A caller recently told me he’s joining an MLM company because they promised him spillover. I said, “They are lying to you!”

The guy called me back later and said, “I point-blank asked them if I’d get people put underneath me, and the guy said, Well, we can’t guarantee that.’”

Spillover – Creating a Welfare Mentality

Good people don’t want welfare. They want to build it themselves. They just want to learn the skills they need to build this business and create residual income, money that’s coming in week after week, year after year, and they can will it to their children’s children.

When you look at a lot of network marketing websites, you often see that word “spillover.” The proposition, more or less, is, “get in now, today, and you’ll get all this spillover.”

In 27 years, I have never, ever, ever seen anybody get spillover, having somebody build it for them.

And if you look closely at the compensation plans of the companies that promote spillover, you’ll find out that those who get spillover usually don’t get paid on it. There are other hoops to jump through to get paid on that spillover, and these people rarely ever qualify.

So it’s the person who actually does the work who gets the pay, what a novel idea!

Companies & reps use “spillover” as a tool to drag in people who think they can build a business without doing any work. In other words, no sponsoring, no recruiting. It targets that type of person.

When You Say “Spillover”, You Are Targeting Quitters!

When you see a network marketing company that promotes spillover on their website, they’re looking for welfare-minded people. The problem for you is, you can’t build with these people, unless YOU do all the work! That’s what they expect. And when you don’t build their business, they’ll be off somewhere else, looking for a better welfare plan.

So really, when you or your company promote spillover, you are targeting people who will not be with you long-term. And in network marketing, that makes absolutely no sense. The failure rate will be 100%.

And Here’s Why The Leads You Buy Tell You To Go Pound Sand!

The quickest way to build a huge list is to offer the moon and require nothing (no money, no work, no purchase) in return. You’ll see companies promoting “we’ve signed up more people faster than anybody else in the history of network marketing.” Problem is, there’s nobody ordering any product. It’s just a bunch of names on a list – but now they can call these people “network marketers.”

Then they turn around and sell this huge database of worthless names (an “MLM geneology list”) For $10,000 each to 10 different list brokers. BAM! That’s $100,000 profit! And then the list brokers sell these “leads” to all the people in network marketing who want to build their business – including YOU!

So you pay $2-$3 a lead for these people, you call them up, and they tell you, “Hey! You‚ are nuts! I’ve never been in network marketing!” They don’t even know what it is. They just opted in to some pie-in-the-sky list, hoping to get something for nothing.

Conclusion? Run like heck from any company focused on “spillover” – and ALWAYS generate your own leads.

We Appreciate You,

Michael & Linda Dlouhy

“Be A Mentor With A Servant’s Heart!”

Thank you Michael for those words of wisdom.

Until next time,

Karen Engler

check out the ebook, Success in 10 Steps

 The best comp plan is any that pays out the most residual money for the least amount of people.  This allows even the part timer builder to see an income.

Which one is that?  It is very easy to figure out.

First of all be sure you understand what “residual income” really means.   Residual income is income that continues to be generated after the
initial effort has been expended.  In network marketing it is the amount you’re paid on the autoshipments of your organization.

Now define what your monthly income goal is.  Do you want to earn a couple of hundred dollars?  How about $1000 or $3000?  Maybe that isn’t enough so let’s say 10K.

Now, let’s have a look at your comp plan.  What is the amount of money that you get paid on their autoshipment, not including any bonuses you may earn along the way, in order for you to succeed at your income goal?

Let’s say in a fixed 5×7 matrix you earn different amounts of the different tiers.
Lets say you earn 10% on the first tier, 6% on the Second tier, 5% on the third tier, then 3% on the next 3 tiers and 2% on the last.

Then we figure out what the average percentage we would earn from our distributors.   10+6+5+3+3+2+2=31/7=4.428 

So roughly the average you would be paid per distributor in our organization is only 4%.   It looked a little more impressive with a 10% and a 6% on the first two tiers didn’t it?

So now we can figure out what is 4% of the average autoshipment.  In order to make this a simple math question, we will say you get paid on a $100 autoshipments.  That is $4 per distributor.

You want to make $10 000 a month divide that by your $4 per distributor and let’s see what you get.

$10000/4%= 2500 people.

You will need an organization of 2500 active people in your team for you to earn $10K a month. 

Keep in mind that the average builder brings in 2.7 people annually.  That is an average, some people will bring in more but some won’t build at all.

To get your people building consistently you will need a system that anyone and everyone, regardless of their experience level can use.  This establishes duplication.  Without it, it could possibly take you years if not forever to build up to that income level.

Even if you were out only to earn $200 a month, you still need an average of 25 people that are active with their autoships.

Are you being paid what you’re worth?  When are you going to be able to reach your income goal?  How many active distributors do you need to reach that goal?  How many people are you bringing in a month?  How many people is your team bringing in a month?  Do you have a system in place that is “proven” to work?

This is a business, and we need to approach it as such, then as you build you begin to enjoy it.  But if You do not first ask the appropriate business questions to begin with, it will never become fun.

If you’re still not sure about any of these questions, please contact me
and I will help you to figure out your compensation plan and what YOU
need to reach your goals.

Henrietta
TheMentoringMom

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