Is This A Pyramid?
November 7, 2009
As someone who is extremely entrepreneurial and someone who buys a lot of “stuff” from small business owners or direct sales folks I am always vigilant for companies that seem “too good to be true”. I ran into one such company the other day, and since the issues brought to my attention have not been proven yet, I won’t mention their name, but they did inspire me to help my readers be able to recognize a “scheme” if they run into it. So let’s take a look at what a real pyramid scheme looks like.
Wikipedia defines a Pyramid Scheme as: “A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered.” The key to that statement is “without any product or service being delivered”. Wikipedia goes on to explain “a successful pyramid scheme combines a fake yet seemingly credible business with a simple-to-understand yet sophisticated-sounding money-making formula which is used for profit. The essential idea is that Mr. X, makes only one payment. To start earning, Mr. X has to recruit others like him who will also make one payment each. Mr. X gets paid out of receipts from those new recruits. They then go on to recruit others. As each new recruit makes a payment, Mr. X gets a cut. He is thus promised exponential benefits as the “business” expands.” Keep in mind at no time is anyone getting a product, or trying to sell a product. It is all based on recruiting and paying for the privilege to recruit others. Each level getting a small cut of the action, but the real money goes to the top of the pyramid. This is known as a financial pyramid.
So how can you tell if you’re being approached by a legitimate business opportunity or a pyramid scheme.
The big difference between MLM (multi-level marketing) and a pyramid scheme is in how the business operates. The real purpose for an MLM is to move product, not enroll people. A MLM or network marketing business has a legitimate product or service they want you to sell. The theory behind MLM is that the larger the network of distributors, the more product the business will be able to sell. Product must move or the business quits growing. The reason they recruit is that the more people selling and using their product, the more money the company makes and the more money the can pay the sales team.
Here are some other questions to ask before you sign up!
1. Is there a huge investment up front? Most MLM businesses require and enrollment fee, some are quite low like $40 but can range as high as $500, depending on what the products and services are you will be selling. If someone is requesting thousands of dollars, really investigate the company. It may be legitimate, but usually the best part of getting involved in a MLM is the low entrance fee.
2. If you have to buy inventory, will they buy it back? There may be a “restocking” fee, but a legitimate company has some kind of inventory buy back policy and many companies will refund your sign up money within a certain period after start up.
3. Is there attention paid to educating you about the product and how to sell it? A legitimate company recognizes that in order to move product, it needs a sales force that understands the product and is willing to sell it. If a company says you don’t have to sell, I would be wary of them, since moving the products involves talking, which is really selling.
4. Is there more emphasis on recruiting than selling. Although building a team is important, the emphasis should be on sales. The company must move product to survive.
5. Do you make more money recruiting or selling. If it is recruiting…run.
Being part of a legitimate network marketing company can be very rewarding. MLM companies give people who have very little money to invest in the opportunity to have their own business with all the materials and reputation created for them. Although success requires commitment and constant learning, many people have come from having no money at all to become top income earners in these companies. I commend the leaders of these companies for creating opportunities that would never exist for many people without the money to by a franchise or start their own business. The network marketing and direct sales industry is amazing with the likes of Warren Buffet and Donald Trump involved in these endeavors.
So, in a nutshell, you can use these criteria when you approached about joining a business. Once you satisfy yourself that the company is legitimate, look at the things you enjoy to determine which company to get involved with. Personally I have a passion for travel and health and these are the two areas that I concentrate on when I am not coaching. Think about what you love to do and try to find something that will help you make a living doing it.
Building YOUR Brand!
November 5, 2009
What do you think of when you think of Ford Motor Company, Proctor and Gamble, MacIntosh Computers, IBM, Walt Disney World? Everyone of these companies has created a “brand”. A “brand” is simply the way we, the viewing public, perceive these companies. If companies can create the image that they want the world to see, as a business owner, why can’t you?
I know on the surface that sounds a little “fake”, because, let’s face it, sometimes we don’t actually trust these companies who carefully create images of themselves. We often find out that these brands really don’t represent what they say they do. What I am really saying is that if you want people to follow you and become customers or members of your team, you must show them what they are following.
Most of us are afraid to let the world get to know us. Or we let the world see the worst part of us. What I am suggesting is that you take a good long look at yourself, your strengths and what you are offering your clients. Use those great talents and gifts and show them to the world. Create an image that not only gets noticed, but is authentic and real, and people will follow you all day long.
Right now you are asking “why?”. Well I am glad you asked! The reason this is so important today is that people don’t buy products, they people. With the exception of the necessities of life, most of us buy products and services based on our feelings about the person who is selling the product. He is honest or she treats me right all the time. People buy people! And if your personal brand is one that attracts people, then they will buy what you are selling all day long!
So if you are struggling to make it with your business, take a look at yourself first. How do others see you? You might want to survey a few people and ask them what they think of when they think of you. Find out what your strengths are and even your quirks. (check out my website for a free personality test) Can you create a positive, inviting image with the “real you”? Chances are you can. Don’t be afraid to show people who you really are and let your brand shine.
Attracting People
November 3, 2009
Have you ever been with someone that seem like they know everyone? People love them, and want to be around them and they just seem magnetic? So how can you become that kind of person? Listen. That’s right start listening to people and you will have no end to friends.
So how does one become an active participant in listening. Listening is more than waiting for your turn to speak and you can improve your listening skills with just a little effort.
1. Pay attention. Give the person you are engaged with your attention, look at them, put aside distractions, both internal and external. Focus on the person speaking. Don’t talk to others in the room while trying to listen, and don’t think about other things while listening. Just listen.
2. Show them you are listening by nodding and smiling occasionally. Make sure your posture is open and inviting.
3. Make sure you understand what they are saying. Ask them to clarify points you may not understand. Don’t be formulating your response while they are talking, but summarize what you just heard to make sure you heard correctly. People love to be understood and they will love your attentiveness and be happy to clarify.
4. Hold your judgement and comments until the speaker is finished. DO NOT interrupt people when they are talking.
5. Don’t attack the speaker, but give your opinions kindly and respectfully. People don’t mind if you disagree with them, they just don’t want you to be rude about it!
Listening is a lost art in this age of quick phone calls, Facebook, Twitter and texting. However, if you want or need to attract people into your life, learn to listen to them. Remember people don’t care how much you know, until they know how much you care.
Nothing Comes Easy!
November 1, 2009
Don’t you just get excited about those stories that you hear on the morning talk shows about those people who did something amazing? Shows like the “Biggest Loser” and “The Amazing Race” are so popular because people achieve things that seem impossible. We all wish we could achieve things that seem impossible.
We all have things in our lives that seem impossible. Maybe right now you are out of a job and the chances of you getting one you want seem impossible. Or perhaps you started a business and it just seems like success is way out of your reach. Have you been struggling with a weight problem or addiction and it just seems like you will never overcome? What is the difference between you and the people we see on T.V.? What makes them so special, why to they achieve the goal? I have learned that the difference is that they DECIDED they were going to achieve their goal. That’s right, in many cases a decision is what stands between you and achievement. The people who reach their goals give themselves no other options, they make a decision to achieve. They count the cost and they decide it is worth the effort.
The decision does not make the goal any easier. The same obstacles are still there, you still have to do what it takes each day to get the job done. The difference is that once you make the DECISION the exit doors have been closed.
So what are the things that you want to achieve today?. Are they really hard? Are you up for the challenge? Can you make the decision? All those folks we see on the morning shows faced many obstacles, got up early, hit the gym, ran the race, talked to one more person, what ever their goal required. They sweat, they cried, and felt like quitting, but they got up every morning because they decided to do so. And one day they woke up and they had achieved their goal. What will you wake up to tomorrow? Wake up a winner!
A Little Extra Effort Wins the Race!
October 25, 2009
The difference in success and failure is often measured by very small increments. In a horse race and winner can be determined by a nose. So much so, that often film footage must be reviewed to see who the winner is. Swimmer Michael Phelps won an Olympic Gold medal by finishing the race just one inch sooner than his closest opponent. The line between success and failure is indeed quite thin.
When winning races those very small margins needed to win often represent many hours of work and sweat. Constant and deliberate actions can create those very small margins that it takes to win the race.
So what are those constant and deliberate actions that make the difference for each of us. You can well imagine that for Michael Phelps to gain the inch over his opponents, it required day after day of getting up at 5:00 a.m. and getting in the pool. Not too exciting, but the reality is, the daily efforts you put into to your endeavors can have the a profound affect on your success.
Whether you are trying to get a promotion, start a business or raise children, daily doing what you know to do will pay big dividends and each day passes. Sadly, because we can’t see how our daily disciplines make a difference, we often lose heart and decide that improving our education, exercising every day, eating better or starting a new business to help get us ahead really is just too much work. Instead we turn the TV on in the evening and just check out of life.
Before you are tempted to “check out” and coast through life, consider how just a little effort each day can make the difference you need to push you to the success you are seeking. Creating a focused approach to achieving your dreams can make them a reality. So the next time you are ready to give up, just think of that a Gold Medal was won by one inch and get up and do what you need to do to make the difference in your life.
Are You Committed Yet?
October 15, 2009
Do you ever notice how some people start projects, diets, exercise programs and even businesses and get to their goal in what seems to be record time? While others start and stop, start and stop in an endless cycle, never really reaching any goals at all. So what does the first group do that the second group doesn’t.
Perhaps it has happened to you that you have tried something new or started a new project several times before succeeding. What made the difference that last time? Did you change, did the project or task get easier? What is the difference between success and failure?
I read a book recently that got me thinking again about this phenomenon. The author made the point that whatever we were trying to accomplish, whether it was a new diet, or a new business, the moment we make the conscious decision that there is no turning back, no opportunity to quit, no way out, is the exact moment that we decide to succeed.
In one of my business endeavors I have heard stories of people who decided they were going to take their product to the top and even when they had no money they seemingly were able to get to the top of the business, almost in record time. When they had no other options – they had to succeed, they reached the point of no return and success was inevitable.
As a coach I see people struggle with their commitment to their businesses or to change in their lives. Those that give themselves no way out, almost always succeed. Those that tell themselves, “well if this fails I can get a job” often struggle until they give up or turn the corner and commit to a “no way out” philosophy to success.
Where are you today in your commitment to your purpose in life or business. Are you struggling with thoughts that have you looking for the exit door or have you committed to your purpose to the point of barring all exits? Sometimes the difference between success and failure is your commitment. What are you committed to today?
Motives – Make Sure Yours are True!
August 20, 2009
Have you ever sat across from someone and know that what they are saying is the farthest thing from what they mean? Maybe its a friend, a relative, a business associate, whatever, they are telling you that they are interested in helping you and you know that what they are really doing is trying to help themselves. They say “I just love to help people” and you hear “I would love you to hire me to help you do this job”. What you are really reading is their motive, and motive is much more transparent that we really know.
In our cynical society we have all learned that sometimes what people say is not always what they mean. They tell us they have our best interest in mind and then we find out they tell that to everyone. What people who are masters at charming others into believing they “just want to help” or “they have a passion for people” don’t realize is that most folks have a built in “radar” for this type of behavior and once they are burned by this type of behavior they are twice shy. That little red flag that goes up inside you when you get around disingenuous people is your built in protection against being taken advantage of, so listen to it and test the waters of all your relationships with its wisdom.
So if you are someone who wants to really help others, either with your product or service, how do you make sure that you don’t get misunderstood and lumped in with the pretenders. First of all, be real! Whatever you are doing, be true to who you are. Don’t waste time “spinning” anything, your work, your services, your life, anything. Now I don’t mean that you should share all your deepest, darkest secrets with everyone you meet, but at the same time, don’t pretend about anything.
Secondly, make sure you if you tell someone you are going to do something, that you do! Follow through says a lot about character. If you want people to believe you, your actions will speak volumes.
Support causes you genuinely care about. Don’t just get involved for the networking, get involved because you care.
Love what you do. Sometimes that is hard, but people really can tell if you do what you do because you are excited about your product or service. People buy from genuine, excited people.
Motives are so important, make sure yours are pure and you will go far in life and in work.
Making Money On Purpose!
August 19, 2009
At some time or another we all ask ourselves “am I doing what I was meant to do?” We all have an inner sense of needing to leave a mark with our lives and I believe that our purpose and passion play a huge role in accomplishing that task. For me, listening to God’s direction plays a big role in my purpose, but for others it may be entirely different.
I also believe that our purpose and passion change with each season of our lives. For instance, twenty-five years ago I would have told you my purpose and indeed my passion, was to love, nurture and raise my two children. It was truly the most rewarding part of my life, however, life did not end when that job did.
Today I will tell you that my purpose and passion really lies in helping other people reach their goals. I also believe that what I have done in the past has prepared me for what I am doing today.
So when people ask me how they can know if they are fulfilling their purpose, I always help them look back at what has gone before. This is, of course, not always true, but many of life’s experience do prepare us for our present journey.
So if you are sincerely looking for your purpose today, start with what you have been prepared to do. Perhaps you are just finishing college and are not sure which direction to go, look to what you have studied, does it align with some of your passions? If yes, then pursue in that direction. Look to things you have always found satisfaction doing, things that have always made you feel accomplished, these will all be part of your purpose and passion.
Perhaps you are in mid life and looking for a way to feel your purpose fulfilled. Look back on those things that have made you feel alive and pursue something in those areas.
Aah, but can I make money at my purpose and passion? Well the short answer is, some do and some don’t. Those that do are fortunate and blessed, those that don’t, but love it anyway, may need to become tentmakers, that is, working by day to pay the bills and pursuing passions at night.
Whatever your situation, look for clues as to what makes your heart beat faster and begin to pursue those things. Life truly is about the journey, but as with all journeys, the first step is up to you. Put your shoes on and let’s getting moving.
Connecting with Purpose!
August 9, 2009
While not a huge baseball fan, I am familiar with the unmistakeable sound the bat makes when it connects in the “right” spot with the baseball, sending the ball out of the ball park. When I was a kid we called that “connecting”. It is a joyous sound, a triumphant sound. As a batter when you hear that sound, you know that you are undoubtedly going to be hailed as someone who just scored a home run.
Unless we play professional baseball, most of us leave that triumphant sound behind us as we grow up to face an unforgiving world with very few chances to connect. By the time people get to me for coaching it has been a very long time since anything in their life or work has “connected” for them.
The first step to making your life or business seem like it is back in the game is to start connecting with your purpose. Your remember purpose. That was once the reason you did everything and you felt like you connected a lot.
When we lose focus on our purpose we often start losing focus on just about everything in life. When the busyness of life crowds out purpose, we often fail to make that connection again and we begin to wonder through life alone and unfocused.
If you feel like it has been a long time since you “connected” on any level, maybe it is time to get acquainted with your purpose again. If you need to rethink your purpose, you can do that too. Life has a way of changing purpose in subtle ways that keep us from the success we really want. Go ahead make the connection!
What’s Going On in YOUR Mind?
August 5, 2009
Do you ever really think about what you are thinking about everyday? The mind is such a powerful place and in it rests the capacity of what we all can accomplish. We hear a lot of people talk about the power of belief, but have you ever stopped to consider where belief begins…in the mind.
I run into a lot of people who battle negative, self-defeating thoughts all the time. They have encountered so many “bad” things in life that they have lost the ability to really believe anything good can actually happen to them. This leads to habitual negative thinking. How often do you think to yourself “nothing good ever happens to me” or “she can do it, but I am never going to be good at anything”. Do you just assume that life holds nothing but bad things for you?
Now positive thinking is not some magic wand that will make all your problems go away. Nor will positive thinking make all your dreams come true and suddenly make you brilliant, beautiful and rich, but it will make you a much happier person.
I believe that God has a plan for each of our lives, and we can’t control our future with our minds as some would have you believe. But you can agree with God to trust His plan and believe that your life will be used by Him for good.
Now being positive does not happen over night, but you can begin with baby steps towards a habit of positive thinking. When things go wrong instead of letting your mind leap to “nothing every goes right for me” start asking yourself, “what is the purpose in this situation?” The old saying “when God closes a door He opens a window” is often true. Even when the plans we hatch don’t turn out how we expect, if we are looking for positive and good things we can actually see how things work out better than expected.
There is a reason behind everything that happens to us. When we allow negative thinking to constantly fill our minds, the good that can come of situations is lost in the dense fog of self-doubt and failure.
Don’t let negative thinking keep you from the life God has planned for you. Take control of your mind and you will be surprised at the wonderful results.
