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Most
folks that think they're good at networking, marketing or
promotion are probably not. If you've been in business for a year
or more & not earning a decent living
- you're
either
doing it wrong, you're not optimized or you'd be
better off doing
something else.
Cavalier networking & marketing no longer works. Effectiveness,
personal branding &
optimization are everything. Time is Precious - I Can Help!
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About Ric - Why I Blog - Observations
Empathy and Solutions
|
 | My first home based business was as a paperboy
when I was twelve (1962). I worked hard and won several trips to
Disneyland and lots of other prizes. That endeavor ended when we moved
across town and there were no paperboy opportunities available in the
neighborhood.
In high school I was in and out of trouble;
just lots of mischief and lack of academic achievement! At 15, my
interests in aviation developed and I aspired to become an airline
pilot (my Dad was a private pilot). Flying lessons were expensive and
although my folks were easily able to afford them, the lesson for me
was about value and appreciation and I would have to finance my
interests myself! Big problem - I didn't have any money! |
| Our neighborhood had been a
citrus orchard for decades; subdivided, partially cleared and homes
built among the remaining trees. The lots and homes were large and each
had a dozen or more trees. The trees were trimmed such that the bark
was exposed; hence they're painted white to reflect sun and seal
against pests and infection. I saw an opportunity. I
went door-to-door soliciting tree painting jobs. I did well and most new
customers were referred by my happy customers. I was earning a fortune
- routinely earning $200 or more each week. My grades improved and the
neighborhood mischief ended. I was growing up. I soloed on my 16th
birthday and was flying around before I had a drivers license! I spent
thousands of dollars on flying lessons, fuel, instructors and airplanes
- joined a flying club and owned about one thirtieth of four
airplanes. Pretty heady stuff for a high school junior/senior! | 
 |
 | College was interrupted by the
Vietnam War (age-20) when I was drafted and ended up in the US Air
Force and stationed in England - to work with nuclear weapons and
F-111's. While in the USAF my aspirations of becoming a fighter pilot
and an airline pilot evaporated; and in 1974 I was honorably discharged. I tell about this era on The Revelation Video. |
For four years I was self employed in direct sales and in 1978 I became a Realtor. I
worked long hours and I did really well and life was
good for me and my family - now married with two children.
A wealthy client introduced me to the concept of "residual income" and I
could see that that concept could make me rich! All my spare time
was invested promoting the company and the benefits of residual income.
I did really well financially until a divorce. I learned how quickly residual income can
disappear when more folks are quitting than joining.
I've (now) been a Realtor for 33 years;
doing well - top 1% nationally for listings and sales; and my
lifestyle has included many vacations,
luxury cars, beautiful home - all was great
until real estate collapsed. | 
 |
 | During the past 35 years, I've been involved in several
network marketing companies (MLM), some I did well and some not. No
matter which company i promoted, It was obvious to all that I was doing far better
financially than any of the other folks I introduced to my business or
the industry.
As my business grew the more time wasted
stocking
product, making deliveries, collecting money - all activities the
average guy can't and won't do. No matter which company I worked
with, my residual income always disappeared. Together with companies
that went out of business, the phenomena of more folks
quitting than joining ultimately terminated my business and
residual income.
Today,
none of what I experienced is new to me now. I've seen it
all, experienced it all and what I haven't learned through
personal experience - I've witnessed in the failure of
others. I've seen many folks go from substantial incomes to zero.
Amazing.
Lesson - there's a difference between residual income and reliable
income. One lasts a lifetime and the other a lunchtime. |
Attrition is the major "killer"
of MLM companies.
An attrition rate is defined by
the number of folks joining and quitting. MLM "uplines" talk
about residual income - and that's the carrot that
attracts most folks to MLM. The hidden secret is that to earn
residual income you have to end up with a lot of people doing a little
(ordering product), and doing it long term. If you don't have that you
don't have residual income. Period. To create life long residual
(reliable) income, you need folks to join and stay and order every
month. Remove any of the three components and residual income
disappears.
In
2001, after experiencing success and failure in MLM, I decided to do some research into the industry - to
discover what works and what doesn't. I made some amazing
discoveries and had many "ah-ha" moments. I learned and have
subsequently experienced what works long term in a network marketing
endeavor. I won't detail it here but the principals are outline in the
video - "Revelation - Success Factors." (coming soon) | 
 |
 | One important factor I discovered was that the "80/20 Rule"
applied to MLM as it does to just about every other endeavor, business
or experience in life. This principal basically states that 80% of the
people “don’t achieve” while 20% “do achieve.” Hence, as in
most endeavors, 80% of the income is earned by 20% of the people. This
80/20 principal is a universal law and applies to everybody, all
business, all industry, and it's experienced globally.
Consider 10 doctors, 10
lawyers or 10 Realtors - you'll see that 2 of the 10 excel; the other 8
do just OK or poorly. This principal or concept is true in network marketing
companies and it contributes to the attrition rate of the companies
which in turns determines their longevity - or the time before the
marketing plan fails or they go out of business. While building an
organization, 20% of your recruits will do well (comparatively
speaking) and 80% of the people in your organization will earn little
if anything! Most folks fail and quit and the cycle continues. |
| My Success Factors Video (coming soon) describes this principal in more detail
- but the point is that the 80%’ers, average folks that have no
sales experience; they join networking companies and then we
expect them to create a new need in the market place for expensive
luxury products being sold at unreasonably high prices. Most folks
can't do that. I’m not saying they’re not promoting great
products; network marketing companies typically have very good products
- but they're not a very good value hence they are very difficult to
market, promote or sell. Most folks try, fail - and quit within 60
days. Sad fact! |
| See my video "80/20 Rule and You" and "MLM and Me"
(coming) for more information. The 80/20 rule and it's effect
upon
small and home businesses is a common topic of my blog where I
write about "what works" and "what doesn't work." More to
the point; I write about success principals that apply
to succeeding no matter which business or
endeavor one pursues. While I'm an avid promoter of developing residual
income, I know from research and experience that an MLM opportunity is not
a solution. One residual income company I support has a standing offer of
a reward of $10,000.00 for the first party to identify an American MLM
company - going back 30 years - that's still in business
and successfully operating. So far no winners and it's been a standing
offer for years. Sooner or later, ALL MLM companies fail. | 
 |
 | Imagine a business that has real residual income and has a 95%
success or reorder rate. A business where 95% of the folks came back
month after month to order products that they really want, already need
and are going to buy somewhere! Today, I'm succeeding with a business
that meets all the success factors of my video/webinar. One where the
average person succeeds and where the masses, the 80%’ers, order
product month after month.
My companies 95%
reorder/retention rate is documented and published (INC 500) and
the envy of every so called competitor. The most amazing
part is that I've earned a six figure income with a very limited
time commitment! It's still very part time for me and
it proves the facts I discovered with my research and personal
experience. Very cool! |
Personally, creating financial
independence and freedom for my family and others is an incredible
career. I write daily and share my research, information, opportunities, techniques and opinions online. I write about small home businessess of all types. What I blog and teach is
not duplicated by anyone else online. Nobody online right now writes
about these topics and doing so attracts a lot of people to me and
that's one way I grow all my businesses.
Yes, there are people that
don’t like that I blog on topics contrary to what they promote. There
are many thousands of companies pitching fast money deals, miracle
claims, overpriced products, products based upon hype and folklore; and
other "latest and greatest" so called "opportunities." Google "MLM"
and be amazed - 114,000,000 listings! Ninety five percent of the companies you see
listed will no longer be in business after 2-3 years. Nearly all
will be gone after five years. So much for MLM residual income (it doesn't exist). What
actually happens is that millions of people are fleeced and a few MLM
Gurus make millions and everyone moves on to the next hot deal. The
cycle repeats itself and I've witnessed it for thirty years. | 
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| For me it's not just about the
money and I'm not out to win any popularity contests. I do realize that
the more money one earns, the more choices and freedom one has. And I'm
all about time, money and freedom. With more money it enables one to do
more good in the world, support more causes,
and provide a better standard of living for my family. It's also very
gratifying to spend my time working with others that share my passions
- and I get to work from home!
My name, email and phone number are all over my website Mechanics of Wealth and if you'd like to discuss anything relative to my blog, videos or lectures - call or email anytime.
R. Felder
 Empathy and Solutions |
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