WHY
NETWORK MARKETING?
I know that the term “Network
Marketing” produces many feelings for many people, some positive and some
negative. What thoughts went through your mind? I know when Robert Allen said the phrase,
I had some thoughts. You see, I had already tried network
marketing twice in the past for a total of ten years. Both times I joined
the largest network marketing company in the world, Amway, currently called
Quixstar. Both times I worked the business hard with some success (the
second time I became a Direct Distributor), but I
could never get it to a residual income state.
Maybe you
heard a little voice in your head say something like: "Network marketing is
an illegal pyramid scheme." "I don't want to bug my
friends." "I'm afraid to talk to people." "I
tried it before and it didn't work for me." I even have
people tell me they don't have any time or they don't have any money. I
hope PART 1 of this report will eliminate anyone's time and money excuse
for financial failure.
How are you
going to make a decision about our business system? Are you going to make
a uninformed emotional decision or are you going to make an informed intelligent
decision based on doing your due diligence?
Do you know why people join a network marketing company?
If you have been involved with a network marketing opportunity in the past, why
did you join? Actually there are ten reasons people join.
What would be
your number one priority?
Why did you pick
that one?
Why is that
important to you?
What are the
consequences of not having that opportunity?
Why would that
worry you?
WHY USANA IS DIFFERENT
We are different because of three major reasons:
our products
our marketing plan, and
our system to build the business.
There are lots of products and services that use network marketing. Some companies try to market
nonconsumable products such as water filters. Others market products that are not unique. Discount phone
services, internet connection, and electricity are very difficult to use successfully
in network marketing because the price competition is fierce and you don't have actual control of the service.
In
retrospect, this is what I found to be true of Amway.
The products were great, the company and founders were top notch, and the
training was excellent.
So why didn’t my business
continue to grow or even survive? The
answer lies in Amway’s 50-year-old marketing plan, called the Stairstep/Breakaway. This
plan is also used by other older established companies such
as Avon, Herbalife, Mary Kay, Nikken, NuSkin, Pre-Paid Legal, Primemerica, and
Shaklee.
The Stairstep/Breakaway is not a good marketing plan because in is not a
fair
marketing plan.
The Stairstep/Breakaway is not a fair plan because the people
at the top levels make a majority of the income.
A company can only allow a certain percentage of its gross sales to be distributed to
its associates. When the top
earners make a majority of the money, there is less to distribute to the rest of
the downline. Amway/Quixstar has a
large percentage of it's distributors quit every year.
Successful distributors are always having to sponsor a new batch of people to replace the ones
that quit.
Why did such a large percentage of
distributors quit every year? May I suggest to
you that there are two major reasons:
1) they didn’t make any money and
2)
they didn’t have anything to lose.
Let's face it, most people will
not quit a successful business, one that is growing and making money.
Would you?
The other day I was listening to a tape by Daren
Falter, author of the book, “How to Chose a Network Marketing Company.”
He states that there has not been a new network market company started
since the middle 1990s that uses the Stairstep/Breakaway marketing plan. New companies are now using newer plans designed to have more
people participate in the bonus pie.
In the
Stairstep/Breakaway plan,
you can have unlimited width. When
you sponsor a new distributor, you will always put them on your front line.
If you were really talented you could have 20 – 40 front line
distributors or more. They are responsible for finding all of their own distributors with your help.
Industry statistics show that the average person sponsors only 2
- 3 people while being a distributor.
You are paid monthly based on the
difference of your level and the level of your personally sponsored distributors.
(ex: If you are at 3300PV and
you have a 1500 PV leg and a 1000PV leg, you would make 3% on the 1500 PV and 6%
on the 1000PV leg.) You are always
trying to be several brackets (stairsteps) different than your downline legs. Also, when one of your legs goes direct, the company takes
them away (breaks away) and you get a 4% override on the volume produced
by that business.
USANA'S
MARKETING PLAN IS DIFFERENT
What I would now like to do is show you why USANA's binary Marketing Plan is so different and fairer than other marketing plans.
To view USANA’s Marketing plan please click here.
USANA uses the Binary Marketing Plan. I got extremely excited when I first studied this plan and now after working this plan for three years, I am even more excited. This is what I have found. More people make more money and very few people quit! There are several reasons for this.
1.
People
have new associates placed in their downline by their upline.
In the binary plan, a business center only has two legs.
After you have placed people in those two positions, the next person you
sponsor must be placed under one of those original people.
Those original people would now have something to lose.
I sponsored a retired doctor approximately 2 years ago and placed him in
my downline. Shortly after he got
in the business, he went on a mission for his church.
He has not sponsored a single person into his business.
However he does have over 100 people in his downline and creates a very
large volume. He is not earning any income
yet because he has not built his second leg, but
his business is worth thousands of dollars.
If he decides to build another leg, he can earn $52,000 per year or more.
I have placed my son, sister, and two sister-in-laws in my business.
It cost me $20 - $50 for each one. Each
of my family have several people in their downline and they will eventually have one
leg creating over 5000 point volumes each week.
They will be half way to earning $52,000+ per year.
Anyone with children over 18 years of age should automatically place
their children in their downline and start building that leg so that the worst
case scenario is they will have one half of a business center maxed out.
2.
3.
More people earn checks. In 2003 I had 203 people
change pin levels. Here are our pin levels. Sales Volume Points are weekly.
Sharer
35
250 SVP of left and right leg
Believer
124
500 SVP on left and right leg
Builder
25
1000 SVP on left and right leg
Achiever
8
2000 SVP on left and right leg
Director
4
3000 SVP on left and right leg
Bronze
Director
2
4000 SVP on left and right leg
Silver
Director
4 5000
SVP on left and right leg
Gold Director
1
Max 1 Business Center for 4 consecutive weeks
Ruby Director
1
Max 2 Business Centers for 4 consecutive weeks
These pin levels are based on larger volumes than Amway's pin levels. For
example, an Achiever would have one business center do a minimum of 2000 points
onr each side or 4000 points total for one week. That week, they earned
a minimum of $400.
4. More people are successful. During my 10 years in Amway, I only
had one individual person reach 4000 PV for the month. As you can see,
last year in USANA I had 20 create 4000 PV for one week.
5.
In USANA we are paid weekly.
A business center is paid 10% commission based on the volume of the
smaller of the two legs, up to 5000 PV. Every
person in the downline has the same value.
Upline and downline work together to build the downline without respect
to any levels. Any volume that you
do not get paid on one week carries over to the next week.
You don’t go down to 0 every month.
6. You can earn more income sooner. The first week I was in
the USANA business I received a check for $200. The first month I was in
Amway I made $6.
7.
You can earn up to 20% commission if you start
with 3 Business Centers.
8.
No
one in your downline breaks away.
When you hit 5000 PV or more on each leg, you max the business center.
You are paid $1000 for that week, plus profit sharing, but nobody breaks
away. Those associates are still in your downline.
If you max a business center for 52 weeks, you would earn $52,000.
This is the same as having over $1,000,000 in the bank at 5% interest.
9.
The first two times you max a business center, you earn reentry
certificates that allow you to place two new business centers in your
downline. This allows you to secure
legs. My upline is in my
downline. One of my downline
has reentered his business 5 times. How
would you feel if your very successful upline reentered into your downline?
10. When you max business centers #2 and #3, business
center #1 will automatically max. You are paid on 3
business centers for building 2. If you max 3
business centers every week for a year, you will earn a minimum of $156,000 plus
bonuses.
Another
challenge I had with Amway was the cost of the sales and motivation tools and functions. They
were very
expensive and the high income successful upline made a profit from the downline
purchasing tools and attending events. USANA's tools are
made by an independent company and sold to all distributors for a lot less
cost. Our tapes and CD's cost around $2.00 and our videos and DVDs cost
around $5.00. None of the upline make a profit from the tools and
events.
I was involved with Amway for over 10 years
I worked the marketing plan hard and obtained some success before failing.
I watched others also work the business hard and saw thier business collapse. In good faith, I couldn't go to a person
today and try to
convince them that they can be successful in Amway/Quixstar or any other company
that uses the Stairstep/Breakaway marketing plan. After 3 years, I have
absolute confidence that USANA's superior binary business plan can offer anyone true residual
income.