Lesson 5GoProMentoring.com

The MLM Financial Success Formula By Eric Worre

Guest Article:

The Duplication Effect of Leadership By Todd Smith

Book of the Week:The Business School for People Who Like Helping People by Robert Kiyosaki

Video of the Week: Formula for Financial Independence

In This Issue:

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© MMXI Eric Worre & Go Pro Academy. All Rights Reserved.

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Without strong reasons the smallest obstacle will stop you in your tracks.

WITH strong reasons, the largest obstacle becomes invisible.

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How does a person achieve wealth?

The answer is that all wealth is cre-ated through Leverage. And what is leverage? Well, the opposite of leverage is trading time for money. Here’s my time, give me my money. In other words, if you’re not there. If you’re not involved. There’s no money.

If you want a test to see if you have leverage in your life right now, tell me what would happen if you didn’t go to work for the next 90 days. Would your income go down? If it would, it’s because you don’t have leverage.

Leverage is the business owner who builds a business but doesn’t have to do everything involved with it. She hires people to do the job and uses that leverage to get her income even though she’s not doing every-one’s work.

Leverage is the person who works hard and saves their money and then puts that money to work through thoughtful investments. It may be income producing real es-tate. It may be stock in companies.

The key is the ability to earn even if you’re not running the companies you invest in.

Leverage is the person who invents something that many people need and who receives a royalty when the invention is used or sold.

Take a look at all the wealthy people in the world and you’ll find that every one of them found a way to create leverage for themselves and none of them were in the habit of trading time for money.

Bill Gates created wealth by coming up with software that allowed more people to have a better experience with their computer. Bill Gates doesn’t come to your house and help you with your computer, but he created software and a company that would do that for you. Because of that, and because it could be duplicated around the world, he achieved superstar wealth.

Warren Buffet created wealth by picking and investing in great com-panies for himself and on behalf of other investors. He doesn’t run those companies, but his invest-ments helped those companies

do what they needed to do and his financial returns have been enormous.

Ray Croc created wealth by taking a successful fast food restaurant and finding a way to duplicate them all over the world. He didn’t have to be there cooking the food to be able to benefit from other people doing it. If Ray Croc took another ap-proach and focused on just making his one restaurant a super success, he’d have one level of success, but nothing like what he’s achieved by getting a percentage of thousands of McDonalds around the world.

A superstar athlete gets paid a lot of money, but how do they use leverage? Because so many people can see them in stadiums and on television, and because that’s so lucrative, the team owners can afford to pay them astronomical amounts of money for their ser-vices. If the leverage wasn’t there, they wouldn’t get paid as much as they do. And that’s in addition to endorsement contracts that continue to pay them for a very small time investment.

Are you getting it?

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Pick any wealthy person and you’ll quickly see how they used leverage to acquire their wealth.

How does leverage affect what you’re doing with your Network Marketing business? It should be fairly simple. If you can’t create wealth without leverage… and if you’re looking for wealth in this industry, then you have to find a way to create leverage.

Here is the formula for financial independence in Network Marketing…Financial independence is found in your ability to get a large group of people to do a few simple things over a consistent period of time.

It’s not in getting yourself to do amazing things all the time. That was my mantra for my first 3 or 4 years in this industry… “If it is to be… it’s up to me”. That’s true for a few things, but here’s the real-ity… “If financial independence is to be… it’s up to a large group of people doing a few simple things over a consistent period of time.”

It’s not in getting a few people to do incredible things all the time. I tried that approach as well. I had anywhere from 6 to 10 incredible people in my group and I loaded them up with all kinds of responsi-bility. They could do everything. Present. Organize. Communicate. You name it. And I only burned out one of them about every two weeks. For mostly part time people, you just can’t load them up that far. People have to be able to do what

you’re asking them to do for a consistent period of time.

I’ll say it again, “Financial inde-pendence in this industry is found in getting a large group of people to do a few simple things over a consistent period of time.”

Are you starting to understand it? I really feel for the people who recruit others and then, for what-ever reason, push those people

right back out of the industry. Once they’ve done that, they say “Oh well, I guess that recruiting thing isn’t for me. I guess I’ll just sell.” There’s nothing wrong with selling and everyone should be doing it, but selling alone isn’t where you’re going to achieve financial independence. You can’t get leverage just through personal sales. It’s just another form of trading time for money.

Where is financial independence again? It’s in getting a large group of people to do a few simple things over a consistent period of time.

So, what are some of the things we’re going to want to get that large group to do? I’m going to go through a number of them, but I want to start with a foundational concept. More than anything, this concept allows you to begin to create leverage within your organization.

Third PartyThe concept is called 3rd Party and it’s a huge part of understand-ing human nature. It’s the part of human nature that says your mom will probably listen to me more than she listens to you and my mom will probably listen to you more than she does to me.

It’s the reason people get paid big money for endorsements. If some-one uninvolved with the product endorses it, we sit up and listen… and we buy.

A big part of building an organiza-tion is sharing the product or the opportunity with others. If you un-derstand the concept of third party, then you’ll know that, regardless of your background and credibility, you’ll do much better if you aren’t the fact giver and you rely on some third party tool.

...if you’re looking for wealth in this industry, then you have to find a way to create leverage.

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Instead of being the fact giver, let the third party tool do that for you.

Here’s what most people do. They identify a prospect and they give that prospect information in a first party way. In other words, they are the fact giver. The company does this. The product does that. People are making this kind of money. Here’s how it works. Fact Fact Fact.

There are several problems with that approach

1. First, what if you don’t have credibility with the person you’re presenting to? If you don’t, it’s going to be dif-ficult to overcome that gap.

2. What about the other side? What if you do have cred-ibility with the person you’re presenting to and they look up to you? Well, one of two things usually happens. Ei-ther they are intimidated by you and can’t see themselves doing what you’re doing. Or they join and then don’t do anything unless you’re there helping them.

3. What if you’re a woman talking with a man? Are there differences between men and women? How do you personally bridge that gap?

4. How about a man talking with a woman?

5. How about a 20 year old talking with someone who’s 50? Or vice versa?

6. How about people from dif-ferent cultures or races?

7. How about people from different educational backgrounds?

Do you see the problem with first party? The chances that you’re going to line up exactly with the person you’re presenting to so they

believe and trust you without being intimidated by you are so small it’s phenomenal.

First party is the reason you see many groups look the same. They are all homemakers, or they’re all from corporate America, or they’re all from an educational background, or they’re all from a blue collar

background, or they all come from the health care profession.

In order to build a large organiza-tion that will give you the leverage you’re looking for, wouldn’t it be better to be able to have everyone available to you? Well, third party helps you get there. Here’s how it works Instead of being the fact giver, let the third party tool do that for you.

Here are some examples of what a third party could be:

• DVDs• CDs• Literature• Recorded calls• Conference calls• Webinars• Websites• 3-way phone calls• Telling a story• A company event• Another distributor in your

company

Here’s another way to define what a third party is and that is “anything

that’s not YOU”. If you’re the fact giver, it’s first party. If you use something or someone else to relay the facts, it’s third party.

The rule of third party says:

“If your lips are moving, you need to be pointing, reading, introduc-ing or telling a story”.

Point to a magazine. Read them something. Introduce them to an-other person or to some other tool. Tell a story about what’s happened to you or to someone else.

The big value of utilizing this ap-proach is it helps you work within the formula for financial indepen-dence, which is your ability to get a large group of people to do a few simple things over a consistent period of time.

With this approach, anyone has the ability to sell or recruit to anyone else. The 20 year old can approach the 50 year old, and as long as they point, read, introduce or tell a story, they’ve got a great chance. The same holds true for other people who aren’t super compatible.

If you’re a big shot…Resist the urge to go out there and throw your influence around. If you do, one of two things will happen. First, people will be intimidated by you and won’t think they can do what you do so they don’t join. Or second, they join because you’re your influence, but then sit back and wait for you to help them build an organization for them. Once

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that doesn’t work, they quit. In both cases, you don’t end up with an organization that grows with or without you.

A better plan for the big shot is to utilize third party by not making yourself the issue and pointing, reading, introducing and telling sto-ries. Now, everyone in your group can do the same thing and you get to have some of the freedom you’re looking for.

If you’re not a big shot…How do you overcome that? If you don’t use third party, you have very little chance of building a

powerful organization. It’s going to be very tough to recruit someone who’s more successful than you are. You’re future will be a constant string of being shot down.

A better plan for the “little shot” is to utilize third party by not making yourself the issue and pointing, reading, introducing and telling stories. Now, it’s not about you and you can approach people of any success level.

In all cases, you become the messenger and not the message. If you insist on being the message, it will feed your ego and steal from your bank account. If you’re smart like a fox and utilize third party tools, you have to bring your ego down a bit, but you’ll grow your bank account.

The formula for financial indepen-dence is your ability to get a large group of people to do a few simple

things over a consistent period of time. And there’s no better way to start than to make sure you and everyone in your group use third party tools in every situation.

If someone asks you a question, even if you know the answer, you say “Why don’t we ask so and so to see what he has to say?” Or, the magazine, cd or sizzle call can explain it better than I could. Or, let’s take a look and see what it says on the website? Or, lets see what so and so has to say about it?

It’s against human nature to not give the facts if you know them.

But, you have to develop the discipline to point, read, introduce or tell stories. It’s the only way to get leverage into your business and to build a large organization.

So, if you buy into this idea, what do you need to do? You need to make sure you have the neces-sary tools to point to, to read or to introduce and you also need to learn your stories.

When it comes to physical tools, your job is to make sure you have

an adequate supply so you’re not left empty handed when faced with a question. Have you ordered your 3rd party tools? How about every-one in your group?

Are you utilizing the other calls, websites, events and upline support that your company provides? How about everyone in your group?

The important thing is you’re prepared so you never have to go first party and be the fact giver.

Here’s a big question for you…What few simple things do you have a large group of people in your organization doing consistently?

The answer to that question will diagnose any problem you might be having in building your team.

So, what have we covered?1. The importance of leverage2. The formula for financial

independence 3. The importance of third

party vs. first party.4. And the importance of

making sure you and your organization have the tools you need to succeed.

Got it?

And here’s a final message about “Getting it”. You don’t learn some-thing when you remember it. You learn something when you can’t forget it. What I’ve just shared with

you can quite literally transform your career in this industry forever. It happened with me. Now we’ll see if you’ll have the courage to make it happen for you.

It’s going to be very tough to recruit someone who’s more successful than you are.

You don’t learn something when you remember it. You learn something when you can’t forget it.

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Whether or not you hold the formal title of “leader,” there are people around you who

are influenced by the things you do and don’t do. It may be your spouse, children, friends, co-workers, or students. The fact is that you are leading people whether you realize it or not and, by the end of this lesson, you’ll see that your role in leading others is much more significant than you may think.

Look for the common thread in these illustrations:

The first one is taken from history.Alexander the Great, King of Macedonia, was one of the most outstanding leaders of all time. He became king at the age of 19 and for the next 11 years, he conquered much of the known world, leading his armies against others far superior to his. Yet, when he was at the height of his power, he would still draw his sword at the beginning of a battle and lead his men forward into the conflict. King Alexander felt that he could not ask his men to risk their lives unless he was willing to demonstrate by his actions that he had complete confidence in the outcome. Seeing their leader charge forward motivated his soldiers so that nothing could stop them.

Not only did he lead his men, but also through his example, he taught them how to lead.

Here is a realistic scenario from the business world.Imagine a company where employees are expected to be at their desks by 8 a.m., yet their manager often strolls in around 8:15 a.m. It doesn’t take long for the staff to follow suit, regardless of the official start time.

Contrast that with the manager who requests that his employees stay late to meet a deadline and he is the last one to turn out the lights.

The third illustration is from our personal lives.Johnny is a member of the Little League baseball team. Johnny’s father is the coach. Johnny comes up to bat and hits a grounder to the shortstop and runs as fast as he can towards first base. He is sure he is safe, but the umpire calls him out. Johnny’s father storms out and hollers at the umpire.

In the next inning, a teammate strikes out on what he believes is a bad call, so he does the same thing he saw his coach do. He argues with the umpire.

It’s critical to recognize that when you lead by example, in a positive or negative way, the impact of your leadership increases exponentially. Each little

[ E X P E R T I N S I G H T S ]

The DUPLICATION EFFECT of Leadership By Todd Smith

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thing you do leaves footprints for those who follow your example. What you do as a leader not only impacts those you lead but, through your example, you are teaching others how to lead. This duplication effect can influence every person who falls directly or indirectly under your leadership, and it can continue for future generations.

Other leadership qualities are vital, but none compare to the example we set. This holds true in marriage, in parenting, and in the workplace. It applies to everything you do—from being a good listener, responding positively to problems, conducting yourself professionally in meetings, to greeting people cordially in public.

Excellence starts at the top! Families, community groups, and corporations all take on the characteristics of their leaders. When leaders set high performance standards for themselves, others strive to do the same. Therefore, if you want the people around you to step up their game, you must do it first.

We will do well to remember the words of Albert Einstein: “Setting an example is not the main means of influencing another, it is the only means.”

Here are a few tips to help you remember the importance of leading by example:

• The next time you are faced with a decision, ask yourself: “What would I want my people doing if they were faced with this same situ-ation?” Your answer will tell you which direction you should go.

• As you work on your own personal and professional development, make a point of sharing what you learn with the people in your circle of influence. Many times we can use our mistakes as humbling examples to teach others. Help them discover the little things they can do to perform at a higher level.

The next time you need to counsel someone who made an error, look for any connections that may exist between their misstep and your leadership.

Every Little Thing you do to get better will help the people you lead get better. If you want those you lead to improve, you must improve first.

What is your experience with leaders who lead by example? Post a comment and let us know your thoughts or lessons learned.

About the Author: Todd Smith is a successful entrepreneur of 30 years and founder of Little Things Matter. To receive

Todd’s daily lessons, subscribe at www.LittleThingsMatter.com. All Todd’s lessons are also available on iTunes as downloadable podcasts. (Todd’s podcasts are ranked #27 in America’s top 100 podcasts and #1 in the personal and development field.) For more information please visit www.LittleThingsMatter.com

Robert Kiyosaki’s The Business School for People Who Like Helping People — The Eight Hidden Values of a Network Marketing Business, Other than Making Money

This is one of the great books to validate our amazing profession. It’s good to build belief and it’s also good for prospects. I highly recommend it.

Get your copy at Amazon!

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Formula for Financial Independence - NMPRO #123If you want even more information on this critical concept for success in MLM, check out this archive video from August 21st, 2009.

Watch Formula for Financial IndependenceVisit NetworkMarketingPro.com

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