Dr. John P. Hayes

Dr. John Hayes is the man who literally wrote the book on network marketing. Co-authored with Zig Ziglar, Network Marketing for Dummies was a global success for those seeking quality information on the subject. Dr. Hayes’ defines network marketing as, “Not complicated at all. Every adult, kid and teenager is into network marketing. Everybody is a network marketer; but not everybody gets paid to be a network marketer. It’s nothing more than telling other people about something that you like, a product, a service or an activity that you enjoy doing and you’re passing along a recommendation or referral. Now, professional network marketers do that and get paid for it. Network marketing is nothing more than telling people about something you’re excited about and encouraging them if they show some interest to buy it also, and if you’re the one that can make that happen, you’re going to get a cut of it.”

More people and cultures are beginning to recognize that becoming financially independent is possible through network marketing, if you have the patience to build your network. “It’s a way of building residual income,” Dr. Hayes offers. “If you work for someone to do a particular job or someone hires you to do a project and they say they’re going to pay you $500, and you do the work, you get your $500. Yet, if I sell you on the idea that you really should be taking these tablets for your prostate and it’s not a one-time deal, I’m going to make money without ever having to resell you again and I continue to make money. Residual income is what everybody wants because it allows people to take charge of their lives. If I don’t want to work today, I don’t have to and the income is still going to be there. If I decide that I do want to work today, but I only want to work half a day, that’s ok; too, because residual income gives you that freedom.”

A prolific writer, popular speaker, seminar leader and consultant to businesses in the United States and internationally, Dr. Hayes is an advisor to small business owners, independent distributors, franchisees and franchisers. Following ten years as a college professor, Hayes started his own Public Relations Agency, which he operated for ten years. Since selling his agency in 1995, he has devoted his time to writing, conducting seminars and marketing consultations. Coming from the franchising industry, becoming a success and expert in network marketing was a simple step for Dr. Hayes. He says network marketing has been around for years. “It has existed since the beginning of time. A lot of people will compare Jesus as the greatest network marketer of all because he got twelve people together and 2,000 years later, we’re still practicing what they were networking to people about. As for the future, it’s only going to get bigger and better. In a time of a slumping economy, network marketing will become more popular and more people will get into it. Everybody is getting laid off; so, what are those folks going to do? Some of them will get into network marketing and many large companies are starting a network marketing division because word-of-mouth is the way to make it happen.”

MLM’s On the Comeback

For many years, multi-level marketing (MLM) or network marketing companies were looked down upon and developed a bad reputation for those serious about making money via residual income. Dr. Hayes offered, “People don’t like to be sold; they like to buy and there are some crazed, idiotic multi-level marketers that get carried away. It’s hard to sell you on anything, but very easy to show you by example to get you to buy into something that I’m doing. However, if I keep trying to beat you over the head and sell you on my product, then that gets offensive. There were some MLM companies that used a ploy to invite you over for dinner and you went under the guise that it’s a group of friends getting together and at the end of the dinner or desert, they pulled out their brochure, their products or videotape, that’s offensive. Don’t lie! If you’re going to sell me, tell me you’re going to sell me because that gives sales a bad name and MLM a bad name. Unfortunately, it’s still happening today. Smart network marketers and MLMer’s—they understand they’ve got to get you to buy in emotionally first, and not try and sell you when you don’t want to be sold.”

Choosing the right MLM can be difficult, if you allow it to be. However, Dr. Hayes is very straightforward in his approach to finding the right network marketing company for you. “In Network Marketing for Dummies, we really lay it out. If I were coaching somebody on how to pick the right company, the first thing that I want to know is that it’s a product that I personally like and use, enjoy and give to my mother. That’s the kind of enthusiasm you need to have for the product or the service. People who go into it with the idea of not caring what they sell and just want to make a lot of money, are not going to hook up with the right opportunity. Chances are, they’re going to get involved with something that’s not going to last very long. If you go to the Direct Marketing Association or buy some of the magazines that talk about network marketing, you’ll find something you’ll like. So, that’s your first step is to find something you like. Then, investigate the company and find out if they have been around awhile. If you’re going to get involved with a company, it would be a good idea to look at their track record to verify if they have been in business for at least three to five years.”

On of the growing concerns in the MLM industry is saturation. Is it true that a company that’s been around for more than ten years has tapped out its recruiting stream? “That’s far from true. People joined the Amway Corporation; and even today, still succeed in that business; so, it is right for some people. Unfortunately, most of the startups do not last between one to two years so you’ve got to keep that in mind. You might be excited about the product but the company may not have the financial wherewithal or management savvy to keep the business afloat.” After you’ve found the right product and the right company, Dr. Hayes says, “The third thing, which is really critical in choosing an MLM, is to find the right upline. This is the person who you’re going to sign up under and become your upline. That person can become your mentor, or coach and will help you through the startup phase, will help you when you’re discouraged that things aren’t happening, and will teach you how to do it correctly.”

Some key questions you want to ask your potential upline when someone introduces you to a new network marketing company are:

• How often am I going to hear from you?
• What kind of support will you give me?
• What can I expect from you?
• Will you send me any business?
• Will you make three-way telephone calls with me?
• Do you train and coach me over the telephone or the Internet?

“I think those kind of people are key,” Dr. Hayes admits. “I’ve frequently had good coaches and mentors; and in turn, like to think of myself as a good coach and mentor to people where I can, because it all goes back to Zig’s golden rule philosophy, ‘If you help enough other people get out of life what they want, you’ll always have in life what you want.’ That’s empowerment!”

Zig Ziglar

Making Money with MLM’s

Another myth that must be debugged when considering using an MLM to create long-term residual income is that it’s not a get rich quick program; rather, it’s a get rich very slow program, which makes it highly duplicatable. “Prior to writing about network marketing, I use to look down at network marketing; because I spent 20 years writing about franchising.” After completing his doctorate at Temple University, Dr. Hayes founded The Hayes Group to promote businesses internationally. The boutique agency grew to a staff of 16 professionals with billings approaching $1 million. The agency’s specialties included public relations, international promotions, domestic franchise development, and marketing programs for franchisers, franchisees and small businesses. Hayes later founded the Franchise Information Network, to generate sales leads for franchise companies.

Hayes has become known to the franchise community internationally through articles, books, and public seminars, including numerous annual presentations to franchiser and franchisee audiences. He is a frequent guest on radio and television to promote franchising. In 1994, he was featured in a 30-minute television infomercial called, “The Power of Franchising.” Dr. Hayes says, “I’ve worked with a hundred different founders and presidents of franchise companies throughout America and network marketing was always like a step below franchising. Then, I began looking at the network marketing industry when the book opportunity came along with Zig and; suddenly, I turned around my opinion of network marketing. It is true that most people who get in to it will fail. This is not as true in franchising because you’re paying so much money up front. In network marketing, you can pay $50 to $500, and most people can afford to do that. But, the risk is that they’re only going to lose a couple of hundred dollars and unfortunately, most people go into it with the wrong mindset. They think they’re going to start making money right away. If you invest $150 in something and think you’re going to be making $10,000 a month within 90 days, you’re smoking something – it’s not going to happen.”

Dr. Hayes says that in the six months of research he did for Network Marketing for Dummies, he met and interviewed more millionaires than he did within 20 years working in franchising. “These are people who all worked hard—it wasn’t handed to them. There are a lot of stories where folks come from having very little and they were sick and tired of being sick and tired. They had to set goals, which are very important to understand that you’re not going to be able to quit your day-job right away; you’re going to have to work at this. You might set a goal where in one year, you’ll be able to quit your day job; but it’s going to take about three years to really make the big bucks.”

Another factor Dr. Hayes says you must be ready for is the rejection. “It is risky because you are going to be rejected when you start telling people what you’re doing. Consequently, they’re going to think pyramid and you’re going to have to put up with that for a period of time until you start turning the corner— then, they’ll be coming to you asking, ‘What do you do?’ Even then some of your friends will not believe that it’s not illegal or you didn’t just luck out. It’s simply following a system like any other good business.”

Most people believe that network marketing companies are in the business of recruiting as many people as possible to make money, when Dr. Hayes says that is the opposite. “Good network marketing companies don’t want you because you have $500 to pay. That’s not what they’re looking for at all. Here’s something you need to learn, be cautious about who you take money from. Even though it may be $49.95 for a sign-up or whatever it might be – why bother? There’s not enough money in $50 to try and talk somebody into joining when they are not going to do anything. When you’re a network marketer, you’re out recruiting, top people say this, and I say it in the book, ‘I am not sure that I’ll let you signup… I’m not looking for just anybody to signup, you can buy my product, but I don’t know if I want you to signup under me because I’ve got to invest a good six months or couple of years with you; and I don’t know if I want to do that if you’re not serious. You’ve got to demonstrate to me that you want this badly enough and if you do, then I’ll take a chance with you.’ That’s the attitude of top network marketers and good companies – they have a selection process.”

Philippe “SHOCK” Matthews is the Founder of SHOCKwealth System Financial Destiny University Program; an online university program that teaches three systems of success: wealth mindset, internet marketing and network marketing. For more information on how to become an instructor at SWSu, please visit www.shockwealthsystem.com.

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