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Article Title: If It Quacks Like A Pyramid...
Author: Kim Klaver
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Who gets the Pyramid Quack award?
On our conference call the other day, people wondered how to
talk and act so that people would stop asking "Is this a
pyramid/one of those things?"
One way is to stop, forever, saying and doing the things that
evoke this image in the minds of others - i.e. people "who
abuse their friends and try to sell them stuff, and get them to
sell and take a percent."
For years, it's been all about getting people to sell and
recruit. That's the reason countless people discouraged (and
ridiculed) my customer-oriented students, "There's no money in
customers. All the money's in the recruiting."
I've taught hundreds of classes to those who prefer to amass
customers. It's lucrative in some companies, and many stayed in
the business because they learned how to do that, instead of
quitting.
But some companies pay you to act like you're a pyramid type.
We will bestow upon them the "Pyramid Quack" award. Yes, here.
To encourage them to change their pyramid quacking ways which
make their people look bad.
If it quacks like a pyramid...
"a pyramid scheme is...[where] the need to subscribe newcomers
outweighs whatever benefits the products or system has to
offer. Many MLMs sell distributorships more than cosmetics
[name your product or service - KK]." -Coercion: Why We Listen
to What "they" Say
Some people don't know it from the way the business is
promoted, but we do two things to make money in the network
marketing business:
1) get customers (earn a percent on their orders)
2) Get sales reps who want to get customers and more sales reps
(earn a percent on their orders)
So based on what they pay people to do, which companies get the
Pyramid Quack award?
One gal, Phyllis, a Tahitian Noni rep for years, told the group
this:
Typical order: $120 for the Noni juice per month.
Pay for getting a customer (who doesn't sell it) to buy it: 6%.
That's like $5 for getting a $120 order.(!!)
With such puny pay, who'd want to go after customers? They
don't, and haven't, for years, she said. This pay plan tells it
all: We pay you to get recruits - people who sell it. We don't
care about customers who just buy it (and who don't sell it).
So, we were about to bestow upon the Tahitian Noni
International pay plan, the Pyramid Quack award.
Then with great pride, she announced to the group: "But Kim,
this past year they've worked to change it - because I think
they heard you. As of May 1, 2006, they are paying 20% for
customer orders. So now we get $24 for each of those orders!"
That's what, 3 days ago? After almost 10 years of being in
business.
(This conference call will be up on the Talking about Your
Great Thing podcast site later this week, so you can hear the
juicy details for yourself.)
Tomorrow's blog: The story on the pay plans of two more
companies: Young Living and Life Wave. Do they get the Pyramid
Quack award or not?
Send in your company plan plan info and see if it gets the
Pyramid Quack award. (Use Comments below.) Here's what info to
submit:
1. What's the typical customer order amount? And what do you
get (range) if you find them, front line them, and they do NOT
sign on to sell anything?
2. Name of company. And YOUR NAME.
Then we'll check it out, and award the Pyramid Quack award to
your company, or not.
After all, if it quacks like a pyramid...
About The Author: Kim Klaver is Harvard & Stanford educated.
Her 20 years experience in network marketing have resulted in a
popular blog, http://KimKlaverBlo
http://YourGreatThi
http://BananaMarket
tips, books and CD programs for those who want to learn the art
of network marketing.
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