Obviously this is a clever article to get traffic to this blog. Excellent and brilliant. However, there is some truth to the two moons. Google "two moons" and you will find some interesting information. Especially at wikipedia i.e. - http://en.wikipedia.org/wiki/3753_Cruithne

Troy this is great information. If there is one thing I've learned through all these many many years of network marketing is that if you have a strong enough "why" the "how" takes care of itself. The "why" creates the passion to take action. After many years of trying to succeed... in 1987 I almost gave up on network marketing. I had gone through a bankruptcy, lost a home, lost the car, almost lost my family. I was a "victim" and wallowing in my misery. I took a deep look inside myself and realized I had positioned myself only to see what network marketing could give to me. I was "in" network marketing but network marketing was not "in" me. There is a huge difference. It was then I realized I had to flip this thing around. I made a decision to see what I could give to network marketing. I decided I didn't care if I made money or not... network marketing was inside me... I became an evangelist of sorts. Everything changed from that point forward. I've noticed over the years that whenever I get selfish and make it about me... things stop... go backwards. When I become unselfish... make it about others... how to serve... and so on... that it just happens... it flows... I stop having expectations... I stop getting disappointed. Once again thanks for the wisdom you are sharing here. All the best, Art Meakin

Troy,

It has been a pleasure and honor to see how you and MLMHelpDesk.com has evolved and grown... and will continue to do so over the months and years ahead. Wishing you all the best for 2010.

I think it was mentioned in one of your related posts this past year that the franchising form of doing business is 33 times larger than the networking, direct-sales, multi-level marketing form of doing business. Although franchising was once perceived to be a scam of sorts many years ago (before strict regulation and laws were passed/enforced)... today it is considered one of the most respectable and professional forms of doing business and/or entry into a small business.

For the networking, direct-sales, multi-level marketing form of doing business to reach the same level of respectability and professionalism as franchising, in my opinion, will require (fortunately and unfortunately) stricter guidelines... laws and regulation. But... more importantly... and until then... it will require unbiased realistic EDUCATION... generally and specifically... that you, your peers and colleagues, and this site can provide to consumers, networkers, regulators, company owners, etc., etc.. Such as what you do now... but even more expanded... outlined and detailed information on standards, boundaries, legal, ethical, regulatory, law, intention, compensation, ownership, management, compliance, distributorship, responsibilities, marketing, pricing, product, services, advertising, operating procedures, policies, etc., just to name a few. A checklist of sorts that any and all companies (old and new, regardless of product or service) "should" be judged or measured up against. This EDUCATION should also include historical data... past, present, and future on all the issues (great, good, bad, ugly) involved in the checklist. I think if anyone can do this... you can and this site can be the ultimate source for this absolutely necessary information.

If you don't mind... I would like to make one observation... and I am not sure what the solution would be but I would be open to discussing it. Here is the observation: There are literally hundreds and hundreds of companies out there in this networking, direct-sales, multi-level marketing "market-place" that you will NEVER have the time or energy to report on... or stay up-to-date on if you do report on them. When you do report on a particular company whether it be positive, negative, or neutral... in a sense there is an outright alienation or a perceived disparity... even an unfair bias, advantage, or disadvantage as compared to all the other companies in existence that were not reported on. There's also the appearance of favoritism (or at the least a leg-up) because you just happen know a company owner, field leader, etc., etc., and something they did is newsworthy. But what about all the hundreds of other owners, and thousands of field leaders, etc., etc., that you do NOT know (yet). There is disparity. As I stated... I don't have a solution to this... but I would love to brainstorm it with you.

I know you are on the right track here... your heart and soul is in the right place... you are honorable... and I am glad to be associated with you.

Art Meakin

Troy, as you know I've been around the MLM industry 40 years now. Started the series... The Shocking Truth About MLM Network Marketing in 1987. Over the years in my articles, lectures, etc., I've never outrightly mentioned a particular company but attempted to educate the pros and cons, do's and do not's, regarding comp plans and other various legal/regulatory aspects affecting MLM in general. Unfortunately... most people tend to learn through the "school-of-hard-knocks" rather than seeking out professional opinions or advice. And today it is easier than ever to seek out credible information (i.e. - Rod Cook, Troy Dooly, Len Clements, and others). Again... most people will not seek out this info. It usually takes a regulatory action to get people's attention.

As to most new companies not making it... well it is shockingly true that only 0.6% of companies make it to their 10th year in business. Even when many new companies did everything correctly and right... they did not make it... for many reasons... the least of which was the compensation plan. Personally... I would go so far to say that many of the older companies (10 plus years or older) in business... if they started-up today with their current products, management, policies, procedures, and compensation plans... they would NOT make it... for various reasons. Furthermore... when many of the older companies started-up... they were not (at that time) legally or ethically compliant.

I commend Kevin and others (in the class) for taking this self-regulatory action to help "clean-up" our industry. And I commend Troy for reporting it. I much prefer self-regulation to government regulation... although it really takes both.

Art Meakin

Troy... my apologies for not posting on your boards here the last few weeks. My father passed away and I want to thank everyone for the heartfelt emails and condolences received from so many.

First of all... thank you, thank you for what you are doing to share the positives (especially this post) and not-so positives about our networking business.

Secondly... I am not sure who actually said this. I was at a seminar a few years ago concerning the aspects of network marketing going global and the positive impact this would have on world peace (of all things). In some ways I considered the statement idealistic at best. The speaker inferred that as various companies and our downlines grow into other countries that world peace would increase. Why? Well... common-sense. Think about it. If we have downlines in 20, 50, 100 countries... why would we want to go to war or conflict with those countries... does not make much economic sense. Additionally, the positive economic impact on third-world countries... even in a very minor way... can create a ripple-effect all over the world. I've lived in the Philippines and South America and seen with my own eyes the amazing benefits an extra $50 to $200 a month can make not only for the community but the families as well.

Also... with so many companies "giving-back" and supporting viable charities... we really can change the world... one person at a time.

I love this profession.

Art Meakin

Troy...

Wow you are such a gracious leader. This was unexpected... thank you for the recognition!!!

Honestly, I only heard about you and came across your blog here a few weeks ago. I don't know where I've been... my head must have been in the sand. But as soon as I had a chance to review several of your posts and videos... I realized... this guy Troy is really really wanting to help people... he's coming from a place of true leadership... helping without the expectation of reward. This is what my mentor Tom 'Big Al' Schreiter encouraged me to do 23 years ago... unselfish service to others.

It was so great talking to you on the phone today... we have so much in common and share similar thoughts. I look forward to building a life long relationship with you.

Thanks again,

Art Meakin

Troy,

What a wonderful subject... especially for those who are mathematicians, engineers, accountants... you know... us geek-headed, pocket-protector, slide-rule, hackers (am I dating myself??).

Wow... compensation plans... definitely plan to comment on each of your posts in this series. I had a 400 page book almost finished on MLM compensation plans 10 years ago. Each time I was ready to publish it... something new comes out... a new twist... or a totally new spin. I don't think I'll ever finish that particular book. One of the reasons I'll never finish it... is because after studying and/or participating in just about every compensation plan that's ever been devised in the last 40 years... I've found my ideas or opinions change over time and experience.

For instance... you have not mentioned that you were going to review the "coding-bonus" type plan that created million-a-month earners in a well known company, and that many companies still use today in modified forms. At one point in my MLM journey... I personally thought the "coding bonus" plan was the ultimate plan... well, on paper it looked good... but when I actually got involved in company that had one... it turned out to be a nightmare in so many ways. But later... another company came out with a modified version of the coding-bonus that solved the inherent problem and it rocked!!! (The details of this are not important... what's important is that EVERY plan has its weaknesses and strengths... its upside and downsides... its pros and cons. And that our experiences with a plan are more important than just our "opinions" or objections about a plan. Also... over time... our opinion or judgement about a plan may and probably will change dramatically.)

As posted in another response on the breakaway plan... the compensation plan really doesn't matter (unless its a Ponzi scheme or there's no real product involved). If we can build a network of customers and representatives... we will make money from a legitimate company with... no matter what type of compensation plan it is. Furthermore... if we focus on the compensation plan as the primary reason for getting involved in our opportunity... we will certainly fail... because people are joining for the wrong reason... and they leave for the same reason (the comp plan).

There is no perfect plan... and there's only so many ways to slice up the $. As to understanding a plan... to be completely frank... the only people that really truly understand a company's compensation plan are the programmers that write and administer the commissioning engines. Even if we think we understand a plan... even if we talk to the programmers (most companies won't let you talk to them)... in most cases there are little nuances and aspects to the plan that cannot be explained or detailed in a compensation plan brochure... that don't show up until we do a major analysis of our commission report. Sometimes we spend so much time analyzing our plan and commissions... we forget or neglect building and supporting our network.

Some of the highest well-paid, long-term earners in MLM do not completely understand their company's plan... nor are they capable of explaining it... and those that do understand it and are capable of explaining it... won't explain it (at least not in great detail). We must realize that MOST people will never understand a plan completely... even the simplest of plans... and MOST people would never be able to explain the plan if they did understand it. Therefore... understanding a plan... explaining a plan... is unduplicatible. What is duplicatible?... acquiring new customers and recruiting new representatives... building a network.

Now... with all that being said. Binaries. I was once one of the most anti-binary advocates on this planet. Today... I believe the evolved "modern" binary/hybrid plan is overall... easiest to understand, the fairest to all involved, and the most lucrative to the average networker and leader who wants to make the really big$. I'll wait to explain why when the segment/post comes out on binaries.

Until next time,

Art Meakin

Troy,

One of the many sobering facts (and literally a "shocking truth") from my 40 years in MLM is that only .6% of all the network marketing and direct-sales companies that have or will start-up... will be in business for 10 years or more. This is true for all categories of product and service oriented companies combined. This means some product/service companies are more likely to fail than others... and some are more likely to succeed based on the product/service offering.

An analogy would be... out of 167 ships built... 166 will sink within 10 years or less of being launched and most sink in two years or less. I've seen thousands of companies come and go. Although I hate being negative because I love this business so much... the unfortunate reality is... travel oriented/related mlm's have statistically taken more heat, had the highest levels of regulatory challenges, state and federal ambushes (and rightly so in many cases), been labeled "scams", and have gone out of business faster and/or more often than any other network marketing product/service category. And this has been true with US based travel related/oriented companies trying to do EVERYTHING right and with integrity... and with all the due-diligence checklist items passing with flying colors!!!

So... I hope anyone who reads this... can read between the lines so-to-speak.

Art Meakin

I've seen hundreds and hundreds of technology/telephony service companies come and go over the last 40 years. Deregulation allowed many companies to enter the long-distance marketplace. In the late 80's Network 2000 put Sprint on the map. Amway put MCI on the map. Excel Telecommunications was able to become the 4th largest long-distance company (despite its demise... the fact they became the fastest company at that time to reach a billion$ in annual sales is impressive).

Because long-distance, Internet, and wireless communications are a part of everyday consumption by the masses... many companies want to capture market-share... if even only a small percentage. The challenge with this is what I call the "commodity-factor" or the "technology-factor"... prices drop lower and lower due to competition and/or the improvement of technology/bandwidth... profit margins drop lower and lower... technology changes, is replaced, or becomes obsolete. Therefore, it becomes almost impossible to create retention and a sustainable ongoing residual income unless the company adapts constantly. Most companies cannot adapt often enough or quickly enough. Furthermore, the earnings per customer/distributor are so small requiring ten-of-thousands to make a decent income. In many cases, this is why customer acquisition bonuses, training incentives, other product offerings, etc., are created to offset some of these deficiencies.

Despite the pros/cons and the apparent/unapparent issues involved... some people will always be attracted to technology based business opportunities. Even in a niche market... even with a lot of competition, if we are passionate about what we're doing... it is possible to gather customer and representatives creating enough market-share to make it worth our time/money investment as long as we are involved with truly legitimate long-term opportunities.

Art Meakin

Troy,

As you know I've been in MLM for 40 years now... 22 years full-time. When I was young and thought I would live forever... and I didn't know any better (or my common-sense wasn't sharp enough yet)... I took TIME for granted.

Over the years... the older I've become... the more I value my time. Time is our most precious personal asset... our time is priceless. Oh, how I wish I understood this when I was younger. My mentor, Tom 'Big Al' Schreiter, shared this idea with me in 1986... but it took about 12 years to sink into my thick head.

It is so important what we invest our TIME into. Why? Because we NEVER get back those seconds, minutes, hours, days, weeks, months, years, and decades... and before we know it... we have run out of time.

It's not about the $ we invest... it's about the time we invest. Is the money we invest important? Of course. But money can NEVER compensate us enough or compare to our priceless asset of time. But... again... it seems to be human-nature that we wait until we get older (or mature) that we grasp the reality of this. And for me... the older we get... the more critical it becomes what we invest our time into.

An example or analogy of sorts could be something along these lines... let's say we join an opportunity that we spend the next 24 months seriously investing 40 hours a week and over the next 20 years we made $5 million. That would calculate to earning about $1,200 an hour for 24 month investment. And in addition to the money... we gained 18 years of TIME freedom that we cannot place a monetary value on.

I hope I've made point here and been helpful.

Oh... it is so very important not to waste our time... so very important.

Art Meakin