April 17, 2014
(revised June 4, 2016)

Hello everyone...

Art Meakin here and for those who do not know me I am 47+ year veteran (my father joined a direct-sales company when I was 15 years old) of the MLM Direct-Sales Network Marketing industry. Some have fondly refer to me as the Grand-Father and even the 'god-father' of MLM.

It's been a very long time (almost 5 years) since I wrote an issue of...

The NetWorker Letter

Recently I've had some major insights or I just simply got fed-up with several unchecked or ignored situations I've seen and heard going on in the world of MLM. Some of what I've seen and heard, which really upsets me, has been going on for a very very long time — decades in some cases — and I felt it was time for me to stand-up and speak-up (or at least do what I love to do is write).

I mean... I am the Shocking Truth About™ MLM guy — I started telling the truth, or at least my truth, about this industry over 30 years ago.

My goodness... has it been that long?

Therefore, since it has been a while, this is going to be a very long letter.

I should probably break this letter up into several letters but I've been saving up for a very long time to write about what you will read.

Initially I will put it all here in one letter — and later will break it up into letters that will deal with each or some of the items here in much more detailed commentary. This letter will cover some (not nearly all) pet-peeves of mine — so be patient and bear with me. Thanks in advance.

Here's a few of my many new truths...
in my series
The Shocking Truth About™
MLM Direct-Sales Network Marketing:

In reality (mine) there are no true PROFESSIONAL network marketers... there is no such thing (to me). MLM Direct-Sales Network Marketing is not and simply cannot be a profession (there's too much proof to the contrary). For most people (99.9%) it is not even a business and never will be.

  • All (99.9%) of direct-sellers and network marketers are amateurs.

  • No matter what someone says or anyone claiming to be a professional network marketer is and will always be an amateur or at best a professional amateur but nonetheless still an amateur.

  • There are only relative degrees of amateur network marketers.

  • Just because someone (we) are successful at network marketing, or we're considered to be successful, and/or make a significant income in network marketing — this does not mean — nor make someone a professional or a professional network marketer.

  • The absolute beauty of... and another Shocking Truth AboutMLM Direct-Sales Network Marketing is that a novice no-body amateur can become successful and make a significant income that they could not have made in any other way or anywhere else. Isn't that great!!? But succeeding in and making money in this business does NOT make ANYONE a professional. Plain and simple truth or fact. (Most of what the so-called professionals or self-proclaimed professionals do or teach are actually unduplicatable!!!)

  • Another point of this particular shocking truth is that since everyone in the MLM Direct-Sales Network Marketing business are simply varying degrees of amateurs it would be VERY wise to take that and all it means into consideration when dealing with companies, sponsors, upline's, and so-called experts, trainers, or gurus. (If you want to really know how I feel and what I really think and mean about this... call me and let's talk... my private number (817) 522-3927.)

You might be wondering why I am making such a point of this especially in the opening of a letter after five years of not writing. Well, probably because in the last five years I've seen more and more and more people claiming to be gurus, experts, and professionals in this business when in fact we are all amateurs and we always will be amateurs. It is a given — we cannot be anything but amateurs — we started that way and we will always be.

The reality is, in fact, The Shocking Truth About™ MLM is that if direct-selling network marketing is a profession then it is the most unprofessional profession in existence. Therefore, how can it be a profession??

Part of the point here is that... I've been involved for 45+ years now and full-time almost 30 years and I am still an amateur and I am still learning. I don't know that I will ever "master" anything because I keep figuring out more what not to do than what to do (I am plodder — a tortoise — slow learner). The moment I or anyone else claims to know-it-all, that they have the ONLY way or the ONLY answers — that is when it is time to run the other way — look out!!! (This applies to me too.)

So please do NOT accept everything I write in this letter as absolute truth or the only way it should or could possibly be. I am writing and communicating my observations and opinions up to this point in my life about things that matter to me and that I care and am passionate about.

The Shocking Truth About™
MLM Direct-Sales Network Marketing
Compensation Pay Plans
(the following are just a few shocking truths I've compiled recently,
I have many from the past and more coming for the future!!)

Compensation plans matter — it really really matters!!

Based on recent observations, social media posts, talking to leaders, owners, etc., — there seems to be wide-spread common attitudes and beliefs about MLM Direct Sales Network Marketing compensation plans from most network marketers, even top leaders, and including many company executives and owners.

Here are the top 10 pervasive attitudes, beliefs, and statements I've heard or read so many times it makes me shake my head in disbelief:

  1. Compensation plans do not matter.

  2. All that matters is — if you work — you get paid.
    (Hint: This is so NOT true)

  3. It doesn't matter what the compensation plan is or how it works because I can always build a network... therefore, I can make money from any plan.

  4. It's about building a network — not the compensation plan.

  5. No one has to understand the compensation plan to make money from the plan, therefore, the plan doesn't matter.

  6. I don't have to teach others about the compensation plan to make money from the plan, therefore, the plan doesn't matter.

  7. There's only so many pennies in a dollar that are available to be paid in commissions and bonuses. It really doesn't matter how a plan pays out those pennies — as long as it pays out those pennies. A company cannot payout more pennies than there are in a dollar — a plan, is a plan, is a plan, is a plan — the rules, what, how, when, and under what conditions the plan pays those pennies is irrelevant.

  8. Reps need to be able to make really good money in the first 30-60 days and break-even otherwise the compensation plan is not worth the time to get involved with it.

  9. If the plan isn't simple enough for people to understand or if the plan is too complicated or if I cannot explain it — the plan is bad.

  10. What does it matter if a plan pays $100,000/mth or $250,000/mth under the same set of conditions and circumstances??... when earning that amount of money — it doesn't really matter whether it pays one way or another.

Allow me to easily debunk these naive, moronic, idiotic, stupid, ignorant, and amateur attitudes and beliefs:

  • Referencing statement #1 and #2 above... it is a complete falsehood and absolute non-sense thatif you WORK you get PAID.

    There have been millions upon millions of people who've joined a company or companies and they've "worked" and millions upon millions of people DID NOT get paid.

    MLM Direct-Sales Network Marketing is NOT about working or going to work — it's not like a job — it's about producing results from the work you do. It is about your ability to influence others which in many cases has nothing to do with work and has everything to do with a skill or personality.

    Reality is that most everyone does NOT produce results from the work they do in the company they represent.

    The "work" that produces results is another subject that I've written about in the past and will write more about in the near future.

    The point here is... that there's simply NO WAY...
    WORK = GETTING PAID from ANY compensation plan.

Now... allow me take this one step further.

Let's assume that everyone produced results from the work they did, therefore, everyone got paid from the pay plan... no matter what the plan was, therefore, the compensation plan does not matter???

Oh my.

Let's see:

    • Does it matter what we get paid for the work that we will do when applying for and accepting a job??

      Of course it matters!!

    • Does it matter if we make $10/hr versus $15/hr??

      Of course it matters!!

    • Does it matter if we make a salary of $36,000/yr versus $50,000/yr??

      Of course it matters!!

    • Does it matter what the commission schedule is if we're a commission only salesman for a non-mlm company??

      Of course it matters!!

Okay, so, is it enough to ONLY get PAID for producing results from the WORK we do?

See my point??

It matters — there's a lot more to it than just getting paid.

  • Referencing statements #3 and #4 above... while it may be true that if WE(I) can build a network — WE(I) will get paid from the plan (any plan)... in reality this business is NOT about us(me)!!

    The network marketing business is about the people we bring into the business, and those they bring into the business, and so on and so on through unlimited levels under us. On average, long-term, only 1-2% succeed in making money (an amount that matters) from 99.99% of the compensation plans out there.

    We may be the one or two percenters — but what about the 98 out of 100 who join our team?? Of course the compensation plan matters for them — especially for them — therefore, it should REALLY matter to us.

  • In looking at statement #5 and # above — there is truth in those statements — but just because we don't understand the plan and we don't have to explain the plan in order to make money in a plan — that DOES NOT mean the compensation plan doesn't matter.

    One of many reasons an overwhelming majority of networker's have, at least here in the USA, these attitudes and beliefs about compensation plans — is our general lack of comprehension of mathematics, algebra, equations, and logic based boolean algorithms.

  • Most people in the USA have trouble balancing their checkbooks and doing basic 8th grade arithmetic.

    Because of this weakness — as a defense mechanism — we MAKE compensation plans not matter, we make them unimportant, and we make irrational judgments, have erroneous beliefs, and make ridiculous statements about compensation plans.

    In fact, most of us are so ignorant and clueless about compensation plans from a mathematics stand-point — and other aspects too — that we have no idea how to even judge or analyze whether a plan is good, bad, inaccurate, right, wrong, legal, etc.. (This seems to be more of a phenomenon in the USA. In Asia and other countries where math IQ is much higher... believe me... compensation plans matter there.)

  • Believe it or not I've actually been told statement #7 above... over-and-over-and-over-again — from people and even leaders who I actually thought were quite intelligent. And what's even more interesting — many people believe those statements. It boggles my mind — more on this later. Ignorance is not bliss.

  • Although statements #8 and #9 above actually tells us that a plan DOES matter to those making and believing those statements. But they are so absolutely false, not only based on the history of compensation plans, but totally bogus based on correct philosophies and principles of building a network marketing business (more on this below and in future letters).

  • I do want to make a very important clarification as it relates to statement #8 above. Rightly or wrongly in the last several years the idea... that we must breakeven quickly — that we must make good money in the first 30-60 days — that we need to be able to cover the monthly commitment as quickly as possible... have proliferated the industry.

    And for me this is another Shocking Truth About MLM Direct-Sales Network Marketing. But not in the way that you might think. The shocking truth about this is two fold:

    (A) that these ideas are being "accepted" and promoted even by those who should know better; and

    (B) these ideas are detrimental, damaging, unrealistic, and diametrically opposed to the correct principles of building a networking organization. This subject in and of itself will be a separate NetWorker Letter so look for it to be coming soon.

  • As it relates specifically to statement #9 above this couldn't be further from the truth... I mean really.

    There are hundreds of compensation plans that are currently in existence that are paying people millions-and-millions of dollars. These plan are NOT simple enough for most people to understand, the plans are complicated enough that most cannot explain it and if they could it would not make a difference. A complicated compensation plan is not a gauge in judging whether a plan is good or bad. Plain and simple truth.

  • I guess there's some rationale to statement #10 above.

    I mean how much is enough?? But this is simply not the point and is a deflection or another defense mechanism that our idiotic way of thinking kicks in for various reasons. (I cannot count how many times since I've been involved in MLM that I've seen leaders eventually quit or coast once they realize how unfairly they've been, are, and/or will be compensated due to the way a plan was designed. Somewhat more on this in a moment.)

Here's why compensation plans matter:

  1. First and foremost to understand is this — math matters. Especially when math is applied to what we get paid from, how we get paid (the rules and varying conditions and permutations), how much we get paid, when we get paid, what and how we are not paid, and much much more... more than I can get into here.

  2. Math in and of itself is perfect. However, the ways in which math is used or applied as it relates to anything and everything — but especially compensation plans — can be for good or for evil and everything in between — knowingly or unknowingly.

    (Note: The definition of evil is that which does harm or injury. Most compensation plans - 99.99% do harm or injury making them evil. A binary plan is a good example... per my Special Report - Why Binaries Suck!!)

  3. All parts of a compensation plan must be legal and compliant... if not there can be severe consequences not only to the company but to the independent representatives too.

  4. There are very clear MUST NOT DO's and MUST DO's from a regulatory stand-point. It is not just about the math, but how the math is applied and the rules and conditions associated with the math in the compensation plan. And then some do's and do not's are not so very clear (and these can really get you). And then there are the ethical and unethical variations that are designed and programmed into compensation plans knowingly or unknowingly.

  5. It is interesting to note that many and possibly most MLM Direct Sales Network Marketing owners, executives, CEO's, and even master rep's rarely know what the legal, regulatory, ethical, behavioral, math, accounting, and programming aspects and ramifications are related to compensation plans. This goes for many so-called consultants, pay-plan designers, software vendors, accountants, and attorneys as well.

  6. How a compensation plan is designed, programmed, and executed can be extremely favorable and/or extremely unfavorable exclusively or simultaneously for the rep (no matter the level of achievement), the company, or both. There are dozens of examples that I can provide on this point alone, however, allow me to share some of the commentary on this point below and for another more detailed letter on this very subject.

  7. What and how a compensation plan calculates, pays, and treats the novice beginner to the veteran leader is absolutely paramount and is about as important as any other consideration whether it be for  those of us who participate on a small scale part-time — short-term or long-term, and especially for those of us who participate full-time — short-term or long-term. This our income, our livelihood... what can be more important than what, how, and how much we get paid?? I mean really... really really!!

  8. All things being equal and for that matter — if the following were equal (i.e. - products, owners, upline, sponsor, systems, training, communications, etc.) the compensation plan would be THE ONLY thing we would use to measure and determine which company we would join and build. So... it should be our primary determining factor for joining any company — first and foremost. You may not believe that nor may you be convinced of that at the moment but after you finish reading this letter my hope is that you will believe it is the most important factor. Once we are educated we will never again choose a company unless the compensation plan meets some minimum standards (some of which are established here in this letter).

Leave No One Behind – Part 1

My "Leave No One Behind" philosophy comes from the Marine Corp code of Leave No Man Behind. This concept came to me from a story my good friend and mentor, Mitch Huhem, shared with me that I have I entitled -

Networkers and Bunny Rabbits.

Bunny rabbits know how to do one thing really well… hop, hop, hop!! However, bunny rabbits cannot swim — throw a rabbit in the water and it will drown. This is not unlike ALL network marketers who know how to do one thing really well — buy (we all know how to buy). However, networkers cannot sell (i.e. - do network marketing as it's typically considered or supposed to be done). In fact, here in the America it is generally considered to be the lowest rung of the job status ladder, consciously and subconsciously, to be identified even remotely as or anything near or close to a sales person. This aspect alone I will write about in another letter soon.

Analogously, in network marketing we literally throw 100 bunny rabbits into a swimming pool and 98 drown (because they cannot swim) and 2 manage to get out of the pool by climbing over all the other dead bunny rabbit bodies. Those 2 bunny rabbits, however falsely, get all excited and believe they are successful (they think they now miraculously know how to swim or do network marketing) and they each go out and throw 100 bunny rabbits into the swimming pool and now there is duplication... 2 who get 2 is 4 for a total of 6... hmmmm... but what about the 294 dead/drowned bunny rabbits? And this goes on and on and on.

In our industry it appears no one cares about those dead bodies... with attitudes and sayings like: it is a numbers game, some-will-some-won't-so-what-next, throw as much mud up against the wall and see what sticks, the compensation plan doesn't matter, etc., etc..

I've been a drowning and dead bunny rabbit many times — I mean it took me 11 years to sponsor my first person. I know the above story/example is a gross or extreme example but it is very close to the truth in all actuality (or reality). It almost seems unreal or unbelievable because the network marketing business is supposed to be about the one — the little guy or gal — the nobody that can become a somebody. Right... it is right??

One of the major core reasons (not the only one but a major reason) so many drown in network marketing is because of how compensation plans have been developed and designed over the years. I will address more on this subject in additional parts of my Leave No One Behind series of articles, letters, and my soon to be released book. For now I will leave it at that.

My philosophy after being in the industry for 45+ years and full-time almost 30 years — is that I do not want to leave ANYONE behind — no one should be left behind – leaders nor the little guys/gals. And in all honesty... leaders get left behind just as much as the little guy or gal... sometimes more so although it may not seem or appear that way to most. Again more on this in future articles, etc.

Attitudes and compensation plans MUST evolve to address the reality of what really happens. What I will share with you in future articles as what I believe some of the solutions, especially from a compensation plan perspective, are not the total answer to solving some of the dead body issues — but it is a good start. More to come on this soon.

Please know this... no matter who you are... you are the "one" — we are the "one." This business is about the "one." Or at least I thought that was what and who this business was all about.

Leave No One Behind – Part 2

Before I get into some of the core problems and solutions with compensation plans let me address what I asserted in Part 1 - which is the 98 out of 100 (it is really 100 out of 100) do not know how to do network marketing. This is actually not true — so bear with me here as I explain. And what I write here is just one aspect to this complex issue... there are other aspects as well which I will, again, get into in future articles, etc..

Another Shocking Truth About™ MLM Direct-Sales Network Marketing is that EVERYONE already is and has always known how to do network marketing before and after they ever became involved in it. In fact, networking is one of the most relevant and natural things that we do as human beings.

We all know how to naturally network (interact, communicate, share, listen) with others, we know (more or less) how to tell stories, we know how to tell someone about something we love or like or that-we-are-passionate-about, we know how to refer others to a great movie, a good restaurant, a sale or bargain, or where to acquire or buy something, etc., etc.. Our ability to naturally network is built into every human being on this planet. Without this natural networking we would never have survived as a species.

But... here's what happens when we join a network marketing company.

Pretty much all of us get amnesia — we forget how to network, we freeze up, we stop doing what we've always done!! (It appears that this is what is happening consciously and what we observe — but this amnesia, etc., is simply a symptom of something much deeper and so basic most people never figure it out.)

It is appears to be a dilemma or phenomenon...

Typically... the reasons we lose our minds (literally) and get amnesia are pretty much common-sense — but can be quite elusive and confounding. I am proposing one of two reasons this happens here in this letter. The other reason I've eluded to previously (our intolerance of the idea of being a sales person) which I will write about in another letter, etc..

First of all... the moment we join a network marketing company and we tell one or two or three people about it (a spouse, best-friend, co-worker, close relative) — and the typically instant negative feedback (rejection) we get basically kills us and shuts us down permanently.

Ultimately most people quit/stop networking because of this rejection and for many they quit forever offering excuses or blaming everything but what is really happening. This is another Shocking Truth About™ MLM Direct-Sales Network Marketing. Keep reading.

The perception we have of ourselves, our self-esteem, our self-image, our confidence, and our awareness of who we are — is wrapped up in what others say about us or to us — or at least what we think others will say about us or to us. Seemingly so. And we're partially correct but it is even deeper than that. Interesting isn't it??

I've spent so so many years trying to figure this one out... so please pay attention — this is absolutely critical.

I mentioned earlier that we ALL naturally network with other human-beings. In fact, although we are all separate and unique individuals — our survival has been and is dependent on the tribe, group, or family we were raised with and are associating with now.

We are very very social beings — we do this not so much because we want to — we do it because it is part of our built-in survival mechanism. Most people do not even realize this — we all do it innately — it is part of being human.

We are unconsciously dependent on the closest members of our tribe (family, friends, work and other key relationships) as well as the extended members outside our tribe (human-race in general). Being dependent on our tribe is typically not something we do consciously — knowing this is important in understanding ourselves and others too. Think about it — throughout the history of the human species we've depended on others for our survival, our safety, wants, needs, etc..

But more so than anything — our safety and survival has been and continues to be extremely dependent on others (our tribe).

From infancy through childhood — we are 100% dependent on others for our existence (especially for our safety). We, the human-race, takes this for granted — I mean we don't even think about it because it is such a "given" ... so much so that it is in our DNA — we don't need to think about it... it's built in our wiring.

So... instinctively, unconsciously, and to some degree consciously — if we do something that jeopardizes our dependence on others for our safety and survival. — we will avoid it at all costs.

In fact, most of us will not rock the boat, we will play it safe — again — out of a basic need to survive. If we sense even slightly that what we are doing or saying threatens the dependency we have on others (even a perceived unconscious threat) — we retreat into a fox hole (our bunny rabbit nest).

Therefore, after we join a network marketing company, it isn't that we get amnesia when it comes to networking — what happens is that we go into a "play it safe" survival mode when we get even slightest sense or hint that our safety and security in the world is being threatened (i.e. - alienating our tribe upon whom we depend).

No matter how much we try convince others, no matter how much we try to convince ourselves, no matter how others try to convince us to succeed in network marketing... that we need to accept rejection, accept the no's (the more no's the better), and step out of the box — our innate survival mechanism has kicked in and it is STRONGER than any other emotion or drive we have. Very few things will cause us to override our basic instincts to survive.

The very thing that we've done naturally as a species that has allowed us to survive throughout history is to network with our tribe. But today, for most of us, networking with our tribe outside of the tribe's groupthink causes us to feel like we are going to die (just the opposite of surviving).

Wow... it wasn't until I figured this out did I begin to have empathy for those who quit the business.

But what I am about to share with you is truly and really interesting. When people take what I just shared with on and "get it"... everything changes. But most people never really understand it the way I am about to explain it.

Today... the way the world has changed — playing it safe is no longer an option. Playing it safe and shutting down our natural networking ability is actually going to cause us to die — we will NOT survive if we play it safe and if we do not network. But it is so hard to "get" this.

Today, moe than ever, our survival and ability to thrive is based on our ability to naturally network. In fact, if we TRULY "get it" that our survival DEPENDS on networking — we will NEVER shut down. When your safety and survival is at stake if you do NOT network — then when you actually DO your networking and when you get resistance, an objection, etc., it won't even phase you!! I can promise you that. However, it is easier said than done and getting to this understanding takes some time and coaching and I will be sharing some of what it takes in future articles and especially my book coming soon.

When the survival of our family, our children, us, those in our immediate tribe, etc., is on the line — then we naturally without hesitation do whatever it takes and we deal with any obstacle that comes our way. That is what human-beings do... that is one of the things we are best at. And since we already know how to naturally network with others then we become unstoppable!!! Again, more to come on this soon.

The primary reason that I addressed this in this Leave No One Behind series is that it is SO VERY IMPORTANT that we understand ourselves and others. In order to help others — to help the 98 out of 100 succeed... we must know what drives us and why we do what we do, or why we do not do things.

So what are some solutions to this dilemma or phenomenon??

  1. First — knowledge — accurate knowledge (see the above) and a clear understanding of what is going on within the human psyche.

  2. Once the awareness (of the above) has sunk in... it is so much easier for people get back to what they already know how to do — natural networking.

  3. Joining and developing a community or tribe with the attributes we seek for ourselves and for others.

  4. A system that encompasses 1 thru 3 above that we can plug into that will help us build and develop our own community or tribe within the larger community or tribe. (Subscribe to my NetWorker Letter™ to receive more information on this.)

To be down right shockingly truthful — today more than ever before — we are dependent on a tribe for our survival. And typically it is not our immediate and closest tribe. It is is going to be a tribe or community that we become a part of and then develop our own tribe or community within it through our ability to naturally network with others. (What I just wrote in this paragraph is probably the most accurate and profound idea or conclusion I have come to in the last 25 years or so. In fact, without really knowing consciously what I was doing back in the late 80's and early 90's — I developed my own community and allowed others in the community to leverage off my community to develop their own. And this built very large organizations doing this... especially by providing the systems and means to become a part of the community and all the benefits that entailed. Again, more on this coming soon.)

Leave No One Behind – Part 3

Most (99.999%) of the compensation plans over the last 70 years and that are in existence today — and that keep getting perpetuated... leave most of us behind — leaders and little guys and gals alike.

For instance — is there a compensation plan in the entire industry that will pay us fairly and lucratively for sponsoring or enrolling ONLY one and never sponsoring or enrolling anyone else?

  • Let's say the ONE we sponsored builds a large business.

  • Let's say the ONE we sponsored leads to ONE (and so on) that builds a large business.

  • Let's say after years of sponsoring and enrolling many people and building several legs we only have ONE leg left that is doing almost all the volume (which really happens).

In all my many years in the industry there has NEVER been a pay-plan that I am aware of that is or was designed to pay lucratively and fairly based on ONLY sponsoring ONE or having only ONE leg. In my opinion this is absolutely criminal.

Contact me about solutions to this issue.

A networking business is built based on
ONE person referring another person...

The power of ONE.

What if the first person that it took me 11 years to sponsor built a huge million-per-month business and I never, or could not, or was not able to enroll and sponsor anyone else??

Most (99.999%) of the compensation plans in the industry that I know of would NOT pay me anything or would pay me barely a few dollars a month on the personal sales of the person I enrolled and maybe one or two levels in a unilevel. Maybe.

What if I had only one leg in a binary? I would NOT make anything ever.

What if I sponsored someone and then I had a stroke or I got ill or for whatever reason I could no longer work the business?

I could and can give many many examples of the above scenarios happening and other similar situations as well.

The sad FACT is the 99.999% or more of the current compensation plans in the industry do NOT take this situation into consideration in their plans and in my opinion not only is this unjust and unfair — but I get so upset about it that I would say it is criminal (in my opinion).

Especially when we are supposed to be an industry that is about the ONE. The ONE who finds the ONE. The ONE who is a nobody that can become a somebody.

Allow me to take this a couple of steps further.

Let's say through my efforts it leads to one leg doing a million-dollars-per-month in volume. I am the "cause" of this becoming a reality for the company and the upline. (Note: I get so much push-back from this in the industry... like it hardly ever happens, or it is infintesimally small chance that it happens, and on and on I could go with the whining and moaning and excuses why comp plans do not take this into consideration. More on this in future articles.)

Should I be paid fairly and lucratively if someone I sponsored lead to a million-a-month in volume to the company, not paid at all, or paid very little — even if I never did anything else to build the business?

  • When I asked the question above on a recent social media post I received some of the most profoundly moronic responses from networkers who have basically no empathy or even common-sense or decency. I might come back here and share some of those responses or write an entire letter on this subject alone.

  • What does it matter if I have ONE leg doing a million-dollars-a-month in volume or 10 legs doing $100,000 in volume adding up to a million-dollars-a-month?

  • If I was to author a best selling book or write a hit song... would I have to write other hit songs or additional best selling books before I could get paid on the first one? (Most 99.999% of the compensation plans in the industry for the last 70 years and even today — will not pay you from ONE hit song or ONE best selling book.)

I think everyone would agree based on just a couple of things I noted above that I (or anyone) should be paid fairly and lucratively under the circumstances. Right?? Of course they should. And because no one is doing it or designing plans to take care of the ONE and never have... is it any wonder 98% do not succeed or make money... and so many of the 1-2% fail eventually as well. I can give you hundreds of real-life examples on this very subject.

The fact that 99.999% of the compensation plans out there are flat-out and unthinkably UNFAIR and UNJUST looking at them just from this one aspect alone — tells us something about the industry as a whole. And is one of many reasons most people (98 out of 100 bunny rabbits) die in this business!!

Philosophically it is wrong, morally it is wrong, and in just about every other way I can imagine it is just plain flat wrong. And it is indicative of hypocritical attitudes, beliefs, and practices that need to be changed in our industry.

Lastly... I would ask you, me, everyone — why would we join a company with ANY type of compensation plan that DID NOT take care of the ONE?? Why would we join ANY type of compensation plan that leaves 98 out of 100 behind (and even leaves the leader behind too)?

Leave No One Behind – Part 4

Looking at income disclosures from most of the established successful companies upwards to 80% or more of the distributors in those companies never get paid anything!! Oh my.

Personally I think this is indicative of very unfair and poor compensation plan design (as well as other aspects related to the plan) do not allow the average everyday person to succeed and make money. A good example is what I wrote in Part 3 above. There are many more reasons but I believe it comes down to company philosophy and core company values in that somehow a greater than 80% failure rate is acceptable and it is just the way it is. Quite mind-boggling to me. I could write on and on about this but this is it for now.

Leave No One Behind – Part 5

Even a leader is a ONE and many if not most leaders get hurt (in my opinion) from the typical implementation of the fast-start or quick-start part of most compensation plans — including the coded front-end part of the plan. (There are other ways leaders get hurt significantly in plans but this is one of the major ones.)

  • Most leaders work so very very hard to build and support their organizations and as their organizations mature a majority (upwards to 100%) of the new customers and representatives coming into their organization come in beyond where the fast or quick start payout part of the plan.

  • Because of that, what happens (unfortunately) is that the leader has to wait until the 2nd order or the 2nd month order to earn commissions from the new reps or customers he didn't get paid from in their first month. And then the leader has to typically wait another month before he or she actually gets paid those commissions in the form of cash that they can spend (due to the lag time or delay from earning a commission to being paid the commission).

  • As the organization matures this become more and more of an issue for the upline leaders — they wait up to 3 months before getting paid on new customer and reps — and by then many of those customers or reps have already quit. This is disheartening to the savvy leader and many quit the business or don't work as hard to help their organization as they begin to realize and tolerate these EXTREMELY UNFAIR types of fast/quick-starts (just the way it is — the way it has always been done).

  • One of the ways companies and compensation plan designers have tried to solve this issue is with a front-end coded bonuses which is paid daily or weekly on new representative kits or pak orders. Technically, in a coded bonus a leader can get paid from deep within their organization. This initially solved the problem on the surface. However, the coded plan has turned out itself to be extremely unfair to the little gal and guy and ultimately to the leader as well. I won't go into why that is so in this article (I am working on a special report that will go into those details more deeply.)

I will be writing more about this in the near future. Not only about a solution but around the erroneous philosophies surrounding just this aspect of compensation plans.

Contact me about solutions to this issue.

Leave No One Behind – Part 6

I've always considered how most companies handle Group Volume requirements in their compensation plans to be quite cruel and unfair in most cases. The little guy and gal have the cards stacked against them from day one in most compensation plans and for most leaders this is probably one of the most unfair aspects of a plan.

  • In most plans Group Volume is usually calculated on a limited number of levels (and sometimes not on compressed levels) despite the fact that ALL the volume in each leg, to the bottom of each leg, started with you and because of you (the ONE). Shouldn't all the volume be credited?? And if not, why not? I know there are reasons why but none of them are valid in my opinion. (See below.)

  • What is this non-sense of starting over at ZERO Group Volume at the beginning of each month and the ridiculous volume buying and volume manipulation at the end of a month in order to meet the next rank or maintain a current rank?? This volume buying business should be outlawed now... it has been going on way too long. It causes garages to fill-up among many other nasty non-sense. Furthermore, why do all plans reset to ZERO at the beginning of the next month. I know there are reasons but none of them are valid anymore in my opinion. (See below.)

  • Over time as an organization matures and sometimes even in the beginning — 80% or more of the group volume will come from ONE leg. This is what really happens in the field. However, most group volume qualifiers will allow no more than 40% and in some cases maybe up to 60% of the volume from any one leg to count toward group volume requirement. Companies and compensation plans force something to be required that cannot realistically happen in most cases. The end result is fewer people qualify for commissions and make it to the top of a plan due to the irrational requirements that are impossible to meet and are out of our ability to personally control.

  • There's a lot more problems with Group Volume... but for this article think about this... how much control does anyone really have over group volume in a leg or legs. We have very little control, therefore, why is group volume used as a qualifier?? It is actually insanely ridiculous. Should someone be recognized for the group volume created in their group?? Of course. Should it be a qualifier when no one has any realistic true short-term or long-term control over group volume. Answer is NO.

Contact me about solutions to this issue.

Leave No One Behind – Part 7

Typically in most (99.999%) of the compensation plans... in a well developed maturing organization an upline leader's commissions diminish in comparison to the increased volume in the group (beyond their pay levels).

  • Regular compensation is limited to a certain number of levels or generations (depth limitations or blockage due to leadership development in the downline).

  • Most of the time what leaders must do to get paid even a small amount on a limited number of levels or generations is practically impossible or is impossible for a particular or a certain type of leader (each leader has different skills and abilities). One size fits all is inapprorpaite in compensation plan design, howver, almost all compensation plans force narrowly strict qualifiers that the majority and even a minority can never meet.

  • The plan is so limited or designed so poorly in how it pays out in depth that the leader(s) above responsible for bringing this volume (that the leader usually isn't paid on) are cut-off or cut-out of the majority of the volume (which started with the leader) in his/her organization. Unfair and unjust and just not designed properly.

  • There are way too many gotcha's or caps or if this that which limit or prevent a leader from being paid fairly or anything at all on the majority of the volume that started with him or her. The company is making the same profit margin on all the volume so why not pay the upline leaders above something at least?

Contact me about solutions to this issue.

Leave No One Behind – Part 8

Most compensations plans unlawfully force an autoship and/or personal out-of-pocket purchases. I have a lot more to write about this very matter than what I have written below so please contact me directly to discuss this one very major important point.

  • Most (99.9%) company's compensation plans fail this miserably which leave SO MANY behind and it's illegal to boot.

  • To be 100% legally compliant anyone completing the registration process and paying any non-commissionable fees to become and remain an Independent Representative should be able to achieve (earn) the absolute top rank in compensation plan without an autoship requirement or making any personal out-of-pocket purchases for commissionable product.

  • Should be able to reach the top of the plan with customer volume only and no autoship. Most plans fail this compliance test.

  • So many company's compensation plans beat you with a stick and force you to do certain things rather than offer incentives or reasons why you would want to and even be positively motivated to do something.

Contact me about solutions to this issue.

Leave No One Behind – Part 9

Most compensation plans have periods... weekly or monthly... delays in doing this or that. This can cause people to be left behind and there's absolutely no excuse for being left behind with today's technology.

  • Commissions and Rank advancement in most compensation plans (99.9%) are usually processed in batches... weekly or monthly. Waiting anywhere up to 3 to 6 weeks before seeing what was earned much less getting paid or withdrawing real funds from commissions on sales that happened 3 to 6 weeks ago. Personally, I hate waiting and I hate not getting instant feed-back... and I really hate waiting for the money I've earned. With the technology today there is absolutely no excuse for this.

  • Same is true, in many cases, with rank advancement... you're waiting until a period ends (or near the ending of a period) to see if you made it to the next rank or maintained your current rank. There are many aspects to this that are unfair and frustrating that leave people behind which I won't get into here at this time.

Contact me about solutions to this issue... like:

  1. No weekly or monthly periods... everything is based NOW... real-time... what is happening right now in this moment. The incentive to act NOW and do something NOW is always NOW... not at or near the end of a period. To get paid at a higher rank on the current or next sale... can happen NOW... so I can do something NOW to maximize what and how much I get paid.

  2. From each and every sale... all earned commission pay outs are calculated right then and there on the spot based on what ranks the upline are qualified at the time of the sale... in fact... a particular sale right NOW could cause a rank advancement and earn commission at that new rank on that sale.

  3. All ranks maintenance and advancement requirements are processed, calculated, and adjusted in real-time with every sale.

  4. Commissions earned are posted instantly in real-time on each sale to an eWallet and escrowed if necessary for a time or are available for withdrawal or posted to a paycard immediately.

For now... these are just a few of my new insights and thoughts.

I have many... many more.

Hope you have learned something from this particular letter.

Look forward to hearing from you soon.

All the best always,

Art Meakin

P.S. - Go to ArtMeakin.com and subscribe there for updates to this and future letters. Thank you.

P.P.S - Despite my criticisms of the MLM Direct-Sales Network Marketing business model and compensation plans... I am still hopeful, a believer, and an advocate even though the industry needs an overhaul in many many ways.

Copyright ©2014-2016 Art Meakin R20140415-20160604. ALL RIGHTS RESERVED. The Shocking Truth About™ and The NetWorker Letter™ are trademarks of Art Meakin. Reproduction or use in any form without permission, including alteration or quotations taken out of context, is strictly prohibited. The information and opinions expressed herein are based on the author's personal experience and is believed to be accurate and reliable but is not to be considered perfect or free from error. The reader must accept that risk is involved in any business situation and should act accordingly. There is not any intent to express or imply the guarantee of profit in any amount nor is the author engaged in rendering legal, accounting, financial or other professional services.