Is there such a thing as know, like, and too much trust?

Everyone we’ve ever talked to joined their MLM company because of someone they knew.  It’s great to work with friends and colleagues, but it often backfires in a devastating way.  Here’s our story, and we’re guessing it will sound much like yours …

We worked for five long frustrating expensive years with Excel Communications.  When we left in 2004, we had only 60 reps in our business who had all given up and vanished before we did.  We were making a whopping $110 a month in residual income, had three maxed out credit cards, a remortgaged house, and a severe case of whatswrongwithus.

But let’s backtrack to 1999 to see how this happened …

  • Anna joined Bob because she had known him for 25 years, trusted his judgement, and figured that he had checked it all out.
  • Bob had joined Rhonda, his financial advisor, figuring that a financial advisor would know what she was doing.  Trusting an advisor who is just as broke is another story altogether!
  • Rhonda had joined Sharon just because they were best friends and one never did anything without the other.
  • Sharon had joined her parents, Alan and Velma, because she had grown up in an MLM household and joined just about every venture that her parents tried.
  • Alan and Velma had joined another opphopping friend Ruthy because it was their turn to join this one under her.
  • Ruthy had joined her friend and neighbor Mickey who ran a restaurant, a vacuum repair shop, and three MLM businesses without a filing cabinet.  Many of his papers were in the roasting pan for convenience, but that didn’t bother Ruthy.
  • Mickey had joined Bill, a traveling vacuum parts salesman, because Mickey knew Bill always had a good deal to share.
  • Bill admired his brother Stan, a salesman at Rick’s Door and Window shop, so he joined under Stan.
  • Stan had been shown the business by his boss Rick, and everybody knows the boss knows what he’s doing.
  • Rick had heard about the business from his wife Linda who had always supported him in the business with good advice.
  • Linda had heard about it from her best friend and college room-mate, Susan, whom she trusted completely.
  • Susan had told Linda about it to help her husband Frank.
  • Frank was a successful and well-respected engineer/manager for a large international company who had left his full time job to work his Excel business.

Now this is just a long boring story unless we take a lesson from it.  Notice that each person trusted the next to think about the future, and not one person had done the research necessary to answer important questions like:

  • “How hard am I going to have to work?”
  • “Will my check be safe for me and my family?”

The first one in this chain of fools who had even a clue about the comp plan was Frank.  He understood it so well that he realized we were on his ninth level and Excel only paid residual income on seven levels.  When everyone between us and Frank quit, it still made no financial sense for Frank to help us gather customers.

Two years later, we learned the 10k Question and discovered that it would have taken over 10000 people in our business for us to earn a residual income of $10000 per month.  As the industry average is about 2500, and the lowest answer is 400, we were working 4 times harder than most, and 25 times harder than we had to in order to make a dime!  No wonder people left us so quickly (no pay no stay), and no wonder we never succeeded in that company.

It wasn’t us, it was the comp plan.  We had taken a soap box racer to the Grand Prix.  If someone had come to us in our first year to help us understand this simple math, we could have saved years of failure and frustration.

Do your own research.  Start with the free report, Big MLM Lies.

Thinking that our friends have done their due diligence is just one of five bad beliefs that can land you in The Cross Your Fingers Club.  Listen to Bob and Anna explain how to avoid these common mistakes in judgement …

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Bob and Anna Bassett
Skype bobbassett