Monday, November 30, 2009

Do you really believe in the MLM industry?

Seth Godin's post today, Watch the money makes a point that all of us in network marketing should take to heart...
"How much life insurance do you have?"

Zig Ziglar liked to say that with that one question, you could tell if someone was a successful life insurance agent. If they're not willing to buy it with their own money, how can they honestly persuade someone else to do so?

If you're in the music business but you never buy tickets or downloads, can you really empathize with the people you're selling to?

My favorite: if you work for a non-profit and you don't give money to charity, what exactly are you doing in this job? I've met some incredibly generous people in the charitable world, but I can also report that a huge number of people?even on the fundraising side?would hd happily cross the street and risk a beating in order to avoid giving $100 to a cause that's not their own. And the shame of it is that this inaction on their part keeps them from experiencing the very emotion that they try so hard to sell.

Money is more than a transfer of value. It's a statement of belief. An ad agency that won't buy ads, a consultant who won't buy consulting, and a waiter who doesn't tip big?it's a sign,, and not a good one.
How about you? There are dozens, if not hundreds of companies with good products. Do you shop with MLM companies other than your own? If not, can you really say you are walking your talk?

BTW, I highly recommend Seth Godin's blog. Daily he posts some of the most common sense, yet brilliant, thoughts about marketing.

Wednesday, July 22, 2009

Network Marketing Success: Now a Formula

Network Marketing Success

For many years I wondered why some people enter the network marketing profession and, over time, make millions of dollars while others get made into mincemeat.

Was it the company that they joined? Did it lack critical business fundamentals for success?

Was it their prior level of success or lack thereof?

Was it brains? Good looks? A glib tongue?

Or, did they just get in very early?

Now I don't know exactly why or how it happens but some times ideas just pop into our heads seemingly complete. (And it's always when we are doing something else, you know, like taking a shower or doing some mundane household chore.)

One day, a few months ago, while I was just driving home from the gym, the answer to this network marketing success puzzle just came to me, almost complete, in the way of an actual formula!
So I started a series of short videos to introduce the concept. I posted them for the benefit of network marketing professionals. You can find them all here: Network Marketing Success: The Effectiveness Formula

network marketing success, mlm success formulaThe very first video fills in the question marks!

I just finished Part III: How one MLM Success Became a Million Dollar per Year Earner in just the Last Six Years! This part includes an interview with him in which he scores himself! I learned a LOT!

Check out the series and tell me if it bring crystal clarity to what YOU need to do to reach the highest levels of MLM Success.

I would enjoy your comments!

Saturday, July 04, 2009

MLM Success: High or Low Ticket Items Best?

Which best raises your chance for MLM Success?

It's interesting. I just read two opposite requests . . .

This was in a recent forum post at
  • "I Want To Join An MLM That Sells High-Ticket Items"
And, I got this emailed to me, as the editor of, this morning ...
  • "I am looking for something that is affordable for everyone and or can save them enough money that would entice people to join. Plus it has to have a good pay plan so you can make some good money with the program."
Interesting? Both say they are looking for the opposite criteria. But do they both have opposite goals?

It started me wondering about the best way to respond to my subscriber.
So I invite your comments.

Here are some starter ideas that may get you thinking:
  • Which is better, high or low ticket items, and why?

  • What do you think are the underlying goals that each is trying to achieve and will their stated criteria help them reach their goals?

  • Are there other criteria that are even more important in light of their goals?
Lou Abbott
The MLM, Network Marketing Super-Site

P.S. I appreciate your comments without blatant, one sided plugging, please.

Sunday, May 17, 2009

Review of New Gold MLM: YOUnique Wealth

From time to time, we add new company information pages to our site. We just added the latest on a gold MLM named Joseph Wealth Systems which is "transitioning" its name and image to become YOUnique Wealth with the help of "The Secret" guru, Bob Proctor.

At the same time, for the first time, we are going out on a limb by adding a new feature, our "Editorial Opinion." People have consistently asked for my opinion on companies that they were looking at. I have, until now, only given an opinion in private conversations to people who had already purchased and read my report/course: "MLM the Whole Truth." So this is our first experiment on offering a public opinion on a company.

And . . . we are indeed out on a limb a little on this one as I don't have the same opinion as Rod Cook or Bob Proctor, while I respect each of their contributions to our industry.

You can see my comments here on the YOUnique Wealth MLM.

Look for the "Editorial Opinion: Show me the Pros & Cons" link.

If you like the idea, hate the idea, like the opinion, hate the opinion, agree or disagree, leave me a comment!

I appreciate all feedback.

Sunday, March 15, 2009

Xango in the News. But why?

We monitor the Internet for all news that may affect network marketers and send it out in our MLM Industry News Alerts. Today, this came through:
  • Lehi-based XanGo cuts 10 percent of workers - 2nd Layoff since
    March '07 Salt Lake Tribune - Salt Lake City, UT, USA 03/13/2009
The article mentions several of the other juice companies and then makes an interesting comment, "layoffs are signs of stress in the multilevel marketing industry that generally touts itself as resistant to recessions because people who lost jobs or who are looking for more income sign up as distributors."

What do you think? Are sales of juice down for Xango because of the economy? Or should the reporter did deeper?

I would be interested in your opinion.

I will post non-Spam, thoughtful comments.

Sunday, February 08, 2009

MLM Success: Fool Me Twice, Shame on Me
Lessons from the Zrii "Meltdown"

MLM Success

According to the Salt Lake Tribune two days ago, 7 of the top distributors and "a group of top management and co-founders of Zrii LLC, including over 35 key employees" were either terminated or walked out last week after an attempt to remove the company's CEO William F. Farley from his post failed.

You can read the details that are public to date at The MLM Whole Truth, Network Marketing Super-Site on the Zrii page. As always, there will be more details that will emerge over time that reveal the whole story.

The now very public allegations claim it is about Farley's character (or lack thereof), specifically that "Farley has saddled the company with unnecessary debt while using it as his personal piggy-bank."

I am sure there will be much argument about the facts and motivations of people on both sides of the fence. But one sad fact is clear, the hopes and dreams of thousands of distributors have just been crushed. It is virtually impossible to recruit into any MLM when the news about it is this public and this negative.

Who is to blame?

Is it Farley's alleged greed and mismanagement? That would seem to be the most obvious answer. But what were the motivations of Domingo and the other top distributors when they made the move to Zrii? Did they have the best interests of all that would join them when they selected a company with Farley as the founder and CEO?

I don't know the answers and I don't like to make harsh judgments anyway - particularly with such a dearth of inside information.

Here's what I do know. There are lots of short-term-thinking, fast-buck-chasing companies in the MLM world, as there are in every industry, particularly newer ones. And, while I have met some of the most caring and giving people that I have ever known among network marketing leadership, there are lots of short-term-thinking, fast-buck-chasing leaders in the distributor forces as well.

So, what can all of us learn from this tragic set of circumstances that are disrupting the lives of so many people who looked to Zrii, Farley, and their leaders for true opportunity, guidance, and principled leadership?

For the last few years I have been refining and teaching what I call the "12 Critical Success Factors" that must be present in a company if it is to provide the most sought-after reward to its distributors.

Reward? Reliable, long-term, leveraged residual income.

At the top of the list of those "12 Critical Success Factors" are three that deal with whether the company in question has a prayer of a chance of delivering that reward:

1. Track Record
2. Financial Strength
3. Ownership/Management

As with any new startup company, Zrii had no track record when they officially opened for business in October of 2007. I have always recommended that people not join new companies for that very reason. It is just too hard to know the financial strength of the company or the character, motivations and abilities of the new owners and management - particularly for distributors with very little experience in the 'industry."

If you wish to disregard that advice, then you better look very hard at the track records of the founders of the company. Bill Farley did have a track record. In fact a very well publicized one. I posted some of the easy research on Bill's past at The MLM Whole Truth, Network Marketing Super-Site early last year.

Here's what the Salt Lake Tribune said yesterday:

"Farley was formerly the chief executive of Fruit of the Loom. According to a Wikipedia entry on that company, he was forced out in late 1999, after having piloted the company into massive debt and unproductive business ventures, including structuring the company into an off-shore entity in the Cayman Islands to avoid taxes.

"Farley has been the subject of other legal proceedings, including an ongoing case in Illinois federal court. That case includes allegations that Farley "intended to enrich himself by diverting for his own use" various assets, including contributions to a pension fund for retirees. Farley also has a track record as the owner of Body Wise which settled charges with the FTC in January of 2005."

Would any of that information have affected a reasonable person's decision to trust the company with their dreams of "reliable, long-term, leveraged residual income?"

As the saying goes, leopards don't change their spots. It is certainly no big surprise to me that the same allegations that have been made about Farley before are surfacing again.

So, to be clear, that is Lesson 1: always, always look at the track record of the company and/or its founders and management before you join. If there are red flags, be extra cautious or just plain turn tail and run!

Lesson 2 - The Greater Lesson

The greatest lesson that I have learned since joining my first network marketing company twelve years ago is one of accepting personal responsibility. It is a great lesson. Only by accepting complete and total responsibility in life for our current circumstances can we ever be fully empowered to change them. If nothing else, we were the ones that made the decisions to be where we are. We either chose, or failed to choose a different course. As long as we are blaming others we cannot be fully empowered to make better choices from this moment forward.

It is a hard lesson to learn, but a fully freeing one.

Clearly, in the case of Zrii and Farley, there was ample warning that there might be mismanagement or worse. Why did the distributor leadership push that aside? If you did your homework before joining, why did you? If you didn't do your homework, why not and what will you do next time?

Fool me once, shame on you!
Fool me twice, shame on me!

Thursday, October 11, 2007

When Is It Loyal to be Disloyal?

A couple of days ago, I read a very thought provoking post on one of the Quixtar / Amway blogs. The title was "Declaration of Independence from Quixtar" and the article began with a paraphrase of some very famous and eloquent words with which we are all familiar:

When, in the course of human events, it becomes necessary for one people to dissolve the business bonds which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the laws of nature and of nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.
-- Tom Morris Crazy World: Declaration of Independence from Quixtar

Thus, my question, when is it Loyal to be Disloyal?

Black and white thinkers will say, "What do you mean? Either you are loyal or you are not."

Let's look at the definition of loyalty:

1. the state or quality of being loyal; faithfulness to commitments or obligations.

2. faithful adherence to a sovereign, government, leader, cause, etc.

3. an example or instance of faithfulness, adherence, or the like: a man with fierce loyalties.

Some synonyms are: devotion, constancy, allegiance, fidelity

All the definitions and synonyms imply a sense of duty or of devoted attachment to something or someone. We like people who are loyal. Generally, it reflects depth of character and integrity.

The challenge comes with one word in the definition, "to." Loyalty is expressed to a person, to organizations, to commitments, to obligations, to our families, to principles, and to God. Obviously, some of those loyalties are higher on the priority scale than others and once in a while, we must choose who or what deserves our highest loyalty when there is a conflict.

And conflicts do come. Conflicts that test what we are made of, that test our thinking, that ultimately test our integrity and define who we are.

Such was the case when the founders of our country rebelled against the rule of England.

Such is always the case when one finds that to be loyal to our families, to our principles, to what is right, or to God puts us in conflict with lesser loyalties to our jobs, our companies, or other people.

I understand what many in TEAM are feeling. It hurts to be called disloyal. For 15 years I gave my loyalty to a religious organization that I ultimately determined did not serve to lead people to a more accurate, and indeed, intimate experience of God. It was extremely difficult, nay, agonizingly difficult to move on. Doing so required that I leave many, MANY, dear friends behind who simply could not understand my motivations and higher loyalties. In fact, from their perspective, I could only be thought of as weak or wicked.

Well, that, as they say, is another story.

One day though, I ran into one of those old friends. He asked me if I would ever "come back." I answered no. His next words were, "Well, I am a loyal kind of guy." The clearly implied accusation was that I was not. It hurts to hear that, particularly from someone you love and respect.

My experience with the Amway MLM was limited to a brief time a couple of decades ago. More recently, in the mid to late '90s, I worked with a different, better-than-average MLM for six years and built a business that topped out at $110,000 per month in sales of the company’s products before I woke up to a pretty harsh reality - ALL of the people who joined me to make money in that business were LOSING it, not making it.

I had fully intended to work with that company and the leaders who had mentored and helped me for the rest of my life. But really, how could I?

Ultimately, loyalty demanded that I speak out against the half-truths and deceptions that were being perpetrated. Ultimately, higher loyalties led me to writing my book, MLM The Whole Truth and publishing my site,

Friends, while we may not agree with the direction that TEAM leaders Woodward and Brady are taking (leaving Amway in order to continue a business motivational tool (BSM) business will ultimately prove illegal - Quixtar knows that or they would not be ending it, finally, for the 'new' Amway), I would not jump to questioning their loyalty. Indeed, they have very good reasons for leaving. And, I am sure that is extremely difficult and extremely expensive for them, in many ways, to speak out as they have. I admire their decision. I admire the strength of character I assume IS motivating them.

I write this because I have had the pleasure of working with more than a handful of Emeralds and Diamonds over the last couple of years who have agonized over this question of loyalty as they came to the conclusion that their business model, like the one I was previously engaged in, was helping far more people lose money than make it. Most of those great leaders know people who have gone bankrupt trying to build a Quixtar business. Many more people have become so loaded down with debt trying to be loyal to all instructions from their leaders to attend every function and buy every CD, tape, book, etc. that was recommended. I have seen many of those leaders decide it was time to listen to the higher voice of conscience and move in a new direction. I have seen many others who, sadly refused to even consider that there might be a problem. Could it be that sometimes claiming “loyalty” is a cop out?

There is a time for higher loyalties. In the network marketing industry, that time is NOW. When we all quit blindly following whoever "they" say we should be loyal to, and think through to whom and what we should really give our highest loyalty, we will all make better decisions.

The road to MLM success is littered with the bleeding bodies of others of who have tried and failed. It is time to end the bleeding. I love the power and morality of a multilevel compensation plan when done well. I am fiercely loyal to the empowering ability of it. But when it is used poorly, as when almost all participants lose money, properly-placed loyalty demands that we speak out, and act.

Thursday, January 25, 2007

Are the Juice MLMs Dead?

Yesterday, our MLM Industry News service sent out this alert to all of our subscribers:

Expose's have a way of killing a company's growth.

Bad press killed Amway's growth for years when they were dealing with the FTC in 1979. It killed NuSkin's growth in the US in 1991. Just last year, a local Florida news station did an expose' on BioPerformance that helped them get closed by the Texas Attorney General. There have been many others.

We have seen it over and over again - fair or not fair, it makes no difference. So this may be devastating news for FreeLife and Himalayan Goji Juice ...

Watch the video ... Getting Juiced by FreeLife? Canadian Broadcasting Company - Aired on January 17, 2007 ... Thousands of Canadians are drinking a new product made from a 'miraculous berry', that suggests powerful benefits. Wendy Mesley reveals the real deal behind the new craze and travels to Hollywood to pose questions to the Canadian-born nutritional guru ("Dr." Earl Mindell) involved.

Then, the February issue of Playboy magazine announced that the March, 2007 issue will include a feature article about XanGo and their Mangosteen juice product. (No. No. I know what you are thinking - No, I am not a reader - I just heard about it.)

If the adage holds true that "There is no such thing as bad publicity" then XanGo stands to get some great free publicity. But I wouldn't hold my breath about the publicity being good. We will have to see.

News reporters love to do expose's. That's what they do. Will there be more? Undoubtedly. Will the plethora of "juice" multilevel marketing companies be the target? Quite probably, if the press views them as easy targets.

Does that mean that all the juice companies will go out of business? NO, or course not. Some might, but there are a bunch of good ones with great products with loyal customers.

So what is my exact point? It is smart to understand all of the conditions that will affect your business. Bad press will affect a person's ability to build a big business. Sometimes, seriously.

Is there a way to find a company that can really stand up to close examination? ...That can stand the test of time? Is there a way to build a truly reliable, long-term, leveraged, residual income stream?

That is the question that I became obsessed with some years back. That is what my passion is. I found the answer. I found the criteria that works. And, that is what my Special Report, MLM The Whole Truth is about.

More on FreeLife International here:

For more on my book, read the content and offer at:

Tuesday, September 19, 2006

To Live, To Love, To Leave a Legacy

by Lou Abbott of

Excerpt from the book, It's time...

The good news is, the industry keeps getting better and
better. Professionals in the industry are demanding more
from themselves and from the companies they work with.

What I saw, and many others have seen since, was a vehicle where I could earn a great living—the upside potential was, in fact, unlimited. What could I do if money were no object?

I saw a profession where I would learn and grow constantly. I found a place where I would be surrounded with positive people, people who don’t see problems, only challenges to meet and conquer, people with whom I could form relationships that could last the rest of my life.

And, most importantly...

I found a place where I could make a real
difference to many, to help people change
their lives, find new hope and new direction.

Finally, for the first time, at age 42, I knew the profession that I wanted to embrace. It would be network marketing.

Now, I can’t tell you that it has been easy. The challenges have been enormous at times. Some of what I have learned since about multilevel marketing in practice has been so disturbing that I almost gave up.

Like most businesses and professions, network
marketing can be done extraordinarily well—
and it can be done exceedingly poorly.

There are some great companies, people, and leaders. Unfortunately, there have also been those that have taken short cuts and compromised right principles. Many have been hurt. The reputation of the industry has suffered to where now, the single largest challenge for many new representatives is simply the finding someone who will listen to what they have to offer with an open mind!

The good news is, the industry keeps getting better and better. Professionals in the industry are demanding more from themselves and from the companies they work with.

It's time...for Network Marketing
the most remarkable form of free–enterprise ever created
to get the respect and recognition it deserves.

Click here to learn more about the book >>

Sunday, July 23, 2006

An Incredible New Resource

There is an incredible new place to learn from 40 of the sharpest network marketers, mentors, and success coaches in the world. It is called:

Every highly successful networker I know devotes him/her self to what Stephen Covey calls "Sharpening the Saw." Fact is, we all need to continually put new ideas into our minds to stay fresh and motivated. When the new information integrates with the old, it actually creates new energy that we can draw on to fuel our days with contagious enthusiasm.

What's great about TheMasterMindSessions is that they are in a format that I absolutely love - MP3 audio downloads!

Why do I love those? Well, you can instantly listen to the information right over your computer. As you listen to all of the free previews at the site, you may want to do listen to a whole one right away. The sessions are incredible. But there is something else that I like even better about MP3. You see, I just got an iPod. Maybe I am the last tech lover to do so, I don't know, but I can download any of the MP3 interviews and conversations from TheMasterMindSessions to my computer. Then, and this is the best part because I am an incredibly busy person at times, I can load it into my iPod and listen to it while I am driving somewhere. Or, even better, I can listen while jogging and exercising thus sharpening my mind and body at the same time! (Sometimes I am not sure which needs more attention.) You can also easily burn a CD to take with you if that is your preference. What's more, it's all incredibly inexpensive, unlike tape and CD sets.

In any case, my unsolicited and uncompensated recommendation to you today is, go to, more specifically, check out the Sessions page and listen to some of the previews and start sharpening the saw with this great stuff.


Founder of the new...

PS Oh, I did I forget to mention that one of the interviews and sessions stars 'Yours Truly' hittin'em right between the eyes?

PPS If you have not yet invested in my MLM The Whole Truth Special Report bundled package for only $1down, check it out here now.

Thursday, July 13, 2006

"Effortless High Performance"

I just love those words and the images they project for me.

Is it really possible to live that way?

I confess for most of my life, I believed the exact opposite - that high performance, high achievement, high accomplishment, high income, etc., come only though massive effort and massive work.

So is it really possible to live on an entirely different level? A plane in which insights, creativity, boundless energy, personal magnetism, and high achievement just flow? Naturally? Abundantly?

I am convinced the answer is an unequivocal yes. I used to wonder how some true leaders, true visionaries did it. Now that I have enjoyed that incredible experience - all be it for only two periods of time in my life, so far - I have finally become aware of what I didn't know that I didn't know in this area. Thanks to Kurt Wright.

May I make a recommendation (not a plug - I have nothing to gain) to you?

Pick up the amazing book, "Breaking the Rules - Removing the Obstacles to Effortless High Performance" by Kurt Wright. You can get it at Amazon, I downloaded the PDF at John Fogg's Blog so I could get it right away. (It was the July 4th weekend and I wanted to read it ASAP.) I then printed it out because I love to sit in a peaceful place and turn pages.

What could be better on a holiday weekend?

Monday, July 10, 2006

Welcome to the 's Blog!