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Home business ideas that WORK!

If nothing else, it may help you to decide whether or not it is something you wish to pursue and perhaps prompt you to send away for the brochures yourself!

The Company
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Launched in August 1997, Telecom Plus signed up 5,000 customers in its first four weeks, yet only a few months later the company was nearly broke!

While their team of highly experienced Multi-level marketing leaders were pulling in the punters with ease ('customer gathering' they call it), the administration side was a total shambles.

Enter the Hon Charles Wigoder, founder of People's Phone a pioneer of the concept of selling cellular phones on the High Street (sold to Vodafone in 1996 for £77 million!). He poured £1 million in cash into the ailing venture, took a 40% share and the chairmanship, while the original investors 'left to pursue other interests'.

Utilizing the skills and expertise gleaned from creating People's Phone - which in six years captured 10% of the mobile telephony market (400,000 customers; £175 million annual sales) - Wigoder spent the best part of 1998 turning things around.

By January of 1999, Telecom Plus was valued at £10 million, and the customer base was in excess of 20,000.

At close of trading on January 27th, 2000, the market capitalisation stood at over £89 million!

Turnover has risen from less than £1 million to nearly £5 million in just eighteen months and the customer base has expanded to around 80,000. By the time the company moves from OFEX to trade on the FTSE main list later this year it should exceed 100,000.

Now that's a success story in anybody's language!

The Products
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Any product you care to name has its own Unique Selling Point (USP) - that certain 'something' which enhances the salesperson's prospects of clinching a deal.

Obviously, the more appealing the USP to the customer the easier the sale, and Telecom Plus's USP is very, very compelling indeed:

Reduced telephone bills.

The company has diversified into other areas of telecommunications, but the two principal packages (the ones we'll concentrate on) are:

Service Plus and Mobile Plus.

Service Plus:

You, the customer, send off for a 'Smart Box', which you attach to your telephone (simple instrucions supplied). The box comes pre-programmed with the call charges of the chosen carriers, of which up to fifteen can be accommodated. Any updates to the Smart Box are carried out automatically by Telecom Plus, overnight, down the telephone line.

The box itself is free - but you pay a one-off connection charge of £23.50 (inc VAT). After that you pay a service charge of £1.76 (inc VAT) each month, plus the cost of your calls to Telecom Plus.

Payments are by direct debit 14 days after receipt of your statement and you continue to pay British Telecom for your line rental.

Whenever you dial, the Smart Box routes your call through the carrier with the cheapest rate at the time - effecting savings, the company claim, of over 35% on call charges for the average residential customer.

There are:

• no little blue buttons to press first
• no PIN numbers or access codes to remember
• no prepayments
• no minimum contracts.

As with Service Plus, the Mobile Plus package has its own 90-day, no quibble guarantee.

The Compensation Plan
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Now we've sketched an outline of two of their main products, let's have a look at the bottom line for distributors: the compensation plan.

And if you skipped straight down to this bit, shame on you. :-).

It costs £199.75 (inc VAT) to become an Independent Distributor.

Sorry to fire it straight at you like that, but there's really no way to break it gently. Yes, it's a lot of money, no matter how much the promoters try to dismiss it as insignificant compared to the potential rewards; potential being the operative word until you actually start signing up customers.

You can also start as an Independent Representative, a scaled-down option costing just £50 - where you get paid £10 commission for each customer you refer, but you cannot recruit others into your business. For our purposes, we'll stick to the higher-level position.

Okay, let's take a look at the compensation plan and see if I can explain it well enough to give you an idea of whether you think the potential returns really do outweigh the initial outlay.

To start off, you:

• Join as an Independent Distributor and earn £10 for every customer you personally refer. By the way, if they sign up for both Service and Mobile deals you get £10 for each!

• Join the Smart Box Service as a customer (you get the box and connection free, as part of the distributorship - which allows you to make savings yourself.)

• Refer six customers to become an Executive Distributor.

When you reach Executive Director status, you next big jump is to a Leadership level (there are four of those!) - but you'll only find out about them after stumping up your £199.75 to become an Independent Distributor. Speaking of which, let's talk to one.

The Independent Distributor
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Alec Lonsdale is an ex British Army Warrant Officer who trades under the name of 'Lonsdale Marketing'. His business has three areas of operation, the main one being an Independent Distributorship with Telecom Plus plc.

He was introduced to the company by two of his friends, Peter Willoughby and Eric Cole, leaders of the 'Telewealth Group', generally considered to be the largest and fastest growing group within Telecom Plus. (More on the Telewealth Group later.)

As seems to be becoming a tradition in this series of reports, we interviewed him by email.

The Interview
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J.L: When did you join Telecom Plus?

Alec: We formed the nucleus of the Group a couple of months prior to the Company's official launch. Our Company Analyst had completed his work, we were totally satisfied that the concept was a winner and off we went.

The forms were filled out in Aug. of 97 and our first product the Smart Box was given its final testing by us new Distributors prior to it being made available to the public on the 5th of Oct 97.

J.L: Why Telecom Plus?

Alec: The concept had previously been proven in the states where a company called Excel had done well with it. In fact the first $1 million dollar pay check for a Distributor was made around Oct of 97. (For one month)

It turned out that the only real comment from the Board when Telecomplus went to the OFEX was "Why hasn't someone done this before?" Some well respected City gentlemen were known to like the idea, so that was good enough for us.

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

Alec: A letter with some information from a friend. Once I'd been informed it was easy to make the decision as the facts spoke for themselves.

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

Alec: No, I have no business partner as such. However it must be remembered that in this business each business is part of a Group. Each business working as a single entity, is part of a gathering of similar entities.

Some are formed earlier than others. Some have more experience than others. Each must take full responsibility for their own success or failure. Also some will work much faster than others. However, this industry is about 'duplication', support and training is paramount. So in this respect everybody has the assistance of all who have gone before. Each, must teach, those sponsored, to sponsor.

My own Group I refer to as 'Alec's Team'. Our complete Group is referred to as'Telewealth'. The Telewealth Group are a partnership that have tremendous experience in this field. Peter and Eric have done a tremendous job of supporting the Group in a variety of ways.

In a similar way the group Leaders work with the Company. Whilst they run their own businesses it is essential that Leaders represent their Group and liaise with the Company on their behalf. Meetings take place between Leaders and Company and in this respect the Hon. Charles Wigoder has brought much professionalism to TelecomPlus and has bonded extremely well with the Leaders. So as you can see it's a case of …"in business for yourself; but not by yourself."

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

Alec: I can answer that in three words…Sustainable, Enthusiastic, Determination. I can also answer it in one word: Constancy. Just keep on keeping on.

I reckon that TelecomPlus is a two to five year build. Wouldn't you be prepared to spend five years in order to achieve your dreams?

Most people spend a lifetime trying to achieve them and never make it. Your dream may be Financial Independence for life, it may be to buy back your Freedom from employment, it may be material items, it may be to support others in need, it may be that you just wish to produce a second or third source of income.

This industry can bring dreams to life and does do on a very regular basis. This business works, but only if you work!

J.L: What did you do before?

Alec: It's like the carpenter said, "You can't expect to make good joints from day one, you've got to spoil some good wood first."

The phrase that I hate to hear because it is so sad is…"I tried it and it didn't work!" I always feel like saying…"It works, you didn't, go do your apprenticeship." I spent time in two Networking Companies prior to finding TelecomPlus.

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

Alec: Get good at earning money. Then do what you're good at and let the money pay for other people to do what they are good at.

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

Alec: As many as I can fit in comfortably.

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

Alec: I favour Direct Mail to make initial contact. Though over the last year I have started to use the Internet and Autoresponders which has proved to be cost effective also.

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

Alec: Are we talking about Businesses or people?

By schemes I assume you mean Businesses. Why does any Business fold? The plan is flawed.

If we are talking about people that is another matter. People drop out because Pareto's Law prevails in everything from catching fish to 'you name it'.

People are not told that they are going to fail and that failure is part of success. Therefore at the first sign of failure they weaken and when they realise it isn't as easy as they thought they simply get disillusioned and quit. Which means they either didn't get good guidance at the outset or they didn't listen and thought they knew better.

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

Alec: Some I have never met. (I've got big phone bills though, even with our reduced rates!) We meet with as many as can make it, at whatever meeting we can reach. With a downline in the hundreds or thousands you have to work through your Leaders. That's why a system that is easily duplicatable is essential. Email plays a vital role for Leaders needless to say. Though it is not essential at first, it is a handy tool.

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

Alec: Yes, it is scattered, but it needn't be a problem in this day and age.

J.L: Will you expand into Europe? What impact will that have on your business and offer new opportunities, and what about the language barrier?

Alec: Some Network organisations are already Global. One achieved participants in 65 countries in 5 months. Expansion into other countries is good news, especially if you can sponsor that country's most experienced people.

Language is not too big a problem as the Parent Company will need to provide translated literature. It may be necessary to visit that country for a few days but I don't consider that a hardship!

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

Alec: I'm a Group Director at the time of writing. (Yes it is one of the Leadership positions.)

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

Alec: The promise of further money, a secure future, a troublefree old age etc.

I should explain my stance on money.

This world works around money whether we like it or not. I personally do not like it but there it is. Since money has become so necessary, the easiest way to achieve your goals is by acquiring lots of it.

Now here is the main point… It is not money that is the root of all evil. It is the 'love of money'. Money should not be gotten for money's sake, it should not be coveted, fawned over, hoarded nor yet even squandered. It should be put to good use.

See yourself comfortable and your family cared for and then put the remainder to 'good use'. It's the defining of the word 'comfortable' that proves the most difficult for most people.

J.L. You've told me that Telecom Plus use the term 'Referral' marketing over Multi-level or Networking, can you explain the differences - remember you're talking to a layman!?

Alec: In most Networks if you make a sale you get paid commission once, for that sale only. To earn more commissions from that customer you must sell again. Each sale costs you time and money to obtain the close.

In Referral Marketing you refer a customer to the Company when they make their first purchase. Not only do you get commission on that first sale but without lifting a finger you get commissions on all future purchases that customer makes for as long as they stay with the company.

These follow on sales are usually the result of the company advertising by way of a leaflet in the customer's monthly phone bill. It therefore follows that the first you know about it is when you see the increase in commissions, it hasn't cost you a penny to make those subsequent sales.

Just imagine what happens when a new product arrives and is advertised to the few thousand customers in your Group!

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

Alec: I think it's different for each of us. The common problem found is difficulty in handling rejection. The fear of uncomfortable situations causes people to want to avoid them so they make excuses to themselves for not doing things that could bring about those situations.

Unfortunately, talking to people either face to face or telephonically is an absolute necessity. This is another area where a good sponsor is worth their weight in gold, both for practical assistance in that area and for advice and encouragement.

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

Alec: How do you define retirement? Retirement from full time employment is one thing. I can't see myself giving up something that I enjoy though. We have some distributors around 80 years old in Telecomplus.

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

Alec: Nothing serious, any strong hobby would steal my time.

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

Alec: In theory there is no limit. In this day and age reliance on only one source of income is financial suicide. So setting up several has got to be the aim. If one dries up totally and you've got 3,4 or 5, then it shouldn't matter.

J.L: What do you see as the greatest benefit of Network/Referral Marketing?

Alec: The ability to be truly master of your own destiny.

J.L: How many new Independent Distributors/Customers do you sign up in an average month?

Alec: If everyone in the Group signed up one a month we would be making history! Some months I have signed up none, some months I have signed up 3. It's consistency of effort that pays off.

J.L: IS there an average month?

Alec: Absolutely not. Even the weather will make a difference, quite apart from holidays and preparation for holidays etc.

J.L: Do you set yourself any targets?

Alec: Yes of course. They are essential.

J.L: What percentage of new Distributors become serious, and how would you define 'serious'?

Alec: I call 'serious', totally committed to building big. I'll also stick with Pareto on this one too and say I wouldn't expect any more than 2 out of 10. Even that is a dangerous statement. It could be one, it could be four! You just can't tell until it's happened.

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

Alec: Refinement is a constant process; learning is a constant process. As for 'How?' People write books on that so I've got no chance of an explanation in a few lines. Lets just say I favour Direct Mail and I do use a system.

J.L: How many people have you personally sponsored?

Alec: Too many to remember if we're looking at an all time figure, well over a hundred.

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

Alec: Advertising is relatively expensive and ads must be tested first. (I don't use Mail Order) Direct Mail results are more easily predicted but again it can be expensive if done incorrectly and you need tried and tested 'copy'. Direct Mail is utilised by many large organisations purely because it is so easy to predict results.

J.L: How hard do you work?

Alec: I've fallen asleep at the keyboard more than once. (When I lifted my head I couldn't understand why the page was full of 6666667777778888888 etc.)

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

Alec: I only have one Goal. I do have many Targets though. Targets are the stepping stones on the way to the goal. On reaching the Goal it should be extended and another set of targets introduced.

My Goal is always an income figure, but my targets are never financial. They are things that must be afforded or things that must be learnt or things that need to be improved to a specific level. Targets need to be adjusted and tweaked sometimes in the light of new knowledge and experienced gained.

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

Alec: Like a million others I was invited to an Amway presentation.

J.L: Have you tried any other Networking business, and if so, what?

Alec: As I said earlier I have been involved with two networks prior to this. The first was Amway and the second was a small Perfume Company.

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

Alec: Appreciating the fact that they are going to need to be trained and there is no easy way around it.

J.L: How do you handle rejection?

Alec: Stock phrase. "Oh! Dear; how sad; never mind; what's next!"

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

Alec: After the preliminaries the first pep talk would be about failure!

I would tell you that you are going to fail and often. I would explain why that failure is an essential part of success and thus 'steel' you for the early knocks you would get.

Too many people are thrown a pack and left to get on with it. Within a month they are despondent and then they are gone! Support and Training is the key to retention.

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

Alec: A lot of changes have taken place over the last 10 or 15 years. Probably the biggest is the virtual demise of Recruitment Meetings: Fill a Hall with 800 people throw all the hype at them, sign up maybe 150 to 300 and then watch them all 'give up' over the next 2 months because there was no Leadership structure that could Train and Support them.

The advent of the Internet and email is making a big difference also. Faster communication, ease of moving literature by attachment, downloading from Company sites etc. Also Networking is generally becoming more accepted in the eyes of the General Public. Bigger and bigger Companies are turning to Networking and bringing with them the expertise that the Industry needs.

TelecomPlus for example is the first Company in the history of this industry to have its products endorsed by the well respected 'Which?' Magazine, and issued substantial numbers of Share Options to its Distributors.

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

Alec: Yes I'd like to see Editors, Journalists and Reporters all having to do a course of instruction on a subject before being allowed to write about it. (He doesn't mean me, does he? :-))

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

Alec: It doesn't need to be dealt with. As long as people are allowed to write about that of which they know nothing, there will always be 'bad press' in circulation.

People who are not 'sheep' however will investigate for themselves. Those are the people that we want to work with. We are not in the persuading business. If someone has to be persuaded to join, they will have to be persuaded to work. That's why we are not really interested in 'opportunity seekers'.

We prefer Business Owners, Managers, Doctors, Solicitors, Consultants, Accountants, Salespeople, Retailers, Wholesalers, Estate Agents and anyone with the fire of desire in their belly!

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

Alec: Neither.

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

Alec: That can be a bad idea. (Other than your Spouse or Partner of course.)

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

Alec: I don't. You can't push, you must Lead. They are private individuals and responsible for their own business. You can not make them work. You do not know their personal circumstances.

Support, Teach, Encourage and initially show them or do it with them if possible. Having a spread Group means that you will have people all over the country that can assist with new people. Even people that are 'same Company' but 'cross Group' will help out.

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

Alec: Not if I want to be invited back!

I may well identify prospects though, a certain topic raised casually, a swopped telephone number. When you say 'attempt to recruit' I get the impression that you expect a 'persuasive Sell' to be attempted during recruiting. I personally sell nothing, I never persuade. I 'show' and that's it. If they want more they ask. Never give a drink of water by using a hose pipe! Sip at a time is the way. That way you get people who are going to do this business properly.

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

Alec: Yes, as I've said, whilst not essential at the start being able to use email is a real boon.

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

Alec: I'm much better off than I was before but not as well off as I'm going to be.

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

Alec: Rover 2.7

J.L: Does the company have a car, or any other incentive program?

Alec: A couple of Porsche Boxsters, free use for a month once you've gathered enough customers. Trips to New York on Concorde. 2 Million Share Options distributed in the first 2 years (to the 'workers') more to come later. Various other monetary incentives for fast starters. Dinner invitations. Champagne.

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

Alec: No danger whatsoever. The Market is vast.

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

Alec: Let's look at the basics for a moment. What is Networking exactly? Well for the Company, it is the most cost effective way to get large amounts of product out to diverse places.

For the Distributor, it is a way for the working person to start with very little capital and build a business that would by conventional means be impossible. A business that can grow so as to enable financial independence if that is required thus throwing off the shackles of regular employment and finding a new freedom.

Never before has employment been so unreliable or so insecure and never has there been so much pressure from the employer as they trim down to a lean operation and increase workloads.

The squeeze is on, permanently. To be able to produce just £2000 per month from another source will in most cases allow freedom from the daily grind, from the office or factory floor. A freedom that most people yearn for.

Networking achieves this for people; or rather, people achieve this through Networking.

Donald Trump was asked…"If you lost everything you own tomorrow, what would you do?" He answered…"Network Marketing." There was then a chuckle from the audience. He then turned to the audience and said… "That's why I am sitting here and you are sitting there!"

Finally:

"There are no Great Men; just ordinary men who rise to great challenges."

Admiral Halsey U.S.Navy, Commander Pacific Fleet, WW11

For further information about Telecom Plus, contact Alec at:

alecs.team@virgin.net

Don't forget to tell him BIZ-Banana.com sent you!

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