August 30th, 2015
Almost every single active network marketer that’s giving presentations on the planet tells this lie. Whenever there is an “expose” by the press, this is the most common thing that comes out. It’s a deceptive practice and most people committing this offense don’t even know they are doing it. It’s somewhat of a paradox because it’s a logical conclusion considering the benefits of what we do. We teach leverage and geometric progression which ironically is what can get us in trouble. We even teach it in the books written about the profession. It’s a lie . . . it’s not true yet we want to believe that it is because it gives us hope! So we communicate our business in a way that provides false hope to people to get them into our program. This is not just an offense carried out by our distributors but it’s an offense committed by most on the planet. I’m not making anyone wrong over this because most people don’t even know they are doing anything wrong. So what is this lie?
The lie is: “Just sponsor a few and make millions!” Three who get three who get three . . . in real life, this doesn’t exist! I sign up three. They sign up three who sign up three who sign up three for seven generations. If everyone get’s 3 customers on a preferred subscription, your residual check equals $15,000 A MONTH!! Sounds great! But is it true? No. Does it exist in real life? No. Can someone actually do it? No. How would you feel if the city leaders of a town advertised that their town had no illness or death. Everyone was happy and got along perfectly. In fact, this was touted as a perfect community where everyone became successful in their business or trade. The weather is always beautiful and the temperature is aways perfect. And then you moved there and found out that none of it was true! Half the town was miserable. It stormed once a week. Twenty percent of the people their were strugglingHow would you feel. You would probably move away. And feel lied to and deceived. There is no town like this yet many people would love to believe that there was. In real life three who get three who get three doesn’t exist. Ever.
There is nothing wrong with saying that in a perfect world if everyone got three, _______ would happen. But it doesn’t occur this way in real life . . . then share a real life scenario (we’ll talk about this in a minute)
Some of you know that during my first few years of building my SendOutCards business, I didn’t show the comp plan once. In fact when people asked me questions about the comp plan, my answer was, go to the website and you can read the PDF online. I had them watch the DVD which gave a very general overview. Without ever answering a comp plan question or presenting it we built a business of 40,000 distributors. We 1). Sent at least one personal card a day 2). Sent out at least one DVD per day 3). Walked at least one person through sending a card every day. The message was . . . Use SendOutCards, Refer SendOutCards, and make some extra money. That was it. Nothing fancy. We under promised and over delivered. I would say, do this a lot and help a whole bunch of people make a little bit of money and you may be able to make a lot of money!
You’ve all heard my story multiple times. You know that I have personally signed up about 3 people per month for 10 years (That’s over 300 people personally sponsored). Not Three who get three who get three. The reason my business is as big as it is is because I have personally signed up a lot of people and taught others to do the same. In my last company I signed up 129 people in 13 years (That’s less than one per month). I present 3-5 times a week and sign up 2-4 per month. That’s my business. Its more “Real” than three who get three who get three.
The number one thing the regulators have a hard time with is deceptive practices. I don’t think there is anything wrong with teaching people leverage and geometric progression because it is an element of what we do. I certainly have massive “leverage” in my business and you can too. BUT you mustn’t make claims that aren’t true. That’s called lying and deception.
I believe we can build a multi-billion $$ company without making crazy income claims. In fact, most people don’t believe them anyway! So when we do projections showing people how they are going to get RICH, most people roll their eyes anyway and say, “Yeah Right!” So let’s dumb it down a little and make it realistic . . . something that is more believable and TRUE!
It’s true that if it takes you 4 hours to show SendOutCards to 4 people and one signs up as a preferred customer and one signs up as a distributor and meets the customer requirements, then you will receive 20% of the customer volume off your preferred customer and $140 up front for getting that new distributor started. That’s $35 an hour. Is that true? Is it realistic? The answer is yes!
So what is a healthy TRUE message. “I don’t know how much money you are going to make in the business. You may not make anything if you don’t do anything. You might make a little bit of money to help pay for your cards and your gifts. If you help a lot of people do that, you might make a lot of money. I’ll show you an example of how the money works and then you can calculate how much you think you will make based on what you do. Okay?”
So when we do the Mobile Pocket Presentation (MPP), and we begin to show the money, we get to the card that shows 3X3X3X3X3X3X3 = $15,000 a month. Tell people that this is a pie-in-the-sky example. It doesn’t exist in real life. Then give them a strong disclaimer that sounds something like this . . . “I don’t know what you are going to do, but it doesn’t work this way in real life. This is just a pie-in-the-sky example. let’s say over the course of 5 years you sponsor the equivalent of 2 people per month. So instead of sponsoring 3 you sponsor between 50 and 100 to create the equivalent of a 3×3”. Then DON’T calculate the #’s. I usually say, “You decide how much you will make based on what you are prepared to do.”
I’m not a huge fan of income disclosures because they are so terribly skewed (Someone who doesn’t do a thing and make $0 is lumped in with those that work for 5 years and are productive . . . so they always appear that no one makes any money). But the only way you are technically allowed to show income projections is to also show an income disclosure UNLESS you dumb it way down to something ridiculously doable.
So don’t tell lies when you present the business. The truth is good enough. There is money to be made in our business. Kody has paid out millions of dollars to the field. And he continues to do so. It’s okay to say, “In a perfect world this is what it would look like . . . but let’s be more realistic and say that the majority of this does not happen . . . “
Also, you can be perfectly safe by giving them the details of the comp plan and letting them calculate what they think they will make based on their own numbers.
To be safe, it’s good to say, “I’m not sure what you will do in the business. That’s up to you. There are people that make little to no money and there are others that make a lot. ” This is not a lottery. You don’t just sign up and make money. There is work to do and it can be fun work. But it is a business and if you treat it like a business it could treat you very well. And yes, there is a residual component that can pay you monthly for the work you do one time.
Is it true that you can get paid over and over again for working once? Yes! Can you say this? Yes! Can you say that you get paid for sponsoring people? No!! It’s not okay to say that you get paid for sponsoring people. We get paid because of customers. Customers are the lifeblood of the business. Without real customers, there is no business. We get paid when 2 customers are activated. We do not get paid for sponsoring people. This is a very important distinction.
Again, I want to emphasize that we can build a billion $$ + company by showing lots of people how to make a little bit of money. The serious ones will rise up and help lots and lots of people. When you build an army of customers using SendOutCards, your check can become very large. I can’t tell you how much money you will make. You can figure that out for yourself! I can tell you that if you have LOTS of customers buying cards and gifts, your check will be quite healthy! See you at Convention 2015! The Magic Begins with YOU!