Chuck’s MLM Weekly Wisdom # 71
Dear Network Marketer:
I hope you are having a great 2016 so far. Welcome to this week’s edition of Chuck’s MLM Weekly Wisdom. This week I want to share some simple tips that can help you move your network marketing business forward. Enjoy the training.
# 1 Managing Your Money
Most people are never taught how to manage their money properly. As a result, most people are broke, living paycheck-to-paycheck with tons of credit card debt and minimal savings. I personally believe that all network marketers have the responsibility to be a good steward of their own money. Here is what I suggest you do:
- Open a separate checking account for your business – Keep your personal and business finances separate. Order checks and a debit card for your business account. Run your business out of this account so it doesn’t interfere with your personal finances.
- Pay yourself retail on all of your own purchases – I learned this concept in Amway and I love it. Whenever you do your monthly auto-ship order, deposit the retail price for the order into your business checking account and then pay the wholesale price from your business account. This gives you an immediate retail profit that will help fund your business.
- Keep a monthly profit and loss statement – You owe it to yourself to keep track of your profit and loss statement for your business. This is what smart entrepreneurs do. Use a simple ledger or spreadsheet and update it once a month so you know where you business stands financially.
- Evaluate every business expense – Never spend money just to spend money. Evaluate every expense to justify if it is giving you (or will give you) a good return on your investment.
- Educate yourself about tax deductions – You don’t need to be tax savvy like a CPA, but you should have a basic understanding about what you can and can’t deduct. Keeping good records can save you a lot of money at tax time.
- Live on 70% of your income – I learned about this from the book “The Richest Man in Babylon” by George Clason. Basically, take 10% of your income and invest it, use 20% of your income to pay off debt and use the remaining 70% to live off. This is based upon your net income.
*** As a legal disclaimer I have to tell you I am not a CPA or Financial Planner. This is for educational purposes only.
# 2 Quote of the Week
One of the biggest fallacies in MLM is that we should attempt to force creative people to use systems which they don’t like and often can’t copy. ~ Mark Yarnell
My Thoughts: Systems are fine. But not everyone can be successful with one system. Everyone is different. Your job as a sponsor is to help each person you recruit find a way to build the business that makes sense to them, and leverage their own talents and abilities.
# 3 Overcoming Fear
We all have fears. I do. So do you. The easiest way to cure fear is to do the thing you fear. You see, action cures fear. I learned about this concept from Dr. David Schwarz in his famous book “The Magic of Thinking Big.” You can sit at home and think about the things you fear until you are blue in the face. But if you do the thing you fear, the fear dissipates and you will quickly realize it wasn’t that big of a deal to begin with. Some of the things network marketers fear includes:
- Picking up the phone
- Approaching someone sharp
- Success and failure
If you are scared of rejection, go get 1000 NO’s as quickly as you can. If you fear the phone, pick it up and call people and you will quickly discover the phone does not weigh 600 pounds. If you fear approaching someone sharp, contact them anyway. You never know, they might just be your next superstar. Even if they say NO, it won’t kill you. And if you fear failure, realize that failure isn’t bad if you learn from it. And to succeed in life, you have to fail over and over until you are successful.
I understand this is much easier said than done, but do the things you fear and your fear will go away!
# 4 Must Read Blog Posts
Here are a few trending blog posts that I thought you might enjoy.
- Reverse Prospecting in Your MLM Business
- The Difference Between Prospecting and Marketing
- Warm Market Do’s and Don’ts in Network Marketing
# 5 Finding a Mentor
This might come as a surprise to you, but I have not had a “real world” mentor in my network marketing business for over 10 years. I had a mentor in my first company, but that was the last time my sponsor or upline was my mentor. Since then, ALL of my mentors have come through books and YouTube. I don’t think that is the ideal situation, but it works.
I suggest everyone start out by looking for a mentor in their upline. Call EVERYONE in your upline until you find someone who is successful, helpful, and willing to coach you. If you can’t find anyone in your upline, call the company corporate office, and have them help you find someone in your upline. In about 99 out of 100 cases there is SOMEONE who can help you.
Besides, your upline has a VESTED interest in helping you be successful.
If that’s not possible, you can find mentors other ways too. YouTube alone has enough information to make you dangerous. There is literally a video covering just about any subject in our industry you might want to know about. I also like books. There are tons of great books about network marketing that you can read. Here are my favorite books.
Here are a few people who have really helped me out. They all have videos on YouTube.
- Jordan Adler
- Mark Yarnell
- Eric Worre
- Sarah Robbins
- Ray Higdon
- Dan Kennedy (not a network marketer, but a marketer)
If you study any of these folks you can’t go wrong.
# 6 Recent Podcasts
Here are a few podcasts I did this week that I thought you might enjoy.
- Facebook Do’s and Don’ts
- The Law of Averages in Network Marketing
- Product or Service Based MLM Company: Which is Better?
- What to Do When People Quit Your Team
# 7 How to Sponsor One Person a Week
I teach people on my team that if you can sponsor one person a week, every week, for a few years, you can build up a huge team. Do that for three years and you will sponsor 156 people. Do it for five years and you will personally sponsor 260 people.
In order to sponsor one person per week, you will probably have to contact 25 people per week, which breaks down to about three to four contacts per day. Out of every 25 people, five should agree to watch a presentation and typically about one in five who watches a presentation will sign up as a distributor.
I can’t guarantee you these exact numbers, but I do know it should be pretty close.
When I say contact three to four people a day, I mean to invite people to take a look at a presentation. This can be a video presentation, a live meeting, a conference call, webinar, etc. You don’t have to actually show the presentation yourself. In fact, I don’t even recommend doing that.
Keep it simple, use third party tools and remove yourself from the equation.
I truly believe that if you prospected 3-4 people a day, every day, seven days a week, for a few years, you could build up a HUGE business.
Some of you might be wondering, “Where do I find these people?”
These people are everywhere. They include friends, family, strangers, people online, leads, etc. There are literally seven BILLION plus people in the world. Most of us come in contact with HUNDREDS of people each day. All you have to do is be friendly, introduce yourself and start a conversation.
What do you think?
# 8 Retail to Recruit
Most distributors in most companies are opportunity driven. I don’t think that is necessarily a bad thing, but I do think being product driven has some distinct advantages. Here are a few things that come to mind.
- Everyone likes to buy
- It’s easier to get a customer than recruit a new distributor
- Products and services appeal to more people than a home business does
- Many people are skeptical of MLM
- Happy customers make happy distributors
I’m going to offer you a challenge. For the next 90 days I want you to be product driven. Lead with the products. Show people how your product or service can be a solution to their troubles. Keep track of everyone you talk to.
See what type of reactions and responses you get with a product approach vs. a business approach. I think you will quickly discover that being product driven is the way to go. What do you think?
# 9 Book of the Week
This week’s book of the week is “The Unemployed Millionaire” by Matt Morris. I have tremendous respect for Matt. I have never met him personally or been part of his company or team, but I do know that he is one of the good guys in the industry. This book is a great book for any new or experienced network marketer. I’m reading it right now for the first time and absolutely love it. It’s not just about network marketing, but that is big a part of the book. Overall, I give it a 9 of 10 and consider it a must read.
# 10 Managing Your Time Better
- Buy a day planner – You can get a good one at Wal-mart for about $10-$20. Find one that has a page for each day of each month. Keep track of all of your job, family, and MLM commitments in this day planner.
- Plan out your week each week – Spend 30 minutes every Sunday night and plan out your week. Write down your job commitments, your family commitments, your personal commitments, time to read and exercise, and then write down what days and what times you will work your network marketing business.
- Make a daily to do list – Every night before you go to bed take 10 minutes and plan out your day for the next day. Write down everything you need to do and then prioritize your to do list.
- Spend 90% of your time on the money producing activities – This is where most people mess up. Once you know how many hours per week you are going to build your business, make sure you spend 90% of those hours on prospecting, presenting, following up and getting customers. Those are the only activities that put money in your pocket.
- Evaluate your progress each week – Take 10 minutes a week and reflect on the past week. How was your time management? What could you have done better? What can you improve in the upcoming week?
Following these simple time management tips can make a big difference in your business. What do you think?
Thanks for checking out this week’s edition of Chuck’s MLM Weekly Wisdom. If you have any questions or need help with anything feel free to send me an email or give me a call. Have a great day!
Articles You Might Enjoy
Chuck HolmesWebmaster, OnlineMLMCommunity.com
Phone: (352) 503-4816
Here's what you should do right now:
# 1 Sign Up for My FREE 7-Day MLM Bootcamp
# 2 Check Out These Awesome Tools and Resources
# 3 Join My Free Facebook MLM Mastermind Team