I love residual income ! No wonder I am a fierce advocat of the residual aspect of MLM. If not for residual income, why joining an MLM company ?
It’s the big MLM dream, and rightfully so !
That’s why I am particularly concerned about anything that might threaten the residual income part of an MLM opportunity.
It starts with the five pillars to success in network marketing, especially pillar nr. 1: Company management experience and integrity – which is pretty easy to detect when reading the policies and procedures.
They tell you everything you need to know about the management’s experience and integrity and the emotions that drive them, e.g. fear, greed and ego.
These emotions also determine something else in MLM organizations.
To explain that, let’s assume the following:
You build an network marketing business and you do it successfully. That means after a couple of years, you can afford a lifestyle most people only dream of. So what do you do ?
The checks keep coming in whether you work or not – that’s what it’s all about. You travel, you spend time with your family – and you are less accessible for your team, aren’t you ? (I assume that you travel without laptop and iPhone)
So what do they do ? How do you make sure that they don’t start whining and complaining about you because you are in the Australian outback or in Tibet instead at home online ?
How do you make sure that they don’t envy your success and lifestyle ? Remember, this post is also about human emotions such as greed, fear and ego.
Remember, you live a life most people only dream of, your new reps included.
How do you make sure that they don’t want to have another sponsor and be placed somewhere else in the organization because of your absence ?
By the way, what are your emotions towards your sponsor and upline if you aren’t able to reach them because they already live a life you still dream of ?
Does that motivate you or do you envie them ?
Do you acknowledge that they simply enjoy what they deserve or are do you start complaining about them ?
Remember: You can’t get something that you don’t grant to others.
That means: You can’t own your life if you complain about people who are already owning their lives, that means in this case your sponsor and your upline.
Ever thought of that ?
I here some of you saying: But the upline is responsible for their team, they need to help them.
That is absolutely true. But is your upline personally responsible to talk with you whenever you want ?
I don’t think so.
So what’s the solution in order to allow those who already own their lives to really enjoy it and to help those who aren’t there yet ?
First of all, it’s the mindset – a mindset without greed, ego and fear.
And then you need a proven duplicatable system you can refer your people to. A system with conference calls, an archive with recorded calls and video trainings, stuff to read and personal development in order to tame these negative emotions and limiting beliefs – a system like Mentoring for Free for example.
If I were to point out one thing about Mentoring for Free, than I would mention that it attracts people who are willing to own their lives and who are ready to do everything it takes to own their lives.
People who know that owning their lives is only possible if we control emotions like fear, ego and greed and act accordingly – through education and teamwork.
If you feel attracted by that, then please feel free to download Michael Dlouhy’s – my friend and mentor and founder of Mentoring for Free – free eBook “Success in 10 steps” to start with. You’ll be glad you did.
It’s about emotional intelligence – financial intelligence is nothing else than a form of emotional intelligence. And this can be learned by personal development.
Every time a team member asks me something, I kindly redirect them to the system and I explain that they should do the same if they want to be able to stop working some day. In most cases, they find the solution there. On very rare occasions they don’t, so they come back. And they know what to do if I’m not available.
I would say, if an MLM organization isn’t able (or even unwilling) to solve this fear-greed-and-ego-problem, chances are the organization explodes sooner or later.
Once you sense the slightest signs of the fear-greed-and-ego-problem in your company, then look for help and run.
What is your opinion ?
I always love your feedback, so please leave me a comment down below with questions, thoughts, or feedback.
And (yes, here’s my call to action) please share this post with your Twitter and Facebook friends by clicking on the share buttons below. I appreciate you telling others.
To a prosperous life,
Oliver Tausend
+49 1512 9125216 office Germany & rest of the world (anytime)
+1 201 984 5664 office North America (anytime)
Skype ID: guernsey2016 (anytime)
wordpress@olivertausend.com
Download “Success in 10 steps”, my mentor’s free MLM ebook
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Hey Oliver,
Everyone needs to read this post. Your emotions is the biggest part when doing this type of business. Once that gets out of control and turns in to greed and fear then your business will start to deteriorate. But once you have and maintain a positive mindset with a great system to work with then success is very much attainable without a doubt.
Sherman
Sherman Smith recently posted..AN ATTRACTION TECHNIQUE TO WRITE GREAT BLOGS-
[Reply]
Oliver Reply:
July 7th, 2010 at 08:20
Hi Sherman,
As Peter commented a lot of people won’t realise that I’m writing about reality and not about fictional stuff, so we don’t need to worry about targeted prospects who need our help- there are plenty.
thanks for your kind comment, very much appreciated. Hopefully everyone gets to read this post
Take care
Oliver
[Reply]
Twitter: prfuller
says:
Excellent points Oliver.
Some people may read this post and not realize that what you are talking about actually happens. I have heard horror stories how people lose their downlines or the company changes their comp plan to your detriment.
It happens, so best to read the fine print before taking the plunge.
Peter Fuller MBA recently posted..Brand yourself online with your own “Nerve” Center
[Reply]
Oliver Reply:
July 7th, 2010 at 08:18
Hi Peter,
you are absolutely right that a lot of people won’t realise that I didn’t write a fictional story but a real one – it happens. They won’t realise it although changes of the comp plan and the policies and procedures are the more obvious stuff – the tip of the iceberg. The emotional stuff I described takes place under the surface and is less obvious therefore. I appreciate you commenting on my post, come back soon.
Take care
Oliver
[Reply]
Twitter: steveshoemaker
says:
Great work Oliver. Even though I am not involved with Mentoring For Free I have heard a lot of great feedback about the program. I have looked at some of the training calls in the back office they are phenomenal. You do a fine job introducing people to this by addressing their need to plug in to a system that will help navigate them and answer questions anytime they need an answer. If someone were to ask me where to go I would definitely recommend Mentoring or MLSP hands down.
Steve Shoemaker
Steve Shoemaker recently posted..Commit To Comment On “YOUR” MLM Blog
[Reply]
Oliver Reply:
July 7th, 2010 at 08:13
Hi Steve,
thanks for your appreciative comment. Cool that you are already familiar with some of the MFF training calls. It all comes down to the fact that people need a system in order for them to be able to remove themselves from the equation, step by step.
Take care
Oliver
[Reply]
Twitter: dianeaksten
says:
Oliver: Residual income IS the name of the game; isn’t it???
Your are SO right about a duplicatable system, one that works for everyone from the novice network marketer to the pro who hasn’t achieved the success he was hoping for.
Greed and ego will get you nowhere in network marketing; remember, this isn’t about YOU, it’s about what you can do to help others achieve success; when you have a heart to truly help others without thinking, “What’s in it for me???”, that is when success will be realized.
[Reply]
Oliver Reply:
July 7th, 2010 at 22:57
Hi Diane,
it’s always the name of the game – but what is written in the rules of the game ? And what about the unwritten rules, the business model that drives human behaviour in the marketplace ? If the name of the game and the underlying rules of the game aren’t in harmony, well, then bye bye big MLM dream. Thanks for your thoughtful comment.
Take care
Oliver
[Reply]
hey Oliver, everything you wrote is the basic of online marketing and NM it self.. of course that we all at some point of our success wont spend much time doing the same thing we did at the beginning , every ones goal is to do some hard work until reaching a point of enjoying the fruits of that work and become really free.. Everyone should be aware of that, so the duplicatable system is the only way to provide the same conditions and education to everybody, every minute.. Thats what I am building with my local MLM right now, the first MLM company in Serbia with affiliating online program, and from the start, my goal is not to have so many direct members in my downline, but to duplicate my self in them so they can go on with the duplication using the same system..
Great post my friend, keep this value coming
Milena
[Reply]
Oliver Reply:
July 7th, 2010 at 22:55
Hi Milena,
thanks for your appreciative comment. And – chapeau ! – that’s pretty cool that you’re blazing a trail for MLM in Serbia. And I think your strategy of building deep instead of building wide seems to be very thoughtful. I wish you success beyond your wildest dreams !
Take care
Oliver
[Reply]
Twitter: AnaTrafficCafe
says:
Hi, Oliver:
Here is my problem with residual commissions – it sounds great in theory, but in practice your dowline is like a leaking bucket; you have to keep putting the water in to keep the bucket full.
So, yes you can take a vacation and still get your checks, but don’t do it for too long because your checks are shrinking by the minute.
What do you think?
Respectfully,
Ana Hoffman
Ana | Traffic Generation Cafe recently posted..Reciprocal Link Scams Claim Their Victims
[Reply]
Oliver Reply:
July 10th, 2010 at 13:44
Hi Ana,
first of all thank you for your comment.
I am a great believer in the idea of residual income – in theory and in practice. Of course, there are several ways of creating residual income streams, renting out real estate for example. MLM Network Marketing is another possibility.
That’s why it surprises me that you refer to a downline as a leaking bucket. As long as they’re happy and making a decent amount of passive income, why would anyone quit ?
There need to be five key ingredients in place in order to create a true residual paycheck, but that is another chapter !
Of course, you can never eliminate all typical entrepreneurial risks completely, but you can reduce them to a sensible level.
The same would hold true in real estate: If the tenant moves out, your former asset turned into a liability. So you want to make sure that you do your due diligence, select property and tenants carefully and calculate vacancy rates etc. A poorly designed real estate investment can lead to financial and personal catastrophe.
MLM Network Marketing is no different.
Of course, I don’t know why you’re checks are shrinking. What do you think might be the reasons for that ?
Have a blessed weekend and thanks again for inviting me to your FB group
Oliver
[Reply]
[...] on the planet, but if it is lacking any of the 5 Pillars, you could lose everything overnight. Your residual income and reputation are in danger. The correct answers to these 5 questions will save you years of failure and [...]
[...] Your best bet is definitely to avoid it from the start. Once you are in a group dominated by the greed and/or ego of its leader(s), you are lost. It’s a situation you must train yourself to see and walk away from. This is the foundation of your business and therefore a matter of financial literacy. It’s the system that allows you to create true residual income or not. A system dominated by greed and ego won’t allow you to create true walk-away residual income. [...]