16 Easy Lead Generation Techniques That Works

Any of the comments that I hear the most from clients, professionals or local business owners, is that they don't get enough leads to grow their malaysia mlm software on a regular basis.

But when I find out what lead generation techniques they are using, most answer that they usually send e-mails, give a telephone call, sometimes have a newsletter, see networking (but don't follow-up effectively) and stop there. And they are surprised that their business is not growing. Well, they use three or four lead generation techniques, but if you are using 10 or 15 lead generation techniques, you definitely will get more chances to turn your leads into clients.

Here are 16 easy lead generation techniques to turn more contacts into clients:

1. Exchange links with other entrepreneurs or websites that have the same target audience as you, but are not your competitors.
Through this, when people visit their websites, they see your link and pertain to check your website, which will bring you more traffic.
2. Have a prospects box on each page of your website.
You never know when a visitor will decide to get your newsletter. It is very important that you put a mailing list box on each page.

3. Offer a free report or a free mini e-course.
Having a mailing list box on your website is one thing, but to get sure people will actually join, you want to offer them something that will interest them, something that will inform them and enable them to solve one of their problems.

4. Send a newsletter.
Okay, people will hire in order to get your free report. After that, it is your job to tell them more about your business, for build a relationship with them. Statistics show that people who don't buy immediately will buy in the next 12 months. You need to make sure that you are always on the top of their mind, so when they are ready to buy, they will buy from you.

5. Use auto-responders to automate your website.
Set up a series of information messages about your products or services, and the benefit of using them. The messages will remind them about your services and, more importantly, remind them to come back and buy again from you. This series of follow-up messages will reinforce your relationship with your contacts.

6. Use software like "Act" or "Outlook" to automate your follow-up system, with people you met or who are already your clients.
Set up the different follow-up messages you want to send to people, then each time you have a new client, just enter his or her name, and the software will remind you what to do and when to do it.

7. Send "Thank You" notes to your clients after they buy your products or services, and send them a card few weeks later with a special offer on their next purchase.
Keep the relationship going. In this age of technology, sending a handwritten "Thank You" note makes you stand out from the crowd. You want to impress your clients or contacts, and want them to remember you.

8. Ask your clients for testimonials.
Testimonials from satisfied customers are typically the best way to promote your business, and it doesn't cost you a thing. Stop selling and let your clients do it for you.

9. Write articles and post them on Articles Directories.
Writing articles is actually one of the best ways to get free exposure. Each article is a way to share your expertise with people, and again, to give a sample of what you do and how you can help them.

10. Publish a press release each time you have a new product.
As with the articles, it is a way to get free exposure and inform people, and the press, of what is new in your business.

11. Organize events, seminars, and teleclasses and promote them online.
This is another way to get free exposure, so even if people can't come to your event, if they are interested in learning about it they will check your website, and sign up for the newsletter, to be informed for the next time. Plus each attendee is a new lead.

12. Do public speaking.
Schedule a public engagement every month or on a regular basis, so other organizations will promote your products and services to their newsletters and subscribers.

13. Offer a free consultation.
Again, people don't buy from people they don't know, so offering a free consultation breaks the fear. During the consultation, they will see how you can help them and the benefit of working with you.

14. Have an Affiliate Program so other people can sell your products and services.
Just because you are a solo entrepreneur or a solo professional, you don't have to do everything on your own. Having an Affiliate Program is the easiest and fastest way to increase sales and greatly increase your profits. It is like having plenty of salespeople working for you, FOR FREE. The more affiliates you have, the more access you have to thousands of people, who will see your products or services on somebody else's website or newsletter. You are not the only one to promote your products anymore, you have a sales force. Your affiliates promote your products or services for free and you don't pay them until they generate a sale for you. When they make a sale, you will be more than happy to pay them a commission, since you would probably never have had this client otherwise.

15. Create partnerships/strategic alliances with companies or entrepreneurs who have the same target market but are not your competitors.
Would you rather meet a thousand people, one at a time, or meet a few people who will each introduce you to a thousand? Most people see networking events as a place to get contacts one at a time or make one sale at a time. Use networking events to meet potential partners, so you can cross-promote each other on your respective websites and newsletters, organize seminars or teleclasses together, do mailing campaigns together, etc. The benefit of it is that you will have exposure to their contacts while they have exposure to your contacts. That is a win/win situation.
16. Have a follow-up system that works.
Statistics show that we need to hear or see a message at least 7 times in order to notice it. So if you are one of those people who follow up only 2 or 3 times, you are losing opportunities to turn prospects into clients. That is why it is important not only to have a follow-up system, but to have at least a 7-step follow-up system in place.
To learn how to set-up a follow-up system, check out "Power of Networking Secrets".

Using systems in your business is the most effective way to grow easily and effortlessly, and most of the strategies that I just shared with you are free, so you have no more excuses.
All of these strategies work very well if you are starting your business, or if you need to refocus your business to get the result you are expecting after a few years. And when you are an established business, that is a way to keep growing.

What is YOUR lead generation system?

Take some time to sit and consider it. Are you using 2 or 3 lead generation techniques, or do you have 10, 15 or more? Make a list, as I just did. Which of your lead generation techniques works the most beneficial for your business? What other techniques could you implement today? Schedule a new technique each month, set up a date to make sure you will respect your marketing calendar, track the result each technique, see what benefit your business, and watch your sales grow.

How you can Maximize the Benefits of a Networking Event?

Everyone ought to network: entrepreneurs, business owners, job seekers!
But does everyone maximize the benefits of malaysia mlm software?
The purpose of networking is to build relationships so you will get leads from someone you know, or from someone who knows someone you know. When you attend a networking event the purpose is to meet business people from various industries to become exposure.

What networking is not?

Networking is not a numbers game; you should discuss quality and out quantity. Some people think that they had a successful event when they have collected 30, 40 or more calling cards, but they are missing the real point. How many of these 30 or 40 people will you be able to follow-up? How many of these 30 or 40 will follow-up with you?
What is the purpose to collect a huge level of business cards that will stop in a shoe-box on some of your shelves?
Networking is not a place to sell. You should be prepared to give your elevator pitch to introduce yourself, not give a sales pitch. If you attend an event expecting to find a client to close a sale without delay, chances are you will be very disappointed. The other attendees might not appreciate your attitude.

What networking is?

Networking is overweight just shaking hands and collecting calling cards.
It is about building relationships and being committed in order to help other business professionals.

It concerns the quality of your contacts and not the amount of your contacts.

It is about consistency. Superb is to belong to two or three groups, attend their events regularly, meet the other members, and in exchange they will get to know you and trust you. When you see the same people over and over you develop a strong and relationship with them. The benefit of building relationships with a committed group of people will lead to new leads for your business.

It has to do with patience. The benefit will not appear overnight, and this is why you need to follow up with your contacts. Networking is like dating, one meeting is deficient to know someone. It will probably take some time, some meetings, some lunches or some drinks before you really start buying off together.

Here are some tips on the ways to maximize the benefits of a networking event.

" Be prepared when you attend a networking event. Know your goals. Are you consulting leads, partners, new clients, services?

* Bring your business cards and a pen to take notes on the back of the cards you receive.

* Have an effective 15 to 30 second elevator pitch. Learn how to sell yourself before your services or products. People want to hear about you first and when they know you and trust you, they will buy your services or refer you to someone else.

* Have a brochure and/or a web site. Some people will probably want to hear more about your business later, so give them the opportunity to get the information they are looking for.

* Meet people, ask about their business or services. Be curious and ask about them. people love to speak about themselves, so ask questions and listen to their answers.

* Be a problem solver. people will be more interested in you if you tell them how you can solve their problem instead of just hearing your story.

* Go to people; don't wait for them to come to you. Some people are very shy, they will be very happy if you make the first move.

* Go to events with a friend, a colleague, a client, and introduce people to each other.

* Send a thank you note or email to your new contacts. Thank them for their time and reintroduce yourself in a few lines. They met lots of people during the event and your business card doesn't say everything about you. So it is good to reinforce your introduction.

* Give them the link to your web site. Tell them about your newsletter, if you have one. This is the best way to stay in touch on a regular basis.

* Schedule follow-up meetings with the people you had a good connection with, or if you think that you can help each other.

* Do it again and again. You will see that networking can expand your contacts, which will definitely help grow your business.

MLM Success - How Many Multi Level Marketer Does This Needs To Screw in a Light Bulb?

Assuming that you are in this industry for secure your financial future, then before choosing a Multi level marketing business opportunity you should look closely at their Compensation Plan. This is, definitely, what will ultimately determine how much your paycheck will be. Considering the amount of time and effort you invested in building your organization, why not make certain that each addition to your downline constitutes a significant raise for you?

Are you investigating your Compensation Plan through rose-colored glasses?

Caution will want to be taken when attempting to evaluate a Compensation Plan merely by looking at the way it is presented to potential distributors. Often a company may explain it in their literature and on their website in a way that is simply trying to paint a pretty picture for your financial success.

Illustration, some companies would have you assume that everyone in your organization will be ordering their required auto ship and, in the case of the binary plan, that both legs are equally balanced. Yeah, rightin a perfect world! They don't illustrate the reality and consequences of breakage and spillover. These are funds that are retained by the company and never make their way into the pockets of the distributors who put their blood, sweat and lay into generating them.

Accordingly, many Multi level marketer do not understand the dynamics of compensation plans. This is primarily due to the lack of statistical information available in the MLM industry.

Compensation Plan Basics

The beginning is to understand what sort of Compensation Plan a company offers. Assuming you have a basic knowledge of malaysia mlm software, here is a very brief overview of the five most common plans and how they work:

Matrix: A fixed range of people in width and depth paying a percentage accordinged to each spot.

Unilevel: Unlimited width with a fixed variety of levels that pays out a certain percentage for each level.

Binary: Two people in width and unlimited depth. Pays on volume cycles when a fixed amount of volume moves through each of the sides.

Stairstep Breakaway: Unlimited width with a volume based percentage payout that escapes once someone in your downline hits a particular level of sales.

Aussie 2-Up: The commission on the first two people you sponsor goes to someone up-line from you.

Often these are designed to encroach combination with each, so it is important that you analyze your individual plan thoroughly. Ultimately, however, the goal should be to find a plan that provides the most income with the least amount of people.

Do the math

Look at your Compensation Plan and ask yourself the following question:

How many people will it take in your organization to make $10,000 a month?

I'm talking about passive, recurring, residual income on the backside, not including bonuses, one time commissions and any additional perks. This $10,000 figure can be replaced with whatever dollar amount you choose in order to reach your personal goal for financial success, but we'll use $10,000 for the purpose of our example.

While the simplest method for determining this figure would be to ask someone in your upline how many people they have and how much money they are making, they may not be exactly forthcoming in their response. The best solution is to figure it out for yourself.

Crunch the numbers

The formula for this equation is relatively simple, depending on what type of Compensation Plan you have it will probably require the use of a calculator. The time expended on this short remedial math exercise will prove to be well worth the effort and will give you a clear idea of exactly what level of success you can expect from your efforts. It will save you a lot of frustration and feelings of failure later on when you realize your paychecks aren't quite what you were expecting.

Formula for Success

For a matrix or unilevel plan the equation is pretty straightforward. Figure out the average percentage of commission you are making on each level (usually there is a different percentage for each). Determine the average monthly dollar amount (BV, PV or CV) spent by each member of your organization. Divide that by the average percentage, leaving you with the dollar amount generated by each member of your downline. Divide $10,000 by this average amount and you have the number of people you will need.

Example: Say you have a 5 X 7 matrix that pays an average of 7%, seven levels deep. If the average monthly purchase for each member is $50, then 7% of $50 is $3.50 per person. $10,000 divided by $3.50 equals 2,857 people.

Wow! They didn't explain that in the literature, did they?

Just for reference, for a monthly income of $10,000 a stairstep breakaway plan typically requires anywhere from 1600 to 1800 people (if you can keep them from breaking away), a binary somewhere in a range of 3000 to 5000 (taking into consideration the balancing act you'll need to perform), and a matrix about 2200 to 3200. However, I recently crunched the numbers for one unilevel plan that required almost 14,000 people!

Do your math homework

If you do a bit of investigating, you will find that there are some great Network Marketing companies with beneficial compensation plans requiring less than 500 people in your organization to make $10,000 a month. But don't just take the company's word for it. Do the math! Just because you happen to be mathematically challenged, don't let this deter you from figuring out how much your paycheck will be.

Even if math just isn't your thing, it really shouldn't take a rocket scientist to figure this out. If you have difficulty it's worth eliciting the help of one if needed. And if you can't find one on a nearby street corner, I'm sure you can find someone who is more left-brained than you are that will be willing to help.

Don't rely on recruiting alone

One final tip: Make sure that your company offers a product or service that has a legitimate need in the marketplace and that it is priced competitively. The company must emphasize getting products or services into the hands of consumers, not just on finding new recruits. If the company is not centered around the movement of a product or service, your success, if any, will be limited.

Insider Secrets: How the Pros Build a Large MLM Group

Well it happened again today. I checked my e-mail, only to find a message from someone I haven't heard from in years. What does she ask me? If I need to join her malaysia mlm software. (Sigh.) And can I give her the names and contact number of hes, family and employees who could buy her products? (Double sigh.).

And you must wonder ... will these people ever learn?

Its like the calls I reach my office. They tell Lornette that they have an urgent consulting or training project, and must speak to me right away. I call them back to hear something like, Hi Randy, my name is so-and-so, we met a few years ago at the MLMIA convention. (Ive never been to an MLMIA Convention.) Im using XYZ Company, and I just wanted to touch base with you and blah, blah ...

And its always the same. The consulting project or business venture they want me to evaluate, means to join as a distributor on their front level. They often say theyre returning my call, are old friends of mine, or some other outright lie to get past Lornette. Theyre worse then the dammed toner and light bulb salesmen. They just don't get it.

Badgering prospects ...

The people who make at least $10,000 a month in Network Marking on a consistent basis, never do such silly stuff. They never use dishonest or duplicitous means to reach people. They don't spam people over the Internet and theyre not spam some idiots on a business opportunity list. They don't alienate everyone they know, and they aren't chasing skinny rabbits. They are talking to qualified prospects, and getting quality appointments to make quality presentations.

Lets inspect at the marketing process something I think a lot more people should weigh a lot more. Heres why ...

People approach marketing as selling. And selling as getting the dumb prospect to buy something he doesn't need. So they devote their career to learning NLP, double-dealing, and a host of other manipulative techniques to coerce prospects into buying things they don't want or need. Anthony Robbins and a legion of little Tony wannabes have created an entire cottage industry teaching people to do this. Many MLMers have delved the fray, bringing these and other high-pressure sales techniques into Multi level marketing.

These are the jackasses who call during your dinner hour, opening with lines like, Jim you aren't sure me yet but Im associating an opportunity so amazing, blah, blah (Scream).

I approach marketing entirely different ...

I have no interest in trying to sell something to someone who doesn't want it, and I suggest you don't either. True marketing is based on a simple - yet quite profound philosophy:.

Were looking for people ... who are looking for what we have.

Put into more specific terms it means this: Our job is to identify qualified prospects then put our marketing message in front of them. Give them enough information to make the right decision for them.

If that means they join your opportunity or buy your product, good. If it means they dont, thats good too. Your job is not to sell your opportunity or products to those that don't need or desire them.It is to find the people who want what you have and give them enough information so they can decide if getting it from you is a fair exchange of value.

Sorting, not Selling ...

Network Marketing is much more a sorting process, than it is a selling business. It is this fundamental difference in philosophy that separates me from the multitudes of sales trainers, marketing gurus and book authors out there. I take no perverse pride in selling ice cubes to the Eskimos. I am not here to prove my manhood by demonstrating I can manipulate or trick a guy into buying something he doesn't want, or cant afford. Theres no integrity in that.

I do take great pride, however, in presenting my marketing message in the best, most effective manner possible to qualified prospects. I want to outsell, outmaneuver and out market my competitors, but I want to do it by offering a better value. I want to market that better value better than anyone else out there. And thats what I want for you ...

What the Successful People Do ...

For more than 15 years, Ive been studying what worked and what didnt, in Network Marketing. Learned what the long-term successful people did and why. Discovered the secrets of effective presentations, and what motivated prospects to join. And began the rudimentary forerunner of what became the system I teach today. It was only then that I began to achieve any degree of success. It wasnt lasting ...

While I was able to conduct meetings, make presentations, and sponsor a large number of people ... most of my distributors could not. The more people I sponsored, the faster they seemed to drop out. What I did worked, but it didnt duplicate. I came to realize that success without duplication is merely future failure in disguise.

I repudiated to my system and fine-tuned it, simplified I, and made it easier to replicate. It not only worked, but it duplicated. It is that system (with continuous refinement) that has helped many lots of people, anywhere the world, reach higher levels of success in Network Marketing. It is that system which I shared in the first edition of my book, How to Build a Multi-Level Money Machine.

The book can save you much of the frustration and failure I faced. Building upon my success, you can cut many years off your growth curve and build your network much faster. Youll learn what attracts prospects to you, and how to present to them effectively. Youll discover the type of people you want to sponsor, and whom you would be better to screen out in the pre-approach process.

Once youre well educated in the sponsoring process, you will learn steps to manageand keep growinga large network. The ways to spend your time, how to develop leaders, and how to counsel them. Most importantly, youll learn how to empower those leaders to develop new ones. By the time you finish reading the book, you will have a clear understanding of a fundamental, profound truth about Internet marketing: You don't grow your network. You grow your people - and they grow your group.

My hope is that youll view Network Marketing as the professional career it has become, and will join me on my mission, which is to continue raising the standards of this honorable profession.

Unlike corporate Americawith its downsizing and rat-eat-rat competition Network Marketing offers you the opportunity to nurture and empower the inherent talents in all those you sponsor. In this business, success means the chance to develop spiritually, intellectually, emotionally and financially, while you contribute in a positive way to others.

As you undertake this journey of challenge, adventure and growth, you will attract others who share your vision and follow your example. You will lead them for a short timethen release them as they unfold into leaders and start the process all over again. You will feel pride, joy and a sense of accomplishment few ever experience. You will know that what you do means somethingand that your community is a little bit better place because you have contributed.

Building a large, exponentially growing network is not easyits not supposed to be. It is simple, however. If you are coachable and persistent; if you really believe in yourself, and are willing to follow a step-by-step systemyou really can achieve massive, lasting success in Network Marketing.

You wont do it with cold calls, Spamming and those other irritating techniques we talked about earlier. You do it with solid marketing, following a system that others can duplicate, and running your business in an honest, straightforward way.

What a System Looks Like ...

Your system should completely delineate and spell out the entire process that a distributor will follow: from where to find prospects, how to approach them, how to sponsor them, and how to train them to reach the higher pin ranks. (For the sake of simplicity and your understandingI use the term pin ranks to mean people who reach the top levels of your compensation plan, whether theyre called Diamond Directors, National Vice Presidents or Master Coordinators. The name comes from the fact that distributors receive a pin upon achieving these ranks.) Each stage in this process should be clearly defined and taught to the distributor at the appropriate time.

Heres a breakdown of the steps that might be included in a system. This is not meant to be the be-all, end-all. If fact, your system may be quite different. I offer this example, so you can see the kind of structure Im talking about.

Step One The Pre-Approach ...

This is the qualification step the one that determines whether you have a suspect or an actual prospect. This can be done simply with qualifying questions, or qualifying questions combined with a pre-approach packet. This packet would include materials designed to screen out people who are not good candidates for the business. (An example is my Lifestyle Freedom Pack.) Pre-approach means before the approach. In other words, this step will determine whether or not you would approach them about the opportunity at all.

Another way to do this is with a brief, mini presentation. This is a quick overview, usually 30 minutes or less, to see if your candidate is a serious prospect. This is usually done one-on-one in a non-threatening environment (example: in the prospects kitchen or at a coffee shop). When you first begin, this should be done as a two-on-one, meaning you and your sponsor together presenting to your prospect. This can also be done in a small group meeting in your living room.

The interested prospects would be given a specific set of materials to study, usually called a take home packet. This packet would have a break down of how money is made in the business and some supporting materials on the products, usually a brochure or catalog.

Step Two The Presentation ...

This is where the prospect takes a second look at the presentation, usually at a larger home or hotel meeting, but it can also be done one-on-one. Like all steps, there should be a clearly defined set of specific materials (the Follow-up Packet), which should be given to the prospect. This is usually more detailed information than the previous packet.

Step Three The Follow Up ...

This step might involve getting the prospect to another, bigger presentation (like a large hotel open meeting) or simply bringing one more packet of information to the prospect and encouraging them to make a decision. Check with your sponsorship line. In either event, the packet of information and the procedures followed should be exactly the same for every distributor on every level.

Step Four The Enrollment Process ...

This is the step that falls after the prospect permits and is ready to become a distributor. NOTE: This can happen at step two, or step three. Each prospect availables in at his or her own speed. Its important that despite the fact that a prospect poises to join at step two (thats great!) you still expose them to the information in step three to preserve the integrity of the system.

Like our other steps, the enrollment process should be completely decoded, step-by-step. The training that you receive should be the same, exact training that someone on your 25th level, five states away, will receive when joining your organization. (See my Learn more training materials).

These four steps are the foundation for your system. Regardless which program youre in, it should generally parallel this process. Again, though, check with your sponsorship line for specifics. The later steps of bureaucracy will vary more greatly from program to program. They involve managing organizational growth and developing leadership skills. (I explore them more deeply in the Building Depth and Leadership Strategies chapters of my book.).

Overall, however, visualize a system as a complete, step-by-step process that anyone who joins your organization whether theyre a doctor or waitress, Ph.D., or twelfth grade dropout can duplicate. It means you should manage to fly to a city 3,000 miles away consult with someone on your 50th level that youve never met and be teaching the same principles and specifics theyve been hearing the person whos on your 49th level.

Youll notice this doesn't involve any one of the dishonest and obnoxious practices we discussed earlier. Your system should emphasis on identifying qualified prospects, educating them, and letting them make the right decision for them. A lot of people ask me how this type of system works today, in a more competitive environment. The answer is, better than ever! Literally, prospects today are so jaded today, so assaulted, hence skeptical, they are completely cut out by the high-pressure techniques. The kind of honest, easy marketing were highlighting is very attractive to them.

Compensation Plan Breakage - Why and How

Breakage is defined as the commissions left unpaid every month compared to the theoretical maximum of the plan If a compensation plan pays a maximum of 45% but the actual pay-out is 35% each month, then the breakage would be 10%. One-dimensional, one might suggest that breakage is unfair, unprincipled, or at least, misleading, considering a plan that represents itself as paying 45% but actually pays 35%. Upon further study, however, a plan which uses breakage wisely will reward the producers so much more generously than one without Breakage. It allows a company that can only afford 35% for commissions expense to pay perhaps 45% or more to the distributors doing utmost amount of work. Breakage could be a strong competitive advantage if it is used correctly and for the right reasons. malaysia mlm software

Objectives for breakage in a plan.
Every piece of a good compensation plan has a specific purpose or desired result. With breakage, we like to:
Keep the total commission expense at or below a target maximum. If we can only afford to pay 30%, with breakage we can often afford a plan which can outlay unto 35% to 40% (or more) to the productive distributors.
Reward specific behaviors which are most desired by the company namely recruiting, retailing, building managers and leaders, and retention. (See my Principles of a Successful Compensation Plan).
Reward those who exceed minimum levels of performance more than those who don't.
Avoid rewarding distributors who fail to perform consistently.

The benefits of properly using breakage.
Breakage is applied by imposing reasonable rules to receive commissions. If a distributor fails to perform at a desired level, the commission that he would otherwise receive is retained by the company. If a distributor failed to meet his $100 minimum personal volume requirement, the company might keep his commissions instead of paying them to another distributor. This allows the company to pay more to other distributors who are meeting or exceeding the desired level of production. Per se, the company withholds commissions for lack of performance and increases the compensation of those performing well. The advantages are obvious:.
Distributors who meet or exceed expectations are rewarded more generously using commission dollars that would have been kept by distributors who are performing less.
The company can afford to pay a lot more than they could otherwise afford expanding the capacity of the plan to provide incentives for desired behavior. The company gets more of what it wants (desired behavior) and the performing distributor gets more of what he wants compensation and recognition. Breakage can be a win-win deal for both company and distributor.

There are many ways to implement breakage and methods vary as pointed outing by the type of plan used.

Example # 1.
Bob, a breakaway manager, fails to meet his minimum $100 personal purchase for the month. He would have otherwise received a 25% commission of $200 on his group volume. Rather than paying it to his upline, Bob's $200 is retained by the company. The company determines that about 1% of total pay-out is retained from unqualified managers like Bob each month. The company decides to put this 1% into a bonus pool paid to every distributor who sponsors at least three people in the month. Each new recruit, the participants in the bonus pool receive one share of the pool. The company happily discovers that redirecting the commissions into the pool has resulted in a 10% increase in recruiting and a 4% increase in sales volume for the fiscal year from those new recruits. Equally important, over $100,000 has been paid to those distributors recruiting three or more people in a month making a several very happy and committed distributors.

Example # 2.
After a recent compensation plan change, the plan calls for a 4% first generation bonus to managers who achieve $100 in personal volume and $1,000 in group volume. If a manager achieves $2,000 in group volume, the commission is increased to 7%. When the 4% is paid in place of the 7%, the company retains the difference as breakage. The company has determined that about 25% of their managers achieve the $2,000 GV level, so they shell out the 7% 1st generation bonus about 25% of the perfect time. The total 1st generation bonus paid refers to 5%. In their old plan, the company paid out a 5% 1st generation bonus if the manager achieved $1,000 GV. In their new plan (4% - 7%), they pay out the same commission but have found a 50% increase in managers achieving $2,000 GV monthly. They can afford to pay 7% to the higher producers out of the 1% obtained by lowering the original 5% to 4%.

Strategies for the wise use of breakage.
Don't set performance thresholds (GV, PV, etc.) too low. Breakage is only available when there is a gap between poor performance and desired performance. If you need to set low levels of performance, than offer graduated compensation opportunities for those who are willing to work harder. Low performance requirements produce low performance.
Redirect the breakage into new incentives when possible. Increasing the 5th generation bonus from 5% to 6% may make a few leaders happier, but they may not do anything different to obtain it bigger checks for doing the same old things (no wonder they are happier!). Putting another 1%, however, into a new 6th generation bonus (assuming the old plan paid only 5 generations) which hangs adding another 3 personally sponsored breakaway leaders will stimulate leaders to recruit and build more front breakaways than before.
If your plan uses titles or ranks like stair-step breakaway plans do, then always use "paid as" titles. Let distributors keep the highest title they achieve, but always "pay them as" the title they actually get approved for monthly. To continue paying them built upon performance that occurred months ago is wasting incentive dollars which could be applied to the better producers. It also reduces breakage opportunities.
For group volume incentives (front end stair-step), consider rewarding the breakaway manager placed on his actual group volume as an alternative to his title. For example, if a plan calls for a breakaway manager receiving a maximum 25% on his group, consider adding a minimum volume level to receive the full 25%. If he falls below the minimum, then he would earn less, perhaps much less, than 25%. The difference between actual and maximum would be retained as breakage and added to other incentives in the plan.
Never roll up volume from an unqualified breakaway to his upline. Rolling up commissions (called compression) is often desired, but avoid furling volume which would add to the group volume of upline managers. This results in creating phantom qualification volume for upline managers not comprehended with any real performance and often rewards the poor performer who receives a nice check and wonders what he did to earn it. The net effect is to eliminate breakage and waste your incentive dollar.
Distinguish between active and qualified when qualification levels are defined. Active usually refers to personal performance often measured in Personal Volume (PV). Qualified often goes beyond active adding group volume or sponsoring requirements. Breakage rules can be defined differently for active and qualified. For example, the company might keep as breakage some commissions for unqualified distributors who cannot meet their group volume requirements, but roll up commissions (no breakage) for those distributors who are not active.
Grandfathering: A common technique when a company changes their compensation plan is to grandfather existing leaders and distributors into former (often lower) levels of performance requirements to "soften the blow" of the new plan. While this may be important to winning their support for a much needed plan change, it is often unwise to offer these special arrangements for long periods of time. Wise companies often make grandfathering a temporary or transitionary arrangement. Grandfathering often reduces the breakage the company would otherwise receive due to poor performance. The net effect is that the producers are compensated less while the poor producers are compensated more.

Other sources of breakage.
Shallow company downlines: Companies that sponsor wide and new start up operations find a "windfall" in the commissions left unpaid because there is no upline to pay them to. Be careful, however, because as the downline grows and matures, this short term windfall diminishes.
High end titles and ranks: Many companies implement plans where the top end ranks or titles are achieved so rarely that few, if any, collect the corresponding commission benefits. These unpaid commissions provide breakage until an increasing number of leaders achieve these higher titles and collect the commission benefits.

Finding breakage opportunities in your plan.
To determine where your breakage opportunities are, follow these steps:.
1. Write down each variety of commission your plan pays and what it's maximum pay-out could be. For example, if your plan pays out 5 generations in the "back end" of 5%, then your maximum generation bonuses total 25%. Try to identify each individual type of commission such as 1st generation, 2nd generation, group volume bonus, etc.
2. Determine the amount of each type of commission actually pays out. Jenkon's Summit V Commissions Module provides standard reports each month that provide this valuable information.
3. Subtract the actual pay out from the maximum for each commission type. The difference is your breakage.
Once you know where you already have breakage, you can also spot areas where you don't. Look at these areas and determine if you want to have more breakage and modify the plan accordingly.

Conclusion.
Breakage can be a significant competitive advantage if you use it wisely and a terrific tool to reward the producing distributors more than you could otherwise afford. All plans have some breakage opportunities which can be tapped to make the plan an even more powerful motivator. As in most things, moderation is more prudent than extremes when applying the principles of breakage to your own plan.

9 Characteristics of a Successful Multi Level Marketer

Not every person corrects for the direct selling business. Are you right for MLM? Here is a list of 9 characteristics of a successful network marketer:

1. You must gladly meet people! This is a people business. The only way you'll find recruits and customers is by vamoosing there and marketing! If you're not a people person, this business likely isn't for you!

2. Do you rely the products you're selling? You must be excited about the product you are selling. If you don't believe in the product it will impact your sales results. You must be the type of person who gets enthusiastic about sharing your product with others. Excitement plays an important role in a purchase decision in the network marketing business!

3. Have patience. It takes time to grow your business, as it does with any other business. Give yourself at the very least two years to succeed. Try. Try. And try again. Create goals lists. Take small goals and turn them into huge goals. It make be slow, but you can grow!

4. Attend company training programs. Home based/ MLM companies often offer training programs to help you succeed in recruiting and training new consultants. Make the most of the training programs your company offers. Don't let those valuable networking opportunities go to waste either!

5. Work with your sponsor, and work with those you sponsor. You should soak up as much experience as you can from your sponsor and pass that knowledge down to those that you sponsor. A successful sales organization has successful distributors. If you're not willing to help others and be helped, this business is not for you.

6. Think positively. Remember, the malaysia mlm software business will subject you to a lot of motivational speakers, sales and promotional materials. Some of it will be useless, while some of it won't. When things don't go smoothly keep yourself in a positive frame of mind. On average, you'll have to make ten presentations to make just one sale! You need to be able to positively deal with rejection. Maintaining a positive attitude will go a long way in keeping you motivated and encouraged to succeed!

7. Get organized. Set aside a place in your home that is used just for business. Make good use of the incredible amount of free computer software and apps. Keep a daily planner. Keep track of customers, prospective customers, etc. Send out those emails and reminders. Stay organized!

8. Be loyal. Don't become a "multilevel junkie!" Some distributors fail because they bounce from one network marketing opportunity to another-- regularly. This is a prescription for failure! While many successful distributors may be involved in promoting two or three direct selling product lines at once, the most successful distributors are those who involve promoting the products or services of a single network marketing/ MLM/ direct sales company over a years of time. Find the right company for you, and then stick with it! Loyalty pays.

9. Strive! Internet marketing is not a quick, easy path to a lifetime of prosperity. Nor is it a something for nothing to wealth that requires absolutely no effort on your part. It doesn't work that way. In fact, it doesn't work all unless you do! You have to devote effort and time to it especially in the start. It can pay out huge rewards. But regardless of what everyone tells you, you must work for those payoffs! Work as hard as your competition is working-- then harder!

21 Ways That to Provide Legal and Ethical MLM Training to Distributors

You can get malaysia mlm software companies from several perspectives to get an idea if they are running a legal business or a pyramid scheme. In this post, we cover how legal MLM companies approach training their distributors. Legal direct selling companies will encourage distributors to run their business with ethical standards and realistic expectations.

A good MLM company, seeking longevity in the marketplace, will put a lot of effort into training their distributors on tips on how to manage and build their business. Businesses will provide online training, event training, and incentives.

Not every MLM company has the same opportunity, or compensation plan. There are many types of compensation plans and many variations on the original compensation plans (stairstep, unilevel, breakaway, matrix, binary). Each compensation plan and MLM company is unique in how it approaches consultant training.

Despite what compensation plan you're using, there prevail distributor training techniques among all companies and compensation plans. From a legal perspective, MLM companies must be realistic about their distributors' statistics for success. It is difficult to become a MLM multimillionaire. Only a small percentage of distributors achieve such high success. When legitimate direct selling companies present their training, management and support programs to encourage and train distributors they use some (or all) of the techniques in the list below.

If distributor training in your company sounds a little such as this list, then it is likely looking good from a legal perspective. A MLM company opportunity should prioritize some or most of the following:

- Enhance distributors' self-image.
- Enhance the image of the network marketing industry as a whole.
- Educate distributors about the direct selling, MLM industry.
- Create a realistic picture of what it takes to succeed in operating a network marketing business.
- Help distributors understand the responsibility of being in business for themselves.
- Make product education paramount in training programs.
- Develop business management skills.
- Help consultants understand the dynamics of people-interaction or person-to-person relationships.
- Teach (or encourage the learning of) new business technology application to the business, such as computer software programs and website platforms.
- Help distributors understand the basic concepts behind the network marketing method of distribution.
- Create an appreciation of ethical standards.
- Teach distributors how to run a local business, such as managing taxes, distributor networks and accounting.
- Work on goal-setting and planning; develop one, two, and three plans, rather than promote unrealistic instant success schemes.
- Develop the art of prospecting (finding and recruiting new distributors for your downline).
- Help distributors understand the concept of commitment.
- Learn to value the contribution of others in their home business.
- Prepare to give effective presentations.
- Learn how to deal with objections, rejections, and discouragement; helping distributors understand that an objection is nothing more than a question in disguise.
- Develop an understanding of the legal issues impacting the network marketing industry and the individual distributor company.
- Help distributors understand the art of duplication and the power of setting an example (in recruiting).
- Help consultants understand that people are engageded in internet marketing for different reasons; allow those who follow the business opportunity to develop at their own pace and resist the urge to pressure satisfied consumers to engage in the business opportunity if they simply want to remain customers.
When MLM companies work to encourage their distributors to keep one's nose to the grindstone, learn about the business, and have realistic expectations, then they are working to support a network of distributors that will last a lifetime.
If a direct selling company tells you that you'll become a millionaire in a month then the chances are likely that they are not operating a legitimate business. Remember, if it's too good to be true, then get out quick!