Traveling around the world, one of the most common retorts I encounter is, “Network Marketing is one of those, Pyramid Schemes right?  When I ask, “What exactly do you mean by that?” Almost always the reply goes something like this, “The one at the top of the pyramid makes all the money.”  Perception is reality and I get that.  However, nothing could be further from the truth when it comes to Network Marketing.  The person at the top does not make the most.  It is just perception but not reality.  Dig in a little deeper and understanding will come your way quickly that it is not the case.  In fact that ability for you to sign into a viable network company gives you the opportunity to be the number one income earner even if the company is 8, 10 or 20 years old.  Many such “realities” are the case.

However, I thought you might like to see that the Corporate Pyramid truly does in fact pay the most to the person at the top.  In this HIGHEST PAID slide show, produced by CNBC and published on their website for all the world to see shows that in the Corporate world, yes in fact the “guy” at the top make the most!  So, does that mean the Corporate world is a Pyramid Scheme?  Hmmmmmmm

Glade

This article and growth demonstrates, quantitatively, that Xango Japan is growing and expanding in the second largest market in the world for Network Business.  Congratulations again Xango Japan. 

Ryan Anderson interviews Tommy Johnson days after the elite summit in California.  During the interview, Tommy explains how winners win.  Winners win because they “expect to win” and losing is not an option.  Do winners have set backs and challenges?  Of course they do but they do not give up. They stay the course and  expect to win as they continue their course dealing with challenges, adversities, disappointments, and setbacks…. but ultimately win.  Listen in and feel the  passion and conviction that 2011 has in store for those who “expect to win”.

Yesterday I returned from Tokyo Japan from attending the 2011 Kick off event with my sponsor, friend, and mentor Tommy Johnson.  During some of the down time we enjoyed some talks about our dreams, experiences, vision of the future as well as goals and aspirations.  Bob Schmidt was mentioned and we reflected how fortunate Tommy was to be taught by, mentored by and coached by the late Bob Schmidt.  I never had the privilege of working with Bob but soon after I joined Xango in February of 2009, Tommy sent me a library of Bob’s recordings.  Oh how I treasure those CD’s.

On the 8 hour trip back from Japan I listened to a number of Bob’s CD and was so impressed, yet again, at the wisdom and depth of Bob’s understanding as well as his ability to articulate in a direct and straightforward way the concepts, rigors, and disciplines of the MLM business.

With that in mind I have taken an excerpt from one of his CD’s and posted it here on my Blog/Website for you to listen to and glean from his understandings.   Pay particular attention to the “managing expectations” and how doing the correct activities, over time, will pay big dividends.

Here you go;  the incredible Bob Schmidt

My wife Cindy and I are about to hold our first English Speaking XBA (Xango Business Academy) held tomorrow through Saturday in Lehi, Utah.  We have 30 attendees there on their own dime for travel and lodging.  It is a nuts an bolts on how to build a successful network marketing business.  We are holding the event at Corporate so we have had some liaising with corporate staff to arrange this.

Evidently some word got out to the founders about what we are doing and just a few minutes ago, on the eve of us leaving to Utah to host this event, I received the following email from Kent Wood, (far left in the picture above) one of the founders of Xango:

Glade and Cindy,

I am in Australia for our Australia Leadership Retreat this week, so I’ll miss being with your group when you are in the office tomorrow through Saturday.  I did want you and your team to know that I would have loved to be there to get to know them.  I hope you have a wonderful experience and that your team uses this experience as a springboard to higher ranks in the next couple of months.

Thanks for the consistent effort that you put into supporting your team.  You are the best!

Cheering for you,

Kent

Are you kidding me?  Kent is in Australia and he somehow found out about what little ole Glade and Cindy are doing;  he writes it in his diary and then takes the time, half a world away and some 17 different time zones ahead of us,  telling us good luck and wishing he were here to share in the experience!  Are you kidding me?  Where can you find this kind of authentic leadership and genuine interest in people?  In all my years of being in business, nearly 35 of them, ONLY XANGO!  Xango is different and this is just one of a number of examples I can share!

If you are not part of Xango, perhaps you might be compelled to take a look.  Dig a little deeper and see what this company and our opportunity is all about.

Blown Away….AGAIN,

Glade

If you want to lose weight, let’s assume you cut out just one of your 150 calorie snacks or beverages each day for a year. This simple discipline would result in a weight difference of 15 pounds after one year. (150 x 365 = 54,750 calories saved, divided by 3500 calories per pound = 15.64 pounds difference.) For me, I cut out my daily Pepsi and traded for Diet Pepsi 0 calories vs 150 X several a day).
Reaching your goals is achieved by the DAILY effort you put into what you do, not by some magic success formula, new miracle product, or undiscovered Internet business. Every big success is made up of little successes, each building on the previous and compounding over time.
Formula for Life
Darren created a life formula: “Your life comes down to this formula. You’re Choices (decisions) + Behavior (action) + Habit (repeated action) + Compound Effect (Time) = Goals.” .

• Choices

Darren said, “The difference between becoming fabulously rich, happy and healthy—or broke, depressed and unhealthy is the choices you make throughout your life.” For example, the decision to make a healthy food choice, versus something we know is not healthy. One of my all-time favorite quotes by Jim Rohn is “Success comes from making a series of good decisions over time while failure comes from making a series of poor decisions over time.”
If you want to improve your life, you must improve your decisions. I believe the most important element in making good decisions is making those conscious decisions. This is when you actually consider the pros and cons of your decisions before making them. I am convinced most people float through life making decisions on the fly, with little if any thought, only to find themselves wondering why they aren’t happy, healthy, or successful.

• Behavior

What stands between you and your goal is your behavior. Darren said, “If you say you are a dedicated professional, but yet you show up late and unprepared, your behavior rats you out every time.” Do you need to stop doing things so the compound effect doesn’t take you in a downward spiral? Similarly, what do you need to start doing to change your trajectory so you are headed in the right direction? As you consider your goals, what behaviors may be sabotaging your success?

• Habits

We must establish the right habits—those that repeated over time take us in the right direction. We must look at everything we do consistently and determine if it is a habit that moves us towards or against what we want to achieve. We must create routines or systems of action that become beneficial habits over time. ( My Vision Board) Darren said, “A routine is something you do every day without fail, so that eventually, like brushing your teeth or putting on your seat belt, you do it without conscious thought. Just as investments compound over time, so do our daily actions. If they are good they take us down one path. If they are bad or destructive, they take us down a completely different path.”

• The Compound Effect

Darren defines the Compound Effect this way: “It’s the principle of reaping huge rewards from a series of small, smart choices. Success is earned in the moment to moment decisions that in themselves make no visible difference whatsoever, but the accumulated compounding effect is profound.” If you want to save money so you can enjoy your retirement, consider the compounding effect of spending $4 a day on coffee. If you choose to invest $4 a day at 8% interest rather than spending it on a cup of coffee it would result in $51,833.79 in 20 years. The same result could also be reached by making your own lunches rather than eating out. Do both and you will have saved an extra $100,000.

Patience is the Answer
In order for the compound effect to work, you need to be patient. Most of these daily changes won’t provide immediate results. If you reduce your calories by 150 today, you won’t see a difference today or even this week. The same is true with working out. You can go bust your butt at the gym and you won’t see results today or this week. These daily disciplines must be given time to produce results. Darren said, “What’s most interesting about the process to me is that even though the results are massive, the steps, in the moment, don’t feel significant. Whether you are using this strategy for improving your health, relationships, finances or anything else, the changes are so subtle, they’re almost imperceptible.”

The Upward Path

If achieving your Xango Business goals and living the life you have always dreamed of is important to you, I have three challenges for you.
1. Invite people properly to take a look at this business by using the daily calls or the CD’s (Don’t talk to much…. be a curiosity creator and then let the CD or Call do the heavy lifting.
2. Connect with your support line. “You are never a prophet in your own land” and let the support team be your expert. It’s just the way it works. Soon you will be the expert and you will then be the one doing the heavy lifting for your team members.
3. Build Belief By building for events and personal get togethers. Do not wait until “EVENTS” to bring people to hear about Xango. “The only path to success is through the continuum of mundane, unsexy, unexciting, and sometimes difficult daily disciplines compounded over time.” (see above”)

Prospects have one of these 4 key issues about joining Network Marketing.

1. They don’t have confidence in the Industry
2. They don’t have confidence in the Company
3. They don’t have confidence in the Products
4. They don’t have confidence or see themselves being successful in
this business model. They don’t believe in themselves

At an event like Omaha Nebraska just experienced, all four of these categories were addressed.  Potential partners looked around the room and they saw individuals, successful individuals, professional individuals at the room and it was not so important what they heard but what they “felt”.    Their belief level in the industry went UP.   ( An answer to #1 above)  Then, in the case of an event like this in Omaha, a company executive was in attendance.  Potential prospects were able to see hear and mingle with Company founders and executives and they are amazed at the professionalism and personalities of the Executive side or the Company side and their Belief level goes UP. (Answer to #2 Above)  Then, potential prospects hear of the fantastic products, science behind the products, and anecdotal stories of those in attendance and their BELIEF level goes UP.  (Addressing #3 above)  Finally, they see someone at these events who looks just like them having success in the Network Marketing Business and their belief level goes UP.  They say to self, “Self, if they can do it you can do it!” and their belief level goes UP.

You can accomplish more in one event than you can in months of 3 Way telephone conversations, Coffee shop meetings or alike.  Events are the validation STAMP of approval of the due diligence process one goes through.  Even if someone has already signed up as a new distributor, they still have these four questions or at least 1 of them and after a strong event, their belief level goes UP.  That is why I call these such events  BELIEF BUILDING EVENTS.  And they are critical in having success in Network Marketing.

Build for Events, it is critical for your success.

Glade

PS  ”You can’t tell people about it if you haven’t been.”  Bob Schmidt

To Buy a franchise or not to buy? That is the question!

It is no secret that owning your own business is how wealth has been created. Let me share statistics that have long been swirling around. When I was a young entrepreneur in my early 20’s (in the early 70’s) these statistics were ubiquitous for those who were selling franchises or network marketing opportunities. But, amazingly, the numbers are still (almost exactly) the same numbers as 30+ years ago.

– 100 People At Age 65 (SOURCE: Social Security Admin)
16 Are Dead
66 Annual Income Under $30,000
13 Income Over $30,000
5 Income Over $60,000
1 Only One is Wealthy

– The Wealthy 1% (SOURCE: The New Interagency: Older Americans 2000)
10% Top Professionals
10% CEO’s – Stock
5% Super Sales Persons
1% Athletes / Entertainers
74% Business Owners

Now I don’t know about you but I certainly don’t want to be dead or dead broke at age 65 nor do I want the Government, family or relatives to be burdened with my expenses as I age. Moreover, I am 5’8” tall, can’t sing and I am not one of the very, very few atop the corporate pyramid with lucrative stock options. So, as an average person with average abilities and average education, what are my options to be wealthy? The best most probable answer is to be a Business Owner.

OK, now that I realize that my best odds, my best chance at creating wealth is to be a business owner, what kind of business do I “own” or start?

If you listen to the experts, starting a small business seems to be right up there with shark-diving and base-jumping as a dangerous activity that’s best avoided. Even so, most business experts conform to a theory of “thirds”: Of all the new business startups, 1/3 eventually turn a profit, 1/3 break even, and 1/3 never leave a negative earnings scenario. According to a study by the U.S. Small Business Association, only 2/3 of all small business startups survive the first two years and less than half make it to four years. With numbers like that, it’s no wonder so many would-be entrepreneurs think twice before taking the plunge. Especially when you are about to sink into your home equity, cash in your 401K, or spend your hard earned savings or alike.

Franchises are considered a sure-shot way to a successful business. They have an established structure and reputation and are recognized for their brand value. Figures for franchises show:

* Total franchise sales in 2000 were over $1 trillion
* Nearly 50% of all retail sales are through franchises
* Franchises are currently doing business in 70 industry verticals
* 8 million people are employed by franchises in the U.S., with 5 to 14 employed per franchise
* Franchised businesses create more than 170,000 new jobs each year
* 1 in 12 business establishments is a franchise
* A new franchise opens every 8 minutes of every business day
* There are approximately 3,300 franchisors and over 500,000 franchise units in the U.S.
* The U.S. Commerce Department says that fewer than 5% of franchises were terminated on an annual basis
* According to a study by Arthur Anderson & Company (a company now out of business) of 366 franchise companies, nearly 97% were still in business after 5 years. In contrast, a study by the U.S. Small Business Administration revealed that 62.2% of all new businesses failed within their first 6 years of business

I ran across this website that I found interesting. It is a “franchise broker’s” website.

At this website you can view a plethora of franchise opportunities. Costs range from a few thousand dollars to “pick a number”.

Network Marketing or MLM
What does Warren Buffet, Robert Kiyosaki, Bill Gates, David Bach, and other financial industry experts know about Network Marketing or MLM that most people don’t know? They love and in fact are pundits for the industry when by and large, the vast percentage of Americans, and actually most parts of the world, POO POO Network Marketing? Now wait…wait a moment, is there any correlation to the vastness of poo pooing and the percentage of those who are dead or dead broke with their current “success strategy?’ Let me see…..whose business acumen do I listen to? Warren Buffett or Aunt Mildred?

So let’s compare Network Marketing with Franchising!

Network Marketing

Franchising

Financial Freedom

There is no Financial Freedom for FREE. The question is do you want to exchange your home equity, 401 K, or hard earned savings for a Franchise that costs a ton and has a 62.2% chance of going out of business in the first 6 years or invest a small amount of money in Network Marketing along with sweat equity into a proven system, with a proven company, and a proven commodity with a proven success team? What would you do if you knew you could not fail?

Network Marketing is the best business decision I have made in 30 + years or being in business. I love the business model which is 100% predicated upon the success of your team. Zig Zigglar said, “If you help enough people get what they want, you will get what you want. That is what we do.

Please touch base with me if you are open to the possibilities.

Glade Poulsen

Dr. David McClelland of Harvard University concluded after 25 years of research that the choice of a negative “reference group” was in itself enough to condemn a person to failure and underachievement in life.

Your associations are some of the most powerful factors in determining who you become and what you accomplish in your life.

The great Jim Rohn said, “You will become the combined average of the five people you hang around the most. You will have their combined attitude, health and income.”

Recognizing this truth, how do we use it to our advantage? It’s simple. If we want to advance our lives personally and professionally, we must associate ourselves with people who will be a positive influence on our lives.  Your support line in the Network Marketing Business is critical to your success.  Do they have a system?  Do they have training and support?  Are their heads in the game?

When we associate with others who have a greater skill set or have achieved more, we are challenged. It brings out the best in us and inspires us to do better. Observing and modeling someone’s positive example will help us reach new heights. This applies to everything we do.  The mentoring of your support line will help you have better communication skills, better time management skills, better money management skills, better follow up skills, better vision and direction.

Surrounding ourselves with optimistic and uplifting people has a direct cause and effect on our demeanor, confidence level and performance. It’s should be all positive!

The legendary Zig Ziglar said it best, “If you want to fly with the eagles you can’t continue to scratch with the turkeys.”

Bob Schmidt says, “Standing in a garage does not make you a car”

“Show me your friends and I will tell you who you are.” – Author Unknown

“Success comes from a series of good decisions made over time while failure comes from a series of bad decisions made over time.” –Jim Rohn

OAll the great teachers of success from Napoleon Hill to Anthony Robbins have talked about the benefits of using a mastermind team to make better decisions.  Stephen R Covey in his best selling book, “7 Habits of Highly Effective people” goes into great detail of the power of a mastermind group.  One of your avenues for success in the Network Marketing Business should be your support line. Your upline leaders should have already achieved what you want to achieve.  Been where you want to go and thereby giving your clear and concise directions, instructions so as not to waste your time, your money, your energy and most importantly your relationships.  Use this valuable resource and the beauty of the MLM business is that there is a financial incentive for your support line to help you, guide you  and direct you along this path.

Benefits of a Mastermind Team

Napoleon Hill said, “No two minds ever come together without a third invisible force, which may be likened to a ‘third mind.’ When a group of individual minds are coordinated and function in harmony, the increased energy created through that alliance becomes available to every individual in the group.”

Choose your support team or your mastermind group wisely.  It will have a profound effect on your success in the Network Marketing business.  In my blog Network Marketing Revealed, I mentioned there are 5 key elements required for success in the Network Marketing Business.  This is Key element number 5.   All five of these key elements are required for success.  One is not more important than the other.  Just as all four tires are required for operating a vehicle safely down the road at 70 MPH, so are all 5 of these key elements very critical to your success.

Here again are the five blogs outlining my views and experiences and professional opinions on each of the five elements:

1.  Company

2.  Products

3.  Timing/Trends

4.  Compensation Plan

5.  Training and Support

I hope you have enjoyed the overviews on these 5 key elements.  A lot of thought, effort and especially experience have gone into these blogs.  I would greatly appreciate your comments and opinions.

Take the time to carefully evaluate your business decision.  Done properly with the right company, right products, right timing and trends in place, with the right compensation plan plus the proper training and support you will have one incredible journey and achieve the lifestyle, time freedom and personal growth of your dreams.

All the best,

Glade

Nonetheless, during my 13 years of full time work with just one company in this Network Business we were subjected to a number of compensation plans: 1. Breakaway 2. Unilevel 3. Hybrid’s and then back to Breakaway. Plus, in practically every country there were iterations of our own compensation plan adding to the confusion of, or the implementation of, these different compensation plans. This gave me a lot of experience in not only earning a living by them but also teaching others how to earn and build using different compensation plans and variations thereof.

This much I do know, because I have personally spoken with compensation plan software developers and founders of MLM companies, and they all say the exact same thing; “compensation plans are engineered to “forecast” or predict an actual payout or expense line item to and for a company’s profit and loss statement.” In other words they will design a compensation plan and hope that the actual expense or cost to the company will not exceed a certain amount. One of the first questions software engineers will ask company CEO’s or founders is, “How much do you want to pay out?” and then the software engineers will begin working their actuary magic to compose restrictions or qualifications for the distributors and “predict” what the masses will do, the rain makers will do; based on behavior and thus come up with a “theoretical pay out”. And this is where the fun begins in deciphering which compensation plan pays out the most or which compensation plan in the network marketing business is the most lucrative. Herein lies the great debate! Herein lies the great mystery! Herein lies the TRUTH and most people have no clue what questions to ask or what the compensation plans really pay!

Let’s take some time to reverse engineer or expose some of the mysteries of compensation plans, according to book of Glade Poulsen.

“UP TO”. Our compensation plan pays UP TO 67% (or whatever % ….they all vary but they usually have a pretty high number) What a joke. NO company will EVER pay the UP TO portion of the compensation plan purported.  They would go broke. There simply is not enough money to pay that high of a percentage. PURE AND SIMPLE! There are a number of public listed companies where the financial data is available. We get “the truth” or reality from these numbers. Amway, the granddaddy of all Network Marketing companies, Nu Skin, Herbalife USANA and others are public listed companies where the financial data is available. (Amway was publicly traded for a short period of time in Asia and that is when their financial data was available for public purview) In MOST cases of the publicly traded companies the UP TO is in reality 28-44% and not the High 60% or the 70% that is talked about! Breakaway, Binaries and most every compensation plans BANK on, hope for, have planned on and will in fact change the requirements of the compensation plan if they exceed the (on average) 34-40 % actual payout. This personally happened to me a number of times in my 13 years with the one company I was with. Every time the company ended up paying higher than what the software engineers had “planned on” or engineered and the founders were paying in excess of that “hoped for number” they changed the compensation plan. This we deadly to the distributor force. They lost confidence and trust in the company every time they changed the compensation plan.

Here is a true statement and one that brings the IRE of company executives and you can quote me on this; “I have never seen a major compensation plan change that benefits the distributor! It is always to improve the bottom line of the company taking money away from the distributors and adding to the profitability of the company.”

“Breakage” The difference between the theoretical payout or the UP TO and the ACTUAL payout is known in the Network Marketing Business as breakage. As stated, companies plan on, bank on, hope for and in fact watch to insure breakage keeps their margins in tact.

CV (or commission-able volume) versus Actual dollar value of products. Let me explain. Let’s say you are buying a product for $100.00 (actual dollar paid for the product) but the CV or the point value or commission-able volume is 80. You paid $100.00 but you are only paid on the 80! Let’s say that the actual payout was 40% of a company (which is one of the highest in the industry of public traded or public listed companies) 40% of the 80 is $32.00 In reality that is only 32% of the $100.00 you paid. Here again is another way companies “play with the numbers” and in reality only pay out 32% of the actually $100.00 paid. What if your company is a Binary and only paid 32%. Example. 32% of 80 is $25.60 or in reality $100 paid out and $25.60 paid to the distributors or 25.6% ACTUAL payout for $100.00 paid!!!!! Highly profitable for the company. (see number one below)

In my Blog How to Choose a Network Marketing Company I stated there are 5 Key elements required for success in the MLM or Network Marketing business.  The number 4 key element is Compensation Plan. That is what I am talking about today. In his blog, John Godzich explains in detail about Binary compensation plans. I totally agree with John Godzich and Doug Wead on their View of Binary compensation plans. In fact Binary compensation plans are illegal in many countries around the world. They are deemed impossible or improbable for most people to build and therefore just a few distributors, key distributors, make a lot of money and the company ACTUALLY pays out less than 35%. Binaries become very profitable for a few key distributors and highly profitable for the company but very unfair for nearly all distributors. The appeal is that it seems so easy to build a Binary. “1/2 of the work is already done!”  “All you have to do is build one leg!”

According to the book of Glade Poulsen,  I believe there are some key elements that make a compensation plan FAIR and attainable to whatever level of income you choose to pursue:

1. A true ACTUAL pay out that the company and distributors know! No breakage, No High Actual price paid and lower commission volume (CV)

2. Fair to the part time distributor. In actuality, 85% of distributors for a Network Marketing company are part time participants. However, most compensation plans are written, designed for and pay according to a full time, rain maker activity level. This kind of compensation plan makes it very difficult for the part time participant to “get to the money”.

3. Rewarding to the rain-maker. Whilst most compensation plans are written for the full time person it is tricky to have a compensation plan that rewards the part-timer and also rewards the hard working, rain-maker distributor who works so hard and pays a price that most are not willing to pay. There have to be function or reward to the Rain-Maker.

4. Fair to the late comer. Shame on us if it is only good for us getting in right now. What about those who join us 20 years from now? In my opinion, there must be something that rewards or is fair to those who join us later on. It may be more difficult but if they get there, they share in the overall growth and development of those who went earlier and paved the way. (Global Bonus Pools)

In my humble opinion, Xango addresses all of these key elements.
1. A true 50% pay out. No up to! 100% of the 50% is paid out through dynamic compression
2. No Breakage again via dynamic compression
3. Nearly every product is 100% CV 1$ for 1 CV
4. Dynamic Compression, Fast Start Bonus, 50% payout and Global Bonus pools make it fair for part-timer, rain-maker and late-comer.

There you have it; My 17 years experience in the Network Marketing or MLM business experience around the world and literally hundreds and hundreds of conversations with people from an plethora of companies. I hope this help you in deciding or in your due diligence in determining what opportunity you would like to align with. You would never go get a job working for a company and not know what your pay is? How you get paid? What are the qualifications of getting paid and alike?

Nor should you in the network marketing industry.

Now, add to that puzzle the third component necessary in choosing the right opportunity in the Network Marketing business, Timing and Trends, the air begins to be very thin when it comes to the opportunity or company that you are going to spend your time, your resources and your hopes/dreams too.

Allow me to elaborate a bit on why Timing and Trends are important in your choosing the right opportunity  when added to the prior 2 components listing in my blogs 1. Network Marketing: How to choose a Company 2. Products in a Network Marketing Company are Critical.

In real estate the three most important aspects of real estate are always coined “1.  Location 2. Location 3. Location.”  In business it could be said that three key components of business are:  “1.  Timing 2. Timing 3. Timing.”  Whilst it is not the only thing, it is very important to be in front of timing and trends and not getting involved after the trend, product or service is popular.  When it is popular, it is already too late.   There are 6 primary trends in society today that are driving our industry, in my opinion.

1.  Lifestyle Revolution

2. Self-Employement Revolution

3. Direct Buying Revolution

4. Social Media Revolution

5.  Wellness Revolution  (Anti-Drugs)

6.  Going Global

Let’s look at these 6 quickly to explain why I believe Xango is positioned right in front of these 6 Powerful trends/timing aspects and why Xango is the right vehicle at the right time with the right trends pushing it ahead.  (like walking on a moving sidewalk…you can move quicker with less resistance ilo swimming upstream)

1.  Lifestyle Revolution:  Creating a better lifestyle is a new focus.  People are wanting to work when they want to work, where you want to work, with whom you want to work with and work as much as you would like.

2.  Self-Employment Revolution: Robert Kiyosaki in his book, “Rich Dad Poor Dad” really brought to light how building an asset for yourself vs building someone Else’s dream (working a JOB) to the masses.  The Job paradigm of going to school, get a good education, get a good job and your employer will take care of you is bologna.  The realities of; right sized, down sized, re-engineered has effected millions and left many with no income, no benefits and no further opportunities.

3.  Direct Buying Revolution:  We no longer have 3 major TV channels to advertise to us.  The advent of the Internet has given us instant information and access to “the world”. Wall Mart, Costco, Dell Computers, Ebay and others have changed our buying habits.  We now know we can go direct and cut out expensive middleman expenses and end up with a product that is higher quality for equal to or better than “retail” prices.  Madison Avenue is going nuts over this and the internet is winning.  Buyer Education and word of mouth advertising is winning.

4.  Social Media Revolution:  Look at Facebook, Twitter and alike.  People are connecting and person to person relationships are stronger than having a Sport Icon tell you to buy a particular golf club or anti-antiperspirant. We spend our time communicating via social media and less time in front of TV.  Or, when we do watch TV it has been recorded and we “fast forward” through the commercials.

5.  Wellness Revolution:  A trillion dollar industry was born nearly a decade ago.  We would rather do something all natural vs taking a drug.  More and more consumers are taking personal responsibility for their own wellness ilo trying to find a cure.  The best way to cure a disease it TO PREVENT IT!

6.  Going Global:  From the comfort of your own home, you can build an International business with the right Network Marketing Business.  What else you going to do?  Start a Toaster Manufacturing Business and outsource it in China?  You can make more money, with less people in less time with Xango than any other Network Marketing Company.

In summary it is imperative to be associated with a company who knows what they are doing, seasoned in the Network Marketing Business,  have a Network Marketing Business DNA, Have vision plus all those other items I discussed in my previous blogs on company.  They must have products that are unique, exclusive, consumable,  and something people want or are looking for appealing to the masses.  Moreover, you must be involved with a company and product that appeals to the 6 key components of the significant trends/timing that affect our society today.

In my opinion and experience, Xango offers the opportunity to make more money, with less people, with less effort than any other Network Marketing company in the world today; in my humble opinion.

To give my views and perspectives as to what 5 key criteria to look for in the Product category let me begin with number 1. Consumable products. Many companies have as their “product” a service or a non consumable item.  In my experience and history of the top longest lasting companies in the industry,  never, not once, has one of these companies been a service company; such as a  Telephone service company, Utility or Power company, Internet service, Insurance, Travel or alike.  Nor has it been a company selling a non consumable item such as a magnet, a bed, phone device, vacuum cleaner or similar.  In my opinion, It must be  a consumable product where daily, weekly, monthly, annually  the Network Marketing distributors are using and consuming these products on a daily basis.  This creates a true residual income where individuals and families have product loyalty due to their own personal belief or experience with this product.  People have no product loyalty to a service.  As soon as a similar service is a few cents cheaper, they switch to another carrier.  However,  with a consumable product, they have product loyalty.  Just try getting someone to drink a Pepsi Cola who is a Coca Cola drinker or vice versa.  Or, Best Foods vs Miracle Whip!  You get my point.  2.  Proprietary or Category Creating products are critical or better yet, both.  Having the exclusive marketing rights to a product customers can not get anywhere else but through your network marketing network is crucial to a Network Marketing business.  If the product is not unique, patented, or proprietary and can get it anywhere, why would you buy it from your company where it is a little less convenient.   3.  Health and Anti-Aging related products.  The baby boomers are the biggest spenders on Health and Anti-Aging products all over the world.  They hate getting older and refuse to accept they are not 29 any more.  They like spending on keeping their energy levels high, active lifestyles, anti-aging and glamor products as well as nearly any wellness products.  4.  If your product is a beverage, it MUST taste good.  Kids, young adults and even Adults will not consume  the products if they are medicine tasting.  5 All natural, non- toxic, Non-Carconogenic=GREEN This is a hot hot topic and fastest growing sector within the health and wellness category.  Billions will be spend on “Green” products in the future.

Also very important in the product sector is to be aligned with a company that can consistently bring new, innovative, category creating, proprietary products to market.  Many companies are birthed with a good product but sooner or later that product becomes somewhat mainstream and loses its appeal.  Will the company? Does the company? Can the company?  re-create itself with new opportunities for the distributors.  Apple is a great example of a company that is innovative and brings new opportunities to market.  Find a company, like Apple, in the Network Marketing arena along with a company that has the DNA or profile as I described in my blog Network Marketing; How to Choose the right Network Marketing Company and you have 2/5 ths of the puzzle solved.  Your picture (solving the puzzle of which Network Marketing opportunity is best for you) of the right company with the right products is now becoming more clear.

As I stated in my blog titled, MLM Marketing Revealed it really depends on 5 key components required for success in the Network Marketing industry.  1.  Company  (which we are writing about in this blog 2.  Products 3.  Trends and Timing  4. Compensation Plan  5. Training and Support.

Below I will list what history has shown are key indicators and or profiles of  the “DNA” of successful long term companies

First: Let me tee this up with the surreal statistic that somewhere north of95% of all businesses fail in the first 3-5 years. Business is tough so one of the first indicators when choosing a sustainable, quantifiable and verifiable business opportunity is the question, “ Is the company a start up?”  When you have a 95% chance a new company will NOT be in business, it begs the question, “Why do I want to risk choosing this company when there is a 95% chance it will not be around 3-5 years from now?  Does that sound like a good business decision?   Do I want to put time, effort, money, capital, relationships at risk with a less than 5% chance?  Second: What is the Vision of the company?  What is their objective?  Where do they want to go?  Be? Achieve?  Are they starting up just to go public and make a few insiders + the founders a lot of money and then cruise around on their yachts leaving a bunch of distributors wondering what happened to THEIR dream?  Third: Do they have the financial strength to bring new products to market and give  the distributors new opportunities, new market niche’s and provide ongoing opportunities with real, viable, and needed products?   Fourth: What is the experience of the founders/owners of the company?  Do they really understand Network Marketing Business?  This is a very unique dynamic business model but if the owners/founders of a Network Marketing business do not like the distributors, the personalities of a large group of distributors or partnerships with Company/Distributors…..then it will be a company that will continually be at odds with their distributor force!  Fifth: Is what commitment do they have to being innovative from a product perspective?  What commitment do they have to bringing proprietary products to market?  Is it just another “ME TOO” kind of company just jumping into the business to take advantage of an industry of growth?

These are 5 key questions or profiles of a company to look at as you do your due diligence and deciding if you want to participate in the Network Marketing business.

1.  Is it a Start up?

2.  What is the Vision, Objective of the company?

3.  Are they financially viable?  Financially prudent?  Fiscally responsible? (Not flamboyant and playing money games!) Debt Free?

4.  What is the experience, resume and background in the Network Marketing industry of Owners/Founders

5.  Is the product offering Unique, Proprietary with broad mass market appeal?

When Cindy, my wife, and I went in search of a Network Marketing company to join after 16 years and many great experiences in the Network Marketing industry with 2 other companies we used this criteria to anchor our belief, trust and confidence in Xango.  Xango is that type of company with nearly 8 years worth of business track record proving that they can manage the growth, finances, and bring new products, significant products and opportunities to market. The company was founded by 6 Visionary men with over 100 combined years experience in the MLM industry working both sides of the equation,  some from the distributor side and some from the corporate side.  Seasoned Sr. Management who have already managed companies or divisions doing 1 Billion in sales.  They know what a billion looks and feels like and I like that.   1 million sq feet in distribution and warehouse space, 300,000 sq feet of office space on a 30 acre corporate campus that they OWN, not rent.  Some MLM companies (in fact MOST)  show pictures of their  corporate high rise offices with their name on it, BUT they lease them. They could close the doors and be gone over night.  Not Xango.  They are investing for the future.  Now doing business in 34 countries with on the ground operations in 8 of those countries with a total of 600 employees worldwide. Xango is just getting started and their goal is to be the largest Wellness Company in the World.

In summary, pay attention to all five components, 1.  Company, 2. Products, 3.  Timing and Trends, 4. Compensation plan 5. Training and Support..  they are all very important and next I will write on the importance of Products.  How to evaluate products in chosing your Network Marketing company.

While politics and religion are close to most everyone’s hearts, those in MLM Marketing, MLM Systems, or MLM Companies become passionate about the choice they have made as a business, a crusade or purpose; they suddenly are an MLM expert full of passion and advice and standing for something.  Don’t stand in their way or you will get mowed down.

I quickly want to give my position on how to choose  MLM companies or MLM opportunities based on 17 years involvement in the industry and 14 of those years full time.  This is how I have made my living, paid my bills, supported my family, sent my children to college etc. etc.  So, whilst I am still learning, still earning and still hoping to learn more today than I knew yesterday my days have been full of experiences.  Moreover, I have been so fortunate to travel to over 20 countries, built large organizations in Japan, China, Hong Kong, Taiwan, Korea as well as the No. America.  My passports (the last 2) have been filled with insert pages twice each passport.  I am a million mile traveler with United Airlines and that is just one airline I have used.

These are the key elements required for success in the MLM Marketing business.  These elements are not for debate.  They ARE the key components necessary for a long lasting, predictable, sustainable MLM Marketing business.

1.  Company

2.  Products

3.  Timing/Trends

4.  Compensation Plan

5.  Training and Support

When most MLM Marketing experts are explaining their opportunity, they will take time and address these, or an iteration of these, 5 key elements.  They will talk about why their company, why their products, how they are in the perfect storm of timing and trends, how their compensation plan does this or that, and finally why their team is the biggest and the best.

In most cases these companies, or better said, these opportunities have one two or maybe three pretty good and compelling “stories” centered around the 5 key elements but 1, 2, or 3 is not enough.  You will only have 1/5, 2/5 or 3/5 of the secret to be successful.

The debate or “the choosing” of the right MLM company is contingent on you finding the best opportunity out there, TODAY, that has the best combination of these 5 key elements required for success in place, at this time, in this moment, with a vision and understanding of; 1. How to run a successful company, 2. How to have or generate new and compelling product narratives with products that people want, need and are willing to buy, 3. The compensation plan must be straight forward, easy to explain, fair to the part timer, fair to the late comer and attractive to “rain makers” 5.  Finally the training and support is critical to the success of you and your team members you attract.  In many cases, these presentations are called MLM systems.

When you do your due diligence and you use these criteria as a guide, you will not go wrong.

My next 5 Blogs will be drilling deep into these 5 key elements, one item at a time, and giving you my views, my opinions and experience of how to analyze each of these 5 key elements, one by one, and so by the end you will have my measuring stick, my criteria of these 5 critical, crucial and ever so important elements described in detail so that you too can be an MLM expert.

• If you don’t know where you are going, all roads lead there!
• If you don’t know where you are going how do you know if and when you get there?

These are basic elementary truths and lead me right into the what Stephen R. Covey details greatly in his book, “Seven Habits of Highly Successful People” , habit number 3, titled “Begin with the end in mind”

In his book “Seven Habits of Highly Successful People”, Stephen R Covey states that many people climb the ladder of success only to find the ladder was leaning against the wrong wall.  He writes, “We may be very busy, we may be very efficient, but we will also be truly effective only when we begin with the end in mind.”

To succeed, Covey suggests visualization.  He points out many of our greatest athletes utilize visualization.  Covey writes: “You can do it in any area of your life.  Before a performance, a sales presentation, a difficult confrontation, or the daily challenge of meeting a goal, see it clearly, vividly, relentlessly, over and over again.  Create an internal ‘comfort zone’.  Then, when you get into the situation, it isn’t foreign.  It doesn’t scare you.”

Before an airplane can leave the airport, the pilot must log the exact flight plan documenting departure time, final destination, altitude, and even which mountain he/she will pass.  We, like that pilot, must determine our end goal, our vision of where we are headed, and what we want to accomplish.

I have found that using, what I call a Vision Board, is extremely helpful.

Vision Board

Clearly defining your vision and relevant current reality creates shared vision with accountable action steps that align the efforts and energy of your support team.  Each week, your Teacher will help you to define and create accountability around the action steps to be completed.  They will email the action steps to you, and your Mentor and your Coach will be copied so they can participate and encourage you along your journey of fulfilling the action steps necessary to lead you towards your desired result, your goal, your destiny.

Shared vision is not emotional tension; it is synergistic energy.  Emotional tension occurs when there is no clearly defined end result or current reality and when action steps have not been identified and acted upon.

Develop your Vision Board.  Visualize what you want to accomplish with Xango or anything in life!  It could be a successful bake sale, a 3.75 GPA this semester or whatever you want to “begin with the end in mind.”  Be very honest with the current reality and then understand what action steps you must take in order to achieve your goal.  This entire process is called the “Creative Process.” (Creating your own destiny)

End Result

Define your 1-year vision of the monthly income stream you want to create from your organization.  Why is this income stream meaningful to you?   Is it worth the investment of 3-6 hours each week?   What is the amount you would need to save and invest at 5% to generate a similar monthly income stream?

EXAMPLE

• Achieve Premiere Status in 1 Year      Due Date 2/16/2010
• Earning $6,000.00 a Month of residual Income     Due Date 1/30/2010
• Become 20 K with first 90 days of signing my distributorship    Due Date 5/16/2009
• 2 Invites a day for first year             Due Date 2/16/2010
• 3 ABC’s week for first year   Due Date 2/16/2010
• 4 Front Line Partners a month for first year    Due Date Monthly end of month /year
• Attend Global Convention
• Attend Super Saturdays at least every quarter
• Feed my mind ½ hours a day with Xgopro CD’s

Current Reality

Looking at each point that you have in your End Result, write down where you are in relation to it today.  What do we have, and what do we need to learn in order to create our desired End Result?

Example:

• I have a support team that is committed to teaching, mentoring and Coaching me to help me achieve the 1- and 3- year visions I identified as meaningful to me.

• I am committed to organizing my life so that I can invest 3-6 hours each week to create my organization.
• I understand the structure for creating a strong working relationship with my Teacher and am confident I can teach this competency to my future business partners.
• I’m ready to learn the competency of selecting and leading potential partners through the business evaluation process.

I’m ready to learn and practice the competency of selecting, inviting and supporting a small customer base.

The Vision Board defines the structure of the creative process.  Please have this page in front of you as you work with your Teacher.  As you create your organization, you and your team will always use this structure.

ACTION

Engage in 2 a day every day: “Become a talent scout, not a recruiter”
Bob Schmidt teaches us that there are only two things we do in the business, “Recruit and then get people started correctly.” In order to attract prospective partners, we engage in the two a day every day attracting activities.

• (Listen to Doug Wead CD 27 titled “Building Teams”
• (Listen to “Art of Recruiting” by Bob Schmidt

2 a day every day (invites) is the backbone, the driving force, the fuel that drives the engine of our business.  Without taking action, nothing gets done.  If we learn the skill of these 5 key actions, we will not only build a legitimate business but we will also be able to teach others how to do them.  This is a systematic approach not a personality driven approach to building your business.
In the airplane during the taxi out before takeoff, the flight attendants always say that in the case of an emergency, the oxygen mask will drop down, and then – this is the key point, which I have always thought odd – to place the mask on yourself before you help someone else.  In other words, if you are not able to breathe, you cannot help others.  Similarly, when you are doing – actually doing – these activities, you will be putting the oxygen mask on yourself first.   Then you can teach your partners what to do and how to follow these key steps, once they join you.
Remember, the skill to do comes from the doing.  It’s just like riding a bicycle: you did not just get on that bicycle and ride smoothly on your first try.  In fact, I would bet you fell down a time or two and probably skinned your knees or elbows.  However, by being persistent and learning the skill of balancing and pedaling at the same time, you became proficient at riding the bicycle.  By doing these activities, using the “Action Steps” center portion of the Vision Board, doing, analyzing, adjusting, and doing it again…you will learn these critical and important steps.
One correct activity leads to another correct activity.

“Knowledge will not attract success, unless it is organized, and intelligently directed, through practical plans of action, to the definite end. Lack of understanding of this fact has been the source of confusion to millions of people who falsely believe that ‘knowledge is power.’ It is nothing of the sort! Knowledge is only potential power. It becomes power only when, and if, it is organized into definite plans of action and directed to a definite end. This “missing link” in all systems of education may be found in the failure of educational institutions to teach their students how to organize and use knowledge after they acquire it.”   Napoleon Hill, “Think and Grow Rich”

Call to Action.  Engage in the process of completing your VISION BOARD so that you can begin with the end in mind.  It has been said that “if you don’t know where you are going, all roads lead there.”