Archive for June, 2013

Types of MLM Compensation

Sometimes it can get a little confusing as to how you are compensated when you start and mlm or network marketing business.  Even if your upline explains it to you, you might still have some questions or confusion, so below I have tried to summarize the different types of compensation in MLMTypes of MLM Compensation companies.

In multi-level marketing, the independent agents are compensated depending on the volume they sell and/or the new agents that they recruit. It is very important to learn about the types of MLM compensation plans and choose the right one for you.
There are five types of MLM compensation:

a) Binary compensation:
It involves the application of two legs that can be run like business centers.
You sell the products from each of these legs and compute the volume of sales in each of them.
You must balance out the sales volume in the two legs. This ensures that one business center is not too idle as the other one is filled with a buzz of activity.
Compensation is based on the volume of sales per leg. This is obviously an advantage because you have two legs, and two is better than one.
b) Matrix compensation:
In this type of compensation, there is a high application of computer technology.
Compensation is based on the new agents you recruit. With a new agent you recruit, the computer searches for a free spot in its matrix and allocates them.
You can over-ride this system if you specify the exact place you want the recruit to be placed. You get compensated for recruiting.
c)Stair-step compensation:
It basically involves compensation via promotions. You must achieve a certain sales volume in order to achieve a rank.
With each promotion, there is more money.
The promotion is usually monthly, but you cannot get promoted unless you reach the relevant sales volume.
d) Uni-level compensation:
In this type of compensation, there is no promotion for agents or ranking. The company will compensate you on the number of levels.
Compensation occurs when you have a sales volume that is over and above a certain level that is preset.
The more times you sell above the set sales volume, the more money you make.
e) Break-away compensation:
Here, your business will be required to reach a certain level of success, beyond which it does not become part of your payments.
Your business will “break away” from your compensation pool.
This type of compensation is not really preferred because it could lead to the an eventual drop off or death of your business.
In order to choose the right type, make sure that it is not too complicated for you to operate. Most important of all, make sure that it is making you money.  Finally, if you have questions, ask your sponsor or the person you are considering joining.  The last thing you want is a misunderstanding when starting your new business!


What Should Be In the First Card You Send a Customer

While sending greeting cards is a super effective way to build relationships with your customers and make it easier to get referrals and repeat sales, it needs to be done correctly.  Your customers will know right away if you are not sincere in your communications with them.  Basically, this means treat them like the individual that they are and not like a number in your database.

So, what should be in the very first card you send your customer?  If you are just starting greeting card and relationship marketing, and already have a database of customers, your first card to them will be different than a card to a new customer.  For new customers,  the obvious first card should be a “thank you card”  letting them know that you appreciate their business.  What’s important in this card is that you or the sales person who handled the customer, put a personal note in the thank you card.  This does not have to be long, it can just be a line or two that is personal to the relationship with that customer.

For example, if they mentioned a vacation, something about their pet, and event their child was doing, or explained the story behind why they needed your  product or service,  make a quick mention such as

“Dear Crissy, I just wanted to drop a quick note and let you know hoe much I appreciate your business.  We could not be in business without the support of great customers like you.  I hope John had a great Tournament this weekend!  If you have any problems or questions with your widget, please let me know right away.  Sincerely, Steve”

It is this kind of personalization that builds a relationship and it also sets the stage for you to be able to send additional cards over time to ask for referrals, off discounts, inform of new items, etc.

If you already have customers that you have not started relationship marketing with, your first card will be a little different.  Your message will depend on how long it has been since they did business with you and when you last had contact.  In most cases if it is under three months, you can still do a thank you card/follow up card where you thank them for their business and ask to see if they have any questions or comments on the product or service you provided.

If you have not had contact for 6 months or more, the best way to start working with past customers via greeting cards, is to use one of the holidays to simply send them a holiday greeting card to re-establish your relationships.

It is not rocket science, put yourself in the place of your customers and think about what you would or would not want to hear, and remember no one wants to be sold or feel like they are being sold every time they see your name.  They want to feel like they mean something to you and you genuinely care, so make you message convey those feelings!


Network Marketing Can Be A Solution

I’m very grateful for my life today. That was not always the case. I was a stay at home mom We were happy but lived from paycheck to paycheck and there was never enough money to go on vacations or do anything extra.

Once my children entered school, we found the school system in our state not the best, so I went to work part time to pay for a private school for them. Once they got older, I decided to find a great full time job with benefits. I found a wonderful company within a mile of my house and took a traditional JOB.

Things were looking up and we had a little more income so we could do a little more. After about 8 or 9 years, things started to change. They layoffs started. WHile I didn’t get laid off, each week they would walk out 40 or 50 people. Because it was in the defense contracting industry, they would pay them 2 weeks severance pay, but they had to leave the day they came to tell them. Over the next couple of years, the company went from 2700 down to about 800 people, and everyone was doing the work of 2 or 3 people. I went from a fun 8-5 job to one that was more like 7 or 7 or even later, sometimes 6 or 7 days a week.

I began to search for a way out, and got introduced to Network Marketing. At the time, I had No experience or no clue if this was good or bad. I only knew that the job world was not working and I didn’t want to end up dead or dead broke.

Do you believe Network Marketing can be a solution for you as well? I never dreamed it could but found out i was wrong.

So I went to work, studied and taught myself to become independent. I made mistakes along the way but learned from them and moved to the next step and the next.

Today, my children are grown, and I have 5 grandchildren (3 in college). Because of the NWM industry, I have true freedom. I am able to vacation, and come and go as I please.

I always wanted to travel and see the world. I’ve been all over the USA, seeing many places. I’ve been to Alaska (my favorite) 3 times, on Alaskan Cruises. I’ve been to many other countries and seen some very amazing sites. As I’m sharing this, I’m getting ready to take a Rhine River Cruise thru Amsterdam and Germany.

My life is much different. I can come and go and still have an income that is much greater than back when I was working 60-70 hours a week. I have no debts. I drive the car I choose and I’m able to help others reach their dreams.

You may have heard NWM doesn’t work, but I can tell you different. It works IF you work. It does take work and effort. It does not make you rich just joining company after company. It does not work if you are not willing to work it. However If you are willing to work, it can work for you as it has for me.

There is life and hope outside the traditional JOB world. It worked for me and it can work for you if you start to dream again.


Have You Given Any Thought To Your Future?

Many people invest hundreds of thousands of dollars and 5-10 years to go to college. They graduated with a degree, and then return to get a masters degree. They work hard and come out of school with large debt, a piece of paper and get to now interview for a job and hope they will start out at a decent salary to start repaying their loans.

Have you giving any thought to your future? What does it hold for you?

What if you decided to put in the same time, invest a few hundred dollars into your business, and grow it over that time period? Did you ever think about that? Where would you be in 5-10 years?

Sure you may have a family. You may have a 40 hour job, if you’re on of the lucky ones these days. Do you truly want to live paycheck to paycheck forever? Do you have enough money to save for your retirement?

Unfortunately times have changed. Years ago people worked 40 years or so and retired with a gold watch and a great pension. Not so today. Today if you have a job, you are told be thankful and work harder for less money. Many are reaching retirement age and finding the pension they thought they had no longer exists. Many find they are laid off before they can collect anything.

What about you? What are YOUR plans for the future?

The only one that can do anything about your future is YOU. What are you willing to do to secure it? Only you have the answer.


How to Build Customer Relationships to Generate New Referrals

Everyone thinks that getting new clients and customers is the key to a successful business.  Yes, new customers are important for future growth and expansion, but what most businesses seem to do consciously or unconscious, is mistreat or ignore their current customers.  This can be a deal breaker in whether a business fails, just survives, or is extremely successful.

Think about it, every current customer you have, if you treat them right not Thanking Customers With Greeting Cardsonly gives you lifelong income for your business, but they also help you grow your business by sending referrals and giving you testimonials to help you land new clients that result in actually growth.  Growth!  Isn’t that what all businesses are looking for?

Building Relationships With Current Customers

Many business owners take current customers for granted.   They simply assume that if they provided a good product or service, that their job is done and that the customer will automatically return to them when they need another related product or service.  This is not the case.  Just because you leave a business card or a sticker with your phone # with your customer, chances are that is gone in a few days or weeks.  You might be a business that goes a step further and leaves some cool promotional item like a fridge magnet, bag clip, or pen.  This is a great first step and will keep your name and company in front of your customer for a long time, and may at least guarantee that they will call you the next time they have needs.  However, it is not enough and it will not usually result in any testimonials or referrals.

To get the all important referrals from existing customers, the lifeblood of your business, you need to build an ongoing relationship with them.  What are the easiest and best ways to build relationships with customers?

  1. Do leave some type of promotional item and your contact information.
  2. Give a follow-up call thanking them for their business.
  3. Send them an email confirmation and thank  you if applicable and you have their information.
  4. Send them a REAL thank you card within 7-10 days, thanking them for their business.
  5. Keep customers up to date by posting at least 3-4 FB posts a week, some offering specials, others asking for referrals, others just giving good relevant information or tips.
  6. Continue to send a mix of email/FB information and referral requests, as well as at least 5-10 greeting cards a year.
  7. If you are in a high end business where the products or services are high dollar, then also send a thank you gift, and holiday gifts.
  8. Always ask for referrals a few times a year, and acknowledge the customers who send them to you.

While there are many more ways to build a relationship with your customers, these are critical and they mix all the classic and new age technology and trends in communicating and building a relationship with your customers.

Seems to Complicated?

If you think that the list above is too overwhelming, think again.  First of all, almost  all of those tasks can be automated or outsourced to an office staff or even a virtual assistant at very little cost to you.  Greeting cards and gifts can be set up to go out personalized to your customers, months in advance just like email responders.  It is worth setting up these semi automated systems to build relationships with your customers and to treat them right, so that they also help you build and grow your business in a fun and stress free way!