Terry contacted us recently for help in analyzing his new company. We offered to take a look at the policies and procedures and the comp plan on the understanding that if we came up with anything negative, he would not attempt to kill the messenger.
He agreed, and together, the three of us went through the company literature in as much detail as we could. (Bob crunched the numbers, Anna poked the PNP’s, and Terry agreed with everything at every step.)
After three hours, we had this conversation …
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I Have a Hunch
B&A: So Terry, you’ve read Success in Ten Steps?
Terry: You bet!
B&A: And it made sense to you?
Terry: You bet!
B&A: And you’ve listened to The Five Pillars and Compensation Plans and Business Models and they all made sense to you?
Terry: You bet!
B&A: Would you like to talk to the author, Michael Dlouhy?
Terry: Not yet.
B&A: Okay … then what drew you to this company?
Terry: My buddy is in it and I have a hunch it’s going to be good.
B&A: What do you think of all the stuff we found?
Terry: Amazing.
B&A: This company can terminate you at any time for any reason at its sole discretion. They don’t trust you.
Terry: That’s right. Wow!
B&A: And it’s a startup with a 1% chance of surviving for two years.
Terry: Wow, that’s right!
B&A: And the pay plan is so bad that you will need about 17000 customers or about 5000 reps in your business to achieve your goal of $10K per month in income.
Terry: Wow, that’s a lot of people …
B&A: And you have to jump through a lot of hoops before you start earning any residual income at all.
Terry: That’s right … amazing …
B&A: And people will get paid so poorly that they will be dropping out as soon as they join and you will constantly have to be replacing them which means you will be recruiting all the time instead of building a long lasting residual income which means that this is not a business but more like a job.
Terry: Wow! That’s right. Who wants a job? Not me!
B&A: And there’s a $300 startup cost for which you receive nothing in a bag, bottle, or box, not even a phone card or a disposable cell phone.
Terry: Right. That doesn’t make sense.
B&A: So that money leaves your pocket and goes into the pockets of your upline and the company.
Terry: Wow! That’s what it looks like!
B&A: And they charge you $50 per month for a website that costs pennies and then they pay commissions out of your pocket to your upline and the company.
Terry: Wow, that’s right!
B&A: And you have a renewal fee of $120 per year for no apparent reason.
Terry: That’s right! Wow!
B&A: And when you bring $600 in revenue to the company, they pay you about $6.00
Terry: Right …
B&A: So the $300 startup fee is about $30 per month to get it paid off, and another $10 per month for your renewal fee, and $50 for the website, and they are paying you $6, so that’s 6 minus 90, which leaves you $84 in the hole every month for bringing them $600 in business every month.
Terry: Wow! That’s no good …
B&A: I don’t know about you, but I don’t think I would take a commisssioned position for that kind of pay. It will cost you $84 a month to work for them. It makes minimum wage look pretty good.
Terry: You’ve got that right! Wow!
B&A: So you’ve joined a company that doesn’t trust you and probably won’t last two years, and if they do, they won’t pay you because it will cost you to bring them business. What would you like to do next?
Terry: I’m going to try it.
B&A: Huh? … You mean keep working at this? Sorry to be blunt, but why?
Terry: I have a hunch it’s going to be the next big one.
B&A: Wow. That’s amazing.
Terry: I know! This is going to be great!
B&A: Best of luck to you, sir!
Terry: Thanks! Wow!
B&A: And let us know how it goes for you, okay?
Terry: You bet! Thanks!
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“If we all made good decisions, there would be no movies.”
Bob and Anna Bassett
519-371-1028
Skype bobbassett
bobandanna@togethertothetop.com
