Dear Uncle Russ: What do I say when a prospect says; "This product seems expensive…?" ___ Bill Ray - Round Rock, TX

Dear Bill,

This concern stops many distributors, dead in their tracks. The common rub (and myth) about MLM products is that they are priced higher than average in order to pay multiple commissions.

So what is Mercedes Benz's excuse?

The truth is that "expensive" is only an interpretation/ concern that comes from a comparison to something else. Is your product unique? What is the VALUE of its result? What is losing 20 pounds or eradicating an annoying condition or pain worth? Have you ever heard the expression "Nothing tastes as good as skinny feels?"

I will have the opinion until my dying day, that the moment value exceeds or is greater than price, people choose to buy. Communicate the VALUE, and if someone says "This seems expensive" reply with a direct look and a big smile and say "Compared to what?"

Dear Uncle Russ: What's my "buy-in?" and "How much will it cost a month to qualify?" T. Rayburn - Las Vegas, Nevada

Dear "T",

This will generally come from a more seasoned network marketer. In this business model, however, experience does not necessarily equal success. "Buying in" works in the franchising business because you are buying a proven success formula along with the brand and product. "Buying" positions in MLM is what led to the illegal pyramid reputation and the anti- front loading laws spawned by this practice. Now what someone innocently may be asking is "What is the best way to start and what will the cost be?"

Believe me, it is prudent and wise to ask what they actually mean and to clarify. "Positions for sale" is a red flag and will get you in trouble in most states no matter how well-intentioned the policies or procedures of a company or its distributors are.

Remember, sell products, NOT an opportunity.

The second question comes from the mindset that auto-ship programs are in place so you are always qualified to earn commissions. Yes, they assure that volume is always flowing to the company regardless of sales…but this is a problem when it comes to compliance in many States.

What if there are no commissions to be earned? Then product piles up and some decide they can't "afford" the business anymore.

If I'm asked, "What does this cost every month?" I reply: "If this business is "costing" you every month, you are not doing it right. Before you decide to build a business, first ask yourself:

• What or how much of what product(s) am I committed to using each month?
• How much will I retail, sample, or wholesale out to establish new customers?

If you establish your auto ship with this attitude and teach others to do the same, when it comes time to earn commissions…you'll be golden.

Dear Uncle Russ: I know several successful entrepreneurs in more conventional types of business models. How do I explain "duplication" and how it relates to making money in this kind of distribution system? Allen R. - Austin, TX

Great question, Allen.

Most businesses are built on a capital-intensive model that incurs short-term debt, overhead, and lots of sales until the ink goes from red to black.

The network marketing principal is closer to J. Paul Getty's philosophy of preferring to be paid 1% on the efforts of a hundred men, rather than 100% on your own.

This leverage comes from what I call the duplication of a simple effort. Instead of building a sales force of highly skilled salespeople and recruiters, you create an effort that moves products that anyone can do and anyone can teach…and perhaps even more importantly, teach others to teach.

This effort has three important actions:

• promoting (selling)
• enrolling (recruiting)
• consuming

I maintain that literally ANYONE, regardless of their skill set, when excited about a product (or products) that they have had a personal experience with; could consume and share at least $200 of said products each month. If they merely enrolled one person a month on average, for a minimum of a hundred dollar purchase, they would be responsible for generating personal sales of $300 per month. Now, what if they were provided a structure to build hundreds or even thousands of others doing the same thing - duplication.

Consuming $100 worth of product, sampling out $25 or so of something per week, and enrolling at least one person at the minimum level each month, granted, won't make you very much money. However, building an organization of 1000 others doing this type of minimal effort and then earning an average of 5% (for example) on that volume, will make a person money on this kind of distribution system!

Love, Uncle Russ