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The Questions I Ask (and the Criteria I Use) To
Judge a Network Marketing Company
3. HOW DEEP DOES THE PROGRAM PAY?
Be careful: when it is said that
a particular program pays "5 levels deep", for example, it may only mean
5 levels of individuals, while in another program it may mean 5
levels of leaders (and generations of groups) -- no matter how
far down line the first 5 may appear -- and this could easily turn
out to be 30 individuals deep. It's mostly the matrix programs which
refer only to individuals when they indicate depth, and the breakaway programs
which refer to leaders and groups.
It's amazing how different programs
attract entirely different types of people. Often enough, the deeper a
program pays, the higher the quality of people you're likely going to be
working with (and are going to be able to attract to it) over time. The
best people want to work only with others who exemplify high integrity,
great goals, and far-sighted vision.
Deep-pay programs tend to have
real products with real benefits, real markets to serve, and a real company
run by dedicated people -- people who know that anyone can recruit a bunch
of get-rich-quickers or flashes-in-the pan, but it takes a special kind
of person to find and develop real producers, which is a lot harder. They'll
know that to build a solid, long-lived company they must attract people
who have a grasp of reality, a long-term vision, a perspective of time,
a consistent work ethic, and stickability -- with a deep pay program which
results in enormous financial rewards for LOADS of dedicated WORK.. Incentives
count.
Shallow-pay programs may pay out
more at first, but of necessity the maximum payout MUST level off at MUCH
lower levels (There are only 100 pennies in a dollar, Vern). So your best
people will leave eventually, and THEN who've you got? No one interested
in (or capable of) driving a line deep, that's for sure. Shallow-pay programs
have too few upline leaders (and almost none with real vision) who have
an overlapping, vested interest in training, motivating and overseeing
any one particular distributor. Thus higher (that's right, Fern, not
lower!)
attrition rates, mistakes, misrepresentation, and especially, misdirection
crop up way too often. Then the network unravels from the bottom up.
Certainly, deep-pay programs usually
take more real work over longer periods of time to achieve the big checks,
but once achieved, they tend to be perpetual. The get-rich-quickers avoid
this kind of (WORK?!!) program like the plague -- and that's a blessing
in and of itself. While shallow-pay programs may be fine for part-time
retailers, the deep-pay programs offer the only realistic prospects for
richly rewarding those who work with dedication and persistence for years.
Copyright 1991, 1993, 1995, 1997 Richard Gaber http://www.FreedomKeys.com/1stepindex.htm
All rights reserved.
Besides, it isn't worth doing a
shallow-pay program as a partnership, while in certain deep-pay programs,
partnerships of people who complement each other synergistically can often
go twice as far in half the time and earn ten times as much as if they
went in separately.
Programs that pay on 3 or 4 leaders
deep are usually better than those that pay on 6 or 7 individuals deep,
and programs that can pay 4-5% -- down 5 or 6 levels of leaders (and on
their groups, of course) could turn out to be the best opportunities in
the long run. There are exceptions to this rule, and those would
be deep-pay programs which have little or no continuing group volume requirements
for maintaining leadership status, have boring products, declining or uneven
override payouts (and therefore, lopsided oversight incentives), or violate
any of the other criteria. In the cases of little or no continuing group
volume requirements, your volumes WILL fade away as most "leaders" need
only rest on their laurels. This is a very serious problem with such programs
because it's so very hard to see. Remember this well: one (seemingly) exciting
company which did $520 million fell to $91 million 7 years later, so slowly
that noone believed it had to keep worsening except for those few who recognized
the booby trap: the tiny ("easy!") group volume requirements.
The standards for leadership maintenance
requirements which work have been established by the oldest, most successful,
still-growing companies as being in the $3-$11,000 per month range (at
wholesale). After all, it would take 2,000 $500/month groups to equal the
production of just 200 $5,000/month groups! Even being pessimistic, figure
out how many supervisor-groups you could have after say, 12 years of development,
on a mature 6th level. You'll see that that generation can produce 83%
of your total volume! We know of one veteran who'd be making $700,000 a
month instead of his $30,000 if only his program paid 5% evenly down 5
levels instead of uneven rates down only 3!
Now for the bottom line: Most programs
are lucrative only in theory. Very few are lucrative in fact.
So
find out how many people have reached (and are still reaching) the top
achievement levels and how much they really earn. CAUTION! In programs
where the leaders have to pay their downlines they habitually talk about
what they gross, not what they net. Be highly skeptical of those
making most of their money selling sales aids and, especially, of those
enticed from other companies and/or subsidized. So forget the "top producers";
find out what the average earnings are for the highest level with AT LEAST
100 distributors in it. It should be over $500,000 a year to be competitive
today.
Copyright 1991, 1993, 1995, 1997 R.Gaber http://www.FreedomKeys.com/1stepindex.htm
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