matter how good YOU are at recruiting or how good your BLOG is, most people will never partner up with you and join your team as a customer or distributor.  That’s why you need to promote multiple things.  Keep in mind I am NOT talking about promoting multiple MLM Companies. Instead, you want to have several things your blog visitors can purchase such as:

  • Google Adsense
  • Amazon Affiliate
  • Coaching Services
  • Training Products
  • Leads
  • Courses
  • Website or Hosting Services
  • Anything else your target market might be interested in

From personal experience, I make MORE from these things than I do with my MLM Company.

I like to call this the “picks and shovels business.”  The truth is, there is a lot of profit available in the picks and shovels business.

What’s important about this pillar is that it lets you make money from all the people who visit your blog or become a lead, but DON’T join your MLM Company. Does that make sense?

Pillar # 3: Your MLM Company

The third pillar is your MLM Company.  You need to know this secret right now.  Network marketing is a THREE to FIVE YEAR plan, not some overnight plan.  It takes time and lots of hard work to build a huge team of customers and distributors, normally several years.

If you don’t have an additional way to make money in your business during this time, you will either go broke or quit!  That’s where the multiple streams of income comes in handy.  It keeps you in the game while you build up your team.

You should also know that the big long-term money is in your MLM Company, not the affiliate products.  Don’t let anyone tell you otherwise.  It just takes a while to build up your network marketing business to the big money levels.  These extra income streams simply keep you profitable and in the game WHILE you build a team!

One Extra Point

All three of these pillars are designed to do two things: build your list and make you money.

Your REAL BUSINESS is your list.  It’s the list of people who “opted-in” to your email list on your blog and gave you permission to stay in touch with them.  More importantly, it’s the RELATIONSHIP you have with the people on your list that matters most!  When you have a large, targeted email list of people who know you, like you and trust you, the sky is the limit in your business.

I would give up my blog and downline BEFORE I ever gave up my list.  When you own a list, you will never have to worry if your MLM Company goes bankrupt.  You never have to worry about getting terminated or switching companies.  If either of those things ever happen you can start over in a new company with ease!

Another key takeaway is that when you own a blog, you own a business that you can one day SELL.  It is a real business!  Although my blog helps me build my team, it is a separate, stand alone business.

Final Thoughts

Once again, these three pillars are for people trying to build an online network marketing business.  When done right, the three pillars work hand in hand to support each other.  They are really the FOUNDATION for a successful and long-term online network marketing business.  I use these pillars myself and I hope you will do the same.

What are your thoughts?  Leave a comment below to let me know what you think.

Never Go Into Management Mode in Network Marketing

Without a doubt, one of the biggest mistakes that I see people make in network marketing is to go into management mode way to early.  What most people do is sponsor a few people and then sit back and wait for their team to do something.  This is really a big mistake and it normally backfires on people who do it.

To succeed in network marketing you have to work the numbers.  That means that you need to be out in the trenches day in and day out leading by example.  You must continuously prospect, show the plan, follow-up, get customers and train your team.  This never stops!

As your organization grows and you find leaders in your team that will also work the business, you can shift your efforts from doing everything yourself to helping your team (management mode).  But you shouldn’t spend much time in management mode until you have several hundred (or more) people in your team and at least 10-20 LEADERS in depth.

Sponsoring a few folks and then going into management mode is never good.  You see, your people will do what you do.  They will watch you sitting at home, doing nothing but trying to motivate them.  And that’s what they will end up doing! They’ll end up sitting at home trying to manage their team, just like you do.  It’s true, people do what you do, not what you say.

However, if your team sees you out in the trenches many of them will roll up their sleeves and do the work it takes to become successful.

Here is what I recommend:

  • If your team has less than 100 people spend no more than 10% of your time in management mode
  • If your team has less than 500 people spend no more than 20% of your time in management mode
  • If your team has less than 1,000 people spend no more than 30% of your time in management mode
  • If your team has less than 5,000 people spend no more than 40% of your time in management mode

As your team grows, you will spend more and more time in management mode, HOWEVER, you should never spend a MAJORITY of your time in management mode.  And you should NEVER totally leave the trenches yourself.

Let’s put all of this context.  Let’s assume you have a team of 100 people and you work your network marketing business for 10 hours each week.  In this example, you would only spend one hour per week in management mode and the other nine hours would be spent on money producing activities.  Does that make sense?

Management activities are ANY activity that is not a MONEY PRODUCING ACTIVITY.

The only activities that really produce money are prospecting, showing the plan, following up, and getting customers.

That means 90% of your working hours should be spent on prospecting, showing the plan, following up and getting customers!

Once again, most network marketers really mess this up.  They don’t spend enough time on money producing activities.  As a result, they don’t build a big team or make money.  And of the few that do build a decent sized team, most of them mess up and go into management mode way to early.

I can see why.  Management mode is easy.  You spend all of your time with people who like you.  You don’t get rejection.  You get to have fun.  You don’t have to stretch outside of your comfort zone.

As tempting as it may be to go into management mode, don’t do it!  You will regret it.  And it will hurt your business.

What are your thoughts?  Leave a comment below to let me know what you think.

Direct Sales Home Party: How They Work and What You Should Know

The direct sales home party is one of the most effective, yet underutilized ways of building a successful direct sales or network marketing business. A direct sales home party is an in-home party where a host or hostess invites over some of their friends and family to learn about your products and business opportunity.

Typically, a home party is fun, exciting, and memorable. The guests arrive at a certain time and the presenter shares the products with them. They presenter conducts product demonstrations, samples the products, and educates the customers about what the products can do. The presenter answers questions, takes orders, and books additional parties. In many cases, an independent consultant can earn $500 or more, just for a couple hours of work (individual results will vary).

If you aren’t using the direct sales home party plan to grow your direct sales business, you are behind the power curve. In fact, you are missing out. My favorite thing about home parties is that you can work smart. Rather than sharing your products with one person at a time, you can gain exposure for your business and meet with five to ten prospects at a time. Plus, I’ve found it’s much easier to sell in a group setting. In most cases, your guests will help sell each other on the products.

If you’ve ever attended a home party, you know what I am talking about. Most in home parties are one to three hours. They’re fun. You get to hang out with friends, socialize and have a glass of wine or cold beverage.  It’s just a good way to spend an evening or Saturday afternoon.

If you are new to direct sales, or have never conducted an in-home party as a presenter, you should sit down with your sponsor or upline consultant and formulate a game plan. If you don’t feel comfortable presenting at in-home parties, you should ask your sponsor if you can attend one of their in-home parties with them, so you can learn the ropes. That would be very beneficial. My best advice to you is to just conduct an in-home party, even if you are uncomfortable. You’ll learn as you go.

In conclusion, the direct sales home party is one of my favorite ways to grow a direct sales business. Home parties allow you to work smart and share your products and business opportunity with several people at once. Additionally, they are lots of fun and are a great way to socialize. If you are new to direct sales, you should consider using in-home parties to grow your business. That way, you can earn more money and grow your business faster.

What are your thoughts?  Have you ever utilized the direct sales home party grow your business?  If so, leave a comment below to tell us how it went.