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[Noela Miller Contribution Level: 2]

If this is your first foray into the world of on-line marketing, the following question strikes fear into the heart of every new on line business owner.

"Is this a scam?" "Is this a get rich quick scheme?"

How you answer this question could be the difference between gaining a new representative or your lead going down the toilet. You have to appear confident and immediately dispel any doubts your prospect has, and to do this you need knowledge.

When I first started out in internet marketing I was so excited I wanted to tell my friends and family what I had discovered. An amazingly simple way to make money - working smarter, not harder. Well, "surprise, surprise" in true Forest Gump style, I got lectures telling me that "if something looks too good to be true, it usually is...". - "This is pyramid selling, isn't it?" - followed by them launching into explaining the impossible matrix that if you have to sponsor 5 people who each have to sponsor 5 people who each have to sponsor 5 people and so on, pretty soon a town with a population of 100,000 people would all be working in the same industry and, of course, it has to fail. Plus it was always the person at the top of the pyramid who made all the money.

These "pyramid" schemes came about in the days before the emergence of the world wide web and the internet, and were of such a virulent nature that even today we are left with their stigma of extremely poor business practices by scoundrels intent on ripping everyone off. Thankfully they were proclaimed illegal by the Government and they died a well-deserved death.

However their ghost remains and the general public are mostly still convinced that if an internet business involves referring others then automatically they think it's got to be a scam. Most of us are sceptics by nature and prefer to believe the bad in something before believing in the good. If the truth be known, they themselves were probably caught up in some sort of 'scheme' years ago and got their fingers burnt - or heard something on the news about it, or had a friend who knew something about it who told so-and-so - and so the myth is perpetuated. They close their minds to learning the truth, and you know what? it is probably better that you walk away from such people and don't waste your time trying to convince them otherwise.

To some degree, however, even though we know the truth, it would be great if we could dispel this myth and prove that business on the internet is the way of the future, and put these stories to bed once and for all.

These days the products that are marketed by home business owners on the internet are as diverse as they are numerous. Education, computer software, medical and nutritional supplies, weight loss programs, books, the list goes on and on - and they are high quality products that are all eagerly sought after by thousands of people online every day. People enjoy buying their 'stuff' online, it's easy, convenient, delivered to their door or their computer and most of all it's fun.

Big companies like Amazon.com have referral systems which allow their affiliate marketers to make money but that does not make them an illegal scheme. Just because most home business owners are a single person or with a small staff promoting one product on one website does not make the products less valuable and it does not mean they are a scam just because there is a referral system involved. That's the way the system works and the secret word is 'system' . Follow the system and you cannot fail.

The internet has made it amazingly simple to get home business products circulating around the world at a minimum cost to the business owner. This is one of the main attractions of this type of business. More profits - less overheads.

Remember, a referral system does not constitute a scam. This is a big money business - and it's a serious business. It's as legitimate as any big multi-national company, it just comes in a smaller package.

Noela Miller
http://www.FreewayToLearning.com
http://www.DoorwayToYourFuture.com

[Sandeep Nath Company: MyLeadSystemPRO Contribution Level: 6]

Admirable conviction. See you at the top Noela.

[Hilary Hughes Contribution Level: 2]

Big companies like Amazon.com have referral systems which allow their affiliate marketers to make money but that does not make them an illegal scheme. Just because most home business owners are a single person or with a small staff promoting one product on one website does not make the products less valuable and it does not mean they are a scam just because there is a referral system involved.

That's exactly what I have been telling people.

Hilary.

[Najja Banks Contribution Level: 2]

Very well said. I think it is a right of passage to feel the "Misunderstanding" of friends and family it is just the nature of the business we are in BUT that is also the cause of what pushed most of us to find a better way to market our business and we came across MS and MLMTF and learned that we got those responses from our friends and family because they are not in our target market AHA Momment and now we are all here speaking with like minded people. Proof that we learn more from our failures that our success.

Enjoy and Prosper,
Najja Banks
www.whoisnajjabanks.com

[Rebecca Contribution Level: 1]

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[Zara Lockwood Contribution Level: 2]

Hi your key to explaining to people how it works - so they don't think it is a scam - is maybe like you have already illustrated:
Pick a big brand website like Amazon, and use them as an Example of a referral program, I use them as an example of dropshipping (which is another method of selling on-line that gets bundled into the same "scam cart" ) because of all the scammers and spammers out there who hijack these business models and use them to avoid paying taxes (like cash gifting) and extract money under false pretenses.

My example with Amazon and dropshipping is because that's one of the distribution methods they use to get products from various warehouses across the States to someone's front door. It's not all stored in a big "Amazon warehouse" and a person takes your order and calls up "Bob" and sends him out the back for the item

With dropshipping you have an inventory of items (that could be located anywhere in the world) if you have it available in your catalog - it is at your disposal to purchase, once a person has paid you. You then order the item and as the retailer (like Amazon) you keep the difference between the wholesale price and the retail price and ship the item direct from the warehouse rather than from you actual business premises . It's a simple thing in theory, but can get very messy when not planned out correctly , about 95% of the problems in dropshipping can be avoided with proper customer service and background research on the retailers part.

Affiliate programs seem almost a piece of cake compared to dropshipping as an affiliate program is simply a way of getting a sales commission by referring a person to a website, no customer service or delivery/refunds to manage, bliss!

I think in the first stages, newbies just need to focus on first level sales and be aware that most legitimate affiliate programs work on two tiers - i.e first level is direct sales second level you get a residual payment if one of your referrals makes a sale. Most people find that idea complicated enough to begin with - so I just focus on the first two levels even if a program has more - any extra level bonuses - are just that - bonuses (longer term residual effects built up over time for building a solid, active team of referrals - not who can fill up the matrix quicker - Inactive affiliates with no focus won't make you any money)

- Working on keeping your closest and most productive affiliates active (and happy to be active!) is the most important thing to do in my opinion - keep your closest people informed and provided with your best (or very closest to best) tools and strategies with get them sales and keep them motivated to make you sales - that is the giving part - giving up your secrets to your downline but still having something left to pull out of the hat on a bad day.

[Kerrie Marsh Contribution Level: 1]

You know Noela... what I find most fascinating about the comment, "if it sounds too good to be true then it probably is.." that most of us would have heard chanted on many occasions, is that it is a sad indictment on peoples lack of belief in the possibility that the 'average' person (no matter what their social, political, religious or otherwise, persuasion) can achieve extraordinary success. With this comes the implication that if it is 'so good' then it must be some kind of fraud, or an achievement saved only for those of certain status. Such misconstruction of reality present a fundamental weakness in human nature; so afraid of greatness, of the capacity to grow that bit taller than the stunted poppy beside them! These misunderstandings can only be dispelled by a display of unwavering faith in what we believe we will achieve, pressing forward with a clear sense of purpose, unrattled by such doubts and armed with an ever expanding knowledge and skill set that will take us to our destination! All conveyed with a spirit of humility. Yeh!

Kerrie Marsh
http://www.mostprosperouslife.com
http://www.intelligentnetmarketing.com

[Fernando Oliveira Contribution Level: 2]

Hi Noela,
You are correct, Nevertheless in my opinion if you don't begin the sales as "sales" but as a relationship, you will be trusted till the moment you present your product. Your first "product" should be You, and then, when the relation is established, will be easy to talk about your "product".
That's the way I've been teached as a System, and as you say It Works. No Leads to the toilet!
Fernando in Mentoring for Free
http://Feroliva.successin10steps.com

[Noela Miller Contribution Level: 2]

Fernando. You are absolutely spot on. Presenting yourself as a leader must come way before any product you/we/I are selling. I have learned that in the previous months and it has totally changed the way in which I approach new prospects.

No longer do I feel scared or afraid of picking up that phone and speaking to someone - I feel empowered and in charge of myself and my business. I am interviewing them and if they don't like that, then they are not worthy of being in my business.

Noela Miller
http://www.freewaytolearning.com
http://www.doorwaytoyourfuture.com

[Adam Holland Company: Global Resorts Network Contribution Level: 3]

Here are some of my responses to those questions:

"If it's too good to be true, it probably is..." -- "I hear alot of broke people tell me that" or "Most people that tell me that are employees that don't understand business. Have you ever owned a business before? No? Okay, well this is why it makes sense to me.. (explain...)"

"Is this illegal/a pyramid/a ponzi scheme/etc.." -- "What led you to believe that?" If they answer w/ the above statement, continue there... Otherwise I say, "Well (prospectname), I only get that question when someone hasn't looked through all of the information about what I do. Do you have a pen? Okay, write this down: (give them your website w/ the sales letter, videos, your blog, etc..). Checkout all of the info there. I spent alot of time putting that together so I wouldn't have to explain the same things on the phone to 100 people over and over. So look through the info so you can make an educated decision. Call me (or my assistant, etc..) tomorrow after you've review the info. Fair enough?"

My theory::: If they're asking a TON of questions, they're just too skeptical/tire-kickers or they're too lazy to read the BIBLE worth of info on my websites.

If you get someone that's asking you a bunch of questions: "Listen, ((prospectname)) - these are all great questions, but marketing info, how-to -type info.. that's all given to you after you get started in our backoffice/training site... What 1-2 questions do you have that I can answer for you NOW so you can get started and get immediate access to that training?

If they try and keep you on the phone for another 15 mins, they're not ready to go. I do just like I wrote above: I feed them back in to the website w/ the info on it. Have I probably lost a few sales and a few thousand in commissions that way? Sure. But I've made it up 10x over because instead of spending my time BABYSITTING those people, I've instead trained the people on my team to go make sales.. $$$$

==> Take it from Mike Dillard, Jonathan Budd, and other leaders: you can't sponsor everyone.. and YOU DON'T WANT TO.

Sponsor the LEADERS that are worth your time... Then instead of just "adding" to your business, you'll MULTIPLY IT!

To Your Success,

Adam Holland