Key: How Your Company Business Model Drives The Behavior In The Field
A huge percentage of successful businesses, both online & offline, offer “autoship.” Autoship – also known as “til forbid””- means your company automatically ships product every month on a credit card order, until they are told to stop.
I never talk to a prospect about our company compensation plan without telling them that they need to be on autoship. I start by telling them how Linda & I won the Diamond trip to Italy last year. A week before we left, our company President called me up and said, “Michael, I’ve got to ask you a question.”
I said, “Sure. What is that?”
He said, “Last Thursday, we noticed in your group that you had a 94% autoship.”
I chuckled and said. “Huh? It should be 100%!”
And he laughed and I laughed. I know that’s extremely high. And he wanted to know, “Well, how do you do that?”
I told him, “Because we explain it.”
Here Is What I Say To My Prospects
It’s designed for my company situation, but you can model it for your company. Just think about these points, and how you can relate them to YOUR business.
Here is what I tell my prospects:
If you’re going to join me in my business, you’re going to want to be on autoship for 3 good reasons. Let me explain that to you.
The first reason you want to be on autoship is, you can now write that autoship amount off your taxes as overhead, just like your advertising budget, because you’re going to use those products to give away as samples to somebody. That is an advertising expense. So you can write that off and get free product from the company.
Reason number 2: you do want to get free product from our company. We have X number of products, and if you’re only using 3 or 4 of them, you might never ever experience our Super Duper Energy Formula. Last month, they gave that away to everyone on a $100 auto ship. This month they gave away their weight-loss product.
Now, you might not need to lose weight, but maybe your sister does. If you had a free product, you’d probably give it to your sister.
Reason #3: If you join as an Instant Grand Space Commander, that’s $499. You get $600 worth of product, and the $29 kit. You get the same websites, no monthly fees. And the company pays up to a $200 fast start bonus on that. So when you sponsor new Instant Grand Space Commanders, you have the potential to make $200 from every one of those sign-ups.
If you come in as an Instant Poobah at $189, you can get up to an $80 fast start bonus.
Now – there’s also a $29 level, if you just want to be an associate. You don’t get any product.
The main thing is, the autoship is the same for both the Instant Grand Space Commander & Instant Poobah. So if you come in at $499, you can leverage and earn a $200 fast-start on your recruits, and if you want to build income, that gives you your best value.
I Never Push Them One Way Or Another
I give them that information and let them make up their mind. And most come in as Instant Grand Space Commander.
Now here’s the point. If a person almost understands what I just said about the business, and about how they can write it off their taxes and everything, is there any reason they wouldn't be on auto ship?
There’s only one time a guy told me, No, he couldn't afford it. And I asked him what he did for a living. He said he worked for Home Depot. So I told him that when he goes in to work on Monday, change his withholding from 1 dependent to 9 dependents. The government will never challenge it or check it. They’ll take $50 to $70 a week less out of your check.
And you’ll get $200-$300 a month more money in your pocket that you can build your business with. At the end of the year, when you file your taxes, all you have to do is claim your home-based business, and you can write off all the money your’re spending on your business because of that. (I’m not a tax consultant, and you need to talk with your tax consultant to verify this.)
If you explain that, you’ll get 90% or more on auto ship. Why would they not be on auto ship if they understand how this works?
Now here’s the point. Maybe you build a group of 1000 reps. But if you only have 100 of them on auto ship, what good did you do? So you’d better build from the top down, having your front-line leaders on auto ship.
Make sense?