Number Five: The "Five-Eight Link"

I have already mentioned the importance of building up my 7th level, and of having a 5th level person that is active in helping me build the lower levels. I consider this so important to the overall objective of building deep and wide, that I have this one category that actually encourages my fifth and eighth levels to be actively partnering with me.

I want my 8th level to be full. This means that I need a 5th level that is working effectively, and taking advantage of all the team resources that are available. So, I am building in an incentive for my 5th level people:

If you are on my 5th level, and you help me help you to build your first three levels to their fullest, I will pledge a tenth of all the money earned from your third level, for the period of one year, to a charity of your choice.
But we need to meet in order to work this plan!

5th level people that work with me, will increase their chances of getting help. Those that do not, will decrease their chances of getting help.

Number Four - My Seventh Level

I know from research, that most MLMs never grow beyond the 7th level. And so, smart MLM companies will provide better bonuses on the 8th level. It is not only an incentive for people to attain that level (apparently, groups that have an 8th level are more likely to hit critical mass. It would be great to study up on this!) But, it is also a smart business move for the MLM companies themselves. Save money this way, but use those savings to reward those reaching the 8th level.

So, people on my 7th level are at an advantage, the better I get at recruiting. I will make it a point to get people on my 8th level.

I will be interested in communicating with my 7th level people, supporting, encouraging, and helping them.

Number Three - WIIFM

We are still at the low end on the priority scale. These first three criteria are those upon which I have not assigned much weight.

In building a Network Marketing downline, and deciding where to place people that I have recruited, my lowest three priorities are:

1) Attendance at the official meetings, conference calls, etc. Being "teachable and coachable", or "plugged in", in the conventional sense. Doing it the way they tell you to do it. While important in its own right, when compared to my other critera this one is not all that important to me.

2) My 5th Level person. These people must be closely linked to me. I want them to be a primary contact, and I expect more from the 5th level, than any other, in terms of them being responsive and involved. Those that are, are more likely to have my recruits placed under them. This criteria is also one of the two or three where a person can negatively impact their own downline by not working closely with me.

3) WIIFM. Or, "What's-In-It-For-Me?" Of course, the reason anyone gets into any NM is to make money. So one of my criteria is going to be, will it make me money? I have to place this one in here somewhere, but it is still down at the bottom end of my most important factors. I still want to help my people, more than I help myself. I believe that it is the best long-term approach to helping myself. In the long-term, I want a high retention rate. If I only do what will make me the most money, I may tend to lose people that got in early. But I need people to get in, stay in, and have a good time doing it!

Quality Number Two: The Fifth Level

Today I discuss the second criteria that I use for placement of people in my downline. And "placement" I should say, is what I mean by "helping" people. I will help you by placing people under you. And this series of blogs is where I describe what I am looking for, in terms of who to help.

My Fifth Level people are very important to me. Those that are with me in my present program will understand why I say this. But also, in prior MLMs, I have never gone beyond the 5th Level (5L). It is a hurdle, if you will - a wall that I have never climbed. It represents an emotional challenge for me: how to have a 5L that is healthy and strong.

The 5L is my link to the 8th Level, which is deeper than most MLMs ever grow. I need someone close to me, but close to the 8L, to work closely with me, so that I can grow the 8L. This is another reason why the focus on the 5L.

I will first support my 5L by way of a modest welcome gift. This is something I do in conjunction with the 1st thru 4th levels. I want a strong linkage down to the 5L.

But next, I seek constant communication with my 5L. I want to work a fundraising piece with my 5L people, supporting their favorite charities. And I want to keep apprised of the health of the 6th-8th levels. My 5th is my link.

So, I am looking for 5L people that will stay in touch with me.

While the 5L criteria is not one of the most important ones in my list, it is there nonetheless. It is one of the few criterion where you can actually decrease the chances of you and your downline getting placements.

A 5L person that will not return my calls, or suggest improvements, or meet for coffee occasionally, will have little chance of a placement, and I want to repeat, they also hurt their downline. I will get better at recruitment, and I need a way to decide where to place people. 5Ls are critical to building a team that is deep and wide.

But 5Ls that stay in touch with me, will improve their chances of getting help.

Qualities That I Value: Plugging In

In Network Marketing, you often hear this statement:

"Don't worry, I will help you."

And of course, it is a very nice thing to hear. If you are putting yourself on the line for an MLM, you want to know that you will not be left out there dangling, that people actually will smooth the way for you, and make it easier for you to succeed (it least that's what I think "helping" should be like!)

I am reminded of some of the best manager/leaders I ever worked with in the corporate world. Their approach was usually like this: "I am not a boss, I am just the water-carrier for my team." or, "My job is to break down barriers that are in the way of my people."

So I bring this attitude to my role as "upline guy" in my present Network Marketing program (or MLM, or NM).

But how does this play out, in reality? What does it mean "to help"? And since, over time, more and more people will be asking for help, how do I choose where to focus my attention?

So, I will use the next several blogs to spell this out clearly.

In my case, "help" means, that I will go out and recruit people and place them in my downline. I'll do it myself if I have to. And over time, I will get better and better at it.

Let me say that again:

Over time, I will get better and better at recruitment. I am a pracitioner of continuous improvement and reaching for my personal best. I am going to get better at this. Count on it.

Now - once I have signed someone up, how do I decide where to place the person?

The least criterion of my list of 12 or so, is plugging in.

Plugging in is industry jargon that means showing up at meetings, training sessions, conference calls, etc. It is that expectation that you should make your presence known, be seen by others, especially the upline.

But most people are not into this. Many that will never join an MLM, avoid them for reasons like this. They don't want to plug in. They don't like silly meetings, or spending time with MLM people with whom they otherwise have nothing in common.

So, while Plugging In is on my list, it is the least of the items on my list. In fact, it barely registers on my monitor. There are other things that I value more highly, which I will unfold in future posts. I want a team that gets very large, but operates under the radar. I do not want a lot of attention drawn to my team. I want to creep up on our community and MLM. We will not create great waves, but we will make a lot of people wealthy.

So - to those on my team reading this, don't worry about making the meetings. I know that you have more important things to do. I also know that whether or not you go to the meetings, is not going to make or break you in this MLM.

It also might be helpful to you, to say sincerely to your squeamish friends: "No, you will not have to go to meetings or listen to conference calls."

MLM as Tithe? Oh, Really?

I put out there today, a suggestion that is way out there. Thanks to the negative image of MLMs, this idea is bound to make some people cringe.

It is this: your monthy requirement, and dues, to be in an MLM, can be considered your tithe.

How can I say this? Bear with me.

As with anything else, God looks at the heart. He sees your motives, hears your prayers, and honors your efforts to serve Him by serving others.

And, in serving others, I do not mean your upline or downline.

Do your MLM, specifically, to raise money to help the needy; raise money for your church. Raise money for the unemployed. Send kids to Church camp, etc.

If you are part of a team that is focused on building up cash that can be used for good purposes, then you may very well treat your obligation as a tithe (make sure that you are not supporting any products that do not honor God!)

It's like the Christian career counselor said once: "You can love your car, as long as you love God more."

What if the MLM-er lives modestly, while earning loads of money? But what if he supports charities he never could before? What if he travels more, with his family, but exposes them to places where the people need help? And, does it not honor God to do good things for your family? (See the last verse in the Old Testament).

For myself, I am earning money so that I can mentor and tutor children, free of charge. I do not need much money to do this. But the surplus can go to supplies, to send kids to camping programs, to provide scholarships, etc. People in my downline are actually helping make this happen.

If you are not already titheing, but have always wanted to; if you do not like the MLM monthly requirement; maybe for now, your monthly fees and obligations can count as a tithe, particularly if you are well-connected with your upline and know that good things are happening because of your team.

And, like a charitable contribution, MLM fees are tax-deductible.

How I would love to see some responses to this one!

What It's Really All About

It isn't about the money.

The vision of many people, those that are on my team and others, is usually much higher than just simply making money for its own sake.

Since I became active with an outstanding group of people, in an excellent Network Marketing program, I have observed:

* $40 given to a family that had just lost their second job,and were in danger of being evicted from their house. The same people were treated to dinner, and got connected to people with trucks and strong backs, that can help them move.

* A women sharing with me her dream of starting an art school, fully accredited, affordable, world-class. The dream comes first - but she will need to raise funds to pay for it. In our team, she can do that without opening one hand for foundation money.

* A man that is raising funds for a family facing high cancer treatment expenses.

* A woman dedicated to the goal of getting her aging mother out of a nursing home with less than the best amenities.

* People getting their finances under control, even if they have not made a dime yet in Network Marketing.

* People gaining hope; a way out of their financial situation.

I have encountered people with wonderful visions of doing important, needed work in our communities. They are filled with hope and positive energy.

Their friends can either encourage them and help them (even if they do not join them). Or they can become doubters and nay-sayers. They can be dream-stealers.

More and more, I see our efforts as being part of a movement to change our economy to one that is more egalitarian, that makes people even more free. It is a continuation of the American experiment.

And I will have less patience with dream-stealers.

Community

John Maxwell, in his book Talent is Not Enough, lists the qualities of effective teams.

One is this concept of community. Strong and successful teams have a community. The people enjoy each other. They meet socially. They understand one another, and even care for on another. They get together even when they are not at work.

The worn-out cliche "there is no I in team" comes into play. Successful teams create magic, they move mountains, because every member has submerged his personal interests, to the objectives of the whole team. The effective team is a community that has one or two higher goals, to which the members pull together to reach.

Teams are more creative. They draw on the strenghts and talents of all the members. Where one member is weak, the others rise up and mitigate the weakness.

So - how do you create one single objective for a team of people working in Network Marketing? This is hard to do, since most people are by definition in competition with one another.

You must form communities of people in Network Marketing, and get them into smaller groups where they can develop overall goals for the group, and then action plans that will enable the team to achive its goal (just saying, "we will make every member of the team a millionaire" is not good enough. This is not a team goal.)

And I am convinced that people working together toward a common goal, can first define a goal, and then are creative enough to develop an action plan so that the goal is achieved.

Oh yes, one final thing mentioned by John Maxwell, is that members of a team must trust each other, and be trustworthy. The Network Marketing group that accomplishes a high level of trust will make the cover of Business Week.

Becoming Unduplicatable

Network Marketing is the wave of the future. The Internet has not only made this possible - it has made it mandatory. So many of society's ills will be mitigated by the growth of the World-Wide Network. We can dsitribute wealth more equitably. We can pay people for their inherent value to the community. We can unleash their talents. We are empowering, and liberating people.

But don't get me started on that - I have something else to write about today!!

The downside is that so many Network Marketing systems are mired in 19th century methods. Too often, Network Marketing hierarchies are more like, than unlike, those of the most autocratic corporate bureaucracies. Such talk about being "teachable" and "coachable" is just another way to say "Do what we tell you to do". (Remind me to discuss my favorite quote by Woodrow Wilson some day!).

The big money-makers in Network Marketing are often advocates of strictly following methods that they say are "duplicatable." This is where all the DVDs and conference calls come from (which you have to purchase, of course). The point could be made, that these duplicatable methods are more in the nature of living monuments to the money-makers, than they are methods that actually work. Imitation is the sincerest form of flattery. In this case the imitated behaviors are being imposed from above, by the imitated, upon the imitators! No corporate boss could ever be as successful in getting the peons to copy him!

"Duplicatable" should mean that the same process should result in the same outcome, every time, to the Six-Sigma level of predictability. This, of course, is not what happens. People duplicate the system, it doesn't work, and they wonder why they can't even do something that any dummy can do, (skilled teachers and trainers understand the dynamic at play here - and know why it is to be vigorously avoided!)

Duplicatability is a relic of the Industrial Age. The Internet is not about widgets and mass production. You cannot take an outdated concept like duplicatability (think McDonalds hamburgers), and apply it to a Network Marketing system, that is totally dependant upon effective human interactions. Modern Marketing is all about customization, "my size fits me" and "have it your way." But Network Marketing is a revolutionary idea encased in outdated methods. It is new wine in an old wineskin. It does not factor in the truth that all people are different, unique, and special.

What if we let people be themselves? Give them the tools of Network Marketing, give them the opportunity, and then turn them loose upon the market! Pull together highly effective teams, in which the skills, talents, and interests of its members could never be duplicated, even in a hundred years!

Let people shine! Let them do what they do best! Give them the freedom to pursue their dreams. Let them do it their way!

This is something that can never be duplicated. And it is something that will give any person, or team, a competitive edge over all the multitudes of options available to people today, whose most compelling, passionate driving force, is that they be noticed.

The Eighty Percent

I have confidence in the 80-20 rule. 80% of the people get 20% of the results. 20% of the people get 80% of the results. In network marketing, a good plan could be shown to 100 people, and only 20 of them will get in. Of those 20, only 20%, or 4, will actually work it. Of those 4, only 1 of them will get any real results. 1 out of 100 actually makes it in Network Marketing . . .

. . . Using conventional methods!.

Now - we could say that, well, then I will work it hard enough, persist long enough, offend enough friends, burn enough bridges, so that I become the 1 out of 100!

Or, we could reformulate the equation. We could turn the 80 into 20, and the 20 into 80. Would it be worth it, all you Network Marketers out there, to take the time to understand our market, so that out of 100 people seeing the plan, 80 join?

Let me use an analogy. When the automobile was introduced a hundred years ago, only eccentric nuts bought one. (One of my favorite movies, Big Jake, illustrates this point). At the very beginning even fewer than 20% of the public had a car. Even people that could afford one had to think twice. You did not want to be thought of as out of the mainstream! Better to put your money into a bigger stable for your horse and buggy!

But today, a person refusing to buy a car is considered non-mainstream.

If Network Marketing is so good - then what is keeping it from becoming mainstream?

I put it to you . . . we are! By insisting on using conventional methods that only reach, at best, 20% of the people seeing the plan, we are keeping our friends and family from sharing in some good money!

How do we mainstream out network marketing plan? First, we re-position it so that people realize it is the smart thing to do! It will take some up-front work. I would suggest that we need the following pieces in order to make our program mainstream:

* Develop a real network, where people are motivated to help those lateral to them.
* Do real marketing, where we actually care what our market wants, and then we response affirmatively.
* Continuous improvement. Constantly learn and adapt. Work on getting better results all the time.
* Effective leadership, including giving people the opportunity to select their own leaders.
* Form high-performance teams. Allow social interactions, brainstorming, creativity. Let all members contribute based on their skills, talents, and interests - and have fun doing it!

Any group of 12 people, working according to the above five points, will outperform 12 people working according to the conventional model. In fact, they will get four times the result of the 12 working alone.

Anybody interested in putting it to the test?

Ray's Higher Purpose

My friend Ray, who is a partner in the same Network Marketing Program as I - although in a different line, has a friend with cancer.

Ray's plan is to raise funds through Network Marketing, that can be used to help this family pay their hospital bill.

Most people hearing about this will see it as a cheap ploy to make money for himself. But if Ray is able to help a family with exhorbitant medical fees to get back on their feet, then I say he is worth all the extra money he gets from it! Let's pay people like this, whose motives are in the right place! Pay Ray, so that he can spend more time helping people needing help!

Do you see the connection?

Network Marketing is a simple way to pump wealth into the hands of good people. My friend Ray could work his tail off for 40 years, like the rest of us, and earn enough money for his own retirement. All his life, he may wish that he had more money to help the needy. But his bills and other obligations force him to while away his hours at some job, earning a pittance.

We need more people to get off their high-horse when it comes to Network Marketing. Maybe you do not have the time! Fine - then plug into the system, to help people like Ray do good things. Maybe you prefer other products, or like to do your shopping at stores. OK, maybe so. Does that help people like Ray? Or are you just putting money into the pockets of fat corporate bosses that pay their employees as little as they can?

Maybe people will read this post. Maybe not.

Network Marketing is not going away. It is going to continue to grow. And everybody, one day, will be participants in it, the same way that they drive a car today. Meanwhile, as they find their excuses to stay out, people like Ray's friends linger on, needing our help.

Come people - get off your duffs, open your minds, and help Ray!

If There Is So Much Wealth . . .

This is the blog where I document the development of our local team of friends and family, dedicated to carving a chunk of the immense wealth in our economy, for ourselves.

For ten years, I have done a lot of community work, for little to no pay. I have friends with the same passion. Those that serve on local boards, work for Scouting, lead lay ministries in church, volunteer for community programs and charities - these people are under-appreciated. Usually, they undertake a thankless task. Do-gooders too often do not get the recognition they deserve. And more people would do more good, if they did not have to work for a living, for employers that really couldn't care less about spirituality, community, families, friendship.

Yet, it is true that the wealthy have more money than they know what to do with. It also is true that wealth begets wealth. There is not a limit to the supply of wealth in the earth. It can grow as large as we choose to make it. I wonder how much good we could do if people would just get out of the box and embrace novel ways to generate wealth (also known as "fundraising").

My personal project is to create and promote music in my local community of Dexter, Michigan. I cannot make any money doing this, if all I do is promote and create. Nobody wants to pay me to write songs that they have never heard. And even if they liked the song, 99 cents on Itunes is about the most they would be willing to pay for it. I choose to create wealth for me and my friends, however I can (legally), so that we all can follow our dreams and do more good.

But it is not easy.

Consider - since January, I have shared my vision with 58 people. By partnering with me in a business venture where they would get paid on services they are already using (i.e., they do almost nothing different from what they are doing now); they would be supporting my work in the church, community, and schools. These same people can be found as sponsors of the arts in our community, and of other school and charitable causes. For less money, I can ensure a tax deduction for them, and they would be more directly benefitting the unemployed in our community. They would be helping generate cash that could go to poor neighborhoods in Detroit. And taken to its conclusion, less money would be required from taxation. Charities would not have to go around with their hands out anymore.

The vision, and cause, are outstanding. Yet only 6% of the people I met with, were willing to learn more about our approach and opportunity.

Why? Why would people that would part with $500 without even thinking about it, in order to support an artist or athletic program; balk at partnering in a business venture that would create more people that could add more dollars to the same good causes that the original people support?

There is something wrong with our approach. So on June 7th we are meeting at a location TBD in Dexter, to brainstorm how to get to people that will "get it". It is all about getting more of the world's immense wealth into our small community of Dexter.