Your Bank Account Development Through High Performance Marketing

Posted at October 22, 2008

First we will focus on the elements that help us build a viable marketing organization.

1) The First Basic Element Is Leverage

We visited that subject in the introduction. If what you are doing in your business does not create, produce or sustain leverage it might be suspect as a strategy or technique that might work in another business platform but not with networking. Networking is by its nature a service business not a sales business.

Leverage defined is; “Strategic advantage; power to act effectively” The verb, to Network is defined as: “Communicate with and within a group.” Notice it is a continuing group activity.

Sales defined is; “An agreement in which property is transferred from the seller to the buyer for a fixed price in money.” Notice it is a single one on one activity.

One of many areas of leverage might be:
To sell is a single activity between two individuals, repeated many times by one person with many individual people. “John sold to 10 customers.” John is paid on his effort only. No leverage.

“Mary networked with 10 people who networked with 10 people who networked with 10 people. Mary’s downline has 1000 people all using the product or service.” Mary is paid for orders through her own efforts and paid an amount because of the efforts of others, a lot of leverage on her effort.

John would need to repeat his sales activity with 1000 individual people to have 1000 customers Mary did her activity once with 10 people and leverage.

2) Service Income Generation, The Second Basic Concept Of Networking.

“I make money in Network Marketing the same way my downline people make money, we work for it – MORE IMPORTANTLY – I make money BECAUSE my downline people make money” -

That’s a marketing statement – It’s powerful – It’s absolutely true – It sums up network marketing in total and what’s more, any networker can use it. Please read it again and think about it. . . .

The reason people don’t make money in a network business is because they don’t understand marketing and they don’t understand networking. To make a lot of money in a network organization your downline people must make money. In the Network Marketing business my goal must be, that each person I personally enroll in any of my marketing groups will hopefully become better at this business than I am. If they are not, it is my job to do everything in my power to help them become the best of the best.

My biggest worry must be, how can I get my downline people earning more money. That’s called “enlightened self interest”. In Network Marketing if you worry about how much money your downline people are earning you’ll never have to worry about how much money you earn. Your income is always automatic.

The service you are marketing through networking is the opportunity to earn money using a company’s product or service as the vehicle. The better you deliver that income generating service the more money you earn.

3) Here Is Another Basic Concept.

The bulk of your income in networking comes not from those you enroll but from the people they enroll. That is the least understood rule or concept in networking today.

High performance network marketing is building a marketing organization. It’s not sales-marketing and it’s not in personally recruiting a lot of people, High performance network marketing is gathering around you a few people with a strong desire to earn money, people who want to take control of their time and take control of building their lifestyle. A small group of dedicated people with a collective understanding of networking specifically and the knowledge of marketing in general, can become a powerful team with unstoppable individual earning capacity for each of the group’s members.

The income in a networking business is earned as a result of products or services purchased by customers OR by distributors in a marketing organization called a downline. Training and promotional tools are services and products just like nutritional products, air fresheners, cleaning products, insurance, cosmetics, or telecommunications services.

Commissions from purchases throughout the marketing downline are divided with those in the marketing organization upline from the purchaser. Because each purchaser can be a distributor if they wish, they can earn money from several levels of purchasers below them in their downline. That is just one point of leverage in networking. Leverage marketing is often referred to as viral marketing. If every marketer enrolls more than two people in a downline you have achieved a small viral effect.

Regardless of the type or style of marketing plan, stair step, unilevel, binary, forced matrix, Australian 2 up or whatever your company calls theirs, the following mechanics apply.

The more the design of the plan includes leverage, the better the program works to pay money out for income to those who work the program.

Every network-marketing plan is slightly different from another in the way the qualifications are set in place and commissions or bonuses are paid. The more simplistic the rules are, the easier they are to work with and to design your business plan from. If for instance, if you add into the marketing plan a rule that a distributor must enroll one person to earn money for each level of income in their downline then you have placed another leverage point in your marketing plan. By adding that rule you also develop management skills within your downline people. In a later chapter I will discuss the importance of management skills.

Some companies have requirements that a given amount of personal enrollments must be achieved before bonuses can be earned. Others have rules that certain dollar volumes must be maintained to qualify for increased percentages of commissions. Some have rules that say when you develop so many distributors with a certain monthly volume then you can get in the bonus system. There are many ways to design compensation or marketing plans and each company has one they favor based on their type of style or structure. If the plan is well designed, it’s rules increase leverage for the people who participate, not breakage for company profit.

A good one to use to explain leverage might be a matrix because it is simple:
If you had a marketing plan that paid 10 levels deep and people needed to enroll 10 people, one to qualify for each level of income, everyone would have a goal to enroll at least 10 people, teach each of them to enroll at least 10 people and teach them to teach their 10 people to do the same. That is not duplication although a lot of networkers think of it that way. It is simply the mechanical process by which you build your marketing business team and ensure leverage takes place. Duplication is in the management and leadership process of how an organization functions and we will visit that subject in later chapters.

To put that 10 level downline on steroids your focus would be on the third and forth level enrollments. You would make sure each person is working with each of their people to enroll at least 10 people who are working with their people to enroll at least 10 people. Any time you see a person in the first four levels on your downline report that has less than 10 people personally enrolled, you would contact their sponsor and find out why. You might need to team up with that sponsor and the downline person with less than 10 to help them enroll the minimum 10 people. Remember, the bulk of your income comes not from those you enroll but from the people they enroll.

If you want to look at it a different way, if any person does not have 10 people enrolled they can’t earn from all levels in their downline so they miss their maximum income potential. You need to insist they are completely qualified for every bit of income their business can pay them. If you worry about their income you never need to worry about your income. Remember, “enlightened self interest”.

Let’s look at another style of marketing plan, the Uni-level:
A similar system might be used. Call it the basic 5 foundation. A salesman might put everyone in as a front line enrollment. But the networker, to create leverage, would put 5 people on their front line and help them enroll a basic 5 front line enrollments. Teach them in the process to do the same with each new enrollee and leverage is created. When the organization reaches the 4th level the networker would start another basic 5 foundation. One leg at a time.

You would have 25 on the 2nd level and 125 on the 3rd level. And you’re working with 5 downline people. 5 X 5 = 25 X 5 = 125 X 5 = 625 X 5 = 3,125 X 5 = 15,625. Your first wave of momentum will come on the third level. The next two momentum waves will come on the froth level. And your leadership will emerge within those 3 or 4 levels. Those leaders will, if they are taught your system, achieve their own leadership and momentum on their 3 or 4 levels, which might be your 5th 6th or 7th level. Now you have the start of a solid downline.

Can you see how similar the conceptual strategy is and how to orchestrate it? Any stile of network marketing plan can have a similar strategy designed for it if you keep leverage in mind.

Staffing your marketing group or downline means finding people that fit your program and your group. It does not mean trying to enroll “somebody, anybody and everybody.” You can purchase lists, buy costly advertising, mail postcards, pester friends, send unwanted e-mail in your efforts to enroll hundreds or thousands of people in your downline and hope that those who join will succeed. You can let the network company provide support and training (most of which will be incorrect). The ones that you enroll who show some effort you can “pat on the back” with a “well done”. You can encourage those who aren’t yet showing the effort to do the things they should AND if that is your business plan, you will end up with a very impotent downline. That’s what the majority of networkers today are doing and they’re not earning the money they want. That is a sales-marketing and sales management mentality. Sales-marketing strategies work in a sales business but they never have worked in networking and they won’t work today. Adopting that sales-marketing working model will remove the leverage from your business building activities.

On the other hand, you can enroll a small group of people who each have a very strong desire to earn a superior income, people who want to take control of their time and their lives. Make sure they are dedicated to their strong desire, then teach them the basic concepts of networking, help them develop their skills, help them apply those skills within the basic networking concepts then you can have the kind of business results and income most networkers only dream of having. You’ll also end up with a residual income for the rest of your life if you do it correctly.

By enrolling a small group, you can work with each of them to reach the income level they told you they wanted before you enrolled them. You did ask that question before you enrolled them, didn’t you? If not, how do you know how strong their desire is to earn a superior income? More about that subject in the next chapters.

Somebody somewhere right now is reading this manuscript and saying to themselves “Hmm, it sounds like there is work involved here”. YES there is. After all it is the 2nd part of the word net-working. If you want more than “pin money” from any business including networking, you’ll need to work for it. Let me point this out. If you want an excellent 2nd income or if you want to replace your full family income with a career and income most people only dream of, you’ll do a little work to reach the level of business proficiency that achieves that result. Anyone that tells you differently is lying to you.

What I am showing you is the easy way to do it using leverage. Using our example from before. you can go out and sell your program to 1000 people yourself, or you can enroll 10 people and don’t rest until you’ve helped them enroll 10 people, manage that 10 people so they are accountable for managing their 10 people. Now you have a downline of 1000 people and you are working with only 10 people. I don’t know about you, but I’d be hard pressed to make 1000 phone calls every week but I can call 10 people once each week to help them build their business. That is leveraging your time.

Here is the powerful part of this communication system. You are working with only 10 people at a time and each of the people in your downline is also working with only 10 people at a time. Communicating with 10 people each week is a manageable task. Two phone calls per day for 5 days is something anyone can do, You will be amazed when you apply this business building principal at the small amount of daily time it will take you to reach phenomenal income results fast.

Does this mean you should stop enrolling when you reach 10 enrollments? No of course not. In some cases your company may require the enrollment of more than 10 personal enrollments perhaps a lot more than 10. What I’m suggesting is enrolling 5, 8 or 10 people and managing that group until they are able to create momentum using your system and then go after another small group until you have enough personal enrollments to build the size organization you want. As each person you’re working with reaches his or her minimum 10 people you can add a fresh person to your daily schedule.

Spending all your time enrolling personal enrollments leaves no time to work with those new people coming into your business. Effective growth is always achieved in a networking organization when you work with your new people and their contacts. This is critical and it is during this time you make sure your personally enrolled people have access to the basic concepts of this business.

By providing your downline people with a way to learn the basic skills of networking and giving them the correct information about their business and the industry you are giving them the best chance to reach their potential. You need to know the basic elements yourself and you need to pass that knowledge along to those in your downline so they can put their part of your business on steroids. Remember in networking their business IS your business.

If in fact, the bulk of your income in networking comes not from those you enroll but from the people they enroll, then the business relationship you have with those you enroll is a management relationship, one of helping them in every way to enroll people who enroll other people. In the process a lot of product is ordered and the marketing group as well as the company succeeds along with you.

Regardless of the company you are with or the product you market, if the people you enroll in your marketing group aren’t becoming better at marketing than you are, then you had better teach them marketing and networking or get someone close to you to do it for you. Hopefully, it would be someone in the same network group with you, so they have a vested financial interest in the task. One of the several reasons we formed the Masters Program is to give people in the networking industry, regardless of what company they are with, a place where they could get that kind of help from experts and support people who have a vested interest in their success.

Success=Action

Ron Outlaw

http://www.cashin2000.com/
Credits to my mentor:
Len Johnson

Share and Enjoy: