Original Source
Wednesday, September 19, 2007
"System" Questions Answered...
Let’s talk tools…
As you scan the writing on the bathroom walls (negative internet sites / blogs) it soon becomes obvious that the biggest “beef” that people seem to have with networking type businesses is the “system” (CD’s/Books/Seminars). Many would like you to believe that systems only exist to create system tool profit. At first sight, these “beefs” seem legitimate…and in some cases, they actually are legitimate! But I would like to take some time to point out some MAJOR differences in what the TEAM leaders (Orrin Woodward, Chris Brady) have developed compared with what basically every other group has done. There must be some reason why major icons in the industry (Randy Haugen, Billy Florence et al) have joined the TEAM! Remember, the TEAM leaders have always stayed committed to making things "win-win". In fact, Orrin often uses the expression “win-win or no deal”.
But first…before we get into the details of what makes a great system…let’s get one thing straight…not all tool systems are created equal, but tool systems are absolutely necessary to build a successful business for multiple reasons. Probably the biggest reason is a concept called “duplication”. Why is “duplication” important? Well, without it your business would never get off the ground. If you signed up a new person into your business and simply left them with “give me a call if you have any questions…” you are setting yourself up for a tsunami of calls if you plan to grow to any level of significance. How many people could you physically have the time and energy to support (not to mention the cell phone minutes you would burn through!) Instead, you could simply get them started on a training system that would do most of that work for you. This would free you up to grow your group rather than spending all your time personally training and motivating each person in your downline. Letting a “System” do the work to create the wealth is what Robert Kiyosaki, author of multiple wealth building books, refers to as a “B” type business. Most franchises are set up as “B” type businesses.
Duplication also insures that “what” is being taught actually works. If you get started today, and your sponsor got started yesterday, what do you think your sponsor is going to teach you about building your business? The system would insure that everyone is getting instruction from people that have already attained significant levels of success in exactly what you are trying to do. Nothing could be more logical than taking advice from people who have already accomplished what you are trying to accomplish.
Lastly, duplication helps to eliminate “discretion”. This is why franchises have such a high success rate. Franchise owners simply follow documented proven methods. In fact, most franchises will insist on duplication. If a Starbucks franchise owner decided, at his own discretion, to start selling hotdogs…a representative from Starbucks corporate office would be there…faster than you can say cappuccino… to shut that owner down!
Beyond “duplication”, the TEAM system (and some other systems) is also intended to help participants grow personally. If your goal would be to lead a team of people, it would make sense that you would want to learn how to lead! I think best selling author John Maxwell sums it up best when he says, “everything rises and falls on leadership”. This point actually gets to the heart of what makes the TEAM system so different. The TEAM is committed to raising up a group of leaders that are building businesses based on traditional Christian principles. The first stated goal of the TEAM is to bring one million people on board. Do you think that our country would look (and think and act) a little different with one million people of character chasing the same vision? I think that this country…and then the world…will be positively impacted by what the TEAM has to offer. So why do so many critics have issues with training systems? Here is the answer…most systems are not set up with “win-win” principles… In fact, most tool systems are straight up pyramid schemes.
No matter how good the content of the system tools…No matter how necessary the system is to building your business…if the deal is not a win-win, it won’t last long. Here is an example of how most systems “share” tool profit. When you reach a certain level, you work out a deal with your upline Diamond and you start to reap the “negotiated” profit. As an example, if a CD costs $6, the Diamond would sell the CD to a Platinum for $5.50, a Sapphire for $4.75 and an Emerald for say, $4. Your profit would be the difference in your cost for the CD and the $6 price you charged your downline. Now, inherent problems exit here. First, what happens when a downline gets excited and goes Diamond? Here is what has happened in the past…they either strike an aggressive deal with their upline Diamond to share more of the profit, or they simply start their own system…starting all over with a $6 CD that they sell to their Platinums for $5.50 etc…you get the picture. Now, let’s ask the logical question. Can you (the new person getting started in business) ever…using this profit sharing method…make more than the Diamond? Nope. That, my friends, would be what you call a pyramid. It also makes for some ugly business dealings.
Beyond an incredible leadership development system, Orrin and Chris have also created a FAIR profit sharing model. The profits go into profit sharing pools and are divided monthly based on the size of the business you have built. The entire model is based on a business strength formula which ensures that anyone can make as much or more than anyone else. On the TEAM, he who does the work gets paid…not necessarily he who develops the system. There are no “special deals” for anyone…including Orrin and Chris. In fact, they are constantly focused on making the opportunity better and better for the newest business owner. As the TEAM grows…the tool pricing drops based on volume. CD/Seminar costs have consistently been reduced over the years. In fact, Orrin has recently talked about(at a TEAM event) the day when CD’s could be reduced to $3 or even simply downloaded from the website!
You see, when leaders focus on what is right, great things can happen! Can you imagine a day that someone gets the system AND the COMMERCE right? Can you see a day when the pricing of products is so good that more people come…which causes the prices to be reduced…which would cause more people to come…which would cause the prices to be reduced…which would cause more people to come…I am getting excited just thinking about it!
Posted by Q'Reilly at 7:49 AM
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7 comments:
right on!
I AM SPARTACUS!
MOST PEOPLE DON'T EVEN REALIZE THEY COULD USE SOME PERSONAL GROWTH,I NEVER WOULD HAVE READ THE TYPE OF BOOKS OFFERD BY THE TEAM SYSTEM WHAT A DIFFERANCE IT HAS BEEN VERY POSITIVE FOR ME ANY MY FAMILYK
What TEAM and others in "the business" have taught today, has been taught 25 or more years ago. Orrin and Chris havent the monopoly on business building knowledge.
ALL these principles have been taught for the last 50 years, yes even the depth ideas.
What we need as IBOs are partner stores and a wholesaler that provides what we desire.
I know the system, I need a wholesaler.
Check out http://teamfoundingfathers.blogspot.com
Hi all,
I have enjoyed all of the comments here.
Personal development is always critical as is good training.
You should all know, however, that most companies do all of that for free or at cost so that IBOs are not burdened with additional expenses that make it difficult to become profitable.
In life, it is all about balance. It's not that BSM is bad. It's good, but only if done with balance and extreme care for the IBO's budget - both in quantity and pricing.
Lou Abbott
Founder
http://www.MLMtheWholeTruth.com
...for people who want to know the whole truth about Network Marketing
being in sales most of my life, most sales companies do provide a lot of materials for free, some don't, however, when you leave there they also stop paying you. The idea is to create a residual passive income that supports you while you are sailing in the waters of your choice! The secret of the team (shhhh) is that it creates an enviroment of learning, where it is cool to learn and practice success principles, and you are hanging with others that are encouraging you while they are growing too. this is not the typical enviroment in traditional business, because of competition. I know many organizations that say they want you to improve and I have found that the staff usually outpaces the leadership of the company. I dont think we will have to worry about that with the team leaders! also, in a comission structured oranization the sales staff that is getting the "free" materials also only receive a small percentage of the profits for doing a lot of the work. in the team model really the people who are doing the lion's share of the work get most of the profit and the uplines that help get only a small percentage override. but when they help a lot of people it can really add up and when it is big enough it can take on a life of it's own. build it with pride!
See if the leaders would want to incorporate the tools within the Comapnys System???
I hear all the noise! But it's still the same old noise! TEAM leaders started a busiess within the business. Most of their money was made from the TEAM business.
If you don't beleive it, Have them lay open their books and look at the numbers your self.
The Q business was their front. Yes They may be the Founding fathers of TEAM. But the original founding fathers did not have any FINANCIAL GAIN from them standing up to the BRITS.
If you look at the history books, They put their life on the line. The stood for something more than the almighty DOLLAR!
Ask you team leaders if they will open the books to what they have earned from their TEAM business< Bet they won't. They will say that really isn't the case!!
That has been the case in all the cases of Amway. The leaders got accused of pushing their training too much. The training was brining too much attention to Q and A.
Below is an excerpt from history of A and Q.
IF EVERYONE WOULD DO THEIR OWN RESEARCH AND ASK SOME OF THE PEOPLE, THAT ARE NO LONGER IN AMWAY< YOU MAY UNDERSTAND WHY Q IS DOING WHAT THEY ARE DOING TO THE ALMIGHTY TEAM LEADERS! IT IS NOT ALL ONE SIDED!!
READ THE FOLLOWING AND IF YOU DON"T BELEIVE IT< RESEARCH WHAT YOU READ!! ENJOY THE TRUTH! IT"S NOT ALWAYS WHAT OR HOW WE LIKE TO HEAR IT. BUT IT"S STILL THE TRUTH!!
HISTORY OF AMWAY - ALTICOR - QUIXTAR TRAINING SYSTEMS AND HOW AND WHY THEY CAME ABOUT!
AMWAY - QUIXTAR - ALTICOR TERMINATES 6 DIAMONDS -- 12 OTHERS RESIGN
MAY 2002 Last month AMWAY - ALTICOR - Quixstar (AAQ) terminated 6 Diamonds over a dispute on the distribution of money for training tools. In a laudatory move 12 other Diamonds resigned (or threatened to) to protest this action! We salute those 12! This was a magnificent (and we are sure painful) way to protest corporate activity. http://mlmwatchdog.com/Archives2002_2.html (OPENS NEW WINDOW) The “Team In Focus” group that the 15 were in proposed an MLM comp plan for motivational book, CD and rally training materials. This would have gone all the way down to bottom distributors and not be restricted to the Diamond leadership. The other Diamonds went nuts over losing the money. This must be the new generation of leadership at Amway Alticor. Terminations around Amway were at an all time low. To fully understand the history of the Amway Quixtar training system read on!
BACK IN 1982 DeVos RAPS KNUCKLES OF DIAMONDS
Back in 1982 the book, tape and rally Diamond income was secret. New distributors didn’t know about the motivational tool business and it had started to develop into a monster. The program had originally started in 1972. Upline Diamonds got in lawsuits with Downline Diamonds because there were no contracts. Your WatchDog editor had bailed out of Away by 1974 because none of my training material was “good enough.” Why, you might ask? I wasn’t a Diamond! I always say that Amway made me millions of dollars – just not in Amway! Anyhow, by 1982 even Rich DeVos (a hero of mine) told the Diamonds they were on shaky ground in an audio tape “Directly Speaking.” Why? They were not sold to consumers. Over the years the Diamonds countered that it was NOT an MLM system, just millions of dollars of direct sales down the chains of Diamonds.
WHY MLM TRAINING IS A RED FLAG TARGET!
A HISTORICAL STORY ABOUT TRAINING July 2001 - updated May 2007
FOLLOW HOW THE AMWAY - QUIXTAR SYSTEM CAME ABOUT
MLM HORROR STORY
In the 60s, Holiday Magic (HM - a skin care company that believed products were not important) set up a training section called Leadership Dynamics (Zig Ziglar was not part of this, only HM product sales). Leadership Dynamics training consisted of torture, brainwashing, and EST psychology. It cost $5000 to go through it. You had to go through it to get to higher pay levels. The barbwire around testicles, naked dog piles, and suffocation were documented in a book "The Pit." It was made into a film and circulated in MLM trials when the FTC and states hit the company.
THAT LED TO
Glenn Turner was a top distributor with Holiday Magic. He revolted at the torture training and started KOSCOT. Turner did ship products and his leadership company, Dare To Be Great, was based on strong positive training at $5000. Tony Robbins is believed to have attended a course and got his start here. Training was $5000 in 1970, and many today swear it was worth it! However, selling training for 1/3 the price of a new house did not set well with regulators. The state and Federal regulators shut Turner down.
THE LAW ARRIVES
When the FTC hit all of them (MLM companies), one of the major thrusts of the FTC attack was training. Was it of value? All MLM training was hit or suspect. You still see that today when the FTC or states hit a company: Training, if too high priced or paid via MLM, is a great big red flag! Companies that specialize in training can't sell training MLM and stay out of trouble!
AMWAY DODGES ISSUE
AMWAY was hit but had pulled a smart diversification (SO IT SEEMED AT THE TIME), and dodged training issues. In 1972, they started letting top distributors create their downline's entire training systems and informally turned loose what could be charged for training. Amway Corporate at first did motivational meetings at the regional levels, then turned these lucrative large training meetings over to the Diamonds. The FTC did not address the training issues when they sued and settled with Amway (thank you Amway), since they did not exist within the corporate structure!
AMWAY CRITICS ARE WRONG
One of the interesting misconceptions, even from Alticor - Amway - Quixtar members, is that the tools and training system is MLM. It is not. Diamonds generate material and sell it at markups thru the levels of their MLM organization. It is a broker relationship from top down. The upline, starting with top Diamonds, push materials on downlines as almost mandatory. There is not a commission structure, but rather a price mark up as motivational books, tapes, CD's and training sessions go down the rank of Diamonds.
ALMOST 40 YEARS LATER
The distributor training material (and rallies) deals are not within Amway-Alticor - Quixtar corporation. They are Crown Diamond distributor deals, down to the lowest Diamond. There is no formal structure dictated by Alticor - Amway for markups on the tapes and other training material as they travel downline. The worst MLM tape ever was a Diamond out of Colorado Springs bashing every MLM company but his. Others, like Hawkins "Prospecting" (1984), was magnificent (as were some of his other tapes).
ALMOST 40 YEARS LATER, YOUR WATCHDOG OPINION
WatchDog Opinion: The distributor training material (and especially rallies), have gotten too high. Especially the regional training meetings and the big push to get people to them. I am an advocate of MLMer's reading books and listening to tapes. However, I started "The Golden Opportunity" as an MLM with fair pricing for magazines, tapes and tools in the 80's as a kind of personal revolt against the "big wigs" raking in all the money at high prices. Your editor thinks that Amway - Alticor - Quixtar growth in the U.S. has been stunted by too much motovation! Complaints - yes, lots!
AMWAY QUIXTAR TRAINING U.K. SHAKE UP - NO TRAINING BOOKS - TAPES - MEETINGS
http://www.mlmwatchdog.com/Report_Amway_Training.
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