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MLM Magazine January 2015 January 2015

What is the mission that drives your business?

Happy New Year! I'm often ask, "what is your mission that drives your business" that is such a great question and that is why we want to start off this new year off with this important subject.

Have a blessed and prosperous 2015!

George Madiou

Founder and Publisher

Article Subtitle
Are you really thinking very, very small when you do a project? Perhaps with a bit of imagination you can see some new possibilities from this Upline Magazine classic!

Article Article Intro

Most of us are probably earning only a fraction of what we really could in this business. Is that true for you?

I think the reason is we don't use enough of our "Network Marketing Imagination." Let me show you what I mean. I'm going to tell you about a legendary guy named "Bungee Bob." I know some of you have been to the Power Marketing Workshops and know a little about him. I'm also going to ask you to do a few math Network Marketing problems. Have a pencil, calculator and paper handy.

Article Content
Bungee Bob is an MLM distributor, and he sells an information manual for $75 through the mail. You know, one of those "Financial Independence" manuals that explain Network Marketing and recommends companies, especially the one he works with. Hopefully, a few of those readers will join under Bungee Bob after reading his manual. He advertises in the Network Trainer, Money Maker Monthly, different publications. Over a period of one year, he invests $4,000 in advertising. (You might want to write that down.) His ad offered free details and a free report. Bungee Bob collected 1,000 responses for his $4,000 advertising expense. Now, how did Bungee Bob do on his promotion? Of the 1,000 leads he received, 50 bought his manual. At $75 each, that was what? $3,750? So he got $3,750 gross sales on his $4,000 ad. (If the math is getting too difficult so far, let me just double check your bonus checks.) Let's see... he's lost $250, hasn't he? Would you say that's a pretty lousy return on investment? Losing $250 is nobody's idea of fun. As a matter of fact, if I went and asked you right now for $250 as a gift, a lot of you might just say "No." Actually, Bungee Bob lost a lot more money. You see, it cost $20 to print and mail his information manual, so if it cost him $20 times 50 manuals, it cost him $1,000 in expenses to print and mail. Which means he now has $5,000 invested in the campaign and he's lost how much? $1,250. That's not too good. You probably came into Network Marketing to make money, not lose it-- right? But let's take a look at the math and what actually happened to Bungee Bob. Pencil sharpened? Good. I'm going to ask you to figure up his total return. Here are the facts: Of the 50 MLM CUSTOMERS who bought Bungee Bob's manual, 20 joined his MLM company. Bungee Bob's first month override profit from the 20 new distributors was $500. All right. Of these 20 new distributors, five of them quit while 13 stayed on and earned Bungee Bob $200 per-month profit for the next five years. Two of the new distributors, Steve and Betty, got really excited about the MLM opportunity and earned Bungee Bob $2,000 per-month profit for the next five years. I'm going to give you about 45 seconds here: How much did Bungee Bob actually earn, counting all his MLM profits? Hurry. Work fast... How'd you do here? What did you get? In our PMP workshops, people come up with anywhere from $300,000+ to $30,000. Okay. The correct answer is Bungee Bob earned a lot. Because we're not finished. To your answer, you should add a few other things that you probably skipped over because you're kind of rushed on time. Let me tell you a little bit more about Bungee Bob. Bungee Bob had a good thing going here. In fact, it was a license to print money! Think about it: He has $5,000 invested. He's getting, what? Even if he only got $31,000 for every $5,000 invested, wouldn't you say that's a license to print money? When Bungee Bob ran his ad and received a lead, he knew how much money he was going to put in the bank, because he could figure out his cost per lead. Now, he decided he wanted twice as many leads from each ad he ran. Why?

Why not make twice as much money from the same investment? Work smart, not hard.

First, he included a toll-free telephone number printed boldly at the end of the ad. More people would pick up the phone and call than would write, plus each caller was then presented with buying Bungee Bob's new prospecting cassette. So the extra money kept flowing in. He sold a cassette on the side to everybody who called in. Then he decided to offer a few more premiums, gifts and free reports for responding to the ad. By knowing how much each lead was worth, Bungee Bob knew how much he could invest in getting each response. To keep costs down, Bungee Bob got all his extra premiums, gifts and reports free. How? He told the suppliers that the premiums and reports would be great promotional advertising to his qualified leads. He could give away a free newsletter or report to somebody 'cause a lot of people will read free newsletters and stuff to get the free sample, right? How many of you have ever mailed in a card to get a subscription to a magazine-- first issue free while you check it out? All these things he could give away to get even more leads than those first original thousand. He also offered a money back guarantee. Not just any old generic guarantee. Bungee Bob promised each buyer that, if they were not completely satisfied, they could return the manual and keep all the promotional premiums and reports for their trouble. (The ones he didn't pay for.)

And the MLM CUSTOMERS felt Bungee Bob was a sincere, helping person.

Now let's talk about those original 950 leads that didn't buy, plus all the new leads he got in. These names composed a highly qualified, ready-to-buy mailing list. Bungee Bob asked his competitors how much they invested to get a qualified lead. His competitors said, "We invest about $4 to get a good lead. Same as it costs you, Bungee Bob." So Bungee Bob sold three of his competitors the 950 leads, each at a discounted cost of only $2 per-lead. A pretty nice return on the leads that refused Bungee Bob's original offer. You are keeping score here on our total price for Bungee Bob-- right? Next, he contacted the author of The Make Money Opportunities Listing Book. It's a directory of over 500 money-making opportunities. Bungee Bob's 950 leads were prime prospects for that directory-- right? They didn't like his program, so maybe they'd look at a different one. Rather than renting his list, Bungee Bob offered to endorse the offer instead. Why? Those 950 leads already knew Bungee Bob, so his basic letter said something like... "I'm sorry you weren't interested in my information manual; I know it's not for everybody. If you're still serious about making money, I highly recommend, The Money Making Opportunities Listing Book..." Bungee Bob and the owner of Money Making Opportunities... split the profit on the sales from mailing to those 950 people. How are we doing so far? Keeping score on Bungee Bob?

Could he do more? Use your Network Marketing imagination.

Bungee Bob had a system that ran just like clockwork. He placed the ads, and then went to the bank. The system was documented and easy to follow. It could work with many non-competing businesses, too, such as mail order, business opportunities, direct sales, etc., so Bungee Bob licensed his system to other entrepreneurs for $1,000 each. Included in the system was one day of training, phone support and five percent of the gross revenues while they used the system. Bungee Bob licensed his system to competitors who were not in his same geographic area. Japanese, German, South African, New Zealand and French licenses paid him $5,000 plus two percent of the revenues for the exclusive right to market the system in their countries to other Network Marketers. How many people here have a system that works pretty well that other people might like to use? Especially non-competitors or people in different countries. Bungee Bob's new distributors knew of the many tax advantages of having their own home-based business. Unfortunately, most local accountants are not aware of all the possibilities for tax deductions. Bungee Bob arranged for a professional accountant to do MLM tax returns for only $250 each. The accountant's expertise saved each new distributor over $500 additional on their taxes. Instead of advertising or hiring commission sales people to get new clients, the accountants simply gave Bungee Bob $100 in sales commission on each tax return to reimburse him for his marketing cost. Why? 100 tax returns at $250 each meant an instant $25,000 income boost for the accountant. Instead of him paying for advertising money, he just gave that money to Bungee Bob
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