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Paredes Network

Network Marketing Training    

Why people join Why most people never succeed The Sponsoring System Freedom


Why Do People Join Network Marketing?

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he incentives for people joining network marketing are as varied as the people themselves. Still, there was a time when I naively thought that the sole motivation behind people joining this industry was the opportunity to make more money.

It wasn’t long before I learned that the network marketing industry offered more than monetary rewards. In addition to financial independence, there are many other factors involved, which induce people to investigate this remarkable industry. A few years ago, I was introduced to a gentleman by the name of Frank, who had recently joined his first company. After exchanging a few pleasantries, I learned that Frank was a senior vice president for a large industrial company. Midway into our conversation, I asked the one question that had been nagging at me. “Frank, as a senior vice president, you must be making a very comfortable living. I’m very curious to know what attracted you to network marketing?”


Misconceptions Frank’s reply was totally unexpected. “Well Tom, professionals just don’t get part-time jobs.” He continued to explain, “I believe that a large percentage of the general population feels that a professional with a Professionals start lucrative job, doesn’t have money problems. This part-time businesses is an assumption that is not necessarily factual.” they don’t get part-time jobs. Frank elaborated by admitting that he and his family lived in a beautiful new house, and that he drove a car. His children were well dressed, with the latest in electronic games and, as a family, they went on vacation at least once a year. The sizeable salary generated by Frank was spent almost effortlessly.

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Sustaining A Lifestyle Frank also mentioned that his wife didn’t work outside the home. His philosophy concerning his wife’s employment was contrary to that of some men. Even in the 90’s there are some men who believe that a wife should work outside the home . . . so she doesn’t get bored! (After all, cleaning the house, taking care of the children, shopping for groceries, preparing meals, doing the laundry, plus a few odd tasks, could all be taken care of at night!) Frank realized that being a wife and a mother was in itself a full-time occupation. In summation, Frank diplomatically rationalized that in spite of working 12 to 14 hour days, often including weekends, extra income was still needed to sustain the lifestyle he wanted for his family. However, he did not want his wife working outside the home. Despite the desire for an additional income, Frank could not see himself applying for a position at the local convenience store as an assistant manager. Aside from being overqualified, he also would be forfeiting time with his family. After all, his primary reason for seeking additional income was his family.

Alternatives Frank and his wife had discussed the possibility of buying a fast-food franchise. This option was dismissed shortly after they realized that a sizeable investment was required as a down payment. Next on their list of possibilities was a small sandwich shop. The retiring owner was willing to offer financing terms.


Frank and his wife sat and went over the figures. His wife looked at him and said, “Frank, let me see if I understand this correctly. We are going to pay a significant amount of money for the privilege of making sandwiches for other people. Meanwhile, the return on our investment will not be evident for at least five to ten years. Is this the way you perceive this situation also?” Jointly, they decided this alternative was not practical either. When the discussion led to better budgeting, a red light went off in Frank’s mind. His thoughts were in terms of making more money, not cutting back. Unknown to Frank, the answer to his predicament was only a few weeks away. Through the mutual acquaintance of a former business associate, Frank was invited to a network marketing opportunity meeting. The rest, as they say, is history. Today Frank’s goal is to secure an early retirement from his executive position. Upon retirement, Frank plans on working his network marketing program full-time. With his retirement check and network marketing bonus checks, he and his family will be able to continue living the lifestyle of his choice! Now I ask you, do you know of any other business where people can work from home, spend quality time with the family and still earn as much, if not more than their current job? In Frank’s own words, “What type of job can you get, that offers the opportunity to make more money while performing less work? As the downline grows, there are more people continually generating a residual income. Don’t you just love network marketing?”

Salesmanship Whether you are a veteran or a novice in the network marketing industry, try to recall the primary reason you joined your program. Think back to the first program, or a subsequent program you’ve joined. What was your motivation in joining that particular company? Was it the products, service, marketing plan, or the need for more money? In all probability, the prime incentive for joining was the person who presented the opportunity to you. Why did you buy the car you are driving or the entertainment center in your family room or the computer in your office? How many car dealerships, electronic stores, and computer stores are there in your area that is competing for your business? Surely you could have made your purchases from any one of a number of businesses. So why did you buy, what you bought, where you bought it? (Need a hint? Because of the salesperson!) Network marketing is a business – your business – and as in conventional businesses, you have competition. Competition not only with other network marketing programs, but also within your program. Remember that when you introduce your opportunity, you are presenting more than products, services, or a marketing plan. You are presenting yourself as well. Your goal is to convey the message that your opportunity is unique. What makes it unique is you.


A Familiar Scenario Consider the number of times you’ve been approached by distributors from other network marketing companies. I’m confident that, at one time or another, you’ve experienced a scenario similar to the following. You receive a call from John Key with the revelation that you’ll be set for life, if you join him in his new venture, The ABC Company. Three weeks later he approaches you again, convinced that he has the opportunity of a lifetime. You must enroll under him in The DEF Company. You’ll make $10,000 the first week. The following month Mr. John Key presents The GHI Company to you, insisting that you’ll be able to retire in the lap of luxury in less than two months. But you have to join now; and so on, through the alphabet of network marketing companies. Keep in mind, as you present your opportunity, the importance of building a solid reputation. Trust, honesty, sincerity, dependability and consistency, are all deciding factors in building a strong network of working distributors.

Why Most People Will Never Succeed In Network Marketing – Or Anything Else

You’ve seen it, haven’t you? Maybe you have some friends who work hard, very hard to build their network marketing business. They go to meetings. They give meetings. They attend trainings and rallies. They read motivational books and listen to cds of enthusiastic speakers. But they never seem to get ahead. And they will never get ahead – unless someone tells them the truth – the real inside secrets of network marketing and how it really works. Once you know these truths, network marketing is easy. It becomes a way of life. You’ll go from one success to another, from creating new leaders to successful opportunity meetings – because you know these secrets. Are you ready to learn these truths and principles for network marketing mastery? Great!


Let’s get started.

How Kevin Wasted 20 Years Of Effort I’m taking a walk with my friend, Kevin. He’s discouraged. After 20 years of struggling in network marketing, he is still earning just a few hundred dollars a month – barely enough to qualify as a good part-time job. Our conversation goes something like this: Kevin: “I can’t believe my best distributor quit to go with another company after all the training and help I gave him. It’s like none of my effort even mattered.” TP: “So what did you teach him?” Kevin: “Oh, the usual. How the product worked, the names of the company leaders, how the compensation plan worked. He memorized all these facts too.” TP: “So why do you think he quit and joined another opportunity?” Kevin: “I don’t know. He just seemed so detached. He wasn’t emotionally involved. It was just a way to earn money for him, I guess. So when the next opportunity offered a chance to possibly earn more money, well, I guess he just decided to give that a try.” TP: “Over the last 20 years, have you had a lot of distributors quit?” Kevin: “Sure. Most quit. I think they are all losers! Can’t they see what I see? Why don’t they understand?” TP: “Hmmm. Who trains these people you sponsor?” Kevin: “I do. I teach them everything I know.” TP: “If all of the information they have comes from you, and they quit after receiving your information . . . what do you think is happening?” Kevin: “Well, if I’m not giving them the right information, of course they’ll quit. Wait! That’s it! Maybe I’m not giving my new distributors the information they need to become successful. In fact, the information and training I’m giving my distributors now is making them unsuccessful. Ouch!” TP: “I think you have a point. So let’s see, what information you are giving them. Are you teaching them the four core values?” Kevin: “Huh? What? What do you mean the four core values?” TP: “Everything in network marketing changes. If you teach your distributors about the company and the officers, what happens when new management comes along? Your training changes, right?” Kevin: “Right.” TP: “If you teach your distributors about the products, and the company changes the products, your training changes, right?”


Kevin: “Right. I see. The company and product information is changeable.” TP: “If you teach your distributors about the compensation plan and the compensation plan changes . . .” Kevin: “I got it. All these things are secondary. They aren’t about network marketing. They are just some facts. I’m beginning to understand that the company, products, and compensation plan really have nothing to do with network marketing. So what is network marketing really about?” TP: “I’m glad you asked. Too many people have wasted years and years of their lives thinking that they are doing network marketing. But they aren’t. They’re simply memorizing things – things such as how much money you can make on level three of the compensation plan, or memorizing sentences to close a prospect. These things aren’t network marketing.” Kevin: “Okay, I’ve wasted 20 years doing exactly what you’ve said, memorizing and teaching things. So what is network marketing really about?” TP: “It’s about understanding and living the four core values. That’s it. If you understand the four core values: Prospecting becomes easy because prospects see that you understand what they want. Sponsoring becomes easy because you can show prospects how to get what they truly want in their lives. Training becomes easy because you simply teach the four core values to your new distributors.


Tom Paredes’ Sponsoring System Interview

Bill: Tom you say network marketing is not a good part time job, but is better suited for someone willing to invest time for freedom two or three years down the road. What do you mean by this freedom? Tom: Well, Bill, you know, when people think of a part-time job, they’re looking for immediate money. They’re looking for money right away, and this business is not designed to give them money right away. It’s designed for money later. It’s a matter of building. So when people come to me and say, “Tom, I want to make some money right away. I need a part-time job.” I tell them to get a part-time job, and work on this as a part-time business, because this part-time business is going to take them two or three years, maybe five years, to develop the skills necessary to do the job. Bill: Well, now, Tom, that doesn’t really mean that a person won’t be able to earn money in the first couple of years, does it? Tom: No, it doesn’t. But if I say that it’s going to take you two years to develop the skills to be free, we are now talking about freedom having two components; time and money. That doesn’t mean you’re not going to make any money, six, seven months down the road, because you are going to be learning some of those skills. Now you won’t learn all the skills that you need to be free until the two-year period is up. You might learn it in eighteen months, maybe twenty months. However, you’re not going to learn all the skills. Now, you are going to make money. But what I say is, “What if you received a check from the company you’re working for and you don’t look at it because you’re not in it for the money, you’re in this for freedom. You know it’s going to take you two years, but you are going to make some money along the way. So all I want you to do is endorse the checks and put them in the bank. And at the end of two years, when you go and look at your bank account, you see the money you have in there, and all of your dreams will come true.” Bill: So in other words, what you’re saying is, “Yes I may make some money in the first two, three, four months that I’m in the business, but the freedom you talk about is being able to be financially independent, and it takes time to do that.” Is that what you’re saying? Tom: That’s right. And the other thing is that you’re not going to be able to make the money in the first two or three months. Maybe it will take four or five months before you get any money. Let’s face it, people take part-time jobs every day because they need money now. So, if you come in, and you’re in it one month, two months, or three months and you haven’t made any money, you’re going to quit. So, this is the big difference between having a parttime job, and coming into it as a business and developing it. Most businesses don’t start making a profit in the first year or two.


Bill: Well indeed that’s very true. Tom, another question. One of your methods for home meetings is to give a general overview of network marketing, to tell a little about your own personal story, and then giving information to guests to take home. No closing and no pressure; not even a full presentation. Why does this method work? Tom: Well, the reason it works Bill is because it’s very duplicable. For example, let’s say that, you come to my home, and I do a meeting. I know so much about the products, I know so much about the compensation plan and so much about the company. Then you decide to have a meeting. You’re a brand new distributor. You don’t know anything about the compensation plan, yet you want to have a meeting. You don’t know what I know. Is that duplicable? Bill: M-m-m, no. Tom: So you see, what we have to do is bring people in, because the purpose of the meeting is not to sponsor them. The purpose of the meeting is to give them the information so when they are at home (and not defensive), they have the opportunity to review this material. Because what we’re talking about Bill, is not about selling somebody something. We’re talking about building a relationship; building a lifetime relationship with that person. And that’s how you build relationships. Without closing techniques. Without pressure. And without giving the full presentation, because if you give a full presentation, that may be too much information. Let me give you an example of what may be considered too much information. On a recent trip, an associate and I were in Chicago O’Hare’s airport. We were running a little later after the meeting and didn’t have much time to spare. I was hungry and stopped at a concession stand to get a quick snack and a couple of sodas, while my associate stood in the ticket line to check us through. At the concession stand I asked the clerk for two hot dogs, a Diet Coke and a Pepsi. The clerk said, “Wait! Wait! Just one thing at a time.” Guess I was going too fast for her. So I slowly repeated, “I want two hot dogs . . .” She went and got the two hot dogs. “One Diet Coke.” She got the Diet Coke and returned. “One Pepsi.” She got the Pepsi and returned. You see, I had to break the information down for her so she could follow the “instructions.” So think about the people out there. How are they going to be able to grasp all the right information if they have their heads cluttered with useless information? So, the purpose of the meeting is to give them an overview of what network marketing is about, to share our personal story because that creates desire. And give them the information to take home where they can make a decision in the privacy of their own home. Bill: Well, it sounds like now you’re talking about something that anyone at any stage of the game could do. Tom: That’s right. When we invite people, we’re inviting them to talk to our expert. He can be in the company a week and he’s still an expert, because he knows how to answer every question.


For example, “What about the vitamins? What kind of vitamins do you have?” The answer is in the information pack. Or, “What about the compensation plan? Does it pay more?” It doesn’t matter, because it’s in the information pack. They’re able to answer any question. At the same time Bill, you’re able to raise the level of self-confidence and self-esteem. Because, when people come into this business their level of both are very low. If they were high, they would already be very successful. Bill: Well that makes a lot of sense. I can understand that Tom. Now, how about this, if people join for money, you say that they’ll quit and get discouraged more quickly. Help me understand why. Tom: Well, the reason people get discouraged and quit is because they haven’t developed the necessary skills to build a business. They come and join for money and figure that somebody brought them in for money. If they can’t build the business they won’t make any money. And let’s face it, Bill, it takes skill to be able to make the money. Now, some people may be able to develop the necessary skills faster, while some people will develop them slower. So, when I say that it will take two years to develop these skills, maybe it will take eighteen months, or maybe twelve months. I don’t know. It just depends on the individual, how fast they develop the skills. But it’s going to take a minimum of a couple of years to learn all the skills. Bill: So, as a sponsor, do you take the responsibility then of teaching these skills and if so, how long does that take? Tom: If I personally sponsor somebody, yes I take the responsibility. I’m able to teach them the skills and help them develop the skills. However, there are certain things you can teach them; while there are certain things they have to discover for themselves. Bill: Well that’s what I was going to ask. Why don’t you just write all this down, hand it to them, and say, “Here’s what to do.” Tom: Well, Bill, I could do that. However, that would be the same thing as me giving you a manual on how to swim. You have all the information on how to swim, but if I throw you in the ocean tomorrow, even if you read the manual the previous night, you still wouldn’t be able to swim. So, is the information valuable? Bill: So, you’re saying it’s the day-to-day application that is going to make a difference in the person’s success? Tom: It’s the process of how they’re developed, because they won’t be able to assimilate all that information. So you have to take them step-by-step by step. It’s a process. Bill: Boy, I’m beginning to understand much more about this now. You know for building people’s self-esteem. Tom, why do you use that approach first in building your business? Tom: I believe that you have to have a base to build on. And if a person’s self-esteem is very low, they’re not going to be able to build a business. So one of the ways that I help them build their self-esteem is by giving them books to read. And giving them cds to listen to so they can start building their self-esteem before they even start any of the building process.


Now sometimes that may take a while. I have a brother who recently got involved in the business. And he’s told me that his self-esteem is kind of down, and I realized it was. So I started giving him some books to read. And as he read the books things started changing in his life. Eight months later, he came to me and said, “Tom, I’m ready to build this business. I am ready to do this.” And now his self-esteem is very high. I’m very proud of what he’s done with his life. So you see, I couldn’t have started teaching him the skills right away because he wasn’t ready. His self-esteem was very low. So first you have to build an individuals self-esteem. Getting back to the part about the money. If someone were to come in just for the money, we’d be doing that person a disservice because he wouldn’t be equipped with the necessary skills to make money. So first we build self-esteem, then we help him develop the skills so he can be free. Bill: Well, it sounds to me like a sponsor really needs to pay attention to where the particular individual is, that he’s brought into this business. Tom: That’s right. And we do that through the relationship. For example, if you sponsor somebody in California, you won’t know these things unless you talk to them on a daily basis. Let’s use home meetings as an example … people say, “Why do we have these home meetings? How many people can you get in a meeting?” Well if you were in a hotel you could have a big meeting, and we do have hotel meetings. Those are called central meetings. But initially we don’t do that because, if you can, imagine you had a roomful of people. Can you picture anyone getting up in front of a crowd and saying, “Let me tell you something Bill. My finances are very low. My self-esteem is very low. I don’t know what to do with my life.” That’s just not going to happen at a big meeting. Instead they would say something like, “Let me tell you what I did last month.” Or, “Let me tell you about my car.” Or, “I got a new VCR … ” They’ll talk about the positive things. But in a small home meeting, where you have a relationship with the people, they’ll open up and tell you what it is that they really want. Bill: So then, with that information you know what to do next. Is that correct? Tom: That’s right. By having that information, we find out how we can best help them. Because people are all different from one another, yet they have a lot of things in common. Most of them have low self-esteem. And many are negative. We know all these things. We know that the basic traits of people are similar, but the individual’s situation may be different. Bill: Do you help people with this low self-esteem problem by suggesting reading materials or cds that they can listen to that may turn that around for them? How do you do that? Tom: We do it through cds and books. One of my favorite books is The Magic of Thinking Big. It’s a very good book. It’s one of the old books, but it really helps people build their self-esteem. As for listening to cds, I don’t hand out or recommend “hype” cds with people jumping up and down. I went to a meeting a while back and the speaker took off his watch and said, “If


you get into this business you could have a Rolex watch like mine … ” Or cds that proclaim “Let me tell you about this guy, he makes so much money… ” I’m not in the hype business. But I am in the people building business. Bill: You know, this morning at breakfast Tom, we were talking about relationships, and that that was one of your business foundations. What is the downside of cold calling, or mailing to prospects you don’t know? How does that fit into the scenario? Will that matter? Why is the personal relationship so important in your system? Tom: Well, first of all, we talked about relationships. That’s very, very important. That’s really the foundation of our business. Now some of the downsides for cold calling or mailing is that you don’t have that relationship. But once you make the cold call you can start developing a relationship. However, that takes a while. The personal relationship is very important in the system. Bill: That makes sense to me. Tom, you also hear people in this business, network marketers, talk about recruiting leaders and building downlines, and yet you seem to emphasize the word “develop.” I hear that over and over again. What do you mean when you “develop someone,” and why is this different from just sponsoring and working with them? Tom: Well, Bill, let’s look at it this way. We were in a restaurant earlier this morning, and we saw a little child. The child was probably about, what a year old? Bill: Yeah. Tom: That child is growing to be an adult. That child is being developed. It’s not being built. You build cars Bill you don’t build people. You develop people. Bill: M-m-m. So your method of development would mean that you help them overcome: a) self-esteem problem, and b) you educate them on the tools as part of the development process? Tom: Yes. It’s a continuing development process, that every day they learn certain things. So it’s a complete development process. It’s not just a couple of things and their ready to go. It’s like I said; it’s a lifetime commitment. Bill: Well, then I have to go back to ask why the personal relationship so important in your system? Tom: Well, it goes back to development. For example, we talk about small meetings, and that people will not open up to you unless you have a relationship with them. You can’t walk up to a complete stranger, and say, “Let me ask you sir, how much money do you make?” Or, “How are things at home?’ But when you work and develop people, and you build that relationship, they tell you these things. And once we find out these things, then we can help them. Bill: Remember that glass of orange juice you mentioned, and the individual in the coffee shop that you had encountered? Would you relate that story for me about this guy and the two or three times you went there before he even found out what you did for a living? Tom: Oh, I shared that story earlier about the convenience store. I stopped to get a cup of coffee because it was raining real hard and it was kind of late. I walked into the convenience


store and I said to the clerk, “Boy you sure are lucky to have a job like this because it’s raining cats and dogs out there. To have an indoor job like this is much better than having a job outdoors like the guy who’s up there on the telephone pole, you know, getting wet.” He said, “Yeah, but I’m not going to do this all my life.” And I said, “Really? What are you going to do?” He replied, “Well, I’m going to start my own business.” I said, “Great, that’s really the way to go. What kind of business are you going to start?” He responded, “I really don’t know yet.” So I said, “Oh well, I wish you a lot of luck,” and then I left the store. Now here is when every distributor I know, or most of them, would have thought, ”I have a hot prospect!” And then they would have started telling the clerk about their wonderful opportunity and their wonderful company. They would go on and on and on until the clerk backs away. But a couple of days later I went back to the store and got another cup of coffee. The same clerk was there so I said “Hey bud, how are things going with you? You get your business started yet?” And he says, “No, no not really.” No problem. We talk a little bit more and then I leave. The third time I stopped by the store, I said, “Hey bud, how are things going? I just came by to get a cup of coffee. So, did you get your business going yet?” He said, “No, but let me ask you a question, Tom. You know, you’ve come here three different times. And every time you’ve stopped in, it was at a different time of the day. So,” he said, “what is it that you do for a living? Most people are at work whenever you come by. Are you a salesman? What do you do?” So I told him, “No, really, I’m kind of retired.” And he looks at me and he says, “Tom, you seem kind of young to be retired.” I said, “You know, it doesn’t take age to retire. And as a matter of fact I’m kind of semiretired. What I do is help people start businesses.” He said, “Oh, really.” You see, I told him what he wanted to hear. Bill: You suddenly got to common ground, didn’t you. Tom: Yes. I told him what he wanted to hear. And he says, “Really, can you tell me a little bit about it?” I said, “Well, I’d love to tell you, bud, but … why don’t we do this? Why don’t we get together in a couple of days because I have some things to do now. Let’s get together for a cup of coffee. I heard that over at Burger King they have some really good coffee like this convenience store of yours.”


He agreed to meet for coffee, we got together and he got involved in the business. He’s not doing a whole lot right now but he does buy product every month. You see he’s not ready, at this point yet, to build a downline. We have to first build his self-esteem. Bill: Well, now that’s interesting too, Tom, because you keep your distributor turnover to a minimum by getting two-year commitments from your new distributors. How do you do that? What do you say that keeps them motivated for up to two years? Tom: As I said before, if we bring somebody in for money, and they don’t make as much as they think they should in a couple of months, they’ll quit. If we bring them in for the product and somebody else comes up with a better product, they’ll quit. So from the beginning, when I bring a distributor in, they know it’s going to take them two years. They already know it’s going to take them at least that long, because they have to develop the skills. But more importantly they know from the beginning what price they’ll have to pay. Now, let me give you an example of what I mean when I say price. I was talking to one of my distributors awhile back and he had gone over to the Galleria in Houston where they have very, very exclusive stores. Now I don’t know if you’ve ever been in the Galleria Bill, but they have a skating rink in there. It’s just beautiful. My distributor was taking one of his new distributors with him because they were going to do some shopping. The new distributor said to him, “I want to look for some shirts. I really need to have some nice shirts.” My distributor said, “Well I know the perfect place, and I personally know the guy who owns it, and I think he could help you out. So they went to the store and were looking at shirts when the new distributor said, “Man, that’s a beautiful shirt. I’ve never seen a shirt like that. There is something really different it.” Most of the people I know people wear shirts that are pretty much the same style, but this guy wanted something different. I think the collar was a different color than the cuffs, or something like that. Anyway he says, “I’m going try it on.” However, before he entered the dressing room he grabbed the cuff of the shirt, and looked at the price tag. (This is kind of like the restaurant story I mentioned earlier . . . you can tell when people don’t have much money. They read the menu from right to left instead of reading left to right the way we learn to read in school.) Then he said, “Oh, well, that’s all right. I don’t want the shirt anyway.” My distributor said to him, “Well, wait a minute, why not try it on. You don’t have to buy it, just try it on and see how it feels.” The new distributor says, “No, no, that’s all right.” But my distributor kept pressuring him to buy the shirt, or to at least try the shirt on. Finally the new distributor said, “Wait, let me tell you something. I am not going to pay $1500 for a shirt.” You see, he needed a shirt, and he liked the shirt, but he was not willing to pay the price.


A lot of time we talk to distributors, and they have no idea what the price is going to be. They think it’ll be fun. “Oh, I’m going to be a distributor, I’m going to make all kinds of money.” But then reality sets in. They have to make phone calls. They have to have meetings. They have to start talking to people. They have to learn. They have to take time away from television to be able to develop the skills. It’s this reality that makes many distributors decide to give up because they’re really not willing to pay the price. But if they know from the beginning, what price it is that they have to pay, they will stay. One of the prices they need to pay is the fact that it is going to take them two years, Bill. Two years to be able to develop the skills to be free. But after two years, they will be free. And that’s really what they want, isn’t it? Bill: Oh, yeah, I like that term “being free” and knowing that it’s going to take that financial level that you talk about to let me be free at that time. You know, Tom, I’ve been intrigued by your book, The Nature of the business of Network Marketing, and part of that has a story about prospecting that tells how some people can see prospects where others don’t. It appears that prospects are everywhere. Why don’t you share that story with us. Tom: Well, one of the reasons people don’t see people as prospects; goes back to the core values. Earlier we talked about the core values … Bill: M-m-m. Tom: …the worth of an individual . . . that we all have an intrinsic worth. Bill: Yes. Tom: We talked about things like equality, that we are all equal – we are all the same. We talk about freedom – everybody wants freedom. And we talked about love – we all want and need love. When I look at a person, I don’t look them as being a successful businessperson, or as a person who works in a machine shop. I look at them through the core values. Look at them as a filter, if you will. When I look at them all I see is that person as an individual, as a human being. Not as a prospect. You know, when I go into Houston, which is a very big city, I see all these cars out there. Now, if I looked at those cars and said, “Wow, look at all those cars and look at all those prospects. But n-a-a, they wouldn’t be interested. That guy drives a brand new BMW. That guy drives a Mercedes.” But if I look at them through the core values, instead of seeing Mercedes and seeing BMWs, I’d see the people. Just the individual person. And that goes back to filtering of the core values. You’d have no problem, because actually you have more prospects than you know what to do with. Bill: And obviously, you deal with a limited number of people at a time, don’t you? Tom: That’s right Bill. And the reason I do work with a limited number of people at a time is because we go back to the development process. You can not develop a lot of people. Though I may be able to sponsor a few people, I can only develop a handful. Now, what determines that?


For me, it’s about four people. I can develop four people at a time. Anybody else that I sponsor, I transfer that relationship or I transfer that sponsorship, to that distributor. For example if you came to me and said, “Tom, I know you’ve been in network marketing for a while, and I really want to get involved.” But what if I told you, “Well Bill, right now I’m working with four people and I really can’t develop anybody else right now.” You’d probably think, “Well gee, Tom won’t help me. I have to go somewhere else.” However, if I said to you, “I may sponsor you Bill, but I’m going to have Frank develop you, because Frank is one of my distributors and he’s an expert at this business.” Bill: You’ve taught the skills to him. Tom: That’s right. Frank has learned the skills and he’s going to teach you the skills. The same skills that I know. But personally, Bill, I could not work with you and give you the kind of time needed for you to develop the skills because you come to me and you really want to be free. And I want you to be free. And I want you to develop the skills. Bill: You know, that’s interesting Tom, because I know you have thousands of people in your downline, and yet you’re telling me you’re working with three, four, five people at a time. That’s very interesting. Tom: Yes, it is. You see, people always think in terms that you have to have a lot of people that you personally sponsor into this business. That’s why they’re always running around all day long looking to sponsor somebody. Everywhere they go they’re always talking to people, they’re always talking to people, they’re always talking to people. I don’t know but that doesn’t sound like freedom to me, does it, Bill? Bill: No, it sure doesn’t. Tom, I continuously hear things from you, and through this series, that are different than the things I have heard other people say. For example, you hear recruiters encouraging people to sponsor up, in other words to concentrate on recruiting high income professionals. And yet you teach something completely different. Just a little while ago you used that word “equality.” You say that the gas station attendant is just as important a prospect as a bank vice president. Help me understand that. Tom: Well Bill, the reason is because we talk about, if it works in the corporate world it will not work in network marketing. With this in mind, it doesn’t matter if the person is a bank vice president, or if the person is a gas station attendant, both of them have to go through the same process to learn the skills necessary to build a network. And that’s really what we’re talking about. So the gas station attendant may have more of a desire than the bank vice president. Or vice versa. It doesn’t matter. So when I look at them, I look at them through the core values and they are equal. It doesn’t matter. The only requirement is the answer to the question, who has more of a desire? Bill: So you think that desire is fifty percent? Seventy-five percent? Eighty percent? Tom: Well, desire is real important, you know. For example, I can create desire in you. That’s my job. To create enough desire in you so that you say, “Wow, I want to do this.” And this can be done through the telling of the story. However, there’s something I can’t do for you Bill. I can’t turn the switch.


Bill: Ah that switch. Now you were talking also about that at breakfast this morning. That you look for that person who turns on his own switch. Tom: That’s right, Bill, because see, the switch is inside and I can’t get inside there to turn that switch on. They have to do it. Now in the beginning, if their self-esteem is very low, they may not be able to have the energy to turn the switch on. So we have to build their selfesteem. And as we build their self-esteem, they’re able to now turn the switch on. Bill: And what do you do then to keep them from turning that switch off once you’ve encouraged them to turn it on? Tom: Well, it goes back to talking about the price they have to pay to succeed. They know what the price is going to be. They know it’s going to take them two years while they’re developing the skills. And as they’re developing the skills, they start becoming one with the core values, if you will. Bill: So does knowing that they have you to rely on to help them, help them keep the switch in the “go” position? Tom: Or their sponsor, or their sponsor’s sponsor, whoever is developing them. That’s right. And they know that someone is there to help them. But the thing about it is, as you start developing somebody, while you’re still spending time with them you start spending less and less and less and less time with them. Because now they’re spending more and more and more time with the people they’re developing. Bill: You know, I think I’ve heard some very interesting stories about you in the span of time that I’ve known you. Of course one of those stories was about the first car that you won as a network marketing entrepreneur. I know that since then that you’ve won many other cars and trips. I say won, but really earned is a better word, in your network marketing career. You live a very nice lifestyle, and yet you never mention these things in your personal story at your home meetings. Why? What’s the strategy of leaving out these accomplishments? Tom: Well, one of the reasons is because it’s not duplicable. I mean, if I talk about the cars I have won and so forth and so on, what about the person who has just come into this business, who is only about a week into it? Have they earned the cars? Have they earned the trips? No. Would they be able to say what I say? Remember we go back and talked about what the business is about. It is about relationships and duplication. It has to be duplicable. And if it’s not duplicable it won’t work. And we’re talking about building a network. So, why talk about things that are not going to build a network? I know a lot of people in the industry who always talk about this. I had a guy call me and say, “Well, Tom, I just wanted to give you a call, you know I heard you were in my upline somewhere.” Not everyone does exactly what I do, because other people brought them in. Anyway he says, “Things are going really good you know. As a matter of fact, this month my check was eight hundred dollars, and next month I think it’s going to be about sixteen hundred dollars. I can’t wait until next month because then I’ll be able to have a copy of the check and I’ll be able to show it to people and they can come in faster.”


And I said, “Wow. Then why are you calling me? You seem to have the answers.” He goes, “Well, I just thought you might have another idea.” I said, “Well, I really don’t talk about, you know, the check.” He sounded really surprised and said, “You don’t?” “No. I don’t, because I talk about freedom.” So we got talking a little bit, and after we finished the conversation he said, “Hey, well, I want to know more about this thing.” All of a sudden the money wasn’t really important. I had one distributor who was brought into this business before we started doing this kind of system, and her checks would go up and down, up and down, up and down. She was kind of tired of that so I told here, “First of all you have to learn new skills because if you had the skills, your check would not go up and down, up and down. It would be more consistent. This business is not about making money, it’s about being free.” The concept was kind of hard for her to buy it at first, but she was that she was very unhappy even though her checks were averaging a pretty good income. Her checks were pretty good, but she wasn’t happy because that wasn’t enough. You know when you talk about money, it doesn’t matter how much money you make, because it’s never enough. You always want more. Isn’t that true? Bill: Sure. Tom: So, we talked about freedom. Do you know that today her check is less, but she’s happier because she’s looking at the two-year mark. She’s looking at being free. And her organization is growing and growing and growing. I talked to her the other day and she told me, “I am really happy. My organization is growing. I can really see the growth now.” We don’t talk about money anymore. We talk about freedom. So it’s very important. Bill: Oh, indeed it is. Thanks, Tom, for sharing that with us. Now let’s take you on a scenario. Let’s take you on a little airplane ride. Let’s say that I dropped you out of an airplane, naturally with a parachute, into a strange town. How would you start building your business, Tom? Where would you go to find prospects? Well, for that matter, what would you do first? Tom: Well, that’s kind of a loaded question but first of all, you’d never get me to jump out of an airplane. When I was in the military they try to get me to do that. They offered me a position with the 82nd Airborne but I said, “No way, I don’t jump out of airplanes.” But since this is a hypothetical situation and if that were to happen, the first thing I’d want to do is to start building relationships. Where would I start? Maybe I would start with the person I bought my home from, my realtor. Maybe I would say something like, “You know Bob, I’m new to the area and I just bought a house from you. I have a network marketing business and I help people develop that type of business. I’ve thinking maybe you might be able to help me. Maybe you might be able to steer me to a direction where I can meet people. You know, give me an introduction.”


Maybe I’d go to the grocery store, or I’d go to the convenience store and use the method I used before. Maybe I would go to the mall and use the method that I use with the shoe salesman. That type prospecting and start building a relationship from there. Another thing I would do is, I would go back to the breakfast clubs. The breakfast clubs are very, very good at developing people with whom you have no previous relationship. And once you build the relationship it’s easier to build your business. Because if you don’t build a relationship first, you’ll coming across like a salesperson. And what do most people hate? They hate the sale. Bill: Yeah, true. And many of them hate the pressure of sales, and therefore get a certain feeling about a salesperson. Do you run into that problem yourself? Tom: Yeah, they do. I don’t personally run into that problem because I don’t approach prospects like a salesperson, and this goes back to the fact that I’m not buttonholing everybody I see. I don’t even talk about it. A lot of people don’t even know what I do. I mean they just know I’m there. Bill: And having a good time. You know, that brings me to another question. When a prospect says to you, “I have to think it over,” how do you handle this? For that matter, can that be avoided? Tom: Well, instead of having them say to us, “I have to think it over,” why don’t we say it to them first? By saying, “Let me give you this packet of information so you can think it over,” it kind of reverses that problem. Because when I make the initial contact, since it’s a process where I’m establishing a relationship, I’m not really trying to get their commitment to sign on the dotted line. I don’t ask them for the order. I don’t tell them, “Here’s an application, sign it.” In fact, if they say, “Tom, what do I do now? What’s the next step? Is there paperwork I have to sign?” I don’t even have distributor applications at home. Every time I get in a situation like that I have to borrow some applications or buy some. So I never worry about that. Bill: So, when you encourage a person to take that information and think it over you’re not afraid you’re going to lose them? Tom: No. I could high-pressure them Bill, remember I used to be an Army recruiter and I know how to use that kind of sales technique. I had a guy, who finally became a distributor, but it was because I used a process, I didn’t high-pressure him. He came to me and said, “Well, I really want to be a distributor, Tom, don’t you have an order form or something? How do I sign up for this thing? And I signed him up. But when he got to the office Monday morning, his friends and coworkers immediately started saying to him, “Hey John, you shouldn’t get involved in that kind of thing. Continue doing what you’re doing with your job, you’re doing good with that. There’s a future here. Don’t get involved with those Mickey Mouse businesses, you know. You’re not going to make any money.”


He told them, “In six months I’m going to have a car. In two years I’m going to be free.” Because I took him through the process he knew what to expect and how long it would take him to get to where he wanted to be. His friends and co-workers couldn’t steel his dream. That’s the difference. Bill: Then you had something to work with. Tom: That’s right. Bill: Amazing. That’s great information. You know Tom, most people are very selfconscious about, for that matter, scared when approached to do network marketing. They are afraid of home meetings. They’re afraid of prospecting. And probably more than anything else, they’re afraid of rejection. How do you handle this? How do you make them believe that they can do it? Tom: Well Bill that’s one of the things that we already know . . . that they’re afraid. We already know they’re scared. We already know that their self-esteem is down. And we already know they’re afraid of rejection. But we talk to them, and we develop that relationship, and we say that we are going to teach them the skills they need to get this accomplished. And that’s really what they want isn’t it? Bill: Yeah. Tom: They’re learning the skills, and I know that. I know that they’re afraid. I know that their self-esteem is low. I know that they have bills to pay. I know all these things. But it doesn’t matter, because I’m going to teach them the skills necessary for them to be free. So don’t worry about that. And obviously they know some of this because of my story. And they’re going to say, “Wow, here’s a guy who was poor. Here’s a guy who was shy. But now look at him. He’s not poor, and he was able to overcome his shyness. Maybe I can overcome my shyness and improve my finances. There is hope for me.” It goes back to the fact that if I started talking about the cars and trips that I won and all that stuff, they would say, “That’s wonderful. What’s great for him but what does it do for me? I can’t even pay my bills next month.” Bill: So that’s a direction? Tom: Yeah. Bill: Well, now that brings me back to another word that I heard you using at breakfast this morning, and that’s modeling. You say that many skills in network marketing can’t be taught but that they have to be modeled. What’s the difference? Tom: Well, for example I can teach you how to fill out an application. I can teach you how to fill a product order. I can teach you those kinds of things. But really I have to be able to model this business for you. You are going to have to do what I do. And I do this by doing a presentation at your home. As a matter of fact we have two home meetings. The first one, you watch me do it and you tape it. You tape it and you listen to it over and over and over and over again so that you know how to do it. Then you do it in your own style, but using the same format.


In the second home meeting I’m going to do the first part, you’re going to do the middle, and then I’m going to do the end. After that I don’t do any home meetings for you.. You will be doing home meetings with your people. As a matter of fact, when you give the information packs to your prospects, I don’t even go with you. You go by yourself because you have the relationship with them, not me. I had the relationship with you. Now, I still talk to you. I still develop you. But you already know how to do a home meeting. Think about it. How hard is it to do a home meeting? You already saw how easy it was. However, it would be hard and you would need me if I had talked about product. Because then you would have to learn a hundred, two hundred, three hundred, a thousand products. Yes, then you would need me. Or, if I had talked about the compensation plan and you would have to learn every step, then yes, you would need me. But to be able to do the home meeting, like we talked about where you talk about your story and follow the steps, you know the dream, the concept etc., then you don’t need me. That doesn’t take very long. So two meetings are all I do for you. And then I’m basically gone, Bill: Well, Tom, if I showed an interest, and I really wanted to do this business, you wouldn’t just leave me dangling out there on a limb, would you? Tom: No Bill, I would never leave you if I bring you in. That’s why we use the word sponsor verses the word recruit. When you recruit somebody, it’s kind of like selling. When you use the word sponsor…have you ever seen those programs on television telling you to, “Sponsor this child he needs you.” You’re there every month with that check. Every month you send that check for that child. When you sponsor a person into this business, you don’t leave them. Ever. You’re always, always there. However, I find that people grow better for me from a distance, than if I’m right there. Because, if I’m there at your home meeting every week for example, you’re probably thinking, “Oh, gee, I don’t know, I hope I did this right. Oh, no I missed a part. He’s going to know it because I listened to his tape and I missed a whole section. He’s going to know.” And I’d be sitting there saying, “I would have said that a little bit differently.” I’d be critiquing you and you’d be critiquing me. But if I’m not there, you have the tape; you’ll learn from that tape how to do it exactly like I do it. So I don’t really leave you. But after your meeting, I give you a call, or we have a cup of coffee. And I say, “Bill, how was your meeting? How did you do? Was it pretty good?” And you give me all the details. You say, “Yeah, well, I talked to … ” Or you’ll say, “I had this one guy who seems pretty sharp ... ” Now remember, in the beginning I help you transfer your excitement to two or three people, so you have some leadership there. Because if I don’t transfer that excitement you’re not going to have any leaders. And if you don’t have any leaders, you’re not going to have any people. Then what’s going to happen is that your group is going to die. Bill: You lose the excitement. Tom: That’s right.


Bill: So, then you encourage them to let this excitement flow into two or three people who let it flow into two or three people who let it flow … is that it? Tom: That’s right. We have to transfer that excitement to two or three people so they catch the same vision. They have the same excitement. Because it doesn’t do any good if you’re excited, or if nobody in your group is excited. So you have to be excited. And that’s why we have to have that before we get into the next step of central meetings. Bill: So that’s what modeling is all about. Thank you very much. When you’re prospecting, Tom, what do you look for? Obviously, you don’t attack everyone within shouting distance. What’s the key that makes a good prospect stand out for you? Tom: Well, really there’s no one magical thing. If I were to say who makes the best prospect, it would someone I have a close relationship with. That’s really it, and someone who has the desire. A lot of times, I give a test to see if that person really has a desire. For example, if I give you a book I’d say, “Bill, I found a really great book that you should read.” Then about a week later I’d say, “Hey, Bill, how are you doing with that book?” If you tell me you’re on page two Bill, I’d know that you probably don’t have enough desire. So, maybe you’re not really ready for this. And I may have to come back to you at another time. Or maybe I haven’t helped you develop enough skills yet for you to come in and start doing something. See that’s what happens. A lot of times a new distributor will say, “Well, Tom, you know if you go over there and talk to my prospect, he’ll probably come in.” Well, I know this, because I have more skills than they do. So you can’t compare my skills to their skills. I mean that if I go out there and talk to somebody, my chances of sponsoring a person are greater than a new distributor. But the thing is that’s not what it’s about. It’s really about the relationship. So we have to build a relationship. What I’m saying is that the most important thing is going to be the relationship and the desire and we test the desire by giving them certain things, such as a book or cds. When I follow up by saying, “Hey Bill, did you listen to that tape, that I gave you?” If you come back with, “Yeah, Tom, and it was really great.” Then I know that you’re hungry, that you want more, and so I give you more. That’s how I test it. Bill: So you don’t give them the whole load at one time then? Tom: No. Because if I gave them the whole load at one time, they wouldn’t understand. I had one distributor tell me, “Tom, every time I talk to you it’s like you throw me a little pebble.” And I said, “Yeah, that’s because if I throw you the whole boulder I’ll kill you.” You know it’s like if someone asked you, “How do you eat an elephant?” The right answer is “One bite at a time.” We’re not talking only about learning; we’re also talking about discovering. A month down the road, you discover something that you learned the previous month. And then you say, “Oh, that’s what it meant.”


It’s like, when I first got into learning about the system, I learned about the core values. I really didn’t really understand them. I thought, “The core values, well that sounds great, equality, freedom, love…that’s great.” I could say them backwards, forwards, and sideways. I remember one lady I had been talking to and she said, “Tom, I don’t know. I’ve been looking at these businesses for a long time and I’ve never gotten involved. But for the first time in my life, I don’t know what it is, I’m attracted to this and I want to do it.” I realized that she was attracted to the business because she was attracted to the core values. This is something I learned it was something I discovered. And it took me a few months to make that discovery. That’s what I’m talking about, I can teach you certain things, but there are certain things that you have to discover yourself. Bill: Well, it sounds to me like you’re teaching an individual how first to listen and understand and then how to teach as well. Is that a correct assumption? Tom: That’s right. They have to be able to learn and then teach what they know so that person can discover those things. Bill: Do you have to go out and develop a whole new pack of information that you use with your people, or do you find that the company has already done that for you in those cases? Tom: Sometimes the company has done some of it for you. But most cases no. The reason is, there are some companies that have spent the time and the money to develop a complete system of this. However, I find that a lot of times you have to learn the skills from someone and normally that would be from your upline. And they learn them from someone else and so forth and so on. Bill: So, in other words, you’re encouraging that person to learn everything they can learn about the business directly, one-on-one, is that how that works? Tom: A lot of that you’re going to learn one-on-one, yes. For example, your sponsor is the one who’s going to be there. They’re the one there on a daily basis. They’re the one who’s in the trenches, if you will. Sometimes the company president will give you the support you need, but he can’t be there on a daily basis. He has a different purpose. His job is totally different. But you, as a sponsor, your job is to be there on a daily basis with your new distributor. Bill: H-m-m. Well that’s easy to understand. New distributors always say, “My friends are all negative.” How do you handle something like that? Tom: Well, I know that, because so are mine. But we have a system that will convince them to be positive. Are you willing to learn? See that’s the thing we have to talk about. I hear it all the time. “Tom, you know my friends are all negative.” And I say, “I know, so are mine. But our job is to convince them to be positive. And we have a system that will teach you how to do that. Are you willing to learn?” So it goes back to, “Are you willing to invest the two years of time it’s going to take you to develop the skills? Are you willing to do that? I know that people are negative. We live in a negative society.” Bill: So you can overcome that?


Tom: Sure. Bill: Very good. If you had a choice of skill, knowledge, or attitude, which one would you chose? Tom: Well, first of all I would chose attitude. Remember we talked earlier about skill. It doesn’t matter what their skills are because they’ll have to learn new skills. It doesn’t matter what their knowledge is because their knowledge is in some other direction. This is a very specialized industry, and they must learn the skills for this industry. They must learn the knowledge for this industry. So knowledge is not important. Attitude is the first thing, it’s very important to have the attitude. And the attitude comes back to the timing. The time has to be right to do this. Bill: So, you’re looking for a person whose attitude is what, upbeat? Positive toward success? What is that attitude? Tom: Here’s an example of the attitude I look for is a person. I was in Montreal Canada a few months ago. It’s a beautiful city. I was there speaking to a group through a translator because I don’t speak French. Several people got up and talked a little about their story, and why they’re doing this business. But I was really touched by a young man who got up to tell his story. Even though he was speaking in French, I could see . . . I could feel the emotion that he was going through when he said, “The reason I’m in this business is because I am tired. I am tired of telling my children, ‘No.’ I am tired of telling my wife, ‘No,’ I am tired of telling them we can’t afford the things they want. I am just tired of saying no to them, and I want something better for my family. That’s why I’m in this business.” Tom: So, that person, would you say he had a great attitude? Bill: Oh, yes. Tom: So, maybe he didn’t have the skills. Maybe he didn’t have the knowledge. But that’s not important, because I can teach him those things. But attitude has to come from within, and it goes back to the switch. Bill: So what your saying is his attitude had to be correct to be receptive to the knowledge that he needed to develop his skills, is that right? Tom: That’s right. Bill: That’s interesting, very interesting. Let’s say you got a phone call from a prospect answering an ad. What’s the most important information that you feel you should give this prospect? Tom: Well first of all, I want to find out why he answered the ad. What does the ad say? This again is a loaded question. If the ad says, “Looking for people to earn part-time income ... ” Well he’s calling because he wants to earn a part-time income. If the ad say, “Looking for people who want to be free … ” you may not get as good of a response, because we talk about freedom being abstract. People won’t understand what that means. So maybe you may have to draw them in, with something like, “Are you tired, are you in a rut, are you looking for a part-time business?”


So, we need to find out why they are calling. So instead of trying to find a solution, first we have to find out if there is a problem. If there’s no problem, we have to create a problem, and then give the solution. Bill: M-m-m. And Tom, you often talk of people having a vision. Is having a vision the same as having a goal? Tom: No, there’s a big difference between a vision and a goal. For example, if I had a goal to lose twenty pounds, I could do a couple of things to lose the weight. I would reach my goal, and then that’s it. Where would I go from there? Or, maybe I wouldn’t lose the weight because every time I went by the doughnut shop I’d stop in. Then I’d never lose my twenty pounds and eventually I’d get tired of that goal. I’d drop the goal not the weight. Now a vision is something entirely different. Let me ask you, do you think that Martin Luther King had a vision? Bill: M-m-m. Tom: I mean, there was a man with a vision. Ghandi had a vision. These were men of vision. They didn’t have a goal to change people’s lives they had a vision. And that kept them going. You see, a vision will keep you going way beyond the point of a goal. For example, if my goal was to make an extra ten thousand dollars a month and I reached that goal, then what would I do? Make another goal. Or maybe just stay there. But my vision is to teach a handful of people the skills that they need so that they can teach a handful of people those skills and that handful of people will teach another handful of people those skills and that will change the world. That’s my vision. And I will never in my lifetime be able to fulfill that vision. I will die but my vision will continue. I know that I can never fulfill that in my lifetime and because of that, I never get bored. Have you ever notice people who are bored? They always say, “Oh, I have a goal this month of … ” Or, “My New Year’s Resolution is … ” I don’t have any goals I have vision. Bill: And that carries you? Tom: That’s right. Bill: Tom, you often talk about people who sponsor people who live far away. Can you succeed in network marketing if your sponsor lives far away or if your sponsor doesn’t help you at all? Tom: Sure you could. The problem is first of all, you’ve got to find a sponsor. That’s the key. If your sponsor lives far away and he’s not going to help you, there’s always somebody above him who can. You may have to do a little work to find out who his sponsor is. If he can’t help you, go to his sponsor. And continue going up, up, upline until you find the person who says, “I am willing to help you.” There will always be somebody there. If you have to go all the way to the company, where the company assigns you somebody to work with, you can find somebody. But a lot of times people just quit. They’ll say, “Well my sponsor just dropped out, and if it’s not good enough for him, it’s not good enough for me.”


Here’s an example . . . if I have a relationship with somebody, and I bring them into this business and then I quit maybe they’d lose their goal. But if they had a vision it wouldn’t matter, because they’re going to do this, regardless. Bill: So you instill this envisioning in them. How often do you quit? Tom: Do I quit? Bill: Yes. Tom: I never quit. You know, and that’s the thing, I just don’t quit because I have that vision. That’s what keeps me going. Bill: Well, you say you never quit, and I believe that. And I see your successes. I know that you take vacations. And as a matter of fact, I know that you sometimes take extended vacations. But sometimes these vacations can last twelve months. You want to tell me about that? Tom: Yeah. And I knew you were going to ask that question, Bill. Here’s the thing we have to understand . . . we all go through cycles. For example, I was in a cycle for over a year where I really didn’t do anything. I didn’t sponsor anybody. Everybody said, “Well, gee, Tom, that’s not really what you teach.” But it was with my vision because I was learning new skills. I was in a cycle before that where I was depressed. I didn’t really know what I wanted to do. But cycles don’t last. You can get in and out of cycles yourself. I love cruises. I don’t know if you’ve ever been on a cruise, but I love cruise ships. I really enjoy taking a cruise. So, now I’m in that cycle. I get myself in and out of cycles. Before I learned these skills, I would be depressed for one reason or the other, or just unhappy. Well, when this happened, when I was depressed I’d spend maybe about a week moping around. I didn’t know what to do because I didn’t know the skills on how to get out of that cycle. Now I do. Sometimes if I’m depressed I’ll watch a movie. I’ll watch a very uplifting movie. Or maybe I’ll go down to the housing projects where I used to live. I see some of those kids there and I remember how I used to live, because I never forget where I came from. So, yes, I take vacations. Yes. But it’s not that I’m not doing something. I’m still developing myself, because I have to keep developing myself. So I’m learning other skills, I’m doing other things, and I’m in a cycle. Bill: I love that, because I know you develop these other skills so that you can pass that information on to other people who are also part of your business. Tom: That’s right. Bill: Tom, why do some groups grow quickly while others stagnate or die. Tom: Well, one of the reasons is because they have no vision. I mean, the Bible even says in Proverbs that those without vision will perish. So you have to have vision. Here’s an example. Everybody wants to have meetings. I have distributors who come to me all the time and say, “Tom, let’s have meetings.” And I tell them, “Okay. Have home meetings.”


They come back with, “Well, no, what I’m talking about Tom, is to have those opportunity meetings. You know those central meetings, or whatever you call them. Let’s have some of those.” And I say, “Well, before you have those meetings, you have to have the home meetings, because that feeds the central meeting.” They said, “Yeah, but you know what Tom? We kind of want to bypass the home meeting and let just try that central meeting.” I tell them, “That just won’t work that way.” And then they ask, “Why not?” Let me explain. This happened a while back . . . because a few distributors wanted to have meetings I ran an ad. I was able to get quite a few people there. We had about sixty-five people show up. The following week we had another meeting. This time we had about thirty-five people. The following week we had about fifteen people. And the following week we had the same three people who originally wanted the meeting. After that the meetings died away. Why did they die? There was no new blood coming in. How do you get new blood? By having home meetings. Home meetings feed the big meetings, the central meetings. And you have to have it that way or else, they won’t feed. They won’t grow. They become stagnant. So you have to have new blood. And as I said, the key there is the home meeting. Bill: How about this analyzing thing, where people internalize and analyze the company and look at things that they would want to see changed, or try to find the weaknesses? Tell me about that. Tom: Everybody always looks at a company and says that they always find problems with the company. “Well, you know the company lost my product last month and I don’t know what happened to them. That’s a rotten company.” I had an experience recently where my check got lost in the mail. The company didn’t lose it, the Post Office did. Now the company’s policy is that they wait ten days before they issue another check. And, they did issue another check. But, some distributors, who have had the same thing happen to them, have said, “Well, the company’s not paying checks.” And then the word gets out that such and such a company isn’t paying bonuses. Or rumors start that company’s not very good. But that in truth is not the case. A lot of times distributors put the blame on somebody else because they don’t want to accept the responsibility themselves. They always think the grass is greener on the other side. And it may be. But they still have to cut grass. And once they’re there on the other side, they’ll find the grass greener somewhere else. I’ve had distributors leave the organization. It’s happen before where they take a group with them. They leave and they go somewhere else because they’re dissatisfied. People will ask me if it bothers me when a group leaves. And yes it does. And the reason it bothers me is because I wonder if I didn’t do my job well enough to keep them. Maybe I wasn’t developing them. But some of these people I had no part in developing. Some of these


people were just people who came in from another group and left because they weren’t happy with something. And I don’t believe in leaving where you are. I believe that everywhere you go you’re going to have problems. I remember when I was up north, and I talk about this in my story, when I left up north in the wintertime to come down to Texas for an opportunity to find a better job so I could bring my family. I think about it now, and I said, “Well, maybe that was a good move.” But I make it a point now not to run away from my problem, because opportunity is wherever you are. You make your own opportunities. You don’t have to go out and start looking for something better, because if you do you’ll always find fault wherever you are, with the company, or with your sponsor. You don’t concentrate on why you got involved in the first place. The real reason you got involved is because you wanted to be free. You’re developing the skills, and once you develop the skills, it doesn’t matter where you are physically. You can build an organization anywhere. It’s like riding a bike. You ride it today, and twenty years later, you can still ride it. Bill: Tom, if you could give one piece of advice, what would it be? Tom: Well, Bill, what if I were to say I gave you three? First of all, I would say find a mentor. Find a mentor who will teach you the skills. Find someone who knows the skills, because sometimes we get involved with someone who has no idea what they are doing. And it goes up and up and up until it gets to a point where you have one big distributor who brought someone in because he wanted money, and he could care less about that person. And that filters all the way down. The second thing is to find out what price you’re willing to pay. Recently I was talking to one of my distributors and I said, “Let me ask you a question. Are you willing to pay the price to be free?” He said, “Yeah, no matter what.” So I said, “Let’s say that I had a friend who was my sponsor, who lived out of town. But he was going to be in town for a half-hour only, and I wanted you to come over to talk to him and meet him. Would you go?” He said, “Sure, no problem.” I continued, “Well, let’s say that we were going to meet him at the airport, and the airport is an hour and a half drive from your house. Would you still meet him?” He said, “Well, yeah, I guess, if I wasn’t really doing anything.” I bit further and said, “Let’s say it was midnight, and my sponsor took the red-eye and it’s raining, I mean it was almost a monsoon. Would you go?” My distributor said, “Well, I don’t know Tom. My car isn’t a very good, I mean the tires in the front are kind of bald, I’ll have to think about it.” So I told him, “Think about this. If you have vision that won’t matter. You will get there, because in that half hour with my sponsor, he’s going to teach you something.”


Now, if my sponsor had not been edified to you, you may have responded that way. And that’s why edification is very, very important. You always edify upward as we talked about that earlier. That the sponsor is edified to you, and if you have a vision, obstacles won’t matter. It won’t matter because no matter what, you’re going to be there. It doesn’t matter if their tires are flat. You’re going to get there. And the last step. The last little piece of advice I would give is, don’t quit. Don’t quit. It’s not like the Olympics where only one person wins the gold medal. Everybody who reaches their mark wins the gold medal. When will you reach it? When you develop the skills. How long will it take you? It will take you about two years. Maybe a little bit less. But if you quit in your third month because you came in for the money or the product, you will never learn the skills. And if you don’t learn the skills, you will never build a network. And if you don’t build a network, you will never be free. Bill: Tom, I want to write these down. Tell me those three things again. Tom: The first one is, find a mentor, someone who can teach you the skills. The second one is, find out if you’re willing to pay the price. Are you willing to pay this price to be free? Because freedom is going to cost you. Number three is don’t quit. Don’t ever quit, because if you quit, you will never reach your mark.


 Leadership is easy because you automatically create self-sufficient leaders who understand the real network marketing, and these leaders understand it’s not the things that make the difference. Kevin: “Wow! This is different. What you are saying is that there are four core values that are universal. That these four core values apply to everyone, every prospect, every distributor, every leaders, right?” TP: “Right. Now you got the picture. It doesn’t matter if you are a prospect in Italy, a distributor in the United States, or a leader in Costa Rica – these four core values are universal. This is the real network marketing. When you understand and teach the four core values, you’ll have a powerful influence over people’s lives. Why? Because you’ll know and understand these values. People will be instantly attracted to you because you’ll have this information that they desperately want to fulfill their lives.” Kevin: “So instead of teaching magic closing phrases, I should have spent my career teaching these four core values, right?” TP: “Exactly. These four core values will build you a lifelong, stable, growing network marketing business. This is something you want, right?” Kevin: “You bet! So teach me the four core values so I can start changing the world, changing my network marketing business, and start changing me.”

So What Are Values? Values are the cornerstones and the foundations of how people make their decisions. Values are powerful motivators and will drive people to action. For example, let’s say that one of your mother’s values was . . . spending time with her children. Now a friend comes by your home and says to your mother, “Let’s go shopping. Leave the kids at home. They’ll be okay. Let’s go to the new shopping mall that just opened.” Your mother has a decision to make. Does she abandon you and your brothers and sisters and take a little walking tour of the new mall with her friend? Or does she tell her friend that she wants to stay home and take care of her children? Because one of your mother’s values is spending time with her children, the decision is easy. She stays home and spends quality time with her children. Another friend comes by your home and makes the following offer to your mother, “If you leave your children at home and come with me to the party, I’ll give you five dollars.” Your mother’s response would be easy to guess, wouldn’t it? Her value of spending time with her children is more powerful than money, isn’t it? She wouldn’t abandon her children for five dollars.


One day at work, the supervisor makes the following offer to your mother. She says, “If you stop working on the Smith project, and start working on the Jones project, I’ll give you Friday off.” Well, the Smith project is easy, pleasurable work. But the Jones project is miserable work. Your mother would have to work with rude people, put up with stressful deadlines, and generally have a miserable time. So what will be your mother’s decision. Will she take the distasteful Jones project to have an extra free day with her children? Or, will your mother continue working the easy Smith project? Because your mother’s primary value is spending time with her children, the decision is easy. She’ll make the personal sacrifice to work on the Jones project so that she can spend time with you and your brothers and sisters. See how powerful our values are? They shape our lives. They make our decisions. They motivate us to do things that are difficult. Now everyone has different values and some values are higher in priority. Here are some common values people have . . .

Earn more money Get recognition Have power over people Greed Time to walk in the park Career advancement To look attractive Can you see how these values shape decisions and lives?

For example, you might not sit under a special hair dryer with curlers for two hours every day. However, if one of your values were to look attractive, then you’d be motivated to sit under that special hair dryer. People do things because of their values. People rob banks because their values include greed, more money, and maybe even recognition. People die on the battlefield because their values include love of their country and patriotism. And, network marketing distributors will talk to strangers, go to meetings, and build a large organization because of their values.


So it is important that we teach and explain the right values to people. If we teach the wrong values, maybe these wrong values won’t motivate our distributors to do the right things to become successful. Remember Kevin? When I asked Kevin what values he taught to his distributors, he said, “Oh, I don’t know. I didn’t know I was suppose to.” He left it to chance. And chances are that his new distributors didn’t have the right values or didn’t know which values to learn in order to become successful. All this value thing is starting to make sense now, right? The bottom line is: People (prospects, distributors and leaders) do things based upon their values. Our job is to simply teach them the right values to become successful in network marketing.

Which Values Do We Teach To Our Prospects, Distributors And Leaders? The four core values. What’s that? What are the four core values? Why do we call them “core?” There are four universal values that everyone in the world shares. These four core values are in every human being. If we can: Teach people that they have these four values Teach people what these values mean and what they can do for their lives, and Teach people how network marketing can help them fulfill these four core values Then everything else is easy. Everything else in network marketing is automatic. What I mean by automatic is, once you have helped people understand and master these four core values, then . . . Prospecting becomes easy because prospects see that you understand what they want Sponsoring becomes easy because you can show prospects how to get what they truly want in their lives Training becomes easy because you simply teach the four core values to your new distributors Leadership is easy because you automatically create self-sufficient leaders who understand the real network marketing, and these leaders understand it’s not the things that make the difference


Sound familiar? This is what network marketing is really all about. It’s not about memorizing things or memorizing sales pitches that you’ll use on unsuspecting prospects. This is why Kevin spent 20 useless years attempting to do network marketing. His only mistake was: He didn’t know what to do! If Kevin were your friend, how would you feel? Sad? Would you have sympathy? Depressed that your good friend lost 20 years of his life? That’s how I felt. That’s why you and I must teach others the secrets of network marketing: the four core values. Let’s start now!


Discovering The Core Value Of Freedom

It’s not enough to know and understand the four core values. We must be the four core values. People will not do what we tell them to do. They will do what they see us do. Notice that I said be the core values? You can’t teach, lecture or drill the four core values into others. Each individual must discover them. Since you can’t explain the four core values to others, how will they discover them? I’ll explain the special technique that you must use later. But first, let’s take a closer look at the core values. What are the core values?  Self-worth  Equality  Freedom  Love Remember in my previous article I mentioned that all four core values were universal? That all four core values apply whether you are in Italy or Costa Rica? For now though let’s get started with the core value of:


Freedom The desire for freedom is universal, in every country, in every culture. The desire for freedom will attract prospects to your program no matter where you go. You won’t have to worry about cultural differences, what a particular area of the country wants, or if a prospect wants what I have. Everyone wants freedom. And you can offer both time freedom and financial freedom with your network marketing opportunity. Think of the advantages of having no competition. It’s the marketer’s dream. While everyone else is saying: “My product has ten more milligrams of magic than their product,” or, “My program pays out better on level three if you get at least two managers your first month,” or, “My company president can beat up your company president,” or, “My upline earned more money last month than your upline,” here is what you have to offer . . . Freedom. No one else is offering freedom, only you. Everyone is offering 2% more bonus on level six or an extra magic ingredient. All this gets confusing to the prospect. You are the only one offering freedom. There’s no competition, is there? You’re not going to be part of that confusing horde of greedy salesmen trying to convince the prospect to join because of some minor advantage in product or compensation plan. You’ll stand out in the crowd. You’ll be the only person the prospect focuses on because . . . you are the only person to offer what the prospect desperately wants . . . freedom. Now you can simply stand on the sidelines and smile at all the busy networkers running around with flip charts, DVDs, brochures, catalogs and samples. They just don’t have a clue about what their prospects really want. This means they make lots of effort and reap little results. By concentrating on the real core values, you release yourself from this useless activity.

No More Competition Now that you’ve totally eliminated all competition, let’s concentrate on what freedom really means to your prospect. Freedom means different things to different prospects, but all prospects want freedom. Some of these definitions of freedom may seem simple or not important to you now, but wait until later. I’ll show you how to use the definition to motivate prospects who you thought couldn’t be motivated! Here are some ways prospects define time freedom.


Jet Ski With Your Children I live about a block from the lake. One Saturday morning my children said, “Dad, we’ve never been jet skiing, and we’ve see people having a great time. Why don’t we go jet skiing?” We walked over to the jet ski rental booth on the lake. The owner said, “Sorry, you can’t go jet skiing today. The lake is too crowded. There are fishermen and many powerboats pulling skiers. And, all our jet skis are already rented out.” I turned to my children and said, “Kids, we’re going to have to do this another time.” They were a little disappointed. But Monday morning, we walked back to the Jet Ski booth and rented a couple of jet skis. We had the entire lake to ourselves! And we enjoyed our time to the fullest, while all the weekend jet skiers were growling at rush hour traffic. They had to go to work for someone they didn’t like for the next five days. Now I ask you, isn’t this time freedom what a parent really wants? Time for family, time for children, time to do anything that’s possible? How can we use this to motivate even the toughest prospects?

Rich, Rich, Rich, And No Time To Count The Money I gave a presentation to a middle-aged doctor in her home. Boy, what a home! It was a mansion. Beautiful grounds decorated with matching Mercedes-Benz in the driveway. This doctor had everything including a $400,000 a year income from her practice. Now, what do you think this doctor would say if I said, “Let me show you how to earn an extra $500 or $1,000 a month?” She’d laugh. What if I said, “Let me tell you the power of our expanding compensation plan on level four when the moon is full?” She’d laugh. What if I said, “Our vitamin C comes from rosehips at 8,000 feet elevation while all the competitors’ vitamin C’s are picked at only 7,500 feet elevation.” She’d laugh. She had money, she had health. What she didn’t have was time for me. So I simply remembered the core value of freedom. I used a simple presentation that illustrated why she desperately desired time freedom. I asked, “So how much time do you have to take holidays and vacations with the family?” She answered, “Time? I have to be at my practice early in the morning. I’m constantly on call. But in return, I make a great income for my family.”


I replied, “Think about your four-year-old daughter. When she grows up, will she remember all the expensive shoes and sweaters that you were able to buy for her, or will she remember the happy times that the family spent together on vacations?” A tear formed in the doctor’s eye. This is one thing she couldn’t provide for her children. She couldn’t give them the time and attention they wanted. She was a slave to her medical practice. She had no time freedom. Sponsoring the doctor was easy. There certainly weren’t any cost objections. The point is: I could never have sponsored that doctor with a brilliant flip chart, a memorized presentation, a classy DVD or an opportunity meeting filled with hype. The only way to get through to the doctor was through one of the universal core values . . . freedom. See how powerful core values are? But what about financial freedom? Let’s take a look at a quick example.

It’s Stressful When You Car Is Low On Gas Many distributors think they have to impress prospects with tales of thousands of dollars a month. Well, that might be financial freedom for some, but a measly $40 can mean financial freedom for others. Imagine a prospect at your opportunity meeting. Maybe that prospect had to get a babysitter, or maybe she brought her children because she couldn’t afford a babysitter! What is financial freedom to this person? Maybe $40. Let me explain. Imagine this person drives home after the opportunity meeting and stops to fill her car with gas. After filling the tank with gas, she goes to pay the attendant with a credit card. Like many people today, the credit card is up to the limit in debt. How do you think she feels? How will she feel if her credit card is declined and she has no cash in her purse? What about the children? Now, all of that stress and fear would go away with the addition of an extra $40 in her purse. If the credit card was declined, she would simply reach into her purse and pay cash. So, an extra $40 would represent financial freedom for her. You don’t have to promise tens of thousands of dollars. Most people don’t need that much for their personal financial freedom. All people want financial freedom, but their definition is personal. There are many examples you can use to illustrate financial freedom to your prospects. But there is more to this freedom principle.


“I Want You To Join So That I Can Make More Money.” Now that’s a disgusting statement, isn’t it? However, if we don’t honor prospect’s personal freedom of choice, we come across as a greedy, self-centered, selfish salesman. Prospects quickly relax and respond to us if we honor their freedom of choice. We should forget about our agenda (more distributors and money), and concentrate on the prospect’s agenda (time and financial freedom). Have you ever had a conversation with someone who pretended to listen to you, but you knew they were just waiting for their chance to talk? Uncomfortable, isn’t it? And you know they really are listening to you but don’t care about what you are saying. Do we want to be like that rude person? I think not. Instead, let’s be interested in our prospect’s needs. Maybe our networking program can help them, maybe not. Maybe now is not the right time for them. Maybe now is the time for them to get a job and a paycheck on Friday. Sometimes prospects have to take care of immediate needs before they can obtain time and financial freedom. When your prospect sees that you are 100% interested in their needs and their agenda, your prospect relaxes. You are now part of the team, a partner. Once your prospect no longer feels the need to put up resistance to your every statement, your prospect actually hears what you are saying. You are allowing the prospect to freely make a choice about your program. That’s powerful. And freedom of choice doesn’t stop after the presentation. This freedom of choice will continue throughout your distributor’s career. Your distributor should choose whether to go to the national convention or not. Your distributor should choose how much product to purchase or market that month. Guess which leaders have the happiest distributors? The leaders who practice the core value of freedom with their group.

Desire For Freedom Is Everywhere The core value of freedom is big. It means time freedom, financial freedom, and the right for others to practice their personal freedom. When you practice the core value of freedom, people are attracted to you. This makes networking easy. 

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