Who Makes all the Money in Multi-Level Marketing?
Page Name
Tim Sales of Brilliant Exchange
Adapted from a Tim Sales Newsletter.
Used by permission.
Continuing the series on "How to Handle Objections", let's talk about one you have probably gotten at least once. Here's a version that a reader emailed to me:
A prospect commented that, "MLM is about helping the top few people to earn money, and the rest just earn peanuts."
How do I handle this objection?
First, let me state that I LOVE THIS OBJECTION! Because, in handling it, I can let MLM "shine"!
Let's back up to the Objection Handling Remedy found in Professional Inviter. This is the formula of how to handle all objections.
- Listen completely through the question/objection.
- Confirm understanding.
- Make the question or objection valid to the prospect.
- Handle — or facilitate handling — Questions and/or Objections.
- Complete the handling, and return to the previous step of the Inviting formula.
When your prospect makes a comment similar to the one above, listen completely through his objection, then confirm for the prospect that you understand it. With this particular objection, you have to make sure you differentiate "people at the top … are making most of the money" versus "people who get in at the beginning … are making most of the money." You handle these two objections slightly differently.
When you acknowledge that you understand the prospect's objection, let him know that you appreciate his telling you this, or asking you about this. Say something like, "That's a good question," or "Thanks for asking that," or "Thanks for bringing that to my attention."
Then, you want to handle — or facilitate handling — this objection. "Facilitate", of course, means you assist the prospect in handling his or her objection, instead of you "telling" the prospect the answer. Once the objection is handled, you return to the step of the Inviting Formula you were on when the objection came up.
The faulty perception behind this objection
To help you with step 4 (handling the objection), let me explain the short version of why this objection comes up. Then, I'll give you some valuable information about how to handle it.
This objection comes up because there is a perception that it's only in MLM that people at the "top" make most of the money. Factually, when people in Multi-Level Marketing have built large organizations, they do make more money than those who have not built large organizations. But, it's not any different than other business models! If you research the traditional executive and owner compensation in most companies, you'll see that "only a few people at the top make the majority of the money" in every business model!
Last year (2006), CEOs of large U.S. companies made as much money from just one day on the job as the average worker made over the entire year. According to an Associated Press survey of 386 Fortune 500 companies in 2006, the executives averaged $10.8 million in total compensation; that's over 364 times the pay of the average American worker!
If you study this graphic and the text above, I think you will agree that MLM "shines". Why? Because, in MLM, there are people layered through-out the organization who are making more money than the people who brought them into the business. You don't find this in other business models.
In MLM, your productivity determines your earnings; and, if you're more productive than your upline, you'll make more money. In a conventional business model, if you're more productive, you just make more money for other people; and, you've still got to deal with office politics, seniority and other factors that often outweigh the productivity factor. That's why I say that MLM is the fairest business model of all.
Making MLM shine,
Tim Sales
No objection will ever stress you again, once you've learned
the strategy in Professional Inviter.
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About the author:
Tim Sales helps network marketers gain the skills necessary to be successful in MLM. His MLM training is based on his personal success of building a downline of 56,000 people. Instantly access Tim's free MLM training and learn the steps to achieve MLM success at www.brilliantexchange.com/mlmtraining.
