Recently, iLearningGlobal, a premier personal development network marketing company, made the decision to change their compensation plan from a network marketing compensation business model to a pure commission-based sales structure.
Occasionally, personal development network marketing companies have displayed a tradition of rapid growth at the onset, a change in compensation structure in a few years and then finally closing their doors or completely removing their network marketing business model all together. For example, companies such as Financial Freedom Society and Success University suffered similar circumstances. Unfortunately, this step is not all that uncommon in the world of network marketing. Companies actually plan for this event. Yes, they do anticipate this occurring and make sure that there is language in their Policies and Procedures (“P&P”) that covers their “you know what.” The groundwork for this shutdown is clearly spelled out in the P&P’s that are presented to every representative when they sign up with the company. The problem is that very few network marketers ever read the P&P’s of their company BEFORE they invest their time, money, effort, heart and soul.
The hard work the distributors put into building their teams vanishes because the testimony as to how important the distributors are to these companies was merely propaganda. The first priority of the people in charge of these companies was not to its distributors, as they had purported, but to its “bottom line.”
If your only source of income is derived from your primary MLM business, you stand to lose your entire income if it ever shuts down as in the case of iLearningGlobal. Given the unfortunate situation for the distributors in these companies, with the overnight loss of income, how can a person protect himself or herself from such a fate?
There is a way to avoid this disaster.
The answer is to create your own “personal” leverage. Personal leverage is a business model that is based around YOU as an individual. In essence, you are creating your own “company.” You are focusing on your specific talents and skills as a leader, mentor and trainer in the network marketing industry rather than what network marketing company you are promoting.
The key is, as a leader, you have the trust and are in the position to teach your team how to build a sales funnel on the front end of their MLM business which allows them to build passive and residual income from the 95% of people who will never join your primary business. Experienced network marketers may have even developed their own information products that they sell for a profit or just use it to build a team of network marketers. When your “company” is focused around you as an individual, you’ll never have to worry about what will happen if the network marketing company you chose to be part of decides to close the doors on its distributors.
It is an absolute MUST that all network marketers and home business entrepreneurs protect their financial livelihood because no one else is going to do it for you. It is important that you never put all your eggs in one basket, study the history of the network marketing industry, join a company with a history and track record of success and actually READ the company’s P&P. As you “brand” yourself and have grown as a leader, mentor and training coach, you can then discuss with your team which other network marketing companies out there are the best fit for everyone. With this business model set up, it’s very easy to plug another company seamlessly in its place.
Want to learn how to rebuild your business from this major tragedy and protect yourself from this catastrophic turn of events in your life?
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