Economic Stimulus

I remember my mentor once observing that the principal difference between the rich versus the poor is that the rich invest their money and spend what’s left; while the poor spend their money, and invest what’s left.

I considered myself fortunate to have been among the top five percent of income earners in the field of consumer-direct marketing and networking for almost 29 years. I also appreciate the confidence placed in me, by some of the biggest and most successful names in the business, who hired me on as a consultant in recent years, to help them assess their strategies for the new, Digital Marketplace. Savvy business owners, top distributors and company executives understand that the Internet has dramatically changed the landscape of entrepreneurism, especially in the direct sales and network marketing arenas.

Today, top distributors from some of the relatively few legitimate companies remaining can be found publishing some knee-jerk and reactionary posts, articles and commentary, afraid that my exposing the challenges facing a once-formidable marketing approach is going to hurt their bottom line. They’re spouting-off illusory figures, such as how high their sales volume is now, how they’ve earned two or three million dollars in the industry, and how they drive the latest sports car, at their company’s expense…

But if I were them, I would be more concerned with a far greater danger: the danger that their downline members might finally begin to recognise what’s happening in the industry, and see through the smoke-and-mirrors for once, and for all.

Of course the top distributors in the business are doing a half-million, million or more in sales volume each month… We’re in the midst of dire economic uncertainty, and people are desperate for a way out of their financial hardships. When you couple that with the opportunistic “starting costs” of companies that charge anywhere between $160 to $1200 or more to “get started”; the equally opportunistic and shamefully inflated $120 to $360 average monthly “autoship” requirements of the same companies; and the simple fact that most of the very worst compensation plans in the industry today, use a deceptive “binary-hybrid” plan to ensure that very few of their hard-working associates ever achieve the kinds of incomes they were promised… it’s no wonder that the key players are generating a million dollars in sales each month.

What’s more of a wonder to me is how those people sleep at night!

And as for lifetime incomes… most of us in the industry have earned well over a million dollars, several times over… and for some of us, we did that just between the years of 1981 and 1985 – at a time when pioneers in the industry, like my good friend, the late Mark Hughes introduced the very first herbal nutrition products to the United States, and a compensation plan that made it possible for ordinary folks to earn extraordinary incomes, without raping the consumer or distributor with ridiculously overpriced products, distorted claims, and offensive business tactics.

The simple fact is that today, the network marketing industry is suffering. And that means that Network Marketers are suffering too… not the “heavy-hitters”, but the folks in the trenches… the ones who need the income the most.

The Internet has dramatically changed the landscape of entrepreneurism. Consumers are much less likely to be duped by a company’s claims to have an amazing breakthrough product, when they can instantly research those claims. Companies selling ridiculously priced “miracle juice” products, for example, whether in liquid, gel or capsule form, are no longer able to claim exclusivity, when the exact same ingredients can be found (often in higher potency) for a quarter of the price in healthfood stores.  In fact, after predicting that this would occur two years ago, I now purchase the same high-potency nutritional-juice product, containing acai berries, pomegranate, wolfberry and mangosteen at my local grocery store for $5.95 for a 30 ounce bottle… about $40 less than the cheapest MLM product out there.

What’s more, the Internet has educated would-be victims of some of the less scrupulous “opportunities” out there, so that they can see that the average rep is not earning thousands of dollars (or even hundreds of dollars) each month… but usually far less.

Now don’t get me wrong, I am a big proponent of entrepreneurism and of networking. I simply believe it’s time for the industry to face a shakedown.

I retired from the industry last year, despite facing on-going out-of-pocket medical expenses of more than $9700/month, because I was disgusted with what I found in the industry today. There are some companies with fine products, but weak or deceptive compensation plans… others with great compensation plans, but mediocre products. None of the companies I looked at offered the products they sold at fair, reasonable prices. Only one of them offered their opportunity at a fair, reasonable start-up cost (but their product was overpriced, although it will eventually be worth what they are charging).

So I left the business. And I made a commitment to continue to support the people who were struggling to make it as entrepreneurs… somehow.

I remember, back in the early 1980s, telling one of my mentors, Lawrence Thompson, “If I had more money coming in, I would have a better plan…” Larry laughed at me, and reminded me that our mentor, Jim Rohn frequently admonished that if we had a better plan, the money would take care of itself. And he was right.

The Plan for Entrepreneurial Economic Stimulus

Seventy-one million jobs were lost last month in the United States, over 40,000 businesses shut their doors for good. There can be no question that these economic factors are going to hurt even the most reputable companies and exceptional network marketing entrepreneurs.

And I understand that the main reason most networkers will not quit – will not admit that they are foolish for spending $120 to $360 each month on their “qualifying autoship order” of ridiculously overpriced nutritional products, household or personal care products, or absurd “gifting” schemes – is that they don’t want to admit they’ve been taken. And they don’t want their friends, their families and their loved ones to say “I told you so…”

But there is a solution…

Ask yourself… right now, what is the biggest reason that your prospective customers and reps don’t take you up on your “amazing offer”? You likely have pages and pages of testimonials under your belt… you can tell them how Suzie, or Joan… Randy or Bill are making tens of thousands of dollars each week… you can tell them how a little crippled girl, with bad teeth, no arms, a bad perm and a flea-infested dog suddenly grew arms, lost all her cavities, and not only found herself able to walk again, but woke up with shiny, manageable hair and pedigreed dog, all because of your product. So what gives?

Chances are, just like many of you, your prospects are maxed-out on their credit card debt.

The average American household has eight credit cards, with an average household balance of $9,000 or more. Every month, more and more families find themselves unable to meet their minimum monthly credit card debts. And if they’ve been in network marketing before, they might be facing even higher debts. Given that a low $10,000 in credit card debt, on a 19% interest card, will take over 49 years to pay off, it’s no wonder people are hesitant to “play the game” and chance further debt.

Let me ask you a question…

What if there were a way for you to help those people who are unable to spend any more money on your product or services, without having to quit your current business, or add another network marketing company to your portfolio?

What if you never had to invest another DIME in “start-up costs” to be able to legitimately help your prospects cut their present credit card debt in half (or more), without their having to incur any new out-of-pocket expenses themselves?

Let me tell you a story…

Last month, David came to me for help. He is a very sincere, hard-working entrepreneur, who has consistently earned around $1500 to $1800 each month with his homebusiness opportunity. But David knew his sales were dropping. He knew the economy was forcing folks to have to cut back in a big-time way. In fact, David was worried that he wouldn’t be able to keep forking over $760 each month for the gel nutriceuticals and glutathione-boosting products he had to buy from the two companies he represents. (And he was doubly upset, because he genuinely believes in those products, and doesn’t want to be without them!)

So David and I had a conversation, and I showed him a way he could do more than just solve his problem at hand.

Now, David has already helped seven of his previous prospects cut their credit card debt by 60-70%, in addition to helping eleven of his downline do the same. David’s own credit card debt was cut by 56%, and he was able to turn three of those seven former prospects into business associates in his nutrition company deal. But perhaps most importantly, David will have earned $43K in a single month – not from his MLM programs – but by helping others to cut their debt.

And it didn’t cost David a penny to get started doing that. He’ll never have a monthly autoship to pay or any products to buy, in order to qualify to work with me. He didn’t have to pay for his training or certification. He did decide that he wanted his own domain name, instead of the free marketing site we gave him, so that cost him $149 for the entire year (including hosting), but that was completely optional, and he’s actually using that domain to promote his other programs as well.

So in a month, we taught David how to leverage the skills he learned in MLM to create a business for himself that will generate a higher first-month income than three of the “heavy-hitters” in his upline are making right now… and still enable him to continue to “play” in those MLM deals, if he chooses!

Networking is not dead… And network marketing need not continue to hurt more people than it helps… but if we’re going to make a fortune, we have to be willing to make a difference!

I invite each of you to take the challenge, and get in touch with me, if you’d like to do what David has done. Join me for a brief, no-hype conversation in my virtual conference room this week. Or ask me to send you a link to a pre-recorded presentation, we did last weekend.

Most of all, live with passion! Peace!

-- Gianmichael

Dr. F. Gianmichael Salvato is a published author, entrepreneur and personal development coach. For more than 29 years, he has helped entrepreneurs and small business owners achieve limitless success.

Recognised as a pioneer in the field of entrepreneurism and emerging Internet marketing technologies, Dr. Salvato, has focused on the fundamentals of personal and business development, peak performance, and wealthbuilding in the postmodern marketplace. As an innovator, Dr. Salvato has leveraged his achievements into a network of 358,000 entrepreneurs, who turn to him for weekly advice and insight, sharing his message with 3,400 audiences and more than a million people. 

He is best known for his on-going contributions to helping people unlock the power of their own minds -- teaching them how to apply that power to create strong, loving relationships, make more money, and live more meaningful, prosperous, health and satisfying lives.

You can join his primary social network and interact with him directly by visiting: http://www.betternetworker.com/referral/7777cb42

Copyright ©2008, Dharmacharya Gurudas Sunyatananda (Dr. F. Gianmichael Salvato). All rights reserved. This article may be reproduced, blogged, quoted or distributed, provided the entire blog, including by-lines, contact information and this copyright remain intact. It may NOT be altered in any way, without express written permission.