Which leads us to ask, "What are the 5 Pillars"?
Being successful in MLM has many different aspects. The least of which are these 5 factors you must have in a business if you ever hope to achieve any type of long term success in your business. I have had a great teacher and mentor hand these down to me, but I'll let you decide for yourself if these are important to you and your business.
Pillar# 1. Company Management Experience with Integrity. - Yes, we all have the greatest leaders in our companies, but how many of these leaders have ever built a successful downline in network marketing? How many know what it's like to be a distributor in the field? How many can spell M-L-M? This isn't like other types of fortune 500 businesses, this is built by everyday people, people that move product and services. People that should be compensated well by the company. Why else would a company pay out 30-40 or 50% commission if they didn't need distributors? A good way way to see if you have a company that takes care of you is by reading your policies and procedures. If there are any clauses about ongoing sales, or ongoing training be aware that you might someday lose your check! If they weren't going to enforce this, why is it in the policies and procedures? Do yourself and your future downline a favor, read your policies and procedures, there's some pretty hair raising stuff in there.
Pillar #2. Timing in the Industry and Timing in the Company- ("I have a below ground floor opportunity for you in the 8 track cassette industry!" ) Over 90% of all new, start up, ground floor opportunities never get passed the 2nd year. Why?Usually because of internal glitches in the company, or they failed to plan. They went out and rented some computer software that wasn't compatible with their program. No one want's to be a guinea pig? If it's a good opportunity now, it will be even better when the company gets all the bugs worked out in 2 years.
Pillar #3 A Remarkable Product- Yes, yes we all have the greatest products and services the industry can provide. And quite honestly, most MLM companies have great products. But you have to look beyond that. If you are trying to sell a bar of soap for $9.........well enough said. But some companies have a retail price ($9) and a wholesale price ($4.50). That's quite a mark up! And what's worse is that this drives the behavior of recruiting and not retailing. Retailing should be the life blood of the company. Did you know that 74% of your downline will be product users only? If I can go to Ebay and buy your product cheaper, why should I buy from you? Or even join your company?
Pillar #4 Your Compensation Plan- We all have the best pay plan right? What is the best type of pay plan? Matrix,Unilevel,Binary,Stairstep Break Away? Here's the answer. The best pay plan is the one that pays you the most with the least amount of people. How much does it pay the average Joe? How much does it pay on retail? If you would like a simple formula to check out your own pay plan to see how many people it would take to reach a desired monthly income? here it is, it's not rocket science: Figure out how much money you make per person, per spot and devide that by your desired monthly income. This simple formula will give you the exact amount of people you will need in your organization to make your desired monthly income.
Pillar #5 A System for Success-This pillar will allow you to build a strong and lasting organization that will pay your children's children. People are original and unique,they are not duplicatable, but they need a system that is. A system that encourages education, teamwork and leadership. New distributors in your business will need help and guidance. One thing must be made clear to anyone wishing for success in network marketing, MLM is not about sales. it's about people. People join people, not companies. Learn about people and you can achieve your dreams in MLM.
Using this information as a guideline, you can check for yourself if the company you're looking at will help you reach your goals. Just like in cooking, if you are missing any one of these ingredients in the recipe, your pie won't come out. You need to know this so you can decide if you want to spend your time and energy building in this company.
If you would like assistance in this area, I'd be more than happy to help. No preconditions or obligations. I wish you the best of success in your MLM journey.
Leroy Whitekiller
509-480-5262
Be a Mentor With a Servant's Heart