Burke Hedges Speaks

Thanks for joining me again this week for the Monday Minute! Last
week I shared with you my 3 absolute, non-negotiable philosophies
for success. This week, I’m going to share my personal business model that I’ve
used to achieve passive residual income in direct marketing. I call
it my “5-10-3 Business Model” and it’s the secret to long term success
in this industry.

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Every franchise has a business model. From McDonalds, to Subway, to
Dominoes Pizza. The reason people are willing to purchase a million
dollar franchise is because you get a million dollar marketing system
to build that business.

We too have a business model in the direct marketing/network marketing
industry. Unfortunately, many people try to go off and reinvent the
business model to suit their personal tastes. Sad to say, but their
businesses often implode. If you don’t personally follow a smart business
model that works, and you don’t train your team to do the same, your
business can eventually fall apart.

I was in Cypress a couple weeks ago training with a direct marketing
company that has been around for 35 years. What I’m about to share
with you is the same business model I shared with them and I can
guarantee you that their sales increased dramatically just because
of this business model. I call it “My 5-10-3 Business Model” to
achieve passive residual income in direct marketing.

Here’s how it works…

Once you’ve sponsored someone into your business, you’ve got to plug
them into a system of success. You’ve got to give them a business
model to guide their efforts. So, what is the model? It’s “5-10-3″
and it breaks down like this: Sponsor 5 business partners who each
get 10 customers, and go 3 levels deep.

Now, let me explain how you do this:

When you bring someone into your business as a partner, you’re going
to help them sponsor 5 people. It may take you 2 months, 6 months,
or even a year to get those 5 people. You may even have to go through
10, 30 or even 100 people to find 5 good people who stick. It doesn’t
matter. Whatever it takes, your goal is to help your new business partner
sponsor their 5 people. This is part 1.

Now, part 2: You’re going to demand that each one of your business
partners have 10 personal customers. You need to have 10 personal
customers & each one of your business partners also needs to have
their 10 personal customers. The success of your business depends
on a lot of people each doing a little bit. The beauty of this
industry is that you don’t have to go out and sell hundreds or
thousands of customers. All you need is 10.

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Typically, your product customers will be those people who don’t
see the big picture of the business opportunity (which by the way,
there couldn’t be a better time than right now during this economic
tsunami to introduce people to your business). But the people who
aren’t interested in becoming your business partner will typically
be the ones who become a customer of the product.
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Now, once you’ve got your 10 customers and each of your 5 business
partners have their 10 customers, you’ve already met 2 of the 3
qualifications for this business model.

The third part of the” 5-10-3″ business model is crucial. You must
build your organization 3 generations deep. Because this business
is about leverage, residual income, exponential growth, and breaking
the “time for money” trap- it’s essential that you build your organization
3 generations deep and you teach each one of your business partners to do
the same.

Let’s look at what takes place mathematically if you follow this
business model:

On your first level, you have your 10 personal customers. The 5
people you’ve sponsored each have their 10 personal customers as well,
so you’re getting paid for at least 60 customers. Now, because
you’re teaching this business model to your team, they all have
“depth mentality” and their mindset is to go out and do the same.

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It’s very important that your team understands how important it is
to build depth in their organization right up front because this
concept is foreign to most people. This is how network marketing
works- so it becomes your duty to stamp that blueprint in their
minds eye right at the get-go.
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Next, your 5 business partners will duplicate what you’ve done.
They’ll go out and, with your help, sponsor 5 business partners
who get 10 personal customers. This will give you 25 business
partners on your second level, and 250 customers.

Finally, you’re going to go 1 level deeper- you job does not stop
until you get to that 3rd level. Each one of those 25 business
partners on your second level needs to do exactly what you did-
they sponsor 5 people with 10 customers. That would equal 125
people and 1,250 customers on your third level.

This is the power of exponential growth and the power of the
“5-10-3″ business model. When each person does a little bit,
it compounds. Likewise, when each person on your team builds
depth in their business, it compounds. That’s when you know
you have a successful business.

Just like a McDonalds franchise is successful because of their
replicated program- the proven formula for success in direct
marketing is the “5-10-3″ business model. Focus your efforts on
building your business with this model and teaching your team
to do that same, and you’ll be pleasantly surprised at the amount
of passive income- or what I call “permanent income”- you’ll generate.

With the “5-10-3″ Business Model, you can finally stop getting up
at the crack of dawn and start getting up at the crack of noon!

I’ll see you next week!

Having “posture” is incredibly important when you’re going into a presentation.  It’s that certainty, that 100% confidence and total belief in what you’re doing that will really make an impact on your prospect when they sit down with you.  When you approach your prospects with the posture of a winner, they’ll respect you, your time, and the opportunity you’re presenting. 

You can spend a lot of time preparing to make a presentation, but let’s face it: Eventually you’re going to have to stop preparing and just get out there and DO IT!  You can ask people all day long “Who do you know who might be interested in making an extra $2,000-$5,000 a month?” And when they say “ME!” you’ve got to have the skills to sit down with them for 20-30 minutes and present your opportunity in the best light possible, with excitement and determination to win.
 
In my training program “The Science of Effective Prospecting, Recruiting & Sponsoring” I teach in-depth on the 6 key elements of an effective presentation.  You can find more out about that program by visiting http://www.21DayChallenge.net

Here’s a brief overview of those important steps:

–> Part 1: Talk about your company.

Validate your company. Go over some key highlights.  When was the company started?  What’s their track record?   Let your prospect feel comfortable that this is a credible company that’s stable and will stick around.

–> Part 2: Talk about your industry.

Did you realize that you’re a part of the fastest growing industry in the world?  The home-based business industry is HUGE! Look at these recent stats:
>> Every 11 seconds someone starts a home-based business.

>> Over the next five years, in the United States alone, the number of people who work out of their homes will increase from a current 30 million to an estimated 90 million.  In other words, the number of home based businesses will triple!

>> Female-owned businesses are being created at about twice the rate of male-owned business.

>> Forty to 44 percent of all home-based businesses require less than $5,000 for startup

Share these facts and figures with your prospect.  Chances are they already know several people who own a direct sales business already.  Paint a picture that they’re getting involved in the right place at the right time.

–> Part 3: Talk about your products

Make sure you have some product testimonials on hand.  You want to show your prospect with belief and conviction that your products are working for people.  It’s called “Social Proof”.  And you prove this with stories and testimonials of other folks that are experiencing the positive benifits of using your products.

–> Part 4: Show them the money

Keep it simple.  No one wants to see a complicated spreadsheet.  People only remember about 10% of what you tell them & a great way to help your prospect remember this part is to use the “Cash back”, “Cash flow” , or “Cash cow” system.

*Cash back is simply saving money by purchasing products from yourself.
*Cash flow is making money by selling the products to others.
*And Cash cow is when you build a team of people who not only use  the products, but also sell them to others. 

–> Part 5: Your support system

What kind of training can they expect?  Let them feel comfortable that if they get involved with you there’s going to be a methodology for how they do the business.  A system they can plug into.  Check out the end of this newsletter for info on how to outsource a lot of your training.

–> Part 6: How do they get started? 

Always start high.  I always like to say you can get started for less than $1000.  And if someone can get started in your program for $50 bucks, that’s less than $1000!  You can’t buy a franchise for less than $25k.  So the barrier to entry in our industry is much lower.  And that’s a huge benefit, especially with the current economy. 

Now, next week we’ll talk about the follow up, I’m going to give you tools for that.  Once you give a presentation they’re going to say one of 3 things. Sign me up!  No, this isn’t for me.  Or, I’ve got some more questions, let me think about it.  Most of the people you show this business to will fall in that third category.  And I’ve got some brilliant tips that actually systemize your follow-up…we’ll talk about those next week.