7 Traits of Successful MLM Companies

Hi, everyone. Kevin thompson here from themlmatorney.com I am reporting from Cocoa Beach, Florida. I'm with a client right now, Island Life, and I'm at their launch party. And so I had the privilege of speaking to the salesforce this morning. I want to talk about the highlights that I covered in my talk and maybe you'll find it valuable. But first of all, I'm really appreciative that I got invited to be at this party. You know, it's not every day that I get to leave the office and, and hang out with clients in the sales force. It helps me reconnect with people in the field and I get to sort of live through their excitement and it's a lot of fun for me. In a lot of cases. I'm sort of adverse to a lot of distributors representing companies that are having disciplinary issues with different people. So it's really fun to interact with people on this level. So today's talk, I talked about the seven traits that successful companies have in common with each other. Because I've seen a lot of companies fail and I've seen a lot of companies succeed. And based on what I've seen, these are the seven commonalities that I think you might find valuable. And if you're currently with a company, you can use these factors with your current spot. So, number one, you need good leadership. You can have a great idea, but it can be in the wrong head. It takes strong leadership to execute on the idea. A good leader surrounds himself with a players, surrounds him or herself with people that can help implement the idea. So leadership is really strong. Number two, you need a good product. The product needs to be proprietary, preferably. That way the distributors stay in a superior position as they're out there in the marketplace trying to make sales because if they have to compete with the big box stores, it's a losing proposition. The next item on the list is there needs to be good design. I'm a big fan of Apple. I love Apple products. I've made that known here a bunch of times because I just love the beauty of their products and I love the simplicity and ease of use. And when I say good design for companies, the culture needs to be premeditated. That doesn't just happen on accident. The culture needs to be designed. Nowadays it's really important to have a unique culture. People need to have a good experience in your business and there needs to be a good pay plan design. Does the pay plan properly reward people for the work that they invest? That's an element of design. Another thing that a lot of people don't think about is the intellectual property, the labeling and the logos and the branding. That's important. Good design is important. And the really successful companies invest a lot of time and energy into, into design. You need systems that work. That's the other element. Do the checks arrive on time? Do the checks clear? Do the products ship? Does the website work? Those are important pieces in the back end that just need to work. It's what people expect. Just think to yourself, do you spend time on any website that's clunky? The answer is no, right? People expect things to work intuitively and, and when they order product, the money needs to be transacted appropriately, product needs to show up, and the commissions need to be cut and sent out on time. So you need good systems that work. The next element is compliance. A good company has a commitment to compliance. Is it legally compliant? Do they take compliance measures to make sure that the health claims being made in the field are okay? Do they properly monitor income claims and do they have appropriate policies to that effect? A good company is committed to compliance because compliance is sort of the protective barrier that keeps a company in business long term. So smart companies are committed to compliance. While it would be easy to turn a blind eye to the field and let them aggressively market a particular health product, for example, and say, it cures my arthritis or I lost 20 pounds in three days on this product, while it would be nice to turn a blind eye to that, a good company takes compliance very seriously. And compliance is more than just discipline, it's also education. A good company properly educates the sales force on how to behave appropriately in the marketplace when they're selling items. So compliance is important. The sixth element is capitalization, right? Does the company have enough cash in the hoppers? Does it have a long enough Runway to get the airplane off the ground? And that varies, company to company. Some companies can bootstrap it and get by. Some you need to factor in one, maybe two years of lack of cash flow, of a lack of positive cash flow to really give yourself time to reach the critical mass that you need. So proper capitalization, again, having an idea is simple, but really planning into the future to make sure you've got the right pieces in place to be successful. That's a trait that successful companies have in common. Number seven, the most important element is you. You being the sales leaders. A guy or a girl can put together a fantastic company, but unless there's people out there that really are infected with the vision and they carry it forward. It's not going to work. At the end of the day, entrepreneurs in this industry, they're building a vehicle. It's a boat, right? It's a beautiful looking boat with a nice engine. It can be shiny and polished and have a beautiful logo on it and it can be fast. But unless somebody gets in it and drives it, it's not going to go anywhere. So at the end of the day, one of the most important elements for the success of a company is to attract the right sales force. And you do that by having a fair pay plan, transparent leadership, good product and just a good business and a good culture. And of course, the sales force helps you carry on that culture and build it. So those are the seven elements that a successful company has in the space. I'm really excited to be here. I wanted to share those highlights with you. Maybe you can use them. Hope you find it valuable. In the meantime, check out Island Life. Buka Karen is one of the co founders. Really cool company with a neat culture that they're building. They've got these really neat sprays that you put underneath your tongue for energy and for sleep and whatnot. Neat stuff. Anyway, you guys take care. Hope you're doing fantastic and I'll catch you later. Bye Bye.