Look, I'm going to say what I've known for a long time and what I have OPENLY said for a long time, JUST IN DIFFERENT WAYS, about MLM.
MLM is a SCAM for the vast majority of people.
Here's why, and it's very, very simple.
ALMOST ALL MLM compensation plans are designed to pay you only about 5 to 10% (usually about 5%) on your TOTAL group volume UNTIL AND UNLESS you start to build your group into the THOUSANDS OF PEOPLE and start
what I generically call
THE BIG HITTER BONUSES.
The problem is, 99% of the people out there, THEY JUST DON'T HAVE THE SKILLS or WORK ETHIC or whatever NECESSARY to build groups of that SIZE.
And so basically what MLM turns out to be is a WHOLE LOT OF "little people" AT A MONETARY LOSS funding obscene amounts of money to just a HANDFUL of top leaders and the company owner! They don't get much in return except for social commiseration and some expensive leadership training!
Now, me PERSONALLY, I am "ok" with that, because, guess what, I've got the proven skills and the proven HISTORY of having built multiple MLM downlines into the thousands of people. So I can build a large MLM downline and sleep at night, because I typically tell my downline in various ways WHAT THEY HAVE TO DO to make money in whatever particular structure we happen to be in (matrix, binary, whatever).
Now, what happens to the less than 1% that DO build the large groups in MLM? Well, they make a BOATLOAD of money from those TOP BIG HITTER bonuses (those bonuses are usually a percentage of the entire sales volume of the entire company). We're talking about tens of thousands of dollars per month, sometimes hundreds of thousands of dollars per month, and, in a few cases around the world, MILLIONS of dollars per month!
But again, what are the odds that you are going to EVER develop into THAT kind of a leader? If you're not already at that level, it's pretty close to slim to none, and slim already left town. Look at the way the modern military works in terms of RANK, how different ranks command different SIZES (numbers of people) of command. To wit:
Rank and unit size
Main article: Military organization
To get a sense of the practical meaning of these ranks—and thus to be able to compare them across the different armed services, different nations, and the variations of titles and insignia—an understanding of the relative levels and sizes of each command will be helpful. The ranking and command system used by U.S. Marine ground forces or U.S. Army infantry units can serve as a template for this purpose. It should be remembered that different countries will often use their own systems that do not match the presentation here.
Under this system, starting from the bottom and working up, a corporal leads a fireteam consisting of three other individuals. A sergeant leads a squad consisting of three fireteams. As a result, a full squad numbers 13 individuals. Squads usually have numbered designations (e.g., 1st Squad).
Generally, in most armies and marine units, a lieutenant or equivalent rank leads a platoon, which can consist of three or four squads. For example, in U.S. Marine infantry units, rifle platoons usually consist of three rifle squads of 13 men each, with a Navy corpsman, the platoon leader, and a platoon sergeant (i.e., a staff sergeant who serves as second-in-command). An infantry platoon can number from 42 to 55 individuals, depending on the service. Platoons are usually numbered (e.g., 1st Platoon) or named after their primary function (e.g., service platoon).
A captain or equivalent rank commands a company, usually consisting of four platoons (three line platoons and one heavy weapons platoon). His headquarters can include a first sergeant and as many as seven others. As such, a company can comprise from roughly 175 to 225 individuals. Equivalent units also commanded by captains are batteries (for field artillery units) and detachments. In English speaking countries, a company (or troop in the cavalry, and battery in the artillery) is usually designated by a letter (e.g., "A Company"). In non-English speaking countries, they are usually numbered. In most Commonwealth armies a company is commanded by a major, assisted by a captain.
A lieutenant colonel or equivalent rank commands a battalion or a squadron, often consisting of four companies, plus the various members of his headquarters. A battalion is around 500–1,500 men and usually consists of between two and six companies.
A colonel or equivalent commands a regiment or group, often consisting of four battalions (for an Infantry unit) or five to six air groups (for a wing). Battalions and regiments are usually numbered, either as a separate battalion or as part of a regimental structure (e.g., 1-501st Infantry in the US Army).
In these latter, abstractions cease to be helpful and it becomes necessary to turn to an actual unit. The 1st Battalion of the 1st Marine Regiment of the 1st Marine Division of the I Marine Expeditionary Force consists of three infantry companies, one weapons company, and one headquarters and service company. Above that, the 1st Marine Regiment (also known as "First Marines") consists of four such battalions and one headquarters company. Marine Air Control Group 18 of 1st Marine Air Wing of the III Marine Expeditionary Force consists of four squadrons, one battery, and one detachment, a mix of different-sized units under a regimental equivalent-sized unit.
The next level has traditionally been a brigade, commanded by a brigadier general, and containing two or more regiments. But this structure is considered obsolete today. At the present time, in the U.S. Army, a brigade is roughly equal to or a little larger than a regiment, consisting of three to seven battalions. Strength typically ranges from 1,500 to 3,500 personnel. In the U.S. Marines, brigades are only formed for certain missions. In size and nature they are larger and more varied collections of battalions than is common for a regiment, fitting them for their traditional role as the smallest formation able to operate independently on a battlefield without external logistical tactical support. Brigades are usually numbered (e.g., 2nd Brigade).
The level above regiment and brigade is the division, commanded by a major general and consisting of from 10,000 to 20,000 persons. The 1st Marine Division, for example, is made up of four marine regiments (of the type described above), one assault amphibian battalion, one reconnaissance battalion, two light armored reconnaissance battalions, one combat engineer battalion, one tank battalion, and one headquarters battalion—totalling more than 19,000 marines. (Within the headquarters battalion are one headquarters company, one service company, one military police company, one communications company, and one truck company.) An equivalent elsewhere within the same marine expeditionary force (MEF) might be a MEF logistics group (MLG) - which is not a regimental-sized unit (as the word "group" implies), but rather a large support unit consisting of several battalions of support personnel. Divisions are normally numbered, but can be named after a function or personage.
Considering such a variety of units, the command sizes for any given rank will vary widely. Not all units are as troop intensive as infantry forces need to be. Tank and artillery crews, for example, involve far fewer personnel. Numbers also differ for non-combat units such as quartermasters, cooks, and hospital staff. Beyond this, in any real situation, not all units will be at full strength and there will be various attachments and detachments of assorted specialists woven throughout the system.
The 1st Marine Division is part of the I Marine Expeditionary Force, which also includes the 3rd Marine Air Wing, 1st Marine Logistics Group, 1st Marine Expeditionary Brigade (as required), three marine expeditionary units (featuring helicopter groups), and a battalion-sized marine air ground task force. In the U.S. Marine Corps there are three marine expeditionary forces.
In the U.S. Army, the level above division is called a corps instead of an expeditionary force. It is commanded by a lieutenant general. In many armies, a corps numbers around 60,000, usually divided into three divisions. Corps (and similar organizations) are normally designated with Roman numerals and their nationality when operating in a combined (international) force, e.g. V (US) Corps, VIII (ROK) Corps, II MEF, I Canadian Corps.
During World War II, due to the large scale of combat, multiple corps were combined into armies commanded in theory by a general (four stars), but often by a lieutenant general (three stars), and comprising as many as 240,000 troops. Armies are numbered by spelled-out numerals or functional titles, using their nationality in "combined" forces (e.g., Eighth US Army, Third ROK Army, British Army of the Rhine). These were in their turn formed into army groups, these being the largest field organization handled by a single commander in modern warfare. Army groups included between 400,000 and 1,500,000 troops. Army groups received Arabic numeral designations and national designations when combined.
These examples illustrate a standard that holds true all over the world and throughout military history, namely that higher rank generally implies command of larger units in a nested system of ranks and commands. The specific size of a command for any given rank will, however, depend on the task the unit performs, the nature of weapons used, and the strategies of warfare.
So now you realize that in order to start hitting the early part of most big company MLM bonuses you have to reach the equivalent of the military's rank of LIEUTENANT COLONEL that typically command between 500 to 1500 lesser ranked soldiers. Do you know what percentage of the military hold that rank or higher? If you said a SMALL FRACTION OF 1%, you would be correct!
Many MLM companies, whether they had to agree to do so as part of a legal settlement with the government (think Nuskin, Amway, etc) or the few that do so voluntarily on the advice of their regulatory attorneys, PUBLISH THE DETAILED COMPENSATION statistics of their distributors. Have you ever seen one of these comp plan statistics publications? I have seen and reviewed DOZENS of them. AND THEY ALWAYS LOOK BASICALLY EXACTLY THE SAME! 99% of the people are in the lower ranks of the compensation plan and they are making, either on a monthly or annual basis, no matter which way you cut it, amounts of money that are SO SMALL its obviously not even enough to cover the ordinary (even if small) business EXPENSES of those MLMers. In other words, 99% of the people are LOSING money!
But that top 1%? In every MLM compensation plan actual statistics publication I have EVER read, it is OBSCENE in comparison what the TOP people make compared to the 99%.
And again, as a person that typically and regularly places in the top 1% whenever I wish to do so, I have no problem with that. As long as the "rules" (compensation plan, etc) are published in advance, ok, that's the game, and that's the game we play.
But do YOU like that if YOU are NOT a 1%er type of person? Probably not, unless you TRULY BELIEVE that you CAN develop the skills and the work ethic to eventually become a 1%er. If that is YOU, and you believe you already ARE or REALISTICALLY CAN get to that elite level and build MLM organizations into the THOUSANDS, then MLM really could be your cup of tea! Just remember, there is always ONE thing out of your control, however, no matter how good you are, it's also very helpful if you can catch a young company at or near the beginning that succeeds and eventually gets big. But guess what? That's like 1 out of 1,000 startups. The other 999 fail or survive for a little longer but never do all that well. You're better off buying lottery tickets or, better yet, starting your own MLM company.
So I have decided that I am going to build an organization, Pure Hearts International, that is going to MORE OPENLY TELL THE WORLD these FACTS THAN EVER BEFORE.
And here it is, uncensored and un-whitewashed.
Unless you are a 1%er like me, MLM is BS for YOU. Or unless you have a close relationship with a 1%er like me and I am going to really, really help you and build a portion of my organization thru you, MLM is BS for YOU.
And that's because, again, to make any money, you HAVE TO REACH the TOP BIG HITTER BONUSES. Even the big hitters don't make that much money when they are first building their organizations only in the "hundreds" of people getting started in a new project. It's not until they typically get into the THOUSANDS of people and start hitting those typically large group volume-BASED BIG HITTER BONUSES that they start to see BIG BOY AND BIG GIRL-sized checks.
So here's what I've decided to do at Pure Hearts International. We are going to pay where the LITTLE GUYS/LITTLE GALS "live" BIG and not have ANY of those types of BIG HITTER BONUSES. That means that we won't attract any or many big hitters, which, hey, no problem, we don't need them anyways. But if they have a heart for feeding kids, well, welcome aboard anyways! :)
The vast majority of the people that have EVER TRIED MLM for very long have a BAD TASTE in their mouth for it BECAUSE OF THE MATH I HAVE DESCRIBED above. And so it is going to be a DELIGHT to FLIP my typical opening line on a COLD CALL from "I am looking tonight for people that LOVE MLM" to "I am looking for people tonight that HATE MLM!" Because believe me you I know from millions of phone calls made that my acceptance rate in terms of further talking to people is going to SKYROCKET!
From a MARKETING PERSPECTIVE AND FROM A POPULARITY PERSPECTIVE saying HEY! We're not a MLM! and that phrase actually being TRUE is a WINNER with the MASSES of the people out there WORLDWIDE and especially in the USA and a few other places where MLM has penetrated the very most over the past 100 years or so.
WE are not going to sell the DREAM nor the HYPE nor the BS of people making tens of thousands or hundreds of thousands or millions of dollars per month, ROCK STAR MONEY, because hey, that is just a MIRAGE that the rest of the companies and the people out there in MLM land are selling, something that people that have been in my organizations KNOW that I have NEVER SOLD or HYPED in any way, shape or form. I have NEVER said that it's easy to build large organizations and build large checks in MLM. On the contrary, I have always said what I am saying today, that it is NOT easy and it is VERY HARD and it takes a LOT OF WORK even for the people like myself equipped with the right skill sets. THAT IS ADULT REALITY.
So what ARE we going to sell? We are going to sell REALITY! And let me tell you what REALITY really IS! Every top MLMer in the world like myself that has ever held a downline report printout in their hand or viewed it over a computer like on the internet or whatever will tell you that typically 80% of the people in your downline will, other than their own purchases, DO NOTHING! Sell nothing, recruit nobody, sit there like a bump on the log for months, even years, and eventually just stay what is essentially a wholesale customer and/or eventually just drop out. The HUGE MLM companies still operating on this OLD HYPE MODEL that I describe above at length are the companies whose products are GOOD ENOUGH so that they get a decent percentage of these "do nothing" people to at least still keep their personal orders in place buying the good products month after month after month. That's how the giants have been built around the world. Amway and a few others were also driven by a lot of good leadership training, but that's another story.
That's the reality. The REALITY is that 80% of the people do NOTHING! Now, maybe that is a RATIONAL RESPONSE for the typical 99%er who instinctively KNOWS that the compensation plan is designed for the 1%er who builds downlines into the thousands and more and that, since that 99%er is not that person and doesn't have the ability to do that, WHY DO ANYTHING AT ALL other than just buy the product and enjoy some of the social interaction if they actually like the people who brought them into the business?
Now, stop and think about the ABSURDITY of what the typical MLM is asking people to do versus what Pure Hearts International is asking people to do.
Most MLMers are like MOST people in the military. They are buck privates. That means that they aren't leading ANYBODY. They are the ones that get led. That's 80% of the people, 80% of the military, 80% of MLM.
What's the first LEADERSHIP rank in the military? Look at the military information I put above. The first LEADERSHIP rank is commanding THREE (3) people. That's corporal. That's probably about HALF of the remaining 20% of the people, say, about 10%. Stop and think about that statement for a second. 80% of the people in the military and in MLM are commanding ZERO (0) people and are ONLY TAKING ORDERS themselves and have NO ONE under their command. 90% of the people in the military and in MLM are ONLY commanding THREE (3) people! OR LESS!
That means that only 10% of all the people in the military or MLM ever command more than 3 people! Are you starting to get it yet?! The next rank after private (commanding 0) and corporal (commanding 3) is Sergeant who commands about 13 people. That's probably another HALF of the remaining 10%, maybe 5% of everybody in the military and everybody in MLM who are Sergeants and above commanding 13 people and above.
Meaning that only 5% of the military and MLM command 13 people or more! Do you see how we'll quickly be WELL IN TO THE UPPER PORTION of FAR LESS THAN 1% by the time we get to lieutenant colonel who commands 500 to 1500 people, the number of people that it typically takes to start hitting the LOWER END of the group-volume-BASED BIG HITTER BONUSES in the typical MLM?
Well, they tell ya, ALL YA GOTTA DO IS "STRETCH AND COME OUT OF YOUR COMFORT ZONE!"
Er, c'mon, you're asking to stretch most of the 99% SO FAR out of their comfort zone that they are going to look about as "thick" as a single strand of spaghetti by the time you are done "stretching" them!
How far are we asking people to STRETCH in Pure Hearts under our 1-level NON-MLM 50% on the first level compensation plan? Not far at all, in fact, NOT AT ALL! That's just old-fashioned salesperson selling! No recruiting involved at all! That's where 80% of the marketplace IS just like in the military, at the rank of PRIVATE leading no one but themselves at all!
It is CRAZY PANTS CRAZY to try to take the 80% of the people out there who are naturally PRIVATES commanding nobody and trying to STRETCH them into LIEUTENANT COLONELS or higher commanding THOUSANDS OF PEOPLE! EGADS!!!
The MLM GAME is a PIPE FANTASY for the 99%! It always will be as long as the vast majority of the MLM companies are STRUCTURED the way that have been and still currently are today.
But what about the upper 1% or those that ASPIRE to getting into the upper 1%? Well, we've got you covered as well! If you don't like 50% 1-level NON-MLM traditional salesperson pay, you can CHOOSE our MLM plan instead paying 25, 25, 5, 5, 5, 5, 5, 5, 10 & 10% over 10 levels, a straight up simple "no big hitters impossible to qualify for bonuses nonsense" plain vanilla FAIR UNI-LEVEL COMPRESSED pay plan! COMPRESSED pay plans are FAMOUS for helping the "little guy/gal" get to BREAK EVEN and into PROFIT FAST because the %s are COMPRESSED towards the TOP LEVELS where the average little guy/gal can realistically REACH THEM (instead of pushing it all way, way down where only the upper 1% big hitters can reach)!
So with our COMPRESSED MLM pay plan you break even with only four customers, only one of which you have to get yourself (assuming that the customer you got goes out and gets 3 customers of their own)! So what we are talking about doing at PHI is DOABLE, it isn't BS, it's REALITY, it still will be hard, it will be a BIG STRETCH for most people, but it's a REASONABLE IN SIGHT DOABLE stretch! It's REALISTIC! It's like taking the flabby out of shape person who has NEVER BEEN TO THE GYM and working on getting the body fat down a little bit and building a LITTLE muscle tone and strength and FORGET ABOUT looking like the pictures of Arnold Schwarzenegger IN HIS PRIME because, c'mon, THAT JUST AIN'T HAPPENING for MOST PEOPLE!
99% of the people will choose our traditional 1-level old-fashioned salesperson 50% NON-MLM pay plan. That's just where they "live." That's just what is best for them! The other 1%, the top 1%, will choose the other. And that's the way that it should be! :)
This is the TONE, this is the beginning of the MESSAGE that you are seeing develop here at Pure Hearts International. THIS IS THE TRUTH. Pure Hearts International HAS TO BE ABOUT THE TRUTH AND NOTHING BUT THE TRUTH! We are a HEART DRIVEN ORGANIZATION and in order to be that we have to be TRUE TO THE HEARTS OF THE WORLD starting with OUR OWN HEARTS!
THAT IS WHAT PURE HEARTS INTERNATIONAL IS ABOUT, THAT IS WHAT WE ARE GOING TO DO, AND THAT IS WHAT, GOD WILLING, AND I THINK HE IS, IS GOING TO DRIVE US EVEN MORE GLOBAL AS WE MOVE IN TO 2016!
That's what PHI is about...REALITY.
ONWARDS AND UPWARDS!
KEEP UP THE GREAT WORK, EVERYBODY!
John Lester, CEO of PHI
Do Well By Doing Good!
Share this post
- 0 comment
- Tags: 50% commissions, affiliate marketing, big commissions, bitcoin, charity, compressed pay plans, disabled, elderly, John Lester, malnutrition, micro finance, microfinance, MLM, network marketing, non-profit, orphans, Philippines, poor, Pure Hearts International, single mothers, social entrepreneurs, social entrepreneurship, widows