If you call MLM prospects – and I hope you do – chances are that there are periods of the year when your phone call is unwelcome.
Exactly 12 periods.
I recently called one of my prospects who downloaded the MLM ebook “Success in 10 steps” – which always happens for a reason. He was totally upset how I could dare to call him now, at the end of the month.
Also recently, I followed a discussion in an MLM forum and people were acknowledging themselves that they managed somehow to survive the end of the month, and other people in this forum were even able to resonate with that.
And I asked myself:”What are these guys talking about ?”
Videos weren’t shot, blog posts not published, kids neglected…and everybody apart from myself knew what they were talking about – it was some type of fever, in this case the end of the month fever…
I honestly asked myself:”Why is that that these folks have this fever and I haven’t ? Am I missing the boat ?”
Even worse: Was this type of fever contagious as other people were also talking about it, like the flu ?
I asked my team if they have this phenomenon. They said no.
I asked my upline if they have this phenomenon. And they also said no.
Hm, slowly but surely my common sense set in again and I realized that this has a specific reason.
It also has a specific reason that people in my company don’t suffer from that…
Guess what, people in MLM are strange folks: They are talking about exiting the rat race, residual income and whatever and wind up signing up for “MLM opportunities” that require them to fulfill tough sales requirements in order to be eligible for commissions.
Tough sales requirements that need to be fulfilled on a monthly basis. Not enough sales, no commission. Bye bye paycheck.
That would stress me out too, honestly. And I would do three things: Run, run, run.
And they take it as God given…
Hey guys, wake up. You’re not in MLM, you’re in direct sales. Whatever you or your “MLM” company are calling it, you’re in everything else, but not in MLM. You might think that you build yourself an MLM business, but you’re still in the rat race, you’re not building residual income.
Wake up – it is not God given either. With a litte bit of training, there will be a solution.
You know the old saying: When the student is ready, the teacher will come.
So 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
+1 201 984 5664 office North America (anytime)
+49 1512 9125216 office Germany & rest of the world (anytime)
Skype ID: guernsey2016 (anytime)
wordpress@olivertausend.com
How to avoid the end of the month disease in MLM
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Twitter: stephensheather
says:
Hi Oliver,
I can totally see where you are going with this, but I do disagree. First the positive. I agree with you that no-one should be calling a prospect at the end of the month in order to qualify for a bonus, promotion, or anything of the sort. That’s making the business about us, pushing someone to make a decision who isn’t ready yet, and will only lead to buyers remorse, damaged relationships and a reputation that hurts the total industry.
Network marketing is part of the Direct Sales industry. A legitimate network marketing business has a product or service at the core of their business. We get paid on how much product we and our teams move.
In my company we wear 2 hats. A business builder hat, and a customer service hat. I have people who are signed up because they absolutely love our products and I have people who are signed up because they want to build a business. My teammates have the same.
In my company anyone who has signed up as a preferred client or business builder earlier in the month is eligible for certain discounts, free products etc. within that calendar month.
My end of the month rush was because I was serving my team and calling my preferred clients to reminding them about their free offer. It was not the first time I’d spoken with them in the month.
They are my customers and it’s my job (and pleasure) to make sure their needs are met; that they know how to make the most of their membership. And if they want help ordering the first couple of times, to be there on the computer walking them through it so they can do it themselves in the future.
I did not receive one single complaint or tense reply to my phone calls. I received “thank you for reminding me!” and “thank you for helping me get my discount!” and I did also get a “no thanks, I’ve decided to pass on that for now, but I’m glad you called to check.”
Creating a network of loyal shoppers and a network of business builders who are building networks of loyal shoppers is how I approach this business. And because we have a consumable product, taking the time to care for my clients in the beginning and making sure they know how to order, use their discount, and are familiar with our product line leads to residual income because they can go on and do it themselves in the future.
You know, Oliver, I totally understand where you are coming from and I completely agree with you that we shouldn’t be prospecting and trying to get people to sign at the last minute, but I do think it’s important to remember that part of this business is customer service.
Thanks for putting this question out there!
Heather
Heather C Stephens recently posted..Napoleon Hill- The Master-Key to Riches 9 Motivatiors of Life
[Reply]
Oliver Reply:
October 8th, 2010 at 14:58
Hi Heather,
thanks for your thoughtful and powerful comment. In the case I describe at the beginning of my post, I called this prospect – my usual courtesy call if they were able to download the ebook OK. And he was upset, not because I called him, but because I called him at the end of the month – when he was chasing his qualification requirements. It wasn’t about my sales requirements – because I don’t have any – it was about him being stressed out because he hadn’t “made” enough new customers yet. So it was about his sales requirements, not mine.
You are absolutely right that we get paid on the volume of product movement from the company to customers/distributors. If I don’t lose any volume and I don’t increase my volume, I get paid the same amount of money every month whether I work or not, whether I generate new sales/new customers or not – that’s the whole idea of residual income.
I simply wanted to point out that there are companies in the marketplace who require their people to generate a certain amount of NEW sales and/or NEW customers on a monthly basis in order to get bonuses at all – no new sales, no bonuses. That is not residual income. That’s active income, earned income.
There’s nothing particular bad or good with either of them – it’s simply different and at the end of the day an indvidual choice.
I chose the first alternative.
Well, I’m of the opinion that it is important to make fine distinctions; that means I wouldn’t call income that gets lost if I don’t produce new sales and/or new customers residual income – to me it’s active income that needs to be earned over and over again.
I have the impression, Heather, that you’re really doing a great job for your team members and your customers. I’m sure that you’re hard work will pay off – or is already doing so.
Thanks again for sharing your insights.
Keep up your good work.
Come back soon and take care
Oliver
[Reply]
Heather C Stephens
Twitter: stephensheather
Reply:
October 8th, 2010 at 18:12
Oliver, Thank you for your further clarification!
You make me feel lucky I am not in a company that requires certain “new” volume each month.
I totally agree with you that having to re-qualify with volume from new customers wouldn’t be considered residual income.
I think I get your example now. For instance: I took off time when my son was born, and every month I got a nice little raise because my customers were reordering and my teammates were still growing their businesses. Even though I wasn’t sponsoring new people myself, my network was bigger so I got paid more, not less. That’s what you mean, right? If I had a sponsoring requirement I wouldn’t have been able to take that time off and enjoy my new baby and family without missing out on part or all of my paycheck.
Great point and thanks again for the extra clarification. You are absolutely right and a sponsoring requirement could shift a business builder’s mindset into desperation, needing to sponsor anyone with a pulse to get paid.
Thank you!
Heather
Heather C Stephens recently posted..Matt Bacak Mind Map- Secrets of the Internet Millionaire Mind
[Reply]
Oliver Reply:
October 8th, 2010 at 19:08
Hi Heather,
that’s exactly what I meant. Sponsoring and/or customer generation requirements in order to be eligible for bonuses don’t equal residual income. Congratulations, it seems you managed your time off really well, I mean, that’s what it’s all about when building a home-based business – enjoying the blessings of good work in the past. Normally you should even get a raise because your organization duplicates, like in your case. Perfect.
I’m glad you sparked off the discussion, I love that and I had the opportunity to deliver some clarification.
Desperation is the correct description for the behaviour of the particular gentleman I wrote about and – unfortunately – many others I know.
Have a great weekend and take care
Oliver
Twitter: ilkaflood
says:
Hi Oliver,
I think I would run too from a company or opportunity where I would have to reach a certain sales quota by the end of the month in order to get a commission check. What ever happened to building your own business and being your own boss if that would be the case?
Great topic!
Enjoy your weekend! Hope it’s sunny where you are
Ilka
Ilka Flood recently posted..Overcoming Objections in Your MLM Home Based Business with Feel Felt Found
[Reply]
Oliver Reply:
October 9th, 2010 at 23:19
Hi Ilka,
I used to run from such a company myself, many of us are still involved in such businesses. A great opportunity for anyone who isn’t to help them tactfully…
Thanks for your comment.
We definitely are enjoying our weekend and I hope so do you.
Take care
Oliver
[Reply]
Hi Oliver
An interesting discussion happening here. I wondered where you were going with the post. I was thinking it was something totally different as I have not heard this discussion.
I did not know there were MLM companies where you did not get paid if you did not meet a certain criteria. That would stress me too. We get paid several different ways and there is volume in there but no minimum requirement.
I love that you tackle controversial topics.
Have a nice weekend.
Sue
Sue Price recently posted..Lessons for Business from a Football Match
[Reply]
Oliver Reply:
October 9th, 2010 at 23:17
Hi Sue,
yes, it depends on the volume that is sold, of course. What I described in my comment is real life. Good luck you are in a company that doesn’t have any of these restrictions, so it’s a huge opportunity to help those people who have these requirements in their contracts. Sometimes it’s stated in a blatant way, sometimes it’s paraphrased subtly. In my former company, among other lethal clauses, they talked about “developping at least 5 customers every month” in their policies and procedures – what the heck does that mean ?
I’m glad you like my controversial posts. They come from my heart because I cringe when I see honest, hard-working people sacrificing themselves in opportunities that are not in their best interest.
Thanks for your comment.
Take care
Oliver
[Reply]
Hey Oliver,
yeah there´s a fine difference and visible point that you indicated here. At the beginning people are fully excited and doing something about it, but after that they bash the towel.
Think it has mainly to do with the inner attitude and the mindset. It´s their decesion and only they can help themselves to get out of this.
Thank you for this great post.
Gerald
Gerald Gigerl recently posted..How To Optimize Facebook Marketing In An Easy Way Part 1
[Reply]
Oliver Reply:
October 9th, 2010 at 23:09
Hi Gerald,
oftentimes they throw the towel because they can’t keep up with the requirements and don’t know it any better. They take it as God given and say to themselves that it’s normal. Very bad lie.
Thanks for sharing.
Take care
Oliver
[Reply]
Hey Oliver,
I am glad that I read the entire post, as I would have possibly lost some of the meaning, and the further conversations clarified much more.
While I had tried one of those “mlm” companies for a very short two month stint, I found that there were so many different restrictions and requirements, that I had to just move onto another opportunity.
I feel that we should reach out to new prospects that have requested more information or shown interest in what we do. I do call most of my prospects within 48 hours to see how I can help them. Now whether that be at the end of the month or the beginning, I call regardless. I call one time and follow up with an email that I called and how to get a hold of me, I do not call again after that.
I do not believe in calling numerous times, I do allow my auto responders to pick up after that though. The individual knows how to get in touch with me and also how to opt out of the auto responders. If I have to chase a person down and beg and plead for them to “sign up” – is that someone I really want on my team and also how does that make me look?
I am able to obtain a residual income many ways and definitely don’t want have involvement with someone that does not want to be involved. Let them go back to or continue to be in their “rat race”!.
[Reply]
Oliver Reply:
October 9th, 2010 at 23:08
Hi Robert,
thanks for your comment and your patience to follow through
I’m definitely grateful that Heather opened the discussion, she helped a lot to clarify my message.
You are right, in most cases, business with such restrictions usually have other restrictions as well.
I also call timely after they downloaded the ebook and gave me their contact information and we definitely shouldn’t pester someone.
Take care
Oliver
[Reply]
Very interesting, Oliver – I haven’t had that experience yet
It’s a very important point, because the ultimate purpose of network marketing is to build up enough passive cashflow so you can do what you want, when you want.
How can you do that if you must personally sponsor new people every month? You can’t, because that’s now a job.
I heard about a lady in Australia who was earning $30,000 a month. But when she got sick and had to take time off, her check dropped to $200 or something.
People have got to understand their agreement with their company.
Thanks for the important message,
Wayne
Wayne Wu recently posted..Are You being kept Poor- without Knowing it
[Reply]
Oliver Reply:
October 10th, 2010 at 13:57
Hi Wayne,
thanks for your comment. I embrace your conclusion: People have to understand their agreement with their company – and if it fits into their goals or not.
Take care
Oliver
[Reply]
Twitter: thetwodees
says:
Hey Oliver, You are absolutely correct my friend. When companies place such stringent requirements (hoops to jump through) how difficult it must be to create a residual income. Therefore, not all compensation plans are created equal. Brings up a very good point that I hear all the time. Join my company it has the very best, game changing compensation plan out there. Not if you are scurrying to make the end of the month requirements.
You are absolutely right that we get paid on the volume of product movement from the company to customers/distributors. If I don’t lose any volume and I don’t increase my volume, I get paid the same amount of money every month whether I work or not, whether I generate new sales/new customers or not – that’s the whole idea of residual income, right.
Thanks for this post.
Dave and Darlene recently posted..MLM Success Requires a Sustained Effort
[Reply]
Oliver Reply:
October 11th, 2010 at 10:02
Hi Dave and Darlene,
thanks for your thoughtful comment. I like that: Not all comp plans are created equal…how true that is.
Take care
Oliver
[Reply]
Hey Oliver,
Do you realize that is how some corporate businesses operates? This is just not in MLM or Direct Sales…
I’ve meet many sales people that work for corporation and have quotas to meet. It is always stressful at the end of the month. So this doesn’t just apply to MLM or Direct Sales.
Chat with you later…
Josh
Josh Garcia recently posted..Are You Making Money Blogging
[Reply]
Oliver Reply:
October 12th, 2010 at 23:27
Hi Josh,
oh my lord, and how I was driven by these artificial deadlines in my offine financial consulting business. You are right, absolutely. The trouble is that a whole bunch of so-called MLMs is organized like that although it shouldn’t apply to MLM.
Thanks for your comment.
Take care
Oliver
[Reply]