Kathy Smith’s Blog and Your Gateway to Success

I was part of a start-up where myself and many experienced networkers really thought we had found the business where we would achieve that walkaway income. Of course, as most start-ups do, it closed down. Two years of putting in my time and resources only to have it close down. Independent Business Owners lost thousands of dollars that they had put into the business. I had been in about 15 other programs but that last one really hurt because the belief was so strong that this was the business where we could all achieve our financial dreams but for many reasons, it imploded.

I decided once and for all, I was going to do my due diligence and write out a list of criteria and really research the next business that I was going to join and I wanted to make that business the last business I will ever have to be in. I didn’t want to jump from business to business as I have seen many others do and I didn’t want to be in a start up because most start ups can’t anticipate the obstacles they have to overcome.

Ironically since the start-up I was in closed down, I have seen many leaders jumping and just recently I have seen them jump again. Don’t jump. Do your research and join the right business and stay with it because there is always going to be some new company where they are going to promise you millions or this is the next best thing only to find out when you join that another company comes out again promising the next best thing. It’s only if you have a huge list of contacts that you can jump from business to business and make money but . . . the flip side to that is people start to lose belief in you because they are wondering if the business they join you in will leave them sponsorless because you’re jumping to the next best thing.

When evaluating a business, here are some points to look for and then see my notes at the bottom as to why I joined the business I joined and why I haven’t found anything better and I’m glad I am building it right now.

Criteria #1: How old is the company?

This is so important. I know, I know, the appeal of a start up is so great because you can be in the beginning of the beginning and make millions but don’t do it. 90% of all MLM and Network Marketing companies will go out of business and fail within the first two and a half years in business. Having a business closing down hurts a lot of people. You should be looking for a company that has been in business no less that 5 years. Then you’ll be stacking the odds in your favor. Side note: I am in a proven business that right now has a ground floor opportunity. It’s no risk because it’s not a start up but you have a start up opportunity.

Criteria #2: What is the Unique Selling Point

You may find the company has similar products but they offer something other companies do not or they have a product that is called “a category breaker” meaning it has no competition. For instance, I just heard someone jumping to yet another new juice company and it has a high quality Superfruit juice but it’s a 1 product company and it’s competing with the Acai and Mangosteen, etc. It doesn’t offer something unique. Also, take a look at what is unique. There is a nutritional company that was a failed nutritional company but was recently purchased by a famous person. It is unique because they do testing to see the nutritions you are lacking but Rod Cook has seen it time and time again that these companies don’t work. If you don’t know who Rod Cook is, then subscribe to mlmwatchdog.com. He has an impressive reputation and many years in the industry.

Criteria #3: Can you be passionate about your product?

There are some network marketers who will say that doesn’t matter. They’ll look at the compensation plan and whether or not they can build it but again, I say, don’t do it. If you believe in the products, you’ll believe in the company and in building your business. It will show through when you’re talking to customers or prospects. Make sure you find a company that has a phenomenal product(s) that is backed by scientific proof and testing and that they are high quality products.

Criteria #4: Compensation Plan

Okay, I did say you have to believe in the products and I’ve heard that it’s a good product when you want to buy the product even if you’re not being compensated, but hey, this is a business. You want to understand the compensation plan. If it falls below a total of 20%, then it’s not worth your time and energy to get involved. I know, I know, there are some that have great marketing plans attached to them like populating through Facebook, and that may be fine for immediate income, but I am looking at a real business that is going to be my walkaway income. When I selected the business I am in, it was to select a business, not a hobby. Also take a look at how many people you must enroll to begin earning income. The lower the number the better. In a future blog, I’ll discuss the different compensation plans from the breakaway to the matrix to the unilevel to the 2up to the perpetual leverage, binary and more.

Criteria #5: Reputation and Integrity

This is so important. You can have a business that is fantastic but if the leadership does not have the reputation and the integrity, it’s going to start to collapse like a house of cards. You’ll find it difficult to bring people in or customers and even more important, you don’t want to be involved in a business that does not have a good reputation. Search on the business in the BBB. Search on the owners. Don’t be fooled by some of the results in the internet. So many internet marketers nowadays use the word scam to put down one company and say why their company is the best. Just do your research and make sure it’s a company that you want to be a part of and that you would want to recommend to others.

Criteria #6: Saturation

What is the competition? How available is the product? Where can it be sold? Can you get something similar at your local store? It’s okay to have some competition but too much is not good. For example, energy drinks are VERY competitive.

Criteria #7: Policies and Procedures

What are the guidelines for marketing? Can you use your own websites? One of my friends was in a business and they could only use the replicated site – there wasn’t a way for you to brand yourself. Another company that I was in would not allow us to use marketing material unless they approved it and they make it difficult to get it to them and then it would take weeks before approval.

Criteria #8: Marketing

Does the company have a marketing system. Many companies have teams that have their own marketing but it is much more powerful when it is company driven. Would you want an infomercial run by a team or would you want an infomercial that is run by a 38 year old media company with programming in 200 countries? hmmm

Criteria #9: Publicly Traded or Privately Held Company

I am including this as a criteria because some network marketing companies make a big deal about this. There are pros and cons to this. For the publicly traded, of course it’s great because you get to see all the financials. But the bad part (and pay attention here), is that they are more slow to make decisions and more focused on serving the needs of their shareholders than their consultants. Whereas with the privately held company, the owners are free to plan long term without concern for short term gains for stock holders. However, this goes back to Criteria #5. Make sure you research the owners and the company to ensure their integrity and reputation.

Criteria #10: Sponsor or Recruiter

This is important. If you find all the criteria above have been answered to your satisfaction, the next question is do you want that person as your sponsor. I always believe in keeping with the person who contacted you first. It’s just network marketing etiquette and I know there are some network marketers out there who would scoff at this but I still abide by it. But are they a sponsorer or a recruiter? A sponsor is someone who takes the time to help you be successful. They will motivate, coach and train you. A recruiter is someone who just keeps signing up people. As the saying goes, they throw them against the wall to see who will stick there, and in some cases, abandons them. In the last business I was in, I had many people from the downline calling me because their sponsor(recruiter) had deserted them.

The next thing to consider is what your sponsor can supply that will assist you in building and training your network. What kind of welcome or training package will you and your downline receive? Does your potential sponsor provide a newsletter, advertising help, training and promotional materials, or advertising? Do they have a proven system that you can follow? There is no reason to reinvent the wheel if the material is already created.

I hope this information helped you. I joined TriVita and it met all of the above criteria and more. I think what I really love about TriVita besides the integrity of the company, the fact that they are aligned with top hospitals and universities to do independent testing of their products, and their products have a less than 1% return rate and are high quality products, and their new product Nopalea that is a category breaker, is the Cooperative Marketing business model. It evens out the playing field so everyone can have success even if they’re not a sales person. You can acquire customers from the company (and the company follows up with your customers for you at no cost to you) and very soon they are going to have infomercials on their new product AND the opportunity where you can start for just $35.00. WOW. Talk about duplication!

If you’re interested in finding out more, go to: www.sixfiguresthisyear.com. Either way, I hope I helped you in any decision you make and I wish you the best of success and good health in your endeavors.

Kathy

Katherine Smith, Independent TriVita Affiliate Member #13158176

I just received a call from someone on my team who shared with me they don’t expect any business growth right now because it’s the summer time. They’re falling into the same trap that newbies fall into or people with the wrong mindset.

Whether it’s summer, winter, fall or spring, if you feel it’s not worth the effort to build your business and you slow down, your business will slow down and so will your income.

There was a great story I read recently where a father had his own business and his son was visiting him from out of town. His son saw the advertising money he was putting into the business and said to his father, this is not the best time to do this. Everywhere business is slow. Meanwhile the father had a great business and was attracting many clients. But when he thought about it, he agreed with his son and slowed his advertising. Guess what happened? His business slowed down and his reaction was, my son was right.

Now of course you’re reading this and saying, Kathy, it is a known fact that summer is a slow month for growing your business. Yes, but you can still be building your business AND your pipeline. Even though it is summer, continue to put forth a concerted effort, and you will LOVE the momentum this builds for the fall.

And if you really take a look at it, there really isn’t any good time to build a business. Let’s see – starting November is holiday season and people won’t want to spend money. January to March is tax season and that’s not a good time. June to end of August is summer time. Doesn’t leave much room to build a business, does it? What you need to keep in mind is be persistent and consistent and you will build a sucessful business.

With the summer time, you can also change your strategy. Realize that people will be out during the day and most of your calls will take place in the evening. If you are able to do trade shows and events, now would be a great time to share your products. Even if you don’t have the money to set up at an event, you can still go and gather business cards and make contacts.

Always get people on autoresponders. Whatever the season. I have someone who responded to my 5th autoresponder indicating they were on vacation but would be getting back to me as soon as they got back. Now that explains why they didn’t return my phone call. And that’s ok – because the autoresponders continued to follow up and it worked!

You should always be reevaluating your advertising. Not just in the summer but always. There are seasonal advertising techniques that need adjustment. I recommend always having more than one method of advertising. You can always make changes and there will be times when one is more powerful than other. Always be building a list so you can be building a pipeline. Maybe you have a marketing campaign that isn’t producing well in the summer, or maybe even COSTING you too much. It’s time to “trim the fat” and get rid of that marketing strategy.

Also, think about this. If most people think that summer is not a good time to call people, guess what? If you’re calling your leads when no one else is, you’re going to have access to more people! I just read recently and thought it was great and will share it here. While there are a few less “fish in the lake” in the summer months, there is a far greater percentage of the “fisherpersons” that pull their bait out of the water.

To share what Jim Rohn has said, water and nurture the crops in the Summer and harvest them in the Fall. If you work just as hard in the summer months, you’ll either be building your business or setting a strong foundation where you’ll be rewarded in the Fall. Where most people who believe in the myth that they can’t build their business in the summer, start to build their business again in the Fall, you’ll have a head start because you’ll be capitalizing on the momentum you built.

And as Henry Ford said, if you think you can; you can and if you think you can’t, you can’t.

So go forth and build your business, and if you’re seeking a business where the company does the advertising for you and you can profit share off their customers, call me on 718-407-0035 or go to:

www.sixfiguresthisyear.com

Wishing you much success, good health and great wealth!

Kathy

I usually like to provide some business tips on this blog but I came across this information from numerous sources and I felt it was too important to ignore. I really feel that anyone that’s in business for themselves needs to take action and reply to this. Many times we complain when something has been put into effect but we have the chance right now to make a difference.

The California Assembly passed SB 17 on a majority vote on June 28th 2009 which contains a provision for a 3% withholding tax on independent contractors. If this bill becomes law, and you are in California your company will be required to withhold 3% of your monthly check and send this amount to the State of California.

If this bill is enacted, it will decrease the size of your monthly checks and create substantial administrative burdens and expenses for All MLM Companies. Throughout history, across the country, direct sellers as well as other independent contractors have been exempt from withholding taxes because many of their expenses are deductible. This legislation sets a dangerous precedent that other states and even the Federal Government could follow.

If you share my concerns, please voice your opposition to this bill ASAP by contacting the Governor and Senate President Pro tem Darrell Steinberg and let them know how you feel.

A sample letter appears below for your convenience, but your communication will be most effective if you use your own words. Contact information for the Governor and Senate President also appears below.

Here’s a sample letter if you live in California:

SAMPLE LETTER:
Dear [ ]:

Withholding on independent contractors, like me, a (name of Company) Distributor, would place a large burden on my family. Unfortunately, once again, the California Legislature is considering an independent contractor withholding proposal.

[Tell your personal story in your own words] I have been a (name of Company) Distributor for more than [Insert the number of years you have been working with your company] years. Originally, I enrolled because I liked the products and wanted to earn some additional money. Now my family depends on this extra income to supplement our budget.

I am not opposed to paying my share of taxes, but it makes no sense to me to send the state my money and then have the State send it back to me when I file my tax returns. I need every dollar I make to run my business. I have to pay my business expenses from the commissions I earn. While I of course support the need to pay taxes, withholding up front on taxes I may never really owe will cause severe cash flow problems for me. My business is already difficult enough. If you burden us with more administration and paper work it only serves to make the business more difficult and less attractive and therefore it will be more difficult to grow my business.

In the end, the State will not end up with any more money. If you do consider a withholding proposal, I request that you exempt direct selling companies.

Please do not sign any budget resolution that contains independent contractor withholding for direct sellers. It would hurt my family and my business as well as tens of thousands of others in my occupation.

Sincerely,

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