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One to one with Linzi Day This
interview, which was done a couple of years ago, appeared in a British women's
business magazine and on the Internet. It was recently updated and during its
update it was read by many of my group. They enjoyed it so ... …
I’m including it here for you because it seems that new people appreciate the
chance to discover a little more:
It’s
not in the least imperative that you read it – it’s only here for your
interest if you enjoy this type of info. Best
wishes Linzi Taken from the Internet text … company profile first and then the interviewer's questions in red. The Company“Owned
by Goldshield one of the three largest UK companies in the nutritional
supplement industry, (the other two are Boots the Chemist and Chalmers the
Chemist) Changes International UK has built a solid reputation selling high
quality products via a network of independent distributors and boasts the
'highest paying legal marketing plan in Europe'. I
know, you're thinking that just about every Network Marketing company makes
similar statements. However, when the U.K. Advertising Standards Authority (ASA)
comes out - as they have - and supports Changes’ right to use the phrase,
along with the income details in their information literature, you have to take
that claim very seriously! Firmly
established as a world leader in the industry, the UK parent company, Goldshield:
Are
fast-growing British PLC with an exceptional Europe-wide reputation for
stock-holder satisfaction and growth. Have
an international presence in over sixty countries Are
headed by Ajit Patel who in his late thirties was the UK’s young entrepreneur
of the year in 2000. With
a pedigree like that I think we can safely assume that the company is NOT going
to disappear down the proverbial plughole overnight! The
Products
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
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: Demonstrate
the products Give
or attend a single meeting EVER
have to canvas strangers 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 And,
very, very importantly (I think) you DON'T need to buy ANY demo stock! Now,
personally, I have never been particularly attracted to MLM - all those ra-ra
meetings and the possibility of alienating family and friends, etc, - but I must
admit that hearing about this radical departure from 'traditional' methods
really intrigues even me. 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... Which
gets you your 270 quid for the motor... But only if you sell on about two thirds
of your own personal 100 BV, otherwise you have to deduct that from the total.
Actually, if you sell ALL of your own 100 BV you will earn over £300! 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
Linzi
Day is a leading Network Marketing journalist who writes regular monthly columns
for U.K. business magazines. Her articles have appeared in over 70 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
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 enough 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, she's in her 60's and the income from my business alone
is rather a lot more than her 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:
10-12 hours a week if I'm in the UK I work a couple of hours most weekday
afternoons and one evening from 8-10pm. If I'm abroad and working I work 3-5
hours a week. 1:30pm-2:30pm usually - well it's too hot to sit in the sun then
anyway ;-) I take the laptop and the mobile phone and get 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, 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 each evening per city. Leaders
are requested to try and see that they attend at least one of the events. So I
would probably go to the training 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 free conference
calls that happen live once a week on Thursday evening. A general one and one
for beginners. If you’re busy on a Thursday you can catch the recording 24
hours a day anytime during the next week. There is an email update system, a
distributor newsletter (written by the leaders with all the insider tips), live
Internet training 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) Elite. J.L:
Does your company give awards and have you won any? Linzi:
Yes. Yes. Top retailer a few times, Top distributor twice, I won entry to the
Hall of Fame award – that was really nice because it’s not awarded every
year. Various competitions – though I must say winning them has never been a
goal, winning them has simply been a natural result of building my business.
I’m not saying they’re not nice but they seem to please my group more than
they do me -- money motivates me not awards! 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 exceeds every goal I set. Annually = several million and
growing very fast. 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 profits 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. Frustrating sometimes but frustrated with me not the business and not hard. 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’m building a new home in
the sun. 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 4* we also teach group leadership techniques (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 many, many millions in the last 7
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 10-12 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 very healthy retail profits. The products are great and by mail order it's
not really any hassle. It can be even less if you wish it to – the company
will do it for you! J.L:
What percentage of new distributors become serious? Linzi:
Very few. But then it depends what you mean by serious? I have many people in my
business that only joined us to pay their mortgage each month, or put their kids
through education and they do. So in that sense they're very serious - because
they're achieving what they joined for. Many people start with small goals which
then grow as they achieve the first ones … who knows what you can do until you
get started! 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 months 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 over 80 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 distributor training
forums, which is a searchable electronic library of over 10,000 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 attractive about Changes? Linzi:
It's a unique combination of a multi-million pound 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:
Plug you into Eco Systems Group’s special Getting Started system. We have
dedicated conference calls, areas on the Internet and other extensive from-home
learning systems for new people. It is a very simple business. 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
well over 70% and retail profit on top! 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 two laptops. I think in this day and age 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'm well 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 bank balance increase while
I'm away". That happened. Then I think the next one was "I want to
build my own house out here" (That was summer holidays in Portugal). That
one will probably get started summer 2001. I’m
considering "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
more time there - we’ll have to see – something more exciting might come
along! 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 Land Rover Freelander – well
if it’s good enough for Lara Croft …! Seriously, it carries a LOT of
shopping and is easy to park. I did buy it new for cash though – so if
that’s what you mean? Number Plates do, do it for me though! My new one is
“LNSI DAY” – I know outrageous isn’t it? Sometimes you’ve just got to
be! 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!
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