Amway/Network 21

[MikeC]

I agree with Rob Hepple, stay away from negative people because they are not going to help you support your family in bad times. Secondly I have been in business for myself for the last 20 years. This year during the recession I have lost approximately R 200k because of a so called "adjustment in the economy" and I know that I got off really light. My best advice is to educate yourself by reading and finding out where the industry is going. There are some great books like Pro Sumer power that will give you some insight. the most important thing however is to be secure in where you are heading. If you have a strong enough reason to get involved in this business then write it down. Depending on your life experience you may have a steep learning curve ahead of you and you need to know why you are doing what you are doing and that will get you through the doubt and the tough times in this business.

[MikeC]

Hi I agree with Rob, stay away from negative people. Nothing good can come from negativity. My advice is take some time out figure out where you are going. Figure out what you want and what you are willing to do. Most people will experience a very steep learning curve in this business. Are you teachable? Look back over the last 5 years of your life and answer this question honestly - What have I acheived? The definition of insanity is doing the same thing and expecting different results. Change is painful and most people will avoid the pain and never acheive what they want to in life.

[earnnow]

I have been reading with keen interest, this thread and it makes me realise that mlm story is the same everywhere. There will always be sweet and bitter stories surrounding it. Most of the time you find yourself in the business and by the time you look back, no one is behind to push you forward.
All you get is the normal rules: be proactive, talk to at least 4 people everyday, attend business opportunity meetings in order to refuel your adrenalin to work, prospect your friends and families who are not ready to listen to you.

My friend, mlm business is beautiful and very rewarding but, the rules most of the time are outdated and do not work. You have to be ready to reinvent the wheel (this is against mlm rule however) but that is the only way. If you keep doing the business the way everyone is doing it, then you will get the result they are getting.

I believe this resource will do you a lot of good if you can lay your hands on it http://lifeincome.the7greatliesofnetworkmarketing.com/. It's a free resource that will keep you in track in your mlm business.

[Dave A]

Those 7 lies are popping up all over.

[earnnow]

I guess it's time mlm business people begin to use their initiative to do this business. It is not always as easy as they say it is. Talks like, just get between 2 to 5 down lines and the system goes on autopilot to make you rich.

We must know that, people run the system, the system does not run itself. You must be a creative marketer and do not stretch your expectation beyond limit so you will not be disappointed. I guess the 7 great lies do make sense afterall.

[Sebzon]

I have read through the thread trying to get some more information and answers about this "business" system.

I was also invited into the presentation yesterday. The proble m is that the person who invited me did not tell me he was inviting to the N21 presentation, but he just said a business meeting. The first thing is that he said we are going to me around the venue but when I arrived he sent me an SMS that he is inside the venue.

This made me not to trust the guy at all. Then secondly I wanted to get more about the structure on how the system works. He happened not to understand, thus he got upset by my questions of which some of them has been asked in this forum but not answered. He gave me the CD's with peoples success stories not about how the systems works up to the bit. I am not convinced by this system and I dont think I am going to be in the near future!

[Dave A]

Sebzon, what are your questions that you'd like answers for?

[Sebzon]

Thanks Dave,

1. I would like to know the structure of the scheme if it is a tree or it a just a chain (in the presentation they represent it as a chain). If I join from a certain person there are some other people who join to him, are those people going to be under me or contribute to my income or this is entirely up to the person I join under in how he structures the company

2. When I have reached the so-called 21% stage (R15000 month) what more will I get? Or is this the last stage of the income?

3. When I have reached the 21%, and then it happens that down the chain sales drop or people are not active. Will that affect my income?

4. How many people I have to recruit to reach 21%?

[Kevm]

Hi Sebzon,

I think that possible the reason the person did not answere your questions may be for a few reasons.
1 He is new and the process he followed with you is exactly how he was introduced. Its all about duplication.
2 Sometimes people get confused about the system and dont notice the power that this sytem actually has.
3 What seperates the poeple that are successful and not in this business is a dream. Some poeple will struggle and drop off. However if your dream/goal for your life is big enough. Nothing will stop you. That is probably why he gave you success stories and not system/method/trainging/knowledge/product cd's.

To answere your questions.
1. The system is a pipeline structure ( chain as you referred to). So basically you join and use products. Other people can be reffered into your downline that you do not know. So when you only have the 1 pipeline you will only receive a % back on your spend. To make more money you must refer people and start a 2nd and 3rd team. Then you start earning differentials. Example. Your entire business, leg 1, 2, and 3. Combined PV is 10,000 = 21%. Leg 1 is 7000 PV = 15% you are at 21%. So 21-15=6. Therefore you get 6% *(7000*12.5) ( this is the 7000 points back to rand roughyl). 6%* 87500=R 5,250. So leg one you get R 5,250.
This process is repeated for all 3 legs that you have.
Once you have one leg at 10,000PV=21% and you have volume in your 2nd/3rd leg you then get then you are at 21% and so is the first leg. 21-21 =0. Then you get 4% on the total expense on that leg forever. as long as it maintains 21%.

2. There is no last stage of income in the business. A 21% business with 10,000 PV in 5 years may be 25,000 PV. You then still get the 4% "royalty" on all of it.


3. No sales drop when you get to 21%. As long as your business maintains it you will earn on it if you have other legs. Or you will get 21% back on your personal spend.

4. As for how many people to get to 21%? As long as the spend is 10,000 PV or greater then your at 21%. It can take 100 households, it can take 50, or even more. The idea is you dont recruit all 100. You use the system of duplication and teamwork. A team that has 200 poeple and does 10,000 PV. and 50 people leave. Most times those 50 people didnt contribute to the spend anyway. Remeber its about product movement not number of people. The real power comes in the fact that once you have a team that is large enough it continues with the system and the people at the bottow want the same results. There is no limit. The business will outlive you!

Hope I answered your questions?
Maybe get hold of the guy and tell him you want to know more about the system. He will probably invite you to a conference.
Ask to meet his upline first if you would like to know more about the system. Or go to the conference and see that this system does work. Dont miss the concept!

[ForumSAUser]

Hi

I also recently joined Network21 - 1 week ago - and like you I'm coinsidently also currently working in the IT industry. After the 1st presentation my wife and I were pretty sure we won't by joining beacuase the "IBO's" were rather pushy. At that point we didn't have a clue of how the system actually works, yet they wanted me to tell them "where I am at", implying whether I want to be a shopper or a more involved member. When I asked more questions the one quy dressed in a business suit told me I'm thinking too much about the matter. At the end of the evening we went home feeling cornered and "fake-smiled".

The following day we phoned the one woman to inform her that we won't be going ahead. She calmly and politely accepted our rejection, but said she would like to see us over coffee in any case. Why we accepted I don't know; maybe it had something to do with the fact that I received a pretty bad work review that day and that I was really sick of my job. Also, she was a very unpretensious, good person and didn't use any one-liners. She truly seemed like an honest individual as well. So we decided to give it a go based on the amazing prospects and the fact that we could get our money back after 3 months.

No matter how well people are doing at Network21 and even knowing the operations are legal, there is still something that bugs me. I can't really put my finger on it but it has something to do with how quickly they encourage you to write down 100 names and numbers of friends and family. It's as if I was pulled into this by the prospect of becoming financially free, and now after barely knowing how these passive incomes are generated I need to encourage others to join my team and as quickly as possible get them to write down their 100 names. It just feels dodgy. I mean in a normal networking opportunity you buy into an idea, then become familiar with the product, then become happy and satisfied with it, then from that space invite others to share the joy and prospects. At Network21/Amway if everyone buys into a dream of becoming financially free and then encourage others to buy in to that same dream, then passive income is generated for the people above.

Money can surely be made from this, but it requires a very big mind shift, i.e absolute faith and dedication to the products and the blind aim of growing your team. I'm usually a very optimistic yet realistic individual, but right now I don't feel like an "independant business owner" at all. I feel rather like a rep for Amway who's sole pupose it is to recruit more reps for Amway, recruiting reps for Amway, recruiting reps....and so a network of consumers grow. The word "Duplication" is used often on the CD's and that is exactly what happens here. "Don't try to do it your way, it won't work". This is another favorite line. It makes me feel a bit like a pawn getting payed for doing exactly as I'm told. I don't think the money is worth this.

By the way, I am in one of Kevin Harris' teams. He is at diamond level, and the son of Mr Harris who brought Network21 to SA. This weekend my wife and I will meet with him for a nuts and bolts session. At the last wednesday meeting he was speeking with his wife Tamsyn and afterwards I was introduced to him. In our discussion he mentioned that his daughter has two nannys. Strange, because just before in his speech he was saying how wonderful him and Tamsyn's life is now that they both stay home and spend the day with their little doughter. Why would a man with complete financial freedom and an intelligent wife need two nannies? This passive income as obtained through network21 may not be as liberating as painted to be. Lets see.

[Dave A]

I really, really liked that last post. Kinda sums it up.

It sure is a different way to make money.

There's definitely potential. It's clearly challenging. The pace is hectic and it's full of contradictions. For example, when you look at the people who made it, you can't help but notice how hard they're working.

It can be fun, but it's not easy money - certainly not in the beginning.

The word "Duplication" is used often on the CD's and that is exactly what happens here. "Don't try to do it your way, it won't work". This is another favorite line. It makes me feel a bit like a pawn getting payed for doing exactly as I'm told. I don't think the money is worth this.

And you're 1 week into it...

OK. You're in now and you've got the attention of an upline
Not everyone gets that. You've got an opportunity to get a head start.

Personally I'd run with what they're asking, watch, learn and put the "is it worth it" analysis on the backburner just for the moment. Once that heavy start-up support moves on (and it will)... at least you'll be better placed to start pondering that sort of stuff.

It's not going to work for you if you just poke it with a stick.

[Dave A]

KevM answered these quite well, but I'll give my own twisted take on it too in case that helps.

1. I would like to know the structure of the scheme if it is a tree or it a just a chain

Actually it's a bit of both. You want to sponsor quite a few people directly under you and you want to sponsor (lots of) people under them.

2. When I have reached the so-called 21% stage (R15000 month) what more will I get? Or is this the last stage of the income?

KevM covered this in the main. There are additional bonuses as you reach emerald, diamond etc. but you've got to get to platinum yourself before you should be too concerned with breaking platinums under you.

3. When I have reached the 21%, and then it happens that down the chain sales drop or people are not active. Will that affect my income?

Of course it will. Realistically people come in and drop out all the time. But with the right structure (width and depth) it won't be an issue. Width improves profitability. Depth improves stability. That's why you don't just sponsor people, you help those people to sponsor people too (much like your upline is probably prepared to do for you).

4. How many people I have to recruit to reach 21%?

Technically you need sponsor (recruit) only one who goes ballistic and you end up with one big leg and no profits

You really want to get to 21% with at least three viable legs (or teams). Often this will consist of one strong leg, one doing OK and one to four kinda limping in. To get that going you probably need to sponsor 20 to 30 people directly under you fairly quickly. In fact, getting 30 frontline in 60 to 90 days should be your first goal. Do that and it gets a lot easier from there because you're going to have viable options.

If that sounds heavy, it doesn't have to be in your first 90 days.
But a hot start certainly helps. Success breeds success.

[Sebzon]

Thanks guys, I think my questions were answered very well, but I still need some time to think about this.

[sterne.law@gmail.com]

Thanks guys, I think my questions were answered very well, but I still need some time to think about this.

I think the razzmataz and pressurizing is what makes people hesitant. that and as per my previous post the experiences of pyramid schems in SA which over shadow the value of genuine multi level marketing.
The reality is if you dont want to recruit and you end up with 3 or 4 members in your chain, so what. they are not going to kick you out. So dont give the names if you do not want to. Naturally we all have differnet selling techniques and comfort zones and no doubt you must do use a methodology that you are comfortable with.
And if you get 3% and they each spend R1000 a month. you are making an easy R120 a month or more importantly have your investment back within 2 years - a 50% return.

To follow up on Dave's comment that success brings success - I think many people start this with the thought, agh I will get 1 or 2 friends and thats it. Then as they see, okay I make a few bucks, so they become more and more active.
There is no doubt that it is an ingenius selling mechanism. In my research the key point for me was that a company like Vodacom is involved, which certainly is an indicator of serious substance.

[Christine_Sutherland]

Hi Sebzon

Whilst it's important to feel comfortable about understanding the way the business works, in network marketing I have to say that just as important, is signing under the right person.

I know some people say that a good business has such excellent duplication that this isn't necessary, but I challenge them to name someone who succeeded without expert mentoring.

A mentor should not only have made money themselves, but should be able to begin building your business under you, for you. This means that they will make at least the first 5 or 6 calls for you, appoint the people, and sign up anyone interested. And they'll do that with the demeanour of a business professional, without being pushy. In other words they'll practice a consultative form of selling.

If they can't do this, then it will be a struggle for you. If they can do this, it becomes easy for you to follow their excellent example and go from strength to strength, referring back to them for ongoing coaching/mentoring.

This way you'll become successful very quickly, and will have the confidence and the competence to mentor others.

Good luck!
Christine