The interview took place by email; I sent a long list of questions and both were refreshingly forthright with their answers. I had originally intended to edit the Q&A session down to around a dozen for the report but, what the heck, these are real people, not phoney actors in a promotional ad, so I've decided to print them all - even the ones I asked twice, in the same haphazard order - completely unabridged.
Just before that, however, to explain some of the terminology used, it's necessary to clarify a few points.
- When you attempt to sell to complete strangers, this is known as 'cold calling'. The 'warm market', mentioned below, is simply the people you know - friends, relatives, acquaintances - who should, logically, be approached first.
- The Kleeneze Sales Plan has many levels of progression/promotion and requires that certain plateaus be reached - in terms of volume sales figures - before a distributor reaps the associated benefits. The first such milestone is that of 'Gold Distributor'. The 18% mentioned by Terry actually means that they are two steps below this mark.
- As a further incentive to their top distributors, Kleeneze have added a new upper tier to the Sales Plan: Principal Distributor. Not only will anyone who achieves this accolade be earning really serious money but, by way of recognition, they will also be presented with a Porsche Boxster!
Here we go, then.
J.L: When did you join Kleeneze?
Lorraine: October 1996
Terry: April 1997
J.L: Why did you join?
Lorraine: To earn money for Christmas.
Terry: Originally, I joined with my ex-partner and the intention was for it to be a second income and something for my ex to do. However, she lost interest within the first week and I ended up doing it alongside my business.
J.L: How were YOU first shown the business and how were you sponsored?
Lorraine: I answered a blind ad, saying 'cash for Christmas' in the local paper. My original sponsor has since given up.
Terry: I was on Lorraine's warm list and she prospected me. I was initially impressed with the business but wanted to talk with someone in Lorraine's upline who was already successful so that I could make an informed decision.
J.L: With both of you involved in the business, who does what; do you have a
division of duties?
Lorraine: Terry works out our route for the day and we both prepare, distribute and pick up catalogues. I collate the orders and we both sort the products into individual orders. I telephone customers to arrange deliveries - sometimes there are over 100 in a week, and do most of the delivering. We both prospect people, attend meetings and help members of our group.
Terry: Generally, we muck in and share the everyday running of the business. I tend to spend a bit more time on the PC developing our web site and looking for ways to expand into Europe.
J.L: Is there any one factor that ensures success in this business?
Lorraine: Being consistent.
Terry: Hard work, hard work and then some more.
J.L: What is the structure of your business, do you both still retail or rely on
building and maintaining your downline?
Lorraine: Retailing is the backbone of the business. If no-one moves products, no-one would earn anything.
Terry: Everyone has to retail. You have to lead by example, if we did nothing, then so would our downline.
J.L: What did you do before?
Lorraine: When I joined Kleeneze, I was a single parent with one daughter - she is now 9 years old. Before that I worked in an office as a Motor Claims Negotiator and before that as a secretary.
Terry: I used to run my own decorating business and employed several people.
J.L: How do you handle the self-employed bit: accountants, tax and things?
Lorraine: I leave it to Terry!
Terry: I've been self-employed most of my working life, so accounts etc is second nature. I would always recommend you find a good accountant because at the end of the day, you are running your own business.
J.L: How did you meet?
Lorraine: I met Terry's ex-partner when we both attended a nightclass about child psychology in 1994. At that time he was just an acquaintance who quoted for some decorating, as mentioned below. I knew he had had some MLM experience and I prospected him in '95 for Amway, which I was heavily involved in. I got a 'Choices' tape to him through his ex, but he didn't listen to it. I spent more than I made in Amway but I learnt a lot about the nature of the business and have been hooked ever since. I've also had a go at Avon, Cabouchon and Tupperware! My original Kleeneze sponsor helped me get some prospecting letters out, one of which was to Terry, and he ignored it. A while later, my upline taught me how to contact people on my warm list, by telephone. He said he'd get 3 information packs out on my behalf, if I'd follow up. Terry was fifth on my list, but two of the people above were engaged, so Terry's was the last info pack sent out. The other two didn't join. I believe in fate.
Terry: I first met Lorraine when she asked my ex-partner if I would give her a quote for her insurance company to do some decorating work. This I did but later discovered that she gave the job to someone else (thanks darlin').
J.L: How many hours a week do you work?
Lorraine: It's difficult to evaluate accurately. As much as possible! Something gets done every day. We aim to take a day off here and there, but it rarely happens. If we're not 'in action', we are talking about the business - it's in our blood!
Terry: To be honest, this is more a labour of love. We don't work a conventional 9 to 5 but to put a ballpark figure on it, I would say 30 to 50 hours a week.
J.L: How and where do you recruit?
Lorraine: We try as many approaches as we can think of. At the moment our group is all local to Poole and Bournemouth and we are concentrating on that at the moment. We have had agents out of town but they have all fizzled out.
Terry: We use several methods of exposing the Kleeneze opportunity to as many people as possible. We put out 250 fliers a week, place ads in shop windows, talk to people we come in contact with on a daily basis, advertise on the Internet and occasionally advertise in our local newspaper.
J.L: Statistics show that Networking schemes have a high mortality rate. How many
drop out quickly? Do you know why?
Lorraine: As long as you are prepared for at least 80% of people to drop out, you will have the right attitude to succeed. People need to feel part of a group and to have the security of a dependable sponsor. Agents will generally need to work more on their own personal development compared to the actual business, and most people aren't prepared to do that.
Terry: By the very nature of the business, people drop out and you have to get through a lot of people before you find those that are prepared to stick at it. It's a numbers game and as long as you realise that, you can beat it This is not a business for everyone I would say about 95 out of 100 will fail and that's why it will never saturate. The main reason people drop out quickly I feel, is because they don't get the full support of their upline.
J.L: How often do you meet with your downline/upline
Lorraine: As well as meeting with our group on a regular basis, we speak to them all in between times to make sure everything is running smoothly, and to offer our help and encouragement.
Terry: We run regular training meetings at our house every two weeks for our downline and attend our local Bournemouth meeting once a month.
J.L: Where do you meet?
Lorraine: When we have more committed distributors in our group, we are planning on renting a room at the local new community centre round the corner from us.
Terry: Our house.
J.L: Advertising on the Internet could give you a well spread downline, would
that cause problems? IS your downline scattered?
Lorraine: We have had satellite distributors before, but it has not lasted. I think when people are sponsored long distance they probably have to be more self motivated to actually get out there and start their business. For local agents, we usually help with the distribution of their first lot of catalogues, first order, etc etc.
Terry: At the moment, our downline is local. We do realise that sponsoring afar does have its disadvantages. It means that we can't give the same personal support and training. However, the Internet is opening up new fields of communication and with the launch of Kleeneze into Europe, sponsoring long distance is going to be inevitable. It is our intention to provide as much back-up and training as possible using the technology available i.e. news groups and perhaps video links.
J.L: Will the forthcoming expansion into Europe impact on your business and offer
new opportunities, and what about the language barrier?
Lorraine: I went on a basic French course a few of years ago, as I thought I might need to converse if my Cabouchon business, which I was involved in at the time, expanded over there. Unfortunately, I didn't carry on with it. I might get into it again! In the meantime, no doubt we'll attract one or two business builders in Europe who can speak English!
Terry: It's very exciting to be involved in the launch into Europe and yes it will make a major impact on our business. With regard to language, I would say the Europeans have the advantage over us. I'll have to brush up on my Euro.
J.L: How does Internet ordering stack up? Does it add to your outgoings?
Lorraine: As long as Kleeneze receive our internet order by mid-day, we'll get the products delivered the next day by Interlink (excluding weekends). We pay £10 a month but as long as the orders are £200+ it doesn't cost us any extra - we can order as many times as we want. Postal orders incur a minimum charge of £3.50 for every order £50+, and we can only send 1 a week.
Terry: Internet ordering makes us more efficient and therefore cost effective. Plus we can see at a glance, how much business we have done at any time.
J.L: What's your status in the business: Gold distributor, or what?
Lorraine: Can't wait till we get momentum - we're almost there.
Terry: We are now at 18% and climbing.
J.L: What's your annual turnover?
Lorraine: Can't wait till we can say it's £15,000 per four week period!
Terry: To date this year, we have done £15,000 of business.
J.L: What are you earning (strictly optional)?
Lorraine: Can't wait for a year from now.
Terry: If you calculate it on today's figures, £12,000 pa. But our income grows each month so a year from now we could realistically be earning £20,000 - £30,000.
J.L: The piece about you in Business Opportunities U.K from last year said you
were engaged. Have you since married or do you plan to soon?
Lorraine: We're both really looking forward to it, but it's just not convenient yet.
Terry: Are you looking for an invite to the wedding John? We haven't set a date yet, but probably some time in the new millennium.
J.L: Other than money, what's the most important benefit you have derived from
networking?
Lorraine: The realisation that I'm doing something I really enjoy, and knowing that I won't have to work for a boss. Networking can change someone's life and it's a powerful alternative to be able to offer someone a lifting hand out of the rat race.
Terry: The most exciting thing I find from this business, is building something from nothing and helping complete strangers to do the same. It's a very rewarding experience of the like which you can't find in any other business.
J.L: Did you find it hard to begin with?
Lorraine: It's hard work establishing a sound customer base, but I found the actual retailing easy because I'd done Avon for years and knew it would work.
Terry: It's very hard to begin with but as you progress it gets easier.
J.L: What's the most difficult part of the business?
Lorraine: Keeping the group motivated - finding people with staying power.
Terry: Without a doubt, sponsoring. But again, it gets easier the more you do it.
J.L: Do you think you will be able/want to retire early?
Lorraine: I think we'll always want to be active in Kleeneze, but later on we won't need to put so many hours in, but will be reaping the benefits of the seeds we are sowing now.
Terry: I can't ever imagine retiring early because I'm one of these people that has to always be doing something but I can't see any reason why 5 or 10 years from now if I chose to, I couldn't hang up my catalogue bag.
J.L: Do you have any hobbies/interests together or separately?
Lorraine: Running a business, house, and sorting my daughter out with her social life, homework, etc, doesn't leave much time for hobbies. One of our goals is to be able to afford membership of a private sports and leisure club, so I'm really looking forward to that.
Terry: I like hill walking and climbing mountains but Lorraine doesn't share my passion.
J.L: What are your business building techniques (not confidential info)?
Lorraine: Sponsor downline as well as frontline and teach duplication of the same principle.
Terry: Talk to as many people as possible and help train those who want it.
J.L: Do you see any limit to your earnings?
Lorraine: No.
Terry: No.
J.L: What do you see as the greatest benefit of MLM?
Lorraine: It provides a financial vehicle so simple that anyone can achieve their goals using it, as long as they work hard enough!
Terry: Self-development.
J.L: How much do you retail every month?
Lorraine: Our present plan is that for three weeks out of every four we distribute around 400 catalogues which gives around £800 of orders weekly.
Terry: Between £2,000 and £3,000.
J.L: What percentage of new distributors become serious?
Lorraine: It's got to be a low number, otherwise it wouldn't work … most people are not prepared to break away from the 'norm' and you need to with Kleeneze. It is not a conventional business.
Terry: From experience, I would say about 5%.
J.L: How do you recruit new distributors, and have you changed or developed your
methods with experience?
Lorraine: By spreading the Kleeneze word using as many methods as possible, then sharing the opportunity with everyone who has expressed an interest, and letting them decide. In the past we always used to ask people directly if they needed an extra income, which puts them on their guard, but now we ask whether they know anyone who needs extra income, and would they look at the information. If they're interested, they soon say.
Terry: In the beginning, we were hopeless. Only with time and by attending training meetings and talking to more experienced people did we improve and we are still improving. We talk to everyone and anyone now and generally find it to be the best approach for us. You have to find what you're comfortable with and do it consistently.
J.L: How many people have you sponsored?
Lorraine: As below - Terry was one of them!
Terry: 30 people to date of which 5 are active.
J.L: What are the pros and cons of advertising?
Lorraine: Some of the most successful people in Kleeneze have come from advertising, but none of our key people have so far (except me!). It hasn't been cost effective for us yet.
Terry: We have advertised nationally and locally and find it to be expensive and the overall results poor. We advertise on the Internet, which at the moment costs nothing, and we are beginning to get a response.
J.L: How hard do you work?
Lorraine: We put a lot of effort in - in the early days it's for little financial reward, but with our vision we know that if we plan our activity, stick to it and never give up, our income will just grow and grow. Already we are seeing a turn around in that we put less hours in on the retailing side than a year ago, but we are earning about four times as much.
Terry: We are both dedicated to our business and work hard but as I said, it's a labour of love.
J.L: What are your goals for the business?
Lorraine: To make it the best run distributorship, because we believe in giving the best service.
Terry: To make the "Krusaderz Group" one of the biggest within Kleeneze.
J.L: How did you first become involved in MLM?
Lorraine: An ex work colleague prospected me in 1993 for Amway.
Terry: My first experience with MLM was way back in the eighties and that was with Shaklee and later with NSA. I never actually made any money back then but with Kleeneze, I was making money almost immediately.
J.L: How long with Kleeneze?
Lorraine: Three years.
Terry: Two and a half years.
J.L: Why Kleeneze?
Lorraine: Having been involved with Avon and then Amway/Cabouchon, I thought that my ideal would be a mixture of the door to door principle Avon use to distribute the products, and the pay structure of MLM. When I answered the blind ad, I could hardly believe I had stumbled across a company that was being run like I had dreamed.
Terry: It's the only business I know, where anyone who is prepared to work, can earn £50,000 or more a year (top earner £265,000 pa). And, it actually works!!!
J.L: Have you tried any other networking business, and if so, what?
Lorraine: Amway and Cabouchon.
Terry: As I said, Shaklee and NSA.
J.L: What training do you give your group?
Lorraine: We give hands on help, have home 'sizzle' meetings and keep in telephone contact.
Terry: We cover the three main aspects of the business, retailing, sponsoring and business building.
J.L: Other than on your website, do you do any advertising and where?
Lorraine: Shop window adverts; passive advertising in with every catalogue we put out; leaflet drops; small ads in the local paper.
Terry:
J.L: What's the hardest part for someone starting out?
Lorraine: Accepting that they have to invest in this, their own business. A lot of people aren't business minded. Adjusting to the fact that they can put 100 catalogues out, get one order for £2.99 and lose 10 catalogues to the elements. They have to believe enough in the business to carry on, because next time they might put 100 catalogues out and get £300 of orders and lose 5 catalogues. We aren't paid hourly!
Terry: Realising that you get nuthin for nuthin. We always point out that it's hard work when you first go out with your catalogues and with time and effort, it does get better.
J.L: How do you handle rejection?
Lorraine: I'm mentally prepared for the fact that, especially on the sponsoring side 95% of time spent will be a waste of time; this gets things into perspective. Rejection is going to be a large part any MLM business. As far as customers are concerned, for example, recently one tore the catalogue up and sent it to us in the post without any stamps on it, just to make a point. We paid the 90p postage, and then the post lady gave us an order! This covered the cost and she may well be a regular customer.
Terry: With a smile. But it wasn't always that easy. Again, time and persistence is the key.
J.L: What's the first thing you would do with me as a new recruit?
Lorraine: As Terry …
Terry: We always go out with new people to place catalogues for the first time, we help them collect their catalogues and we help them process their first order. We invite them to our training meetings and to the local Bournemouth meetings. We encourage them to use us at every level until they are confident in their business.
J.L: What changes have happened in MLM since you started?
Lorraine: Only that companys have come and gone, like Cabouchon and NSA. Kleeneze has a powerful history which indicates it will have a powerful future.
Terry: MLM hasn't really changed a great deal in the time I've been involved. I do believe however, that Kleeneze is the most respectable MLM business available today and I believe it's going to be the most successful over the next 5 to 10 years.
J.L: Any changes you'd like to see?
Lorraine: We are lucky to have a strong management team at Kleeneze - with them in charge, all our futures are bright.
Terry: I'm very comfortable with Kleeneze and I believe they are enhancing their business continually.
J.L: What about the bad press that MLM gets (Amway is getting some negative
publicity just now)? How do you deal with it?
Lorraine: When I was in Amway I used to feel very uncomfortable about the approach they taught, ie, don't say it's Amway; when someone asks how long you've been in just say 'a while' and never disclose earnings (because they were far outweighed by outgoings). Now, with Kleeneze, it's like a weight being lifted off my shoulders. Everything is above board and honest. We all know what each other earns and nothing's a secret. Any amount of bad press wouldn't bother me because I'm very confident about the industry and know that it works and it is ethical.
Terry: With no disrespect to people in other MLM businesses, they have a hard time of it trying to make it pay (although they would have you believe otherwise). When I attend Kleeneze meetings, I know that all the people there are making money and they don't mind telling you how much. I believe that Kleeneze is the most open and realistic opportunity available today and as I said before, Kleeneze have made MLM respectable. I don't have any problem with MLM within Kleeneze and I'm happy to discuss it with anyone.
J.L: Do you arrange or attend lots of meetings?
Lorraine: Both - see below. The day a distributor decides he/she doesn't need meetings, they are doomed. Had a bad day - you need the meeting! Had a great day - the meeting needs you.
Terry: We run our own training meetings for our downline every two weeks and attend the local Bournemouth meetings and the National conferences.
J.L: Did you personally involve any of your family in MLM?
Lorraine: No. My Mum is one of my best customers though.
Terry: Other than my ex-partner, no. I have spoken to them though and they watch with interest.
J.L: How did they do?
Lorraine: -
Terry: My ex lasted a week.
J.L: How do you push unproductive downline members?
Lorraine: It would be a waste of time. They obviously haven't got a big enough reason to get out there and be active. Desire to be productive has to come from within the individual. We always emphasise that, if they lose interest that's fine, but if they decide they want to make a go of it, we will help and advise.
Terry: We don't push anyone. We look for those who show commitment and work with them.
J.L: Do you find it hard both working and living together?
Lorraine: No. Our personalities and working skills compliment each other perfectly. We're very lucky!
Terry: We love it!!
J.L Would you attempt to recruit at a social occasion?
Lorraine: People are always interested in what the other does for a living, so it would happen naturally.
Terry: We are never off duty.
J.L: Do you have 'opportunity' meetings at home for family and friends?
Lorraine: Yes, but not as often as training meetings. Most times we go to the individual's house to show the business, or take them to the bigger Bournemouth meetings.
Terry: Yes.
J.L: Do you use computers in your business?
Lorraine: We do, but not everyone in our group has one. It means we can give a more professional image and service.
Terry: Yes, but it's not compulsory.
J.L: Are you close to being well off?
Lorraine: At the moment our income does not match our outgoings, but then they are high! … trying to finance my house, which Terry moved in to just over two years' ago, plus contributing to his house where his ex and family all live, is a challenge. However, our income trend is definitely on the up and we are confident that this time next year we will not have to worry about the bills.
Terry: I suppose you could say we are close. I predict that 5 to 10 years from now we will be wealthy in financial terms. But I feel wealthy now because I am doing what I enjoy doing, Kleeneze and with someone I love.
J.L: What kind of car do you drive?
Lorraine: I have owned my D registered Mazda 323 LX since August 1992. It is ideal for our present needs.
Terry: We own a very reliable Mazda, which has been good to us.
J.L: Do you think you'll ever win the Porsche?
Lorraine: Anyone has the potential to earn a Porsche, so why not us!
Terry: I'm not a car person to be honest and the Porsche isn't an incentive for me personally but I can't see any reason why not.
J.L: Has anybody won it, or even come close to it?
Lorraine: No.
Terry: This is a new level and incentive package that has just been introduced but it's only a question of time before someone wins it.
J.L: Is there any danger of too many Kleeneze ads appearing or too many
distributors within the same territory?
Lorraine: There is room for all those who give a good service and are consistent. A year ago there were six agents within a mile of where we live - now there's only us and one other. Distributors come and go. Out of the ones who stay, a fairly high percentage won't want to build a group, so they won't be advertising.
Terry: No. As I said before, distributors come and go and only the hardest working and most dedicated will remain and the World (well Europe for now) is their oyster.
J.L: Finally, any other comments of your own?
Lorraine: We both believe that this is the best opportunity in existence. We have large goals to focus on to help us through the bad days, which everybody gets. To be successful just be focused, committed, dedicated, consistent, persistent, develop yourself, give the best service and develop an unshakeable belief in what you're doing. JUST GO FOR IT!
Terry: This is the people's franchise, the alternative franchise and it is SO SIMPLE, IT ACTUALLY WORKS!
For further information on running a Kleeneze distributorship, go to Terry and Lorraine's website: www.krusaderz.freeserve.co.uk
Don't forget to tell them BIZ BANANA sent you!
UPDATE: August 2001 *
We've tried to access the Krusaderz site several times but it seems to have 'gone away'. It very well may be that they have moved to pastures or have given up their Kleeneze franchise but, whatever the reason, it seems the there are many others waiting to take their place.
If you are a Kleeneze agent, or if you are thinking of becoming one, why not tell us about you experiences - good or bad - and let us know from the horse's mouth how YOU fared. The best response gets you a FREE ad for three months!
Send us your thoughts to: Sorry! No emails just yet.