BIZ-BANANA.COM

The Products
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In the last few decades, and certainly in the nineties, there has been a quantum shift away from people's reliance on conventional medicine alone. We now have a greater awareness of the availability of healthy, nutritional supplements, which complement traditional treatments and offer positive, natural alternatives to pharmaceutical drugs.

More than ever, people are seizing control of their own health and well-being and this proactive attitude is evidenced by the burgeoning demand for vitamins, minerals, nutraceuticals, sports nutrition supplements and herbal products.

The Changes range of products includes just about every kind of nutrient you can imagine - and probably even a few you can't, if you're anything like me. My limit is usually a couple of aspirin! Mind you, after reading about this little lot, I think I'll have to seriously re-examine my options.

There are:

• Liquid vitamins and minerals

• Anti-oxidants to combat free radicals (whatever they are!)

• Natural herbal ingredients and patented chromium known to enhance the burning of fat and calories (just the thing for weight management)

• Advanced digestive enzyme support (for those of us getting on a bit - like me!)

  and...

• Even a chewable multivitamin for the kids!

That's only a very small selection from a comprehensive range, but if you want to know any more about the products you will need to contact a Changes distributor. By a sheer coincidence, naturally, we just happen to know one, who we'll talk to later.

The Compensation Plan
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Right then, we've talked about the company and their range of highly beneficial, 100% satisfaction guaranteed products; now it's down to the nitty-gritty: "How Much Money Can I Make?"

We'll come to that soon, but first let's look at another very important aspect that separates Changes from the rest of the pack.

Unlike just about every other Networking plan I have heard about, with Changes you DON'T have to:

1. Demonstrate the products

2. Give or attend a single meeting

3. EVER have to canvas strangers

4. Call a single person on the phone, unless they phoned you first and asked you to return their call. And even then only to answer their questions

5. And, very, very importantly (I think) you DON'T need to buy ANY demo stock!

In a while, we'll talk to Linzi Day, a Changes distributor for three years and see if we can get her to enlighten us on exactly how this 'all from home, no meetings' system works.

Okay, let's see if I can get this right.

We'll use a scenario from the Changes information pack.

Let's say you want to buy a new car and you would like to earn the money to pay for it by running a part-time Changes distributorship. Let's also say, just for example, that the monthly payment for your gleaming new chariot is £270.

To achieve your target earnings, you need to have a total of 12 other people in your network: 3 active Executives on your 1st level who each enrol 3 others. To qualify for the payment each person in the network - including yourself, of course - must be purchasing at least 100 business volume (BV) per month.

The BV minimum figure actually represents $100 U.S. which equates to around £79.20 - or whatever the prevailing exchange rate happens to be.

So, to summarise:

• You personally purchase at least 100 BV a month, for resale or personal consumption

• So do the 3 people you sponsored - your 1st level downline (or growthline, as Changes term it) and you receive a 15% commission on their purchases

• The 3 each that your 1st level people recruited (9) are your 2nd level and you are paid 45% of their purchases...

Now the above is only the very simplest of examples based on my own untutored interpretation of the compensation plan, but it's really only intended to give you flavour of the thing anyway and perhaps arouse your interest in seeking further information.

There are many, many more levels and enhancements in the plan and to fill in some more of the details I think we should talk to someone who is actively involved.

The Independent Distributor
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Linzi Day is a leading Network Marketing journalist who writes regular monthly columns for U.K. business magazines. Her articles have appeared in 58 countries to date and in 1998 she won the U.K. Network Marketing Journalist of the Year award.

On a part-time basis, she works her Changes business a mere ten hours a week and has achieved the top profit position in just three years.

She kindly agreed to interrupt her busy schedule and answer our 'mile-long' list of questions via email.

The Interview
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J.L: When did you join Changes?

Linzi: November 1996

J.L: Why did you join?

Linzi: I'd heard about a year previously, from a colleague in the States, that Changes were causing a bit of a stir with their pay plan - which was revolutionary. He suggested I keep an eye out for them coming to the UK.

In October 1996 the company I had been with for almost 6 years made some drastic downward adjustments to their pay plan and that, along with a few other reasons, seemed a good reason to take a proper look at Changes. I sold my previous business and joined them.

J.L: How were YOU first shown the business and how were you sponsored?

Linzi: I saw an advert in the Sunday Times that said "Unhappy Networkers? Check this one out! 1st level 15%, 2nd level 45% + 3rd level to infinity bonus up to 15%. Free info. Call 24 hours on -- I had a suspicion that a payout that high could only be Changes.

My sponsor is now retired, he's in his 60's and the income from my business alone is rather a lot more than his pension was ;-)

J.L: Do you work the business with your partner?

Linzi: No.

J.L: Is there any one factor that ensures success in this business?

Linzi: No. But being teachable and prepared to follow the company's system (if it is proven) is probably high on a list of three or four factors that are usually necessary for success.

J.L: What is the structure of your business, do you still retail or rely on building and maintaining your downline?

Linzi: I do both.

J.L: What did you do before?

Linzi: I was a staff trainer.

J.L: How do you handle the self-employed bit: accountants, tax and things?

Linzi: I have an excellent accountant who specialises in tax planning -- which is essential even at the beginning. A good accountant will probably get you a tax rebate in your first year and stop you losing half your income in tax after that - they should save you a lot more than they cost you if you pick the right one.

J.L: How many hours a week do you work?

Linzi: 10 hours a week if I'm in the UK (7-8 months a year) I work 3-5pm most weekday afternoons and one evening from 7-9pm. If I'm abroad and working (2-3 months) I work 5 hours a week. 1:30pm-2:30pm each weekday - well it's too hot to sit in the sun then anyway ;-) I take the laptop and get most stuff done wherever I am.

J.L: How and where do you recruit?

Linzi: I advertise in the papers, in industry publications and on the internet. Anywhere in the UK, Europe, Australia, New Zealand, USA, Japan or Canada.

J.L: Statistics show that Networking schemes have a high mortality rate. How many drop out quickly? Do you know why?

Linzi: Actually I saw some figures recently that Changes has the highest retention rate in the industry. It was something like 65% of our people are still active and still with us after 2years.

I think the reason that people drop out of most companies is a combination of not earning money in the early days and the business taking too much time for the return they receive. Spending evenings and weekends at meetings doesn't actually pay you for example. Both of which probably explain why we don't have that problem - people earn money very quickly - they can get more at the bottom level with us than most companies will pay even their highest earners!

J.L: How often do you meet with your downline/upline

Linzi: I don't. Perhaps this would be a good time to explain that we have a "100% from home, at home" system?

J.L: So do you NEVER meet them?

Linzi: Well, we have a training roadshow two, maybe three times a year. It tours through large cities around the country over the course of a week -- doing two hours in each city.

The President's Advisory Council members are requested to try and see that at least one PAC member attends each event. So I would probably go to the two trainings nearest to me if I'm in the country. However as my downline are all over the country - I would only meet a small percentage of them. I've been to 3 trainings in the three years I've been with Changes.

J.L: Advertising on the Internet could give you a well spread downline, would that cause problems? IS your downline scattered?

Linzi: Yes, they're all over the place and no it's not a problem. Changes recruits businesspeople who need information and proven systems to follow -- not hand-holding.

We are a very advanced company. Information is disseminated via a telephone hotline, emails, a distributor newsletter (written by the leaders with all the insider tips) and a glossy company magazine to give the more formal view.

All the training is designed to be done at home - either as home study or on the specialised, passworded internet forums that are provided for the distributors by the newsletter.

J.L: What impact will expansion into Europe have on your business? Does it offer new opportunities, and what about the language barrier?

Linzi: I already have downline in several European countries. Language is no problem - I do speak several languages but the first people we sponsor in each country always speak great English. They're all doing very well so I suppose the proof is in their income.

J.L: What's your status in the business: Gold distributor, or what?

Linzi: I'm a 4* (Star) Executive and President's Advisory Council (PAC) member. I'm working towards the new position that company just announced - 5 Star. No-one has yet reached it.

J.L: What's your annual turnover?

Linzi: Can't keep track of it - volumes in my business tripled from January to June this year alone -- it's exceeding its track for over a million.

J.L: What are you earning (strictly optional)?

Linzi: I have a problem with this one - I wouldn't mind telling you -- but Changes have a rule that we mustn't use any income statements except our first year's earnings in anything that could be read publicly.

(It's to do with the UK 1997 NWM regulations about "claims that high incomes could be easily achieved" - their attitude is better safe than sorry.)

My first cheque was about £180 and in my twelfth month, including retail profit I earnt just over £4,500. Added up all together first year including retail probably about £25K.

It's gone extremely well during the 2 years since then. My volumes triple most years and my cheques obviously do something very similar! (copies of first year cheques available - we're required to state that.)

J.L: Other than money, what's the most important benefit you have derived from networking?

Linzi: Time Freedom. I do what I want where I want and get paid whether I work or not. My cheque increased by £2000 during a month that I spent playing in the Indian Ocean earlier this year!

J.L: Did you find it hard to begin with?

Linzi: No.

J.L: What's the most difficult part of the business?

Linzi: I don't think any of it's difficult - it can be boring sometimes.

Changes is terribly simple - so there aren't really any complicated discussions. However every new distributor has the same questions and for each individual those questions are important and must be answered.

Obviously we have the company equivalent of a FAQ - but sometimes people just need to hear a human being explain it to them. Fortunately - all the people are different - so that stops it getting too boring.

J.L: Do you think you will be able/want to retire early?

Linzi: I could retire now -- so could quite a few of my group.

J.L: Do you have any hobbies or interests?

Linzi: Lots. How many do you want?

I travel in both hemispheres about 4-5 months a year. I read - I know people say that -- but I really read - 10-20 books a week everything from Science Fiction to Psychology to Internet stuff to philosophy.

I ice skate in Britain and swim everywhere else in the world. I shop - a lot - all over the world. I also do some charity work with an animal rescue service and some fund-raising for them.

J.L: What are your business building techniques (not confidential info)?

Linzi: A simple 3-step turnkey from home, at home system. Operate it. Teach it - takes about 20 minutes - help them to operate it. When distributors start to get towards the top (4*) we also teach group leadership techniques and more extensive mail ordering retail skills (about 4 hours) It's a simple business.

J.L: Do you see any limit to your earnings?

Linzi: Realistically, yes - Our top earner has netted well over 2 million in the last 4 years. Compared to that I'm part-time, small fry. He's so much more committed than I am.

Perhaps I should qualify that? I don't mean I'm uncommitted to the company or to my downline - they're both the greatest. However I'm unlikely to ever work more than 10 hours a week - I enjoy my leisure time too much. I'm not one of those people who likes money for money's sake - I like what I can do with it. And that requires the time to enjoy it -- the fun of spending it with the people who matter to me is more important.

J.L: What do you see as the greatest benefit of MLM?

Linzi: Time freedom with the income to enjoy it.

J.L: How much do you retail every month?

Linzi: It varies - I do all my retail by mail order and my customers have me extremely well trained. I produce a customer newsletter for them once a quarter and most of them order their supplies quarterly. So on a monthly basis it can vary quite a lot. Anything from £2,000 - 5,000. My highest retailing month ever was £9,500.

We make £13.44 on a £22.95 sale - or almost 60% commission - and that's at the bottom level when a new person first joins - retailing is so profitable for us - the products are great and by mail order it's not really any hassle.

J.L: What percentage of new distributors become serious?

Linzi: Very few. But then it depends what you mean by serious? I have so many people in my business that only joined us to pay their mortgage each month and they do. So in that sense they're very serious - because they're getting what they joined for.

J.L: How do you recruit new distributors, and have you changed or developed your methods with experience?

Linzi: I advertise and send them information by mail. If our company is of any interest to them they send back for an in-depth information pack. If they like it they join.

I haven't changed the system at all. I'm one of those very teachable people. It took me about two weeks to be sure I had the "100% from home, at home" system VERY clear in my mind and I've simply followed it ever since. Some people call it a turnkey system - because you literally just follow it.

J.L: How many people have you sponsored?

Linzi: I have no idea. I don't put everybody frontline - sometimes I place them under my people -- I know I currently have around 70 active frontliners.

J.L: What are the pros and cons of advertising?

Linzi: Pro - it works.

Cons - you need the right advert - put the wrong one in or in the wrong place - it doesn't.

J.L: How hard do you work?

Linzi: I'm bone idle - it must be true my mother reminds me of it often.

I'm a great believer in working smart not hard and I have taken the time to set up some systems to ensure that I and my downline can do that.

J.L: Yeah, right. How can you be bone idle when you retail that much product, have sponsored quite a few people and obviously have to help their downline.?

Linzi: OK, this is how it works - the way I look at it -- is that my cheque from the company each month should be pure profit with only me and the inland revenue to pay out of it.

To make that happen I have to pay all my expenses some other way - I pay all the costs of running my business from my retail profits. Those costs - postage, phone bills, internet access, office machines, new computers - you name it -- advertising, stationery, voicemail etc and staff are all paid for. I have two staff.

I think the only way to succeed in network marketing and stay sane, with a life -- is to follow Michael Gerber's advice in the book The E-Myth. He essentially says that you must go to work ON your business not IN your business.

I do the things in my business that actually need me to do them in 10 hours a week. Things like advising distributors, speaking to new people, preparing articles and emails for my downline and I set up the European training forums, which is a searchable electronic library of over 5,000 topics and provides 24 hour a day distributor support through the Internet.

All the things that have to be done - but don't actually need to do them personally -my staff do. Invoices, product packing and despatching, simple customer queries etc. Basic email queries are handled by auto-responder.

That all means that I'm not in the least important - my downline can direct their new people to the systems that already exist to ensure they succeed. And if I'm not around they've got previous questions and answers from hundreds of people to help them or personal responses within about an hour.

I've actually just made a tape about all this stuff - anyone considering a franchise, a network or a small business should probably listen to it - It's called "Thin Air"

J.L: How would I get a copy of the tape?

Linzi: If anyone in Europe wants a copy of the "Thin Air" tape, I'll send it to them free if they send an email to: tape@first.uk.com

J.L: What are your goals for the business?

Linzi: To always get what I want out of it. (What I want changes often.)

J.L: How did you first become involved in MLM?

Linzi: A friend invited me along to a meeting -- I didn't join but the concept interested me. Some years later I was asked to do some training for one of the MLM companies.

I joined my first MLM when after working abroad I wanted to return to the UK but I didn't want to work for anyone else.

J.L: What's so atractive about Changes?

Linzi: It's a unique combination of a billion dollar manufacturing company (our parent company) with their expertise as leaders in the herbal and supplement field and the highest paying networking company on the planet.

The icing on the cake I suppose is the 'from home' system. After some years in one of the more old-fashioned companies spending evenings and weekends at meetings - I found the system refreshing and effective.

J.L: What's the hardest part for someone starting out?

Linzi: I don't know. I think that varies from person to person. Everyone has their own strengths and weaknesses they will still have them when they join a network.

J.L: How do you handle rejection?

Linzi: I don't get any. If people want to join they phone me -- if they don't I never hear from them again.

J.L: What's the first thing you would do with me as a new recruit?

Linzi: A short series of three-way calls. Actually, if I sponsored you myself it would be a two-way call - but normally the new person, their sponsor and their upline 4 Star do these calls.

The idea is the 4* and the new person speak the sponsor listens and learns so that by the time they get to 4* (top profit position) which may only be a few months - it's a very quick business -- they know how to do it themselves.

J.L: What changes have happened in MLM since you started?

Linzi: Far too many to list here - but probably the biggest has been the huge increase in the amount that is paid to the person who actually does the work - the distributor -- by some companies.

When you consider that most distributors in most companies do much the same thing - it baffles me that some people will do it for 5-25% when they could be earning 75%!

I don't think people would fall for it in any other industry.

J.L: Any changes you'd like to see?

Linzi: Ten years ago this would have been a long list to improve our industry -- but now? I think many of the important changes, particularly with regard to protection for distributors in less than ethical companies have been made and most of the others needed are planned at a legislative level and already being acted upon voluntarily by the better companies.

J.L: What about the bad press that MLM gets (Amway is getting some negative publicity just now)? How do you deal with it?

Linzi: I don't know anything about it so I obviously hadn't had to deal with it :-) I sometimes think I live in my own little world. Bad press for the industry generally? There's bad press and bad apples in any industry - there are also many fine, legal, ethical companies. And within those companies there will be legal, ethical distributors and bad apples - it's life really isn't it? The knack I suppose is to be able to spot the difference.

J.L: Do you arrange or attend lots of meetings?

Linzi: No. As I said before I've been to three in three years. (I think there have been about 5 but I was on holiday)

J.L: Did you personally involve any of your family in MLM?

Linzi: No. I don't work warm market. We treat it more like any other business. And advertise for like-minded business and/or health-orientated professionals.

J.L: How do you push unproductive downline members?

Linzi: I don't. It's their own business. I'll help anyone who asks me but I don't call them.

J.L Would you attempt to recruit at a social occasion?

Linzi: No.

J.L: Do you have 'opportunity' meetings at home for family and friends?

Linzi: No.

J.L: Do you use computers in your business?

Linzi: Yes - we've got 3 and a laptop. I think in 1999 it's impossible to run ANY kind of business without a computer and Internet access. Ours is no different -- It would certainly be almost impossible to run a Changes business - or at the very least it would be much harder work.

J.L: Are you close to being well off?

Linzi: I think I'm somewhere past 'close'. Then again it all depends how you define 'well off'.

About ten years ago I had a goal that went something like "I want to be able to pay every bill the day it arrives without noticeably depleting my bank account" I achieved that one.

And went to another one about "I want to come back from holiday to find more money in my bank account than I went away." I got that one and I moved on to "I want to take a 6 week holiday and see my balance increase while I'm away". That happened. Then I think the next one was "I want to own the house I stay in on holiday" (That was summer holidays in Portugal).

The current goal of that type is "I want to own a home in the southern hemisphere for winter holidays" I spend around 6-8 weeks in southern Africa and I'd like to spend longer -- I'm about half way to owning a property out there - I have a conservatory to build here first - so it will probably be the winter of 2001 before I buy it.

If well off means "Have I got enough money?" No - who knows what wonderful things I'll find to spend it on next?

J.L: What kind of car do you drive?

Linzi: Cars don't do it for me at all. I've got a blue hatchback - I'm pretty sure it's a Citroen - it carries shopping and it's easy to park.

J.L: Is there any danger of too many ads appearing or too many distributors within the same territory?

Linzi: Yes, I think that can happen - but sometimes people aren't very imaginative. They only think of national or local papers. There are around 25,000 publications in the UK which is a lot more than we have distributors.

One of my new people just had an astonishing result from an advert in a specialist magazine that only cost her £20. As for territories we don't have them - we have almost 70% of the developed world to sponsor in and nowhere near enough distributors -- yet.

J.L: Finally, any other comments of your own?

Linzi: Not really that was a pretty comprehensive questionnaire!

For further information on running a Changes distributorship, go to their website: www.changes.first.uk.com