Over 30 Years in the business and I find myself making my first serious run at it in a long time. When you’ve been around a long time you don’t really have to work that hard to make money, so you might get lazy. I did. I woke up one morning and realized that I’m over 50. An old guy, a MLM Dinosaur. I also decided I haven’t done everything I’ve wanted to and it was time to reawaken the giant within. Here are a few things I did in starting over. Maybe they’ll help you too.
First I went looking for a company that I could call home for the next several years, hopefully for the rest of my life. No, I won’t mention names. This isn’t a recruiting pitch. Unless you want to follow this link. The things I went looking for may not be what you would look for, but you should. I wanted to find a company that was over its basement stage and was already stable yet hadn’t exploded yet. In other words doing about a half-million a month or so and had a good quality product that people wanted and would use month after month. I wanted to market nutritionals also. That is just a preference for those of you who like services or appliances. Those things are fine, just not my preference.
The reason for the pre-explosive state is frankly, I wanted to be the guy who caused the company to explode. If you build your business to the point where you touch off your company’s explosion then something interesting happens. If you have 50% of the company in your downline at the time of the explosion then you will have 50% of the company in your downline when the dust settles. I figure you take a half-million a month company to about 5 million a month over a 12 to 24 month period and you get to light the match. I like lighting matches.
Once I found a company that I believed fit the mold the next thing I was looking for was; I wanted to see what was going on with the ownership and management internally. Being a former company owner I might look for a few things you wouldn’t. Here they are: I want to see what their percentage of payout is. You might too, but I suspect you are looking for a fairly high percentage while I am looking for just the opposite. I’d like to see a number somewhere between 42% and 46%. If it is closer to the higher percentage I’d like to see that percentage offset with a lower cost of goods sold. Say around 12% to 15%. The reason for this is that I want to know that the owner is keeping his responsibility to me by keeping his company in good financial shape. Product based companies that payout in the 50’s or 60’s percent to the field don’t stay around long term.
Another thing I look for is the ego factor. Most owners tend to micro-manage their companies. It is important for them to do so in the initial stages of their growth. A $25,000 mistake in the early stages will cost them their business. So in an owner’s mind, if someone is going to make that kind of mistake, it is going to be him. However, when a company hits the half-million dollars a month range, I want to see that owner beginning to delegate internal operations to an expert. I want to see him spending big bux on a guy who has administratively already taken a company from 10 million a year to 200 million a year. Owners are supposed to be the keepers of the vision, not department managers. This is a tough transition for an overwhelming number of owners. Again, it is their responsibility to me and to you to make that transition.
I also want to see a quality product but more important, I want to see an efficient supply line. I want to have reasonable confidence that when we pop this baby open, we won’t run into a ton of back order problems. Additionally, the owner needs to have a good reputation, not only with MLM distributors but with his suppliers too. Yes I ask questions of the people he buys his products through. It isn’t always easy to get this kind of information, but it is your life so why not make the effort. Here are the things I don’t care about; I don’t care if I like the owner or he likes me. I don’t care if the pay plan is a binary or unilevel or breakaway or hybrid combining the three together. All pay plans have a built in guarantee: If you work you get paid, if you don’t you won’t.