Someone recently told me he’s joining an MLM company because of the promised spillover. I said, "They are lying to you!"

As a result the guy point-blank asked them if he’d get people put underneath him, and of course he was told that there was no guarantee for it!

Spillover is creating a welfare mentality.

Good people want to build it themselves. They 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, that will pay even their children’s children.

MLM websites containing that word "spillover" as a rule say one way or other "get in now, today, and you’ll get all this spillover".

If you look closely at the compensation plans of the companies that promote spillover, you’ll find out that you don’t get paid on spillover as a rule. You need to qualify to get paid on that spillover, and  people who opt for spillover rarely ever qualify.

What a surprise – also here it is the people who do the work who get paid!

When You Say "Spillover", You Are Targeting Quitters! People who think they get something for nothing.

A network marketing company that promotes spillover is attracted welfare-minded people. You can’t build with these people, unless YOU do all the work! And when you don’t build their business, they’ll be off somewhere else, looking for a better welfare plan. As a result the failure rate will be 100%.

There is the next connected scam:

The quickest way to build a huge list is to offer something for nothing (no money, no work, no purchase) in return. You will see again and again  things like: “we’ve signed up more people faster than anybody else in the history of network marketing." But nobody ordering any product. It’s just names on a list – but they can call these people "network marketers."

Next they sell this huge database of worthless names (an "MLM genealogy list") for $10,000 each to 10 different list brokers. 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!

You pay $2-$3 per lead for these people. When you call them they tell you they’ve never been in network marketing! They don’t even know what it is. They just opted in to some “something for nothing” list, hoping for the miracle of getting rich over night.

Conclusion? Run fast from any company focused on "spillover".  ALWAYS generate your own leads. How?

Get yourself seriously educated and you will do awesome!

Frieke Karlovits

Your Mentor With A Servant’s Heart

MLM software is expensive. That’s why most MLM companies rent their software. In most cases it cannot be adapted fully to fit their business model, and the distributor base suffers as a result.

Let me tell you a story about a network marketing company. They had a binary compensation plan, which is a plan where you build two legs – a left one and a right one. Unfortunately the software they rented did not permit changing from left to right and vice versa and they had to have programmers in to do it and of course that cost time as well as money. It took them about half a year to get it sorted out.

In the mean time there were people who had already built one strong leg. In a binary plan you then need to re-adjust in your back office and get the new sign-ups on your weak leg so that you get paid. You get paid on your weak leg! And in that case people thought that the new sign ups were going in your weak leg.

What happened with that company was that this change over just didn’t work and after a while distributors found out and approached the company to move the new people. The company hired lots of people to handle the changes yet couldn’t cope. They even started to charge the distributors per change-over although it was the company’s mess and in the end they stopped doing it altogether.

This is a perfect example of buying software which doesn’t fit the purpose at all.

On the other hand when you rent the software, you better read the fine print, as you don’t own the database! You have heard right:

You Do Not Own The Database!

Michael Dlouhy told us that he saw a downline genealogy for sale on the internet and he happen to know the owners of the company. So he called them and asked them what was going on – if the company wasn’t doing well. He heard that the company was doing great yet had had to rent the software and the software company owned the data base.

This software company made a nice lump sum of money by selling the data base to a bunch of companies. It had been in the Policies and Procedures, that the software company owned the genealogy!

 How would you like to build your business and then have your organization for sale on the internet?

It has to be one of the critical questions when you check out a company, if they own their software. Renting is a lot cheaper and most companies don’t have the 2 million dollars to buy it when they start.

It certainly is the best choice to opt for a company who had their software custom built! When the company had it built and owns it, the distributor base is safe. Instead, for starting a network marketing company quickly, the owners rent the software and are in business in no time. If it is your business – what do you do?

They know that network marketing is a tough business. They know that most companies don’t survive the first 2 years. So renting software minimizes the risk. But how about you? This is a dangerous secret!

What about another well kept secret: The software company will be a partner of the MLM company – it means that the MLM company builds an organization, a leg,  for the software company. It creates a retirement income for the software company on the backs of the distributors. Is it a problem for the owners of the MLM company to move all their orphan distributors underneath the software company so they receive a nice check? What a secret!

It is one more reason why you need to base your future on a company with an owned custom made software!

Do you start realising why education in this industry is critically important – especially when you are capable of building a downline well. Background knowledge saves you from having to cry over spilled milk  at a later stage!

To Your Success!

Frieke Karlovits

A mentor With A Servant’s Heart

Right – you love MLM and you know you can do it.  You screen the industry to find what you are looking for. At this stage you  for sure need to make it a point to know who your upline will be. Let me tell you a story to show you why:

There was this lady in a network marketing company. She was the first woman in this company who built her business quickly – so fast, that she reached the first rank of the commission plan in only 4 months.

This excellent performance made her upline jealous and jealousy breeds envy. Unfortunately, like many others in this industry, she did NOT bother to read the company Policies & Procedures. How terrible having neglected it!

It is a necessity that you carefully read the Policies & Procedures BEFORE you ever join a company. This may not be easy as, at times, you don’t find them before you sign up! Request them!

So when this lady joined the company,  she told them that her fiancée was building another MLM business. There was no comment, but guess what? In the Policies & Procedures of this specific company it was stated explicitly, that you were not allowed to make any money from another network marketing company – not even an affiliate program! If you violated this provision, you can be terminated. And what’s worse -  these restrictions applied to everyone living in YOUR household!

If you ask me this is worse than being an employee! As an independent business partner, how can anyone put you under limitations like that?

Being happily unawares, this lady build to the top of the commission plan. She was was highly motivated as everything went so well. Her pending bonus check was $7,000 as a reward for reaching the top rank in the commission plan  and what’s more, she was the first woman to have done it!

Suddenly she found her web-site turned off, everything closed down, without even getting a notice from her company.

She had not considered her upline! She was informed by her upline that she had been terminated as her fiancée was building that other business. Now, she had told the company that they weren’t married and that he was building that other business! –          So what you need to watch out for – any modification in a signed agreement requires the written consent of the issuing party! Otherwise the information given is only “hot air”.             It had nothing to do with her and her work it was simply the loop hole to get her out, to not pay her what she had earned!

Having not read them, she wasn’t aware that the company was viewing two people to be one and the same for the sheer fact that they were living in the same household and  that this was laid down in the Policies & Procedures.

But how come the company knew this??

Very unlikely that the company would ever find out unless someone [the upline??] told them? Well who would!– Since she was terminated the entire organisation and the income rolled up – what a coincidence!

The upline didn’t have that kind of success and now – well, no need to any more!

I know a number of network marketers who have lost everything, because they never read their Policies & Procedures. No surprise I strongly advise you to go to your company website at once, and read your Policies & Procedures! It may be an “AHA” moment for you!

What happened when you joined your company? Did you check a box by which you accepted the Policies & Procedures? But did you actually read them – …?

There is another common trap – people think, "Well, everybody I know is violating this rule – seems the company must not care." Believe me, you can violate any rule as long as you’re not making any money. Only once you start getting a significant paycheck, the day has come when it’s worthwhile for an ill-meaning upline – or even your company – to terminate you for violation of your Policies & Procedures.

Go and find your Policies & Procedures and see what YOU are in for – Do It NOW!

This knowledge is available by curtsey of Michael Dlouhy -  thank you, Michael!

Frieke Karlovits

Your Mentor With A Heart For People