Outsourcing and Downsizing: The Dirty Little MLM Secret


I get calls daily from people who are enraged and looking
for a new MLM company because their owners have changed the deal on them.
Usually they’ve added an inferior product or altered the comp plan.

 
Maybe I’m the only one to tackle this issue head-on, but
downsizing has been in our industry for years. How do owners enhance profits by
shrinking the organizational size of independent distributors? It’s simple…they
can’t fire anyone, so they run them off with changes to compensation. It
happens all the time. It’s just not called downsizing. But that’s what it is.

 
With respect to outsourcing, that’s accomplished by the new
kid on the block – Affiliate Programs. Instead of building a serious
infrastructure around an efficacious product, outsiders have figured out how to
harness the energy of multiple companies by paying leaders fees to induce their
downlines into “complimentary programs” that sell everything from websites to
lead lists. It’s really very brilliant. Why invest in building an MLM company
when you can pay many leaders from many companies to build a virtual one?
There’s only one problem. It’s called split-focus. It’s tough enough to do one
legitimate program. The last thing leaders need is to have their people focused
on outside activities unless of course there’s a lot of money in it, which is
usually the MLM’rs inducement.

 
This Blog is for all those who would like to avoid being
downsized or outsourced. First, make certain that your owners have no plans to
change the compensation structure. Most of the plans out there are very
lucrative whether they are binaries or breakaways. But you don’t want to become
great at a binary and then wake up one day in a uni-level.

 
If you are approached by anyone who suggests that you join a
second program…run. I don’t care what they call it. You need to focus on one
deal until you hit the big checks. If lead lists worked, your company would
provide them for free. After all, everyone wants to earn big money so it’s very
easy to find the names of such people. What you need to understand is how to
build your own 30,000 person warm market. We cover that in Volume 2 of our Holy
Grail series. It’s really surprisingly simple and you get better names without
splitting your focus or paying for names.

 
Don’t kid yourself, even independent distributors can become
victims of outsourcing and downsizing. So take a few proactive steps to avoid
those situations. Above all else, don’t join additional programs or quit your
own company no matter how mad the owners may make you. Even if they change
plans, why walk away from thousands of dollars? Most downsizing occurs when
people walk away from a company because their checks have been cut in half. But
isn’t half of something better than all of nothing? If you have to join a new
company, start from scratch and don’t raid your former downline, or your check
will stop coming. If you get mad and walk away, you just downsized yourself.
Not real bright.

 

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