The Fox TV show “Are You Smarter Than a 5th Grader” is an American quiz show featuring Jeff Foxworthy. Each season a group of adult contestants are asked a series of questions. Each question is assigned a grade level ranging from 1st grade to 5th grade.
Are you smarter than a 5th grader? Here are some sample questions…
1) True or false: Polar bears eat penguins.
2) What was the gift that the French gave the United States to honor their Independence?
3) What is the largest South American country by area?
Now, here’s a series of questions about MLM/Network Marking. Answers are given in case you are NOT smarter than a 5th grader.
1) True or False: Most MLM companies have excellent products.
- True. Nearly all MLM companies have great products, but the real question is… Will the products sell without a business opportunity? If not, keep looking for another company.
2) The commission checks earned by building a networking organization are called:
- Passive Income
- Royalty Income
- Beach Money
- All of the above
- The answer is D. This is what makes MLM/network marketing so different from a standard 9-5 job. Getting paid even when you sleep is a strong incentive to build a lucrative network marketing business.
3) What percentage of people experience failure in network marketing?
- The answer is D. That’s why it’s important to learn the skills necessary for success.
4) Which Compensation Plan is the best?
- Old-School Model: Company gets 60-70 cents of the dollar. Need 2,500 to 5,000 active members to earn $10,000 in monthly passive income.
- New-School Model: Even split of profit between company & distributor. Need 2,000 to 3,000 active members to earn $10,000 in monthly passive income.
- Next Generation Model: Distributors receive the lion’s share of the profits. Company gets 30-40%; Distributors get 60-70%. Takes around 500-1000 active members to earn $10,000 per month.
D. All Compensation Plans are equal.
- The answer is dependent on how much you want to work. If you want to earn significant income as quickly as possible, then you’ll want to go with C—Next Generation Model.
- Knowing your 10K number is one is crucial if you are serious about building a business. This will definitely make you smarter than a 5th grader.
5) True or False: Ground Floor opportunities are best.
- False. 99% of Ground Floor companies don’t last 2 years. Look for a company that has been around for at least 2 several years, so that a lot of the start-up issues have been resolved. Avoid companies that have passed beyond their momentum phase and have become household names.
6) True or False: It’s crucial to know your company’s Policies & Procedures.
- True. If the P & P’s are extremely lengthy and sound like they have been written by a legal team, then beware. Know exactly what your responsibilities are as a distributor.
- “Does this contract protect me or the company?” “Is it clear which way it leans?” Do 5 have the right to a jury trial if something terribly unforeseen occurs? Can the company terminate me without cause? If someone in my downline misrepresents the company, am I held responsible?
Those of us in network marketing have incredible advantages in today’s world. However, not taking the time to do your own investigation can have devastating results. Do your homework and BE smarter than a 5th Grader.
To your success!