Persevere or Perish

The following information is taken from Your First Year in Network Marketing by Mark and Rene Yarnell.  I am providing you highlights in the next several blogs in hopes that you will be equipped to survive and thrive in your hardest year of your network marketing business – the first one. 

The remarkable thing about network marketing is that survival (staying in the business while others are leaving it) is exactly what results in dramatic wealth.  Attrition is a major component of our type of business.  However, it is rare to find someone who has worked steadily in network marketing who does not eventually achieve success.

In network marketing, you either persevere or you perish.  The Yarnell’s research in 1998 showed that an estimated 95% of those who survive 10 years in network marketing become wealthy beyond their wildest expectations. 

In addition to financial freedom, these folks achieved an equally important time freedom.  They were able to have the time to do what they wanted with the people they wanted to be with.

Traditional business models offer little security these days.  MLM (Multi-Level Marketing) is a system in which ordinary folks can invest a small sum and, through tenacity and determination, can reap remarkable financial reward and personal freedom.

While MLM avoids the pitfalls of traditional business models (payroll, employee expenses, high overhead, etc), it has its own pitfalls that so many get trapped in and meet their MLM demise.

Discouragement and depression can set in, and folks give up.

Once MLMers lose their drive and enthusiasm to persevere through the tough months, once the excitement is gone, in many cases, so too is the opportunity to achieve dramatic wealth.  “It’s easier to give birth to a new distributor than it is to resurrect a dead one.”

The Yarnell’s statistics indicate that over 60% of all new network marketers quit in their first year, which is the most critical phase of the learning curve.  It is so important to commit to persevering through the first two years in order to reap the financial rewards in the years that follow.

The authors agreed with the suggestion that, “every MLMer was a lousy MLMer first.”  While the educational process in MLM is relatively brief, it can be devastating to ill-prepared new associates. 

Rejection is hard for most people to handle.  When an excited new associate approached a prospect that they are ‘sure’ will join the business and gets shot down, the emotional downswing into discouragement is huge.  It is even worse if they are ridiculed by those they love and respect. 

Expect rejection.  Get over it.  Move on to the next prospect.  Never give up.  Remember that MLM is the greatest opportunity in the history of the free market!

How to Develop a Residual Income

How would you like to do something once, but get paid for that one act every month?  This is the heartbeat of residual income. 

Insurance agents, musicians, actors and authors understand residual income. 

• An insurance agent writes a policy once, but gets paid a portion of the customer’s payment each time it is submitted.

• A musician records a song once, but gets paid each time the song is purchased. 

• An actor makes a TV show or movie once, but gets paid each time it is shown on TV or sold on DVD. 

• An author writes a book once, but gets paid for each copy sold. 

Residual income is a beautiful thing 

• What can the average person do to develop a personal residual income? 

• How can they earn what some people call ‘mailbox’ money every month?

• How can energy deregulation provide a residual income?

A unique opportunity is available to the average person now through the deregulation of energy.  Over the last decade, several states have passed legislation that deregulates the generation portion of electric and natural gas services. 

This means that people in deregulated states:

• have a choice in who supplies their actual electric or natural gas. 

• have the security of knowing that the monopoly company still distributes their energy and provides service when there is an outage.

• can now shop for lower rates from companies free to compete against the monopoly for the generation of that energy. 

I have personally witnessed the benefits of this new competition as our electric bill was over $100 less the first month that I changed to Stream Energy.  It was free and easy to switch, and there was no risk.  What a great deal!

What’s Unique about Stream Energy

Not only did Stream Energy cost less than our monopoly electric company, but it provided me with an amazing business opportunity to generate a residual income.  For a really small fee, I joined their marketing division as an Ignite Associate. 

Immediately, I became a business owner with two great websites designed and maintained by Ignite.  These two sites enable me to gather a few customers (20 customers is the most I will ever need to have) and to build a team of business associates who are looking to build a residual income as well. 

While Ignite pays great Immediate Income through bonuses and amazing Leadership Income for each new Associate that joins my team, the potential Residual Income is astounding.  As my personal Ignite business grows, each Associate is gathering their 10 to 20 customers and adding associates to their team who gather their customers. 

I get paid and little portion of each of those bills.  There is the potential to get paid on thousands of electric bills every month for only personally helping 20 people at the most save money on their energy bills by becoming Stream Energy customers. 

If this idea intrigues you, watch the videos on my website by clicking on the lower left picture called Defining Moments.  Write down your questions and contact me, and we’ll see if Ignite is the business that will generate a Residual Income for you that can change your life! 

The Importance of Integrity

Integrity is measured by the consistency between our words and our actions no matter where we are or who we are with.  While the culture of business seems to no longer value integrity, it is still human nature to desire integrity in our leaders.  Followers are constantly looking for their leaders to do what they say, and followers want their leaders to be authentic, in other words, to be open and honest. 

Our actions are the result of our beliefs.  People cannot consistently act in way that is inconsistent with their beliefs.  So, our level of integrity is going to stem from our personal values system.  Our values system is what guides our priorities and our decisions about right and wrong.  It influences how we treat our colleagues and how we approach our work.  Every day we face circumstances that confront us with deciding between what we want to do and what we should do.  These moments define our level of integrity.  When we choose to do the right thing instead of the convenient thing, we are exhibiting a high level of integrity. 

Leaders who exhibit integrity and authenticity will not lack followers, and their followers will imitate their actions.  Effective leaders tell their followers to do something (“Be on time for work”) and then do it themselves. As a result, their followers will be more inclined to do what they are told and shown (arrive on time for work).  In the same way, if leaders do not practice what they preach, followers will see their inconsistency, lose respect for their leaders and not take their directions seriously. 

When leaders demonstrate integrity to their followers, they gain valuable credibility and the confidence of their followers.  This will lead to the ability to influence their followers to greater degrees of productivity.  Cavett Roberts observed, “If my people understand me, I’ll get their attention.  If my people trust me, I’ll get their action.”* Effective leaders will actually hold themselves to a higher standard than their followers.  As leaders advance in influence, their rights decrease while their responsibilities increase.  Leaders with solid integrity recognize this pattern and refuse to shirk their responsibilities.  Again, as followers see their leaders take responsibility, their esteem for their leaders grows and productivity increases. 

Developing and maintaining integrity results from self-discipline, inner trust, and a heart that purposes to be relentlessly honest at all times and in all situations.  Billy Graham once said, “Integrity is the glue that holds our way of life together.  We must constantly strive to keep our integrity intact.  When wealth is lost, nothing is lost; when health is lost, something is lost; when character is lost, all is lost.”** No matter what business we are in, to be effective leaders we must prize our personal integrity above all else.  What good would it really be to gain all kinds of wealth at the price of our own souls?  Purpose to live a life of integrity and you will never lack followers who imitate you and help your business prosper.

*Quote from John Maxwell’s Developing The Leader Within You, pg. 39.

** Quoted in John Maxwell’s Developing The Leader Within You, pg. 45; originally from Newsweek, 24 August 1987, pg.11.

Follow the Leader

When it comes to planning our day, we are either initiators or reactors.  Initiators decide who they will meet with and what they will do.  Reactors wait for others to take the initiative and as a result, see their productivity minimized.  Leaders take the initiative while followers tend to react. Which one do you tend toward?

It takes more personal energy to be the initiator, and it sometimes involves more risk of rejection.  Whenever we initiate contact with someone else, we run the risk of them saying ‘No’ which can often feel like a personal rejection.  Fear of rejection can cause us to shut down and not initiate contact with others.  Thoughts like, ‘What if they won’t meet with me?,” or “What if they won’t take me seriously?,” result is feelings of fear that paralyze us emotionally and keep us from picking up the phone.  Leaders push past this fear and initiate in spite of potential rejection.  Followers allow fear to rule them and keep them trapped reacting to others around them. 

Here’s a simple comparison of the how leaders and followers approach planning their work:

LEADERS                                                                  FOLLOWERS

Initiate with others                                                      React to others

Lead by picking up the phone and                             Wait for others to call them

            making contact

Spend time planning and anticipating issues            Fail to plan; live only in the moment;

                                                                                                react to problems

Invest time in people                                                  Spend time with people

Schedule their day by priorities                                  Allow requests dictate their schedule*

Of these two groups of people, who do you think is the most productive?  I would think it is the leaders more than the followers.

For those of us in home businesses like Ignite, it is essential that we develop leadership skills in order for our businesses to grow.  It is highly unlikely that we will have people taking the initiative to inquire about Ignite.  In most cases, we need to be leaders by taking the initiative and contacting people who might be interested in joining our team.  Being a Leader in Ignite also means that we are going to invest time in our associates and help them to develop their invitation, presentation and leadership skills.  Multilevel marketing businesses only grow when leaders teach their associates to lead their respective associates as each level reproduces more leaders. 

So, in short, we need to put off the fear of rejection and purposefully choose to initiate contact with our prospects and our colleagues.  We need to invest time in our associates and help each other achieve our goals. 

(These concepts are found in John Maxwell’s Developing The Leader Within You, pg. 25.)