market america business plan

What is Market America all about?

• April 28, 2010

Got a question about Market America — like what ma’s mission is, the UnFranchise business plan , financial reports or are you interested in learning about our exclusive Market America brands? Take a moment to read through this great PDF that highlights what Market America is all about.

Click here to download the new PDF about Market America.

Andrew Bonner, Lead Social Media Writer

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Chapter 4: Establishing Your UnFranchise Business

By now, you have implemented the Basic 5 and have experienced or realized how powerful Market America’s UnFranchise® Business Development System can be. You have decided to treat this as a business (not a program, deal, hobby or scheme) and are looking for additional insights and strategies that will enable you to create fast, stable and controlled growth. This section will provide you with valuable information for creating an unlimited income potential.

SEC. 1    PREREQUISITES

Prior to implementing the strategies and the techniques provided in this section, there are certain fundamentals that you must practice or implement in order to achieve your desired results. Remember, the key to success in duplication is that people will do what you do, not what you say to do! Therefore, it is important to lead by example.

Market America’s UnFranchise Business Development System is a viable, credible, legal and legitimate business based upon what has already been proven an individual can actually and realistically accomplish working 15 hours per week over a two- to three-year period. It is not a program, deal, hobby or scheme. The sooner your mindset and belief patterns treat it as a business, the sooner you will be on your way to earning an ongoing professional income. Following these guidelines will be one of the key success factors in establishing your business. It all begins with the Registration Appointment, because what you set in motion carries in motion. Although you have established your UnFranchise business, please pay close attention to the following information to determine if you are set up correctly. If necessary, take the time to make the appropriate adjustments and duplicate these systems and principles with the people you bring into your organization. 

Believe it or not, the very first training you are participating in or conducting is the actual registration. Again, adults learn by doing. So whatever you do during the registration will be duplicated and set in motion. It is critically important to set the correct principles, fundamentals, and systems in motion right from the start. The Registration Appointment should last two- to three hours. It will involve addressing commitment, prerequisites, the review and agreement of the application, the initial Product Order Form, the UnFranchise AutoShip Form, completion of some simple administrative functions, as well as scheduling a follow-up appointment, which will also last two- to three hours.  

(A)    Let’s start with commitment. When we sit down with new UnFranchise Owners to review and agree to the forms necessary to establish their UnFranchise business, we need to identify what will be required of them to deserve your time in assisting them in building their UnFranchise business. At a minimum, they must commit to the 12-month proven business plan provided in the Getting Started Guide. They must commit to 15 QUALITY hours per week to this business. That is eight to 15 quality hours performing basic and fundamental activities. They also must be willing to commit $500 to $1,500 in reasonable expenses for their business. Remember, this is a business. It’s a viable, credible, legitimate, legal business. It’s not a club, not a program, not a deal. This is a business. In addition, new UnFranchise Owners must be willing to attend an out-of-state training, if necessary. They must be coachable, and they must purchase a ticket or tickets to the next scheduled Global Meeting, Training and Seminar System (GMTSS) event, because that’s where we start to instill belief that what we desire from this business is truly possible and attainable.

         It is natural for everyone to look for a shortcut to success. Unfortunately, there isn’t one. Remember, this is the Two- to Three-Year Plan. You must strive to master the Basic 5 Fundamentals, implement them daily and teach other people to do the same thing. One way to work smart and leverage time is to attend our annual International Convention and World Conference. Spaced six months apart, these two events provide an opportunity for thousands of successful Independent UnFranchise Owners to come together with the Corporate Team. The events allow everyone access to expert speakers and trainers. Not only do the masters teach how to build the business, but they also unleash powerful business-building strategies, new promotions, and exciting new product and Internet releases. Attending these events is the single most important thing you can do for your business. Getting new qualified prospects there is the second most important task you can do to leverage the event. The events do the work for you. You will actually accomplish six months of learning and business development in a single weekend. You would have to travel to numerous meetings to be exposed to such powerful speakers, the Corporate Team, the top money earners and their success stories, the experts, and the quality and quantity of structural information on building a successful business. Furthermore, the events put you on top of all the new developments, techniques, tools, products and strategies. It is difficult to express what one experiences at these conferences because they are so powerful. One develops more insight, realizations, belief and confidence because of the first-hand knowledge and exposure received than one would experience otherwise. As a result, people leave confident and inspired. They learn exactly what to do, how to do it, and that they can do it. Making the commitment to attend these events by purchasing tickets in advance is important. Often such events are sold out, so purchasing tickets in advance is a necessity. You don’t want to wait until the last moment. The shortcut to success is to get at least two to four people in each of your legs there. By getting them there, you accomplish more in their development than you could by working with them for a year or more. They see the light! They learn so much, make so many friends, are so inspired and motivated, and have so much confidence that they are empowered to build the business. In fact, they are probably so committed that they are going to build it with you or without you. This transforms you into a hopeless success, because you see the light and are committed to building a successful UnFranchise Business — you automatically become successful. The key is getting your own tickets and having additional ones to sell to new people. Remember, you can’t sell a ticket you don’t have. Undoubtedly, it is the best use of your time. Remember this: you cannot teach what you do not know, and you cannot lead where you will not go. So, if you want to be a success, get your tickets to the next International Convention or World Conference and get two to four new people in each leg there by purchasing tickets. It is the shortcut to success if there ever were one. Purchase your World Conference or International Convention tickets today from your sponsor or managing Certified Executive Coordinator, or by calling the company (800.232.8590). Finally, with respect to commitment, the person must be willing to start the business NOW, as you do not want your timing to be dependent on someone else’s timing.

(B)    Let’s discuss prerequisites. There are basic materials needed to sponsor a new Independent UnFranchise Owner into your organization and to get the individual started right — quickly! When we get ready to bring a new UnFranchise Owner into this business, we are going to take care of the housekeeping activities first. Remember the three types of activities performed in any business? Housekeeping activities, support activities and result-producing activities. We want to eliminate as many housekeeping activities as possible in the beginning in order to eliminate the things that may impede progress while building the business. As a prerequisite and to assist individuals in establishing their Market America UnFranchise Business, you will need two start-up folders: one for the new UnFranchise Owner to review under your supervision, and one to be left with the new UnFranchise Owner to duplicate and assemble. It is imperative that new UnFranchise Owners understand contents of this folder under your supervision because you are going to show them that these forms are not difficult.. You should NOT fill them out for them. Remember, this is their first on-the-job training. Take note: all of the forms mentioned can also be found and executed online through your UnFranchise® Business Account.

         At a minimum, the start-up folder should contain: a Getting Started Guide, a blank application, a blank Product Order Form, and a blank AutoShip Form. In addition, the folder must contain a blank Executive Coordinator Qualification and Application (Form 1001), a blank Executive Coordinator Acknowledgement and Agreement (Form 925), a blank Annual Renewal (Form 1052), and a blank three- to four-year calendar. You can get a blank three- to four-year calendar in any of the daytime appointment books, and you should have a copy in that folder in order to show new Independent UnFranchise Owners how to figure out their Qualification Date (Q-date) and their quarter-beginning and quarter-ending dates for the quarterly sales reports and any resale tax forms, if applicable. Other items for inclusion in each folder that are highly recommended are: a Home Shopping List, a ma® Catalog, and/or specific product handouts that support their product focus.

         As discussed earlier, it is imperative that we reduce the amount of time that we spend on “Housekeeping Activities” in order to maximize the amount of time we can allot to the “Result-Producing Activities.” We can significantly increase the amount of time available for focusing on selling products and selling the UnFranchise Business Development System by addressing much of the required administrative documentation during the Registration Appointment. By addressing much of the administrative requirements during the Registration Appointment we can effectively reduce the “Housekeeping Activities” to five required submittals per year: that is four quarterly UnFranchise® Owner Sales Reports (Form 1000) and an Annual Renewal (Form 1052). The following process should be duplicated in-depth throughout your sales and distribution organization so that your entire organization is devoting 80 percent of its available time to activities that create and regenerate Business Volume and expanding distribution. This process is as follows, and the completion and submittal of required documentation applies whether doing it using paper forms or doing it online on your UnFranchise Business Account:

          Step 1:  Agree to the subscription and for the Subscription Fee with the Independent UnFranchise Owner Application & Agreement, if the new UnFranchise Owner wants to participate in receiving commissions from building and managing two organizations. Be sure the New UFO completes the direct deposit information, participates in the UnFranchise AutoShip Program and are signed on the UFMS Monthly Fee.

         Step 2:  Qualify the Business Development Center (BDC-001) with the initial product order of 200 Business Volume (BV) so any organizational volume that is created prior to the new UnFranchise Owner sponsoring anyone is accrued towards meeting payout criteria.

          Step 3:  Enroll the new UnFranchise Owner in the UnFranchise AutoShip Program with a standing monthly order of > 50 BV so that s/he will automatically satisfy the quarterly PBV portion of the minimum activity requirements, and also with a monthly subscription to the UnFranchise Management System so that he/she exercises the Monthly Accrual Option.

         Step 4:  Read and submit the new UnFranchise Owner’s Executive Coordinator Qualification and Application (Form 1001) by certifying that: (1) s/he will attend a Certified Executive Coordinator Training within 28 days of qualifying as an Executive Coordinator, and (2) s/he is taking responsibility for ensuring that 70 percent of the product purchased is moved to ultimate end consumers/users.

          Step 5:  Read and submit the new UnFranchise Owner’s Executive Coordinator Acknowledgement and Agreement (Form 925) ensuring that s/he understands there are bona fide supervisory, management, and training functions required in order to continue receiving commissions.

          Step 6:  Encourage the new UnFranchise Owner to follow social media outlets for Market America and the Market America Blog.  

         You can also access, satisfy, and execute all of these forms mentioned through your UnFranchise Business Account. Your Rep. ID number and temporary password can be located on the bottom of the invoice found in your subscription kit or it will be emailed to you. This Rep. ID number and password are automatically generated by Market America and are necessary to access your UnFranchise Business Account (take note: your Rep. ID number and password are different from your UnFranchise ID number and should not be given out to anyone). The UnFranchise Business Account website is exclusively for Market America Independent UnFranchise Owners. This site provides a complete package of Internet-related services designed to assist UnFranchise Owners in building a successful UnFranchise Business and save valuable time. Some of the functions and services include online forms, real-time ordering capability, online UnFranchise Manual, and order tracking services. In addition, important news and announcements are posted on your UnFranchise Business Account.

         By completing this process and duplicating it in-depth, you and all Independent UnFranchise Owners will be left with only five administrative requirements per year that must be met: four quarterly Sales Reports and one Annual Renewal. Not much paperwork for a business that can generate in excess of $3,600.00 per week! Now you and your organization are free to focus on activities that produce INCOME – selling products, selling the business, selling GMTSS tickets and building your Shopping Annuity®.

SEC. 2    PROSPECTING

Market America is a unique and dynamic sales organization that is marketing some of the most exciting market-driven products ever developed. Additionally, Market America offers a wide selection of exclusively branded products in tremendous demand by the general buying public. We also offer the Shopping Annuity®. This is a way to maximize your everyday purchases in to an ongoing income. Simply put, you will convert your spending into earning as well as from your entire organization. In order to sell product or expand distribution, you need to find a client. This is called Prospecting. Prospecting is the ability to generate business by finding new clients. It is an essential process that will have a direct and proportionate effect on your success within Market America. Utilizing the following skills and perfecting these techniques will enable you to maximize your earning potential as a Market America Independent UnFranchise Owner through the Management Performance Compensation Plan (MPCP).

It is often said that sales and marketing is a process of numbers and the more doors the salesperson “knocks upon” (either in person, on the telephone, online through social media, by text or email), the more prospects the salesperson will have to develop his/her business. Who are you going to tell about Market America’s products and/or opportunity? From where should your first group of prospects come? Before you consider any other form of lead-generation, start with your own sphere of influence and build your Prospects List (possibility list).

POSSIBILITY LIST: You are now going to create your Market America prospects list. In composing this important list, follow these simple steps:

     • Write down the names of as many prospects you know. Do not prejudge anybody at this point. It makes no difference where they live. Be sure to include people with whom you have done business and with whom you have been spending money. Another tip to follow is to think about people with good communications skills that are currently successful and well-connected within their community. (Refer to the memory jogger, use the “Name List” at the end of this section and be sure to include phone numbers and email addresses.)

     • Next, organize your prospects list into two categories: people who may be interested in purchasing Market America products and learning about the Shopping Annuity as buyers only; and people who might be interested in taking advantage of the financial opportunity available with Market America.

     • Now underline the ten best candidates in each category and begin setting appointments. Most new UnFranchise Owners find it helpful to ask their sponsor and Senior Business Partner for assistance and training on how to approach the people on their prospects list.

WHO DO YOU KNOW?      

As long as you know people, you know people with a need to get started. Ask yourself, “Who do I know that . . .”

     •    I respect?      •    Shows genuine concern for other people?      •    Is active in their church?      •    Does personal counseling, such as church leaders, doctors, lawyers, etc.?      •    Is a professional?      •    Is in clubs and various group organizations or active in civic affairs?      •    Is in a teaching position in a school or business?      •    Deals with the public, such as policemen, firemen, postmen, or city officials?      •    Is in a management, supervisory, consulting, or training capacity?      •    Is looking for more out of life?      •    Is ambitious, aggressive, and “on the go”?      •    Is considered a leader?      •    Has children just starting junior high, high school, or college?      •    Has children with special talents that should be developed?      •    Wants to set a good example for their children to follow?      •    Owns their own business?      •    Holds very responsible positions that are causing stress and pressure on them?      •    Wants to have freedom?      •    Is considering a new profession or changing jobs, or recently changed jobs?      •    Is unable to advance in their job?      •    Has talents but is held back?      •    Just started selling, or is an experienced direct salesperson?      •    Relies on ideas for his livelihood: authors, designers, promoters, advertisers?      •    Has never been able to get started or has failed in business, but still has strong desires?      •    Is going to college, business school, trade school, etc., or just graduated?      •    Was recently married and “just starting out”?

Help others develop their talents, become successful and realize their dreams! It is a natural human trait. When you have sold yourself on this great business, it is psychologically impossible to keep a “good thing” to yourself. Everyone has the compulsion to “spread the good word.”

REFERRALS: The most common and successful method in the world for generating new business is the Referral Method. If you are doing your job correctly by building, servicing, and satisfying your clients, you are in a position to receive more qualified leads than you could ever handle.

After you have exhausted your personal Prospects List, your long-term success will depend to a large degree upon how well you are able to develop new spheres of influence. New spheres of influence must be earned. You must take the right steps if you are to develop a relationship with your clients that are based on trust. Then, and only then, will your clients feel good about exposing you and your company to their friends and associates. Recommendations or leads are, unquestionably, the lifeblood of your business and are the best source of prospective new clients. The importance of referrals cannot be over-emphasized. The Market America UnFranchise® Owner who contacts a prospect on a referral basis has more pre-established rapport and credibility.

For the Independent UnFranchise Owner skilled at “follow-up” and client service, referrals are there for the asking. Whether you are talking to a prospect, client, or complete stranger, you should always ask for at least six recommendations of people who might appreciate our products. If the person you are asking can’t think of any, help him/her by asking all the “who do I know” questions in the back of this section. Suggest that your customers get out their phone and page through it to check for names. It only takes a couple of minutes, and satisfied clients are glad to help.

Keep your phone, notepad and pen handy for recording the names and phone numbers. These six people will be prospective UnFranchise Owners for the individuals you are talking to. Let them know that, as their sponsor, you will help them follow up with these referrals. Don’t do it for them, but help them, teach them, and go with them to make the initial presentation. Teach them to do it for themselves.

“You can give a man a fish to eat today, or you can teach him to fish to feed himself for the rest of his life.”

ADVERTISING: Advertising is a form of lead-generation. It is perhaps the riskiest and most costly form of lead-generation in this type of business. Attempts to educate the public on Market America product lines and the Shopping Annuity® through conventional advertising methods are very expensive and have proven ineffective. Television, radio, magazine and direct mail have shown marginal results when compared to the time and monetary expenditures involved. It is recommended that you leave such advertising to the company. Leverage social media outlets.

Advertising in our kind of business is usually targeted for the purpose of sponsoring new UnFranchise Owners. This type of advertising is normally done in the classified section of newspapers, and social media outlets and the results vary greatly, depending on how the advertisement is worded and the way it is handled. For those who choose to advertise as a form of lead:

     • Develop a clear understanding of Market America’s Policies and Procedures pertaining to advertising, if you are using any ad copy or ad words other than the approved Market America ads available through the UnFranchise® Management System under Downloads. All advertisements must be approved by the company.

     • The advertisement should be placed in the “Sales Help Wanted” or “Business Opportunity” section, whenever available. Your advertisement should be as specific as possible. You will have fewer calls than with a “blind” advertisement, but the applicants will be much more qualified. The contents of your advertisement should reveal:

          •    The product industry you are involved in           •    Type of distribution (network, wholesale, retail, direct sales, etc.)           •    How earnings are generated (commission, bonuses, etc.)           •    Investment required for overhead expenses           •    Phone number or email address if they are to write for information           •    Your name for credibility

Long-Term Contracts: Don’t commit to long-term contracts with your advertisement. Three or four days will be plenty of time to see how well your advertisement attracts responses. Start your advertisement on Sunday if the publication of your choice runs on Sunday.

Handling The Advertisement: Don’t be shocked when the telephone rings or you receive an email or private message — that is why you placed the advertisement. The phone must be answered professionally. If you don’t have a secretary to screen your calls, engage the help of a professional answering or response service. When returning the prospect’s call or inquiry, the goal is to qualify the prospect and to set an appointment, not to explain or attempt to sell anything over the telephone.

The more information you give in response, the less likely you are to be able to set up an appointment. Only give enough information to interest them without misleading them in any way. It is very easy for someone to prejudge our product and opportunity over the response without ever having the opportunity to evaluate it properly. Maintain your position of strength. Remember, they called you. You are the one doing the interview! Whoever is asking the questions is winning.

      The following list of qualifying questions should be asked:      •    What is their name?      •    Where do they live (city, not address)?      •    How long? If a short time, where did they live before?      •    What type of business are they currently in?      •    What are they looking for? Ask them why they responded to your ad. (LISTEN CLOSELY)

In 45 seconds or less, capsulize your business and explain it would be unfair to them and to you to attempt to explain an opportunity of this magnitude over the telephone. Set up a time in a professional environment for an initial meeting.

Before you decide to put your time and energy into this form of lead-generation, review these procedures. Classified advertising in local papers or online postings means you have strangers calling strangers. For this to ever culminate in profits for you, many things must happen right, and you must have mastered the art of communication techniques. The correct steps must be taken and friendships must be developed. Use professional conduct and utilize your time wisely.

TRADESHOW TIPS: The major mistake many UnFranchise Owners make when operating a booth at tradeshows, home shows, business fairs, mall displays, etc., is to attempt to fully explain and sell the products from the booth.

The primary purpose of operating a booth at any of these locations is to promote initial interest in the product and credibility for your business in order to generate leads (prospects). Later, in a controlled environment where you can make an organized and professional presentation, tell your prospects the Market America | SHOP.COM story. You will only have one opportunity to bring each prospect to the highest level of excitement over our product(s) and program the failure to develop a high level of enthusiasm and excitement at this initial meeting will result in a low interest level.

Our products are unusual in that they can actually be sold from the booth, if the conditions are right. Whether you are dealing with thousands of people walking by each hour, or only a few, your procedure should be the same.

     •    Point out a few highlights of the respective products and see if they show any real interest in any of these benefits. Adjust this presentation accordingly when you are displaying other Market America products.

     •    Always mention you are looking for new UnFranchise Owners interested in generating additional income each week by servicing new clients.

     •    If either the product or the opportunity grabs their attention, now is the time to stop talking! Do not give them all of the details while standing in the middle of your booth. The odds are they will not make a buying decision right there. Instead, if you have help in the booth, see if they have time for a cup of coffee in the break area, or set up an appointment for after the show. Always obtain the name, email, telephone number, and city of residence of the prospects and make personal notes on the card on their specific wants and needs. Classify these as Hot, Warm, or Cold.

     •    The best appointment would be for you to pick them up for a One-on-One appointment, then a professional Market America UnFranchise Business Presentation. Regard your booth as a temporary place of business:

     •    Follow the rules set forth by the home show or fair sponsor and the facility in which your booth is located.

     •    Follow Market America’s company policies and procedures.

     •    Specifically, follow the new advertising policy using corporate-produced advertisement slicks and handouts. You may input your name, booth number, temporary location information, and date.

     •    Additional suggestions for your booth: purchase a Market America banner to easily identify your company; show the product as it should be shown, by constructing or buying a portable mantel and by using available Market America sales tools.

COLD CONTACTS: Cold contacts are an excellent method for generating sales. This method works best for salespeople who have unquestionable belief in themselves and in what they have to offer. They are on a mission for success and pay no regard to rejection or what others might say about them.

These salespeople generally believe in the “three-foot rule” (they talk to anybody within three feet of themselves). You see, they don’t consider these “cold contacts” at all; rather, they have learned the art of meeting people and making friends. Arrange to meet within 24 to 48 hours for a one-to-one presentation. When you accumulate so many leads that the One-to-One procedure is physically impossible, set up a small business seminar.

As your self-confidence and self-image improves, and your belief in what you are doing becomes stronger, you will become bolder in your approach to people you don’t know. In talking with people you do not know, follow the FORM METHOD:

                    F    Talk about their Family                     O    Talk about their Occupation                     R    Talk about what they do for Recreation                     M    Finally, talk about MONEY

It is helpful to understand that anyone you speak with will generally only talk about three things:

     •    What is currently happening, or “small talk.”      •    How terribly things are going, or complaining.      •    The way they wish things could be, or “wishful thinking.”

If they talk about what is happening for more than two minutes, they usually end up complaining or wishing. Quite naturally, this gives you the opportunity to bring up the Market America business opportunity.

When you bring up the UnFranchise® Business opportunity, the most important question you should be prepared for is, “What is it?” or “What do you do?” Knowing this in advance, you can prepare your answer before you are asked the question. You need to develop and practice a two-minute answer to those questions. This is your personal “two-minute commercial.” It should end with a closing statement and question such as, “I have another appointment right now, so may I have your name and number, and I’ll call you about this later?” Refer to examples of a “two-minute commercial” and the answer to “What is it” in the corresponding sections of this manual.

It is extremely important that you develop your own personalized two-minute commercial and answer to “What is it?” or “What do you do?” before you begin approaching people. Ask your sponsor or upline Senior Business Partner for assistance and advice, if necessary. Be sure to write your comment down and keep it handy when talking to people.

TELEPHONE PROSPECTING: The telephone is an important tool for prospecting, as it enables you to make more contacts in a short period of time. However, it can’t replace cold calling, so be careful not to allow it to become a crutch. The telephone makes it easier to keep in touch with existing clients and set appointments with new prospects as well. It is also a good idea when possible text the prospect first, then call.

     There are several important factors involved in using the telephone:

     Attitude — A positive mental attitude is essential to successful telephone prospecting. Be enthusiastic, confident, and have knowledge of your products and business. Above all, be honest!

     Preparation — Make a prospect list of names and phone numbers starting with people you already know. This should include friends, relatives, neighbors, co-workers, etc. Draw from your “who do you know” list or “possibility list.” 

     Review — Know the company policies and procedures regarding telephone solicitations.

     Before you begin to call or text, see that your working area is clear and organized. Necessary items are a calendar for appointments, upcoming GMTSS Meetings, pad, pencil, call sheet and selected company literature.

SOCIAL MEDIA: PROSPECTING: Utilizing social media not only essential in establishing yourself as a credible and valuable business but it has become an integral part of the sales process. While the original sales model was centered around cold calling, sales demos, and qualifying leads, the new sales process leans heavily on social media as a tool for reaching prospects quickly and easily to educate them about your business.

Social media provides business owners with more information than they’ve ever had before, including not only information but context. By utilizing these tools, you can gain glimpses into your prospect’s behavior, preferences and needs that fuel buying behavior and create loyal customers. There are many important guidelines to keep in mind when prospecting through social medial platforms.

     •     Target: Learning your target audience is key, and social media tools allow you to perform this detailed research. This involves taking the time to determine which platform your target audience is using, and then looking for the kind of topics and conversations and issues that resonate with them.

     •     Establish: When you know what your target audience likes and dislikes, begin creating the brand persona and voice that incorporates your personal voice, what your target audience responds to, and what is working best for similar brands. This includes a profile image, site link, bio and business information. Because customers still expect authentic social interaction, it’s important to create a personal profile that’s likeable and trustworthy within that community without misrepresenting yourself or your brand.

     •     Connect: Once you have created your page and brand identity, begin by reaching out with page invitations to your selected prospects. Encourage them to invite friends and family that may be interested and join in industry-relevant conversation to increase your visibility and credibility. Remember: people don’t want to feel like they’re being sold to, so remaining genuine and personable is a more effective approach than presenting yourself as remote and salesy.

     •    Engage: Once you’ve established a connection, don’t bombard them with sales pitches. Take the time to review their social media and build a relationship by commenting on their posts, re-posting their content or answering their questions. This helps create a relationship where you can both add value to each other’s feeds and following one another beings to feel natural.

     •     Secure: Social selling opens the door for both inbound and outbound prospecting, but the best outcome of your social media investment is when you’ve entices prospects to contact you. Authentic connection and engaging content play key roles in inbound prospecting because prospects will contact you as they move into the buying window. You also have the option of outbound prospecting since social channels allow you to engage prospects through comments or messages directly through the platform. 

     •     While social media hasn’t replaced traditional in-person prospecting, it has become an essential tool in business building and customer connection. Use the social media tools you have to perform specific, focused prospecting and put strategically created content in front of the people that matter.

SOCIAL MEDIA: WHAT IT IS AND WHY IT MATTERS

Social media has become a crucial part of building your business and reaching new customers. But, even those who use social media platforms for personal use may not understand how to make the most of it in a business sense. Here, we will outline the basics of what you need to know to stand out in among the billions of daily global users and make the most of the tools available for you.

THE BIG THREE: While there are many social media platforms available, there are three that dominate the field. Facebook, the most inclusive of all the top three platforms, is currently the most influential but Instagram is a key platform for fashion, beauty and fitness as well.

     • Facebook: 1.18 billion daily users, uses all media formats, largest way of communicating with consumers in a non-prominent way

     • Instagram: 300 million daily users, longer half-life per post, hashtag-based, highly stylized

     • Twitter: 100 million daily users, largest penetration potential, micro-blogging focus, real-time interaction.

WHY IT HELPS: Many still view social media as an “extra” rather than the essential tool it really is. This is a mistake that could cost you hundreds of potential customers. Here, we outline why social media is crucial and how it can help create the success you want to achieve as an entrepreneur.

     •  Free Marketing: Unless you’re paying to boost a post, your activity on social media is completely free. Each post is a chance to market your brand and business, opening the door to prospecting and growth. Every comment, like, share, and view is your free advertising at work.

     •  Brand Loyalty : Social media is just that: social. It allows you to establish a relationship with followers in a way that major brands cannot. Social platforms allow for ample opportunity to foster these experiences and social relationships that create repeat customers over time. 

     •  Customer Service: Think of the last time you had a great customer service experience, then remember how many people you mentioned it to and whether you returned to that store to make a later purchase. “Customer first” is a saying that has only become truer as we have become more connected. Followers now expect better customer service faster than before and are vocal about both positive and negative experiences. This makes staying ahead of customer interactions a critical part of online business. Thankfully, social media makes this easier through push notifications and automated responses.

     •  Increased Reach: Before social media, you were limited to the connections you could make via cold calls, email, and personal connection. Now, every post you make is a chance to reach customers in areas of the world that you may never reach yourself. Utilizing social platforms removes the limitations placed by distance and time, making you more available and discoverable to potential customers around the globe. 

     •  Connection: You don’t turn on the TV because you want to see ads; you turn on the TV to watch your favorite show. This applies to social media as well. Users are there to connect and keep up with those they follow, not to see ads. The connections made through authentic engagement are far more helpful in growing your business because they humanize your brand and establish a relationship that cannot be accomplished by graphics and ads.

     •  Learn Customers: With the tools and analytics provided by your social media pages, you can now learn exactly what your followers like, engage with, dislike, and ignore within hours of each post. Using these tools, you can tailor your content to exactly what your followers want to see instead of using dated analytics, trial, and error.

HASHTAGS: Hashtags are simply shortened links that appear as words or phrases preceded by the pound sign (#). These are more than a stylistic addition to platforms like Instagram and Twitter. They are essential for organizing and categorizing these social media platforms, separating topics, and allowing users to search for specific topics, trends, and items. Used heavily on Instagram, Twitter, and Pinterest, these hashtags are important to understand and utilize as they increase:

     •  Discoverability: Posts without hashtags receive 70% less engagement than similar posts that include at least one. For example, if you were to post a clear, stylized image on Instagram without a hashtag, it would reach only your followers and the followers of those who shared your post. If you added a hashtag – let’s say #TLSweightloss – then your post would be included in the list of all posts that have included that hashtag. This means that every potential customer that searches #TLSweightloss on Instagram could engage with your post, drastically increasing its performance potential.

     •  Credibility: With the number of online business and online scams in today’s internet-driven world, social media users are wary of business owners, offers, and products. Thankfully, hashtags are an easy yet effective way to link yourself to your corporate brand (Isotonix, TLS Weight Loss, Motives Cosmetics, etc.). By including your brand’s hashtag, followers can click on the shortened link and see the thousands of other customers who have given their own testimonials. It’s a built-in reassurance to see that your product is real, high-quality, and used by hundreds around the globe every day. Be sure to check your brand’s corporate social media pages to stay up-to-date on current hashtags and campaigns.

MENTIONS: A social mention is the text inclusion of a person or page in a post on a social media platform like Twitter, Facebook, Instagram, YouTube, or Pinterest. You can mention someone in a post by typing “@” followed by the name, and it appears in blue as a hyperlink. It is useful for boosting visibility since the mentioned person or page appears as a blue hyperlink in the text. This allows others to click on the link to the main page - say Motives Cosmetics, for example – and boosts the page or person’s ranking in the Discovery section of that social media platform. Avoid mentioning followers, connections, or influencers that you have not already established a relationship with. It can create a negative reputation for your page and seem unprofessional or spam-like. It is useful to mention a person or page in a post to indicate:

     •  Credit: Mentioning a person or page in the body of the text acknowledges that you are sharing their post or content. You always need to credit the original poster to protect yourself from any potential legal problems and to simply show professional courtesy.

     •  Reference: You should also mention a person or page when sharing content of yours or someone else’s that references or quotes that party.

TAGS: A tag is like a mention but does not appear in the text of the post. There are two ways to tag someone in a post: in the photo or in the “With” section on Facebook. Like a mention, it notifies the linked party of their presence in the post, but tags have a few differences across social media platforms: Twitter only allows you to mention the user in the text of the post and you cannot mention a Page on Facebook. You can, however, “Check-In” as an alternative option. Tags are used for:

     • Ownership: The intended use for a tag is to show when someone or a product of a specific page has been included in a picture. It can also show that a person or product was present when the photo was taken.

     • Collection: Tagging is the best way to not only notify a brand or person that you are posting something about them, but it can also be helpful for gathering UGC, or user-generated content. This is because most social media platforms collect photos or posts that you have been tagged in for easy viewing later. These collections serve as an album of relevant, useable content for your own page, if you choose to use it.

IMAGES: Images make up nearly 80 percent of the content available on social media today, and posts that do contain images receive 80 percent more engagement than posts that contain no image. The quality of these images can greatly affect your online reputation in a positive or negative way, however, so it is important that you are selective when choosing which images will be chosen to post as a representation of your brand. All images should be:

     •    Clear, focused, and bright      •    Include a creative or clean background      •    Free of heavy text, stickers, or decoration      •    Show the story or impact of the pictured product or show it in use

Following these guidelines helps to ensure that you generate high-quality images that will help lead to more followers, higher engagement, and potential promotion from relevant corporate pages. It is important to remember that posting clear, stylized and well-shot images are critical for maintaining a good reputation and sustaining growth.  Followers do not want to see mediocre photos and will often unfollow a page or person if sub-par photos begin to crowd their newsfeeds. Since knowing how to take a photo for social media is so important, below are a few key tips:

     • Use Built-In Camera: When given the option to take a photo from the camera built into your phone or through the social media app itself, opt for your phone. Your photo resolution will be higher and you will be more able to adjust and edit the photo to fit the branding of your page before you upload it to the app.

     • Keep Camera Steady: While taking a photo, ensure your hands or arms are resting on something stable or invest in a stand for your phone/camera. While editing can reduce the shakiness or blurriness by a small amount, it is no substitution for a well-shot photo. 

     • Avoid Flash: Unless you have the proper photographic equipment to soften the light, avoid using the flash setting on your camera or phone. The flash creates a harsh, washed-out, and unflattering look in the photo. Choose areas with ample lighting, choosing natural light whenever possible. This will help the subject appear softer and warmer by reducing harshness and make the image more visually appealing.

     • Avoid Zoom: Zoom, like in-app camera options, can drastically reduce the quality of your image by making it grainy and unfocused. It is far better to move yourself closer to the object for a precise, clear shot that can be cropped and edited later.

     • Stylize: To stand out in the thousands of images posted each day, it is important that your images are not taken carelessly. Take the time to research other accounts in your industry to see which image styles (flat lay, monochrome, minimalistic, black and white) are receiving the highest engagement. Then, take a close look at your target audience’s preferences. Using the information gathered, set up your shot in a way that you know will reach and engage the highest number of your audience. 

CORPORATE SOCIAL MEDIA: Along with your own page, it is important to keep up with the relevant corporate pages as well. While it may seem counter-intuitive to engage and interact with corporate brand pages, there are many reasons you should:

     •  Brand Awareness : In building your business, you’re not only working to increase your personal brand’s (i.e. Trim with Tammi) recognition but to increase the corporate brand’s (i.e. TLS Weight Loss) recognition as well. Working alongside your corporate brand to increase brand awareness overall will help create more interest in the brand and increase the number of potential leads.

     •  Visibility : Following and keeping up with your corporate brand pages presents you with a constant stream of opportunities to engage with others who are interested in that business and its products. By choosing to engage with comments, questions, and through your own Visitor Posts to the page, you become more visible to those who are visiting the page and helps draw potential customers to you.

     •  Credibility: The number of online scams and false advertisements has created an anxiousness that surrounds online businesses, and this can be difficult to overcome when trying to attract new customers.  An added benefit of engaging with and sharing content from your corporate brand pages is that your followers can see that you are linked to a credible and well-established corporation.  It’s as easy as sharing and commenting. 

Alongside the benefits that come with engaging and following Market America, SHOP.COM, and Market America’s exclusive brand’s pages, there are also quite a few resources that are there for you to use on our pages:

     •  Graphics: Mixed in with creative user-generated content are professionally made graphics created by the Market America Creative Services department. Placed within content that shows your personal branding and story, these graphics help to maintain a professional presence. Since these graphics are there for your use, they save you time, money, and effort that can be invested in better ways to further your success. It is recommended that you give the brand page credit for the graphics.

     • Industry Updates: As an entrepreneur, it is important that you are aware of changes and trends in your industry (health, nutrition, beauty, etc.). While you can and should research these trends, corporate brand pages offer blog posts, tips, and updates that are relevant at the time. It is an efficient way to ensure that your information and presentation are current and relevant to your followers so they can remain engaged with your content.

     •  Brand Updates : It is critical that the information you pass along to your customers is accurate, and any changes in available products or news on new product releases are published to the corporate pages. To stay up-to-date, it is important that you keep an eye out for news of changes within your brand.

     • Blogs: Instead of recommending business owners to maintain and manage a blog to increase followers and customer, many brand pages share featured posts from their blogs for you. These posts contain relevant and updated information on industry trends, product information, recipes, tutorials, success stories, and testimonials that are not only great for keeping you engaged and up-to-date, but your followers as well. 

Now that you understand the benefits come from following your brand’s corporate pages, it is important that you know how to utilize these pages in a way that benefits you and your growing business:

     •  Sharing: Our graphics, videos, blogs, and updates are created for your use, and we encourage you to use them! Not only will it help improve your brand’s page on that social media platform, but it will help add a level of professionalism through strategically designed graphics and well-placed information. Just be sure to credit the original source of the image whether it is the corporate page or another user. 

     •  Comment : Commenting on the corporate pages helps both parties in many ways. It helps present you as an engaged and passionate business owner while also boosting your visibility to others who follow that page which increases your exposure and the likelihood of inbound prospecting. 

     •  Likes: While not as influential within most algorithms as comments and shares, liking the posts shared by your corporate pages helps boost the page’s ranking on your newsfeed which ensures you don’t miss any important updates. With constant changes in social media platforms throughout the year, consistently liking posts is a good way to ensure that you remain in-touch with any news or updates from your brand. 

     •  Visitor Posts: Another way to present yourself as an engaged and passionate entrepreneur is to create your own posts on our pages.  This can include tips, testimonials, success stories, tutorials, and encouragement that are relevant to your brand. This greatly increases your prospecting opportunities by allowing other visitors to comment, like, and share your post and opens the door for new customers to reach out to you with interest or questions.

Make sure to check with your sponsor for the most updated links to relevant corporate social media pages across all social platforms.  

DIRECT MAIL PROSPECTING: Using Direct Mail as a prospecting technique can produce fantastic results. You may increase your results by following up on each prospect with a phone call or text. Include in the package a selection of Market America approved literature, approved introductory letter, your name, email address and telephone number. This is vital information. If prospects can’t contact you to ask questions and obtain support, they may be lost clients.

APPOINTMENT MAKING: The purpose of setting an appointment is to mutually agree on a time and place to professionally:

•    Introduce and perform a product demonstration or product review. •    Present the Market America Management Performance Compensation Plan. The Five Steps to Earn.

By setting up an appointment, you will be able to take the necessary time, without interruption, to make your presentation. By setting an appointment in advance, you save time and establish a professional atmosphere in the home, office, or hotel meeting room.

Do not simply tell prospects you wish to see them, and then wait for them to invite you over. It just isn’t going to happen and you may quickly become disappointed. Always assume the appointment will be made. Request to stop by and visit prospects, offer them a choice of two different times, thank them, and get off the phone! Be sure you ask for an hour of their time. 

If you are doing a presentation to sell the product(s), consider the following when setting an appointment: set a time you and your prospect agree upon, insist on a time when a husband and wife can both be involved in your presentation; make sure the time you set will give you at least one hour without interruption.

If your purpose is to sponsor a new Independent UnFranchise® Owner, follow the same procedure. For even better results after your first appointment, try scheduling your prospects into an UnFranchise Business Presentation meeting. Make sure you offer to pick them up and drive them to the opportunity presentation. A simple rule is that 100 percent of the people you bring to the meeting show up!

Where is the best place for the presentation? (In order of preference):

      For Retail Clients Only:      •    Their home or office      •    Your home or office      •    Any other suitable environment where you will have no distractions

     For Clients and Potential UnFranchise Owners:      •    Their home or office      •    Your home or office      •    Any other suitable environment where you will have no distractions      •    Professional UnFranchise Business Presentation conducted at a hotel or meeting room; this           environment is most effective 

Whenever possible you should control where the meeting will take place.

SEC. 3    THE ART OF CLOSING

There are those who think they can . . . there are those who think they can’t . . . they are both right!

Closing the sale is the greatest achievement award a salesperson can reach. There is only one objection a client can give you that will cost you a sale, and you will probably never hear it in your lifetime. The objection is a firm “No.” When you ask your client to get started, he/she will give you a “so-called objection” such as “I want to think it over, I can’t afford it at this time, I want to check out the credibility of the business, I never make spontaneous decisions,” etc. Potential clients will seldom give you a firm “No.” These so-called objections must be viewed as excuses or a request for more information. Dealt with accordingly, they can ultimately be turned into positive “buy” signals.

Most objections result from a boring, uninformative presentation where the clients did not receive all of the answers to their questions. The objection is merely a request for more information, a loud “cry” saying, “Please convince me, make a decision for me!” To answer your clients’ request, make them feel important, and allow them to voice their opinion — doing this without looking like you believe they are unintelligent is truly an art you must master to close a sale.

PROBING: ASKING QUESTIONS: Purpose: to “guide” and “control” the flow of the presentation. Remember, if you are doing all the talking and the client is not asking you questions, you are not in control. Gain control and direct the conversation but be interactive.

The Open Probe: This method encourages clients to reveal their needs freely while you control the presentation. You will find that by encouraging people to talk about themselves while you listen, you will find all kinds of “needs” that you can later utilize to close the sale.

Examples:      • Have you ever heard of antioxidants?

     • Are you or anyone in your family involved in sports or fitness? Go on to tell them about OPC-        3®, Turn Up or Isotonix® Peak Performance story. 

     • What other means of income do you have besides your current job, profession or occupation?

The Closed Probe: Because not all clients will readily converse or reveal their needs, a different type of question must be asked when using the closed probe. This is a question that limits the client’s response to yes, no, or other. Closed probes are best used in a series or in conjunction with open-probe questions.

     • Are you interested in saving money on all of your household purchases? Have you ever heard of the Shopping Annuity®?

     • Do you take food supplements or vitamins? Have you recently seen the new information on the benefits of supplementation? Would you like to review them?

     • Are you looking for ways to increase or diversify your income? What have you considered to        date?

Each of these questions calls for a simple answer, yet each one reveals areas for you to elaborate on. Make a list of open and closed questions that are effective for you. Sometimes it is effective for a salesperson to combine open and closed questions.

Do you ever worry about the effect of pollution or smoke on your health? (open) Have you ever heard of antioxidants? (closed)

     • Do you earn as much income as you feel you are worth? (closed) If I can change that, you would be interested, wouldn’t you? (closed)

CLOSING: All selling skills you have learned so far are important. But until you know how to “close” the sale you will not be successful. Before we explain closing techniques here are a few “hints” to remember:

     • Always ask for an order or commitment      • Look for buying signals      • When you ask a closing question — be quiet! (until the client responds)      • Practice several different “types” of closes      • Always be confident and enthusiastic when you close — assume they are “smart” enough to buy        — don’t look “iffy” or “hungry.” Don’t show a lack of confidence.

Earlier we mentioned that questions control the sales presentation. Whether or not you are successful as a salesperson largely depends on how effective you become in controlling the flow of the conversation by asking probing questions, and then using the answers to your benefit. What is a proper closing question? J. Douglas Edward, the “Master of Closing,” stated that a proper closing question “confirms” the fact that the client has already bought (psychologically).

Never leave yourself “hanging” with a question. You must assume the affirmative.

Example: “Do you think you’d be interested?” is not a closing question. It confirms nothing on the part of the prospect.

“Are you more interested in earning from a single BDC or multiple BDCs?” This is an excellent close because it assumes the sale is made (using the “alternative choice” method of closing).

“Do you believe a single BDC earning $1,500 per week would be enough, or do you prefer to more than $1,500.00 per week is even more pointed.

In order to prepare clients for the close, go back through the benefits you have outlined and secure their agreement by asking questions that lead to the final close of your choice.

Examples: “You can see how this program can save you a substantial amount on your next purchase, can’t you?”

“You mentioned you were tired of ‘robbing Peter to pay Paul.’ This sure could solve that problem, couldn’t it?”

Based on what you would like to earn and based on the fact that UnFranchise® Owners are already earning that amount, is there any reason why you wouldn’t get started right away?

This kind of format is called “tie down” questioning. By using frequent contractions, you can get the client to agree with you on many points leading to an assumed close. (It doesn’t hurt to nod your head affirmatively while asking these types of questions and waiting for the answer).

THE FIVE-STEP METHOD FOR HANDLING OBJECTIONS: Believe it or not, most people do not automatically say “Yes” the first time you ask them to buy. It is almost a certainty that even when people love your product, price, and personality, they are going to ask a question or toss out an objection such as, “We need to think it over” or “We can’t afford it right now,” rather than immediately buying your product. It is a natural response, and one you should expect most of the time. People are simply hesitant to make a decision. You need to help them overcome this reluctance.

People are psychologically opposed to being sold anything. As intelligent people, they like to think they are making the decision by themselves, when they want it, and without your help. The old adage, “People hate to be sold, but love to buy,” is very true. A subconscious play is being performed, where their script reads, “You can’t sell me,” and your script reads, “Yes I can!” This creates a subconscious match-up which you cannot win . . . unless you allow them to think they have won.

By clearing out this mental process for a moment, you can close with a very high percentage of all qualified prospects you encounter. We do this with the following technique:

     •    Agree with the objection. (SWEEP THEM OFF THEIR FEET — VERBALLY!)      •    Expand the objection; make it even bigger than they imagined.      •    Storyline the objection.      •    Close the objection with a positive and irrefutable statement, followed by an affirmative question           and tie down.      •    Ask them to buy (assumed close), with a handshake upon agreement. 

Agreeing: By agreeing with the objection you make your clients feel important. You make them feel as though they have made an intelligent statement. You make them feel as if they have “won.” Don’t ever tell clients they are wrong, and do not argue their point. Agree with them first! 

They may be expecting you to try to keep selling, or they may be expecting you to argue, but they will never expect you to agree with any reason why they should not buy. When you agree with their objection, they feel as though you understand their position; this will momentarily clear that subconscious script in their mind and you now direct an easy path to close.

     •    I agree, you should think it over.      •    I can understand why you might feel that you don’t need any other product(s) right now.      •    I didn’t think I could afford it either, when I first saw this program.

Expanding: By expanding the objection, you give them even more to think about than they intended. The objection was simply a programmed response to a salesperson, not a real objection. Our system doesn’t require any long-term debate or research. If they want it, they’ll buy it…if you don’t “blow it” by making them feel pressured. It is important not to make them feel you are forcing the decision. It is much smarter and more effective to let them make the decision with your help. Too many salespeople attempt to close, and then hear the same objection again because they did not handle it properly the first time. If you can cover the objection entirely, neutralize it, and eliminate it, the client will not be able to use the same objection again. Once you eliminate all objections, the sale is made.

Now they have even more to think about than what they started with. You have thrown them a curve, and they need your help in understanding why you would be so foolish to agree with their objection and present them with additional reasons not to buy. You told them why they should not buy, and cleared their mind of the thought, “He’s trying to sell us.” You have now prepared them to listen to you. Only now will they open their minds and really listen.

Now you can prepare them for the close with a “story.” The story will be one that restates many of the benefits of the presentation and should lead you into the close you have selected to use.

Storyline the Objection: “You see folks, throughout the ages people have wanted good health and nutrition. Unfortunately, people like you and me, the people that need that kind of edge the most, typically never get around to taking care of ourselves. We’re too busy taking care of everyone else, right? So when we do buy health and nutrition items, it becomes even more important to do so at the lowest possible prices.”

Positive Statement — Affirmative Tie Down: “As you mentioned earlier, you do occasionally buy health and nutrition items and getting the best price was important to you. If you can have the items at a lower cost than what you would normally pay, you would like that, wouldn’t you?”

Close: This can be as simple as a handshake upon the agreement to the final question in step four. If you are not sure if they are ready for a handshake, ask a question like, “What would prevent you from getting started now?” Or ask them which product line they would like to start with.

“Great!” (Handshake on their affirmation). “Do you think one $1,500.00 income center would be enough, or do you prefer multiple business development centers (BDCs), earning in excess of $1,500.00 per week? Okay, why don’t you look through this catalog to see what products you might want to order while I fill out the paperwork…?”

To close a sale without following these rules on how to professionally close is as unwise as putting on your clothes without buttoning them up. All you will have is a mess. Use this technique and you will find that the majority of your clients will close the sales for themselves, simply because they like an explainer better than they do a salesperson.

One final note: now that you have sponsored these people, you have entered the management ranks. You need to set up a follow-up appointment to get their prospects list started, and start managing (teaching) them the skills necessary for success in our business. Invite them to a training seminar, retain their goals in your mind, and start helping them achieve their goals.

SEC. 4    STARTING NEW UNFRANCHISE® OWNERS

Nothing is more important than for a sponsor to direct a new Independent UnFranchise Owner properly into our business. First and foremost, you should represent the company as a professional, and not exaggerate the Market America business opportunity. Second, you should review our philosophy and identify what the new UnFranchise Owner can expect from Market America, and what Market America expects from its UnFranchise Owners.

Sponsoring a new UnFranchise Owner will take two-to-four hours. The time you spend in the beginning will save you an extraordinary amount of time down the road. In addition, your new UnFranchise Owner will duplicate your efforts.

(A)     Registration Appointment (Signing and agreeing to the Contract; refer to the Getting Started Guide)

        (1)   Defining The Costs: All new UnFranchise Owners need to understand the cost of getting into our business. To create one Business Development Center will cost nothing, but to participate in the MPCP will cost them the subscription fee, and they may choose to spend less than $500.00 in BV products (a minimum of 200 BV), overhead, and supplies. Understand that there is a potential for additional costs based on miscellaneous office supplies, business cards, and additional start-up costs.

        (2)   Complete The UFO Application And Order Form Together: Be sure to review the price list and how to read it. Explain all the options on the application and order forms.

        (3)   Identify The University Major Of Choice And Use The Product: Most new Independent UnFranchise Owners enter our business already having experienced their product(s) of choice. If not, stop and discuss products and get the prospect to try the products. In the worst-case scenario, the new UnFranchise Owner should order a  variety of products to experience a cross-section of products. Failure for a new UnFranchise Owner to experience and enjoy one of our products or services is almost a certain set-up for failure as a Market America UnFranchise Owner.

                The selection of a university major will lead to products and services to be shared with the new UnFranchise Owners. The major selection promotes add-on sales of products to their eventual customer base. It also stimulates a wider range of UnFranchise Owner product knowledge, resulting in increased sales and profits.

        (4)     Sell Tickets To Training Seminar: This is the perfect opportunity to sell a ticket to an area Basic 5 Training and new UnFranchise® Owner Training (NUOT). It is the sponsor’s responsibility to know what training meetings are available in the area. In the worst-case scenario the sponsor must take responsibility to train them.

        (5)     Book A Follow-Up Meeting With Sponsor: This follow-up meeting consists of meeting with one or two interested prospects who will listen to our UnFranchise® Business Presentation. You would like to have present at least two UnFranchise Owners for our new UnFranchise Owner so that he/she may activate his/her 001 Business Development Center. (Note: Each Business Development Center must have two personally qualified and sponsored UnFranchise Owners in order to be activated and to qualify for commission).

        (6)     Give A New UnFranchise Owner An Assignment: Have the new UnFranchise Owner read a chapter in the UnFranchise Manual, listen to audios and explore their new websites. Be sure to review the content of the assignment.

        (7)     Book Additional Follow-Up Meetings With Sponsor: This is to meet with additional Market America UnFranchise Owner prospects.

        (8)     Attend Area Training Seminar: Your new UnFranchise Owner has already purchased the ticket, but you must be with him/her when he/she attends the training (duplication).

        (9)    Set Up A Three-Month Review Meeting With Your UnFranchise Owner: This meeting is to review the first 90 days of business: ensure that their Form 1000 has been submitted; ensure that the Market America AutoShip Program has been put into effect; and discuss the requirements for exercising the Monthly Accrual Option. Also, at this time, review their Goal Statement and Business Plan and make any necessary adjustments. It is best to always measure their progress in building out Base 10, Seven Strong and earning that first BV commission check. 

(B)     Starting Tips For A New Unfranchise Owner

        (1)     Prospect List: Develop a list of people (at least 60) who would be interested in the product or opportunity. Contact your Senior Business Partner or sponsor and discuss your prospect list. Learn some simple approaches. Develop your answer to “what is it?” and your “two-minute commercial.”

        (2)     Work Schedule: Be sure to set aside your work schedule of committed hours to build your UnFranchise Business. If you committed 10 hours a week, set them in your calendar and schedule four weeks out. Allow at least two three-hour blocks of time each week to show the Plan and sell products, as well as to work with your team. This is an important task if you are serious in attaining your goals. 

        (3)     Business Tools: If you really want to grow fast, it is recommended that you purchase some tools, including:

                •    Opportunity Flip Chart Presentation – Code: 700                 •    10 to 20 Global Annual Reports – Code: 18001                 •     Your UFMS subscription and adding to your UnFranchise AutoShip                 •    Extra tickets to the next training seminar to sell to your new UnFranchise Owners                 •    Copies of the Getting Started Guide: Code: 391                 •    Home Shopping Lists: Code: 671

        (4)     Products and Retailing: You can take orders, but you will find that it is easier to test-market the products and start out with $200.00 to $600.00 worth of products. As you sell products to your customers or UnFranchise Owners, you simply reorder. Also, this enables you to qualify your Business Development Center(s). You then only have to turn in $200.00 worth of retail receipts, sold to at least two (2) consumers outside the business prior to qualifying for a Coordinator check, or within your first quarter, whichever comes first. Retailing is simple, using the company test-market trial-size program. Give out samples or sell trial sizes with a pre-approved handout found on UnFranchise.com > Downloads > Support Materials, and people will place orders. Refer to the section in the UnFranchise Manual on product information and retailing tips.

(C)    Recruiting:

        (1)     Invitations: Invite at least two people to come with you to a meeting. Don’t just invite them — bring them. Pick them up and bring them to the meeting. Then teach them to do the same. Contact your Senior Partner or refer to the GMTSS Online Menu Item under Help and Training for the location of the next meeting to which you can bring your new prospects.

        (2)    Three-way Calling: Via phone or internet service that has three-way calling capabilities. It is very inexpensive. Get your prospect and sponsor or Senior Business Partner on the telephone or computer, introduce the prospect to your sponsor, and let your sponsor explain the business and invite him/her to a meeting.

        (3)    Two-on-one Meetings: Set up an appointment for you and your sponsor or Executive Coordinator to visit a prospect. Two-on-one presentations over coffee are very effective.

        (4)    Video Sponsoring: Use online videos. Tell prospects that you want them to review a phenomenal marketing concept. You will send them a link. Get them to commit to watching it within 48 hours. Call them and ask them what they liked most about it. They will ask questions; do your best to answer them. Tell them you would like to introduce them to the key people in the area who can better answer their questions. Offer to pick them up and bring them to a meeting. If that is not possible, try to get your sponsor or Executive Coordinator on the phone to talk with them on the spot.

        (5)     One-to-one Presentations with the Flip Chart Presentation: Learn the business presentation by practicing the Flip Chart Presentation on relatives and friends first. Tell them you are practicing; you might end up sponsoring or selling them product by accident. Listen to the audios or review the recorded presentations online and learn. Then go out and do One-to-Ones just by going through the Flip Chart. Show them some products, and ask them if they want to buy product(s) or come to a meeting. Bring them to a meeting and allow them to invite two people to bring with them.

        (6)     Weekly Meetings: After you’ve mastered the above, book a bi-weekly meeting in your home, office, or one of your UnFranchise® Owners’ homes. Allow everyone to bring people. But make sure you set the example by having two prospects there yourself. Be sure to have literature on hand to pass out and product to sell. In the beginning your Senior Partners can do the presentation, until you feel comfortable doing it yourself. Be sure to give your Senior Partner a proper introduction. Ask your upline the correct way to introduce them.

        (7)    Follow-up: Never present the plan or products without booking a Follow-up appointment or meeting. This is essential. Simply pull out your appointment book or phone and give them a choice of two dates and times to get back together or bring them to a meeting. Do not leave it to calling them back or waiting for them to call.

        (8)     Rallies and Training Seminars: Make a commitment to be at the next training or seminar to learn more about the products, retailing, sponsoring and building the business. Buy your ticket NOW! Get extra tickets to sell to your prospects. This is the surest way of duplicating yourself and building belief, knowledge, and enthusiasm in your sales organization.

        (9)     Duplication: Simply teach others to do the same thing.

SEC. 5    PROFESSIONAL SPONSORING

This training section is designed to introduce you to the basic skills that add up to SUCCESS in our business. Professional Sponsoring, Lead Generation, Advertising Rules and Techniques, and Professional Closing Skills are all covered in this section. To begin, let’s examine the basic differences between “recruiting” and “sponsoring” people into network marketing and our UnFranchise® Business.

The underlying goal is to establish sales, training, growth and development necessary for newly involved UFOs in our business to achieve the success they seek. As the person responsible for involving another individual, you must understand your responsibility, accept it, and do those things essential to ensure your success and the success of your new UnFranchise Owner. In short, let’s determine what must be done to give a new UnFranchise Owner the best chance to succeed, rather than fail.

To set the stage, let’s assume we have just recruited someone as an Independent UnFranchise® Owner. In other words, the required company paperwork has been completed and sent to the home office. Additionally, the UnFranchise Owner may have elected to purchase some products for display and resale. It should be a new UnFranchise Owner’s priority to become familiar with the product line and literature. It is important for the new UnFranchise Owner to show the products to as many people as possible in order to develop 10 repeat customers. Many UnFranchise Owners find it helpful to have some trial-size samples to show and give to potential customers.

Before exploring the responsibilities of a sponsor, it is essential that we understand the mental steps the new UnFranchise Owner must take on the journey to success. For some, this will be a short and rapid trip. For many, the trip will take longer and demand a greater amount of endurance and personal development. The best news is that those who persevere and journey, step-by-step, to the success and monetary rewards they desire will be the ones who grow to become champions. Your challenge as a sponsor is to assist the new UnFranchise Owner in taking those steps, and to do so as quickly as possible.

(A)     Three Key Factors

        (1)     Hope: Literally everyone, after seeing a correct and professional presentation of our business opportunity, will experience “HOPE.” There is HOPE that what they have just seen and heard is really true. More importantly, new UnFranchise Owners HOPE that this business venture can become a reality for them. The strength of their HOPE is based mainly on the strength of your presentation. Yet, left only with HOPE, a new UnFranchise Owner will surely fail.

        (2)     Faith: If success for the UnFranchise Owner is to occur, the second step, the step of “FAITH,” must be accomplished. FAITH takes place when new UnFranchise Owners actually see evidence of the success you and others are experiencing. It is very important for new UnFranchise Owners to hear about and meet others who are succeeding in this business. They soon realize that nearly all these people are neither exceptional, nor unusual. In fact, it becomes obvious that successful UnFranchise Owners come in all shapes and sizes and from all walks of life. Therefore, they draw the conclusion, “Maybe success will happen for me, too.” In other words, FAITH sets in.

        (3)     Belief: The third major step on the journey to success is by far the most important one. This step moves the UnFranchise Owner to the level called “BELIEF.” Nothing major in an UnFranchise Owner’s business growth can occur until BELIEF is achieved. BELIEF begins when new UnFranchise Owners experience some form of personal success in their own business. That success could take the form of a product sale, enrolling a new UnFranchise Owner, or preferably a combination of both. As soon as success happens once, an UnFranchise Owner can believe it will happen hundreds of times. It is only a matter of consistent effort over a period of time. It is absolutely mandatory that a sponsor assist the UnFranchise Owner in every way possible in taking the psychological steps from HOPE, to FAITH, to BELIEF. The sooner the better, because the longer the delay between each step, the more likely it becomes that the new UnFranchise Owner will lose interest and quit before really getting started.

Let’s recap the thought sequence new UnFranchise Owners go through along their journey to success. They begin (with your help) to develop HOPE that this opportunity is as good as represented, and that they have what it takes to cash in on it. From HOPE new UnFranchise Owners develop (with your help) FAITH that there is no reason why not, yet every reason why, it should work for them. Finally, as the new UnFranchise Owner experiences one or more successes, (with your help) BELIEF sets in, and the UnFranchise Owner’s business begins to grow and develop.

Any step short of BELIEF will prevent real success from taking place. New UnFranchise Owners will probably be unaware of these milestones. With your continual guidance, their BELIEF will transform into long-term COMMITMENT. That COMMITMENT is the only insurance for their success. It is your responsibility to guide them on this journey as effectively and quickly as possible. Success will not happen as if by magic. You must help to make it happen with the UnFranchise Owner you have sponsored. Do this and you earn the right to be called a sponsor. Anyone can recruit and leave his/her business to pure chance, but the probability of success is marginal. Successful UnFranchise Owners know the vital importance of being a supportive sponsor. It is your responsibility as a sponsor to train, support, and motivate everyone you sponsor.

(B)     Management And Supervision

        Recruit and fail. . . . Sponsor and succeed!

Now let us look more specifically at what we must do after we have sponsored a new UnFranchise Owner. What are the key ingredients to the “Follow-Up Plan” of an effective sponsor?

        (1)     Personal Goals: Assist your UnFranchise Owners in identifying their personal goals. These goals are usually comprised of a combination of needs and desires. Helpful goal-setting questions include:

What do you want to do?     Where do you want to go?     What would you change in your life?     What do you want to have?

                Since no one does anything without good reason(s), the first step in Follow-up is most important. Done properly, it provides your UnFranchise Owner with clear-cut reasons to pursue this business in the short-term and make it succeed in the long-term.

                Be sure to establish how much income your UnFranchise Owners want to earn from this business and how soon. Determine what they would do with the income. Our Marketing Plan provides built-in milestones on which you can help your UnFranchise Owners base their time frame for accomplishing their personal growth goals. Help them decide how soon they will become Coordinator, Executive Coordinator, and beyond.

                Most people who fail claim lack of planning as a primary reason for failure. Our Marketing Plan is a success plan. Advancing to the various positions in our system guarantees success and appropriate incomes. There is an excellent chance your new UnFranchise Owners have never devoted enough time to establishing a realistic set of goals. Now is the time to get your UnFranchise Owners properly prepared for that climb to the top! Proceed no further until you have laid out some initial goals for your UnFranchise Owners. People do not plan to fail, they simply fail to plan. Refer to the goal-setting section of the UnFranchise Manual and help new UnFranchise Owners write out a Goal Statement. Follow the instructions step by step. NOTE: They must be their goals — not yours. You simply make sure they are specific, recorded and written.

        (2)     Business Calendar: Assist your UnFranchise Owners in setting up a calendar for doing business. When, during each day of each week, will they not be able to build their business? Scheduling may be affected by a full-time job, family time, church activities, etc. What portion of the calendar are they willing to devote to their business? Identify the days and hours designated for working the business, and commit your time to work together during that time.

                Show them the business-building calendar you use (you must have one), then help them put their schedule in writing. The basic reason for setting a calendar is to help your UnFranchise Owners decide whether their business growth will be based on “spare-time effort” (whenever it’s convenient and doesn’t interfere with anything), “consistent part-time effort,” or “concentrated full-time effort.” This helps them develop realistic expectations. Be sure to have them schedule in the monthly business seminar and sell them a ticket.

                Determining the calendar/schedule will help you decide how much time you can afford to invest in any new UnFranchise Owners. The more time and effort they commit to, the more time and effort they have a right to expect from you.

        (3)     Prospect List: Assist your UnFranchise Owners in developing a useful Prospects List. This is their potential business clientele. This list of names must be committed to writing or it will be virtually useless. The list must include: names, phone numbers, city, state and email addresses. Obviously, the first two are essential, or your UnFranchise Owners can’t do much of anything. Separating the names into local and long-distance categories is necessary, as we deal with each category differently. See the section on long-distance sponsoring techniques, following this section.

                Numerous “memory joggers” are to help your UnFranchise Owners recall names of prospects. Use one or more of these as they speed up the development of a substantial names list. Be sure to emphasize the need for a notepad or phone recorder to be carried at all times in order to record the names of any prospects you might run across each day. Names pop into people’s minds at the most unexpected times. Being prepared to record and remember them is essential.

                A prospects list is an ever-changing and growing business development aid. Without a properly utilized names list, an UnFranchise® Owner is certainly well-prepared to fail in this business.

        (4)    Business Tools: Advise your UnFranchise Owners of the availability of literature, audios, videos and sales aids and how to find them. These are our stock-in-trade. Attempting this business without an adequate supply on hand is certain to slow business growth. This order should take into consideration the UnFranchise Owners’ own anticipated needs and the needs of those individuals they will sponsor in the near future. In this way, everyone gets off to a fast start. The probability of success is greatly increased by using these sales aids and tools.

        (5)     Appointments: Assist your UnFranchise Owners in setting appointments with people from their prospects list to share our products and opportunity. It is a good idea to show them how by actually doing it yourself, in front of them, from your own prospects list. Then have them make several appointments and provide positive reinforcement and constructive criticism after each call. Go with them on their appointments and make the first couple of presentations. Then help them make a few presentations. Never leave committed UnFranchise Owners on their own until they have made at least two or three sales.

        (6)     Commitment: Assist your UnFranchise Owners in understanding the need for making and keeping a one-year commitment to the business. This will help discourage them from quitting or being overly disappointed the first time they encounter an obstacle or challenge. This commitment provides them the time to learn the business and to begin to recoup the rewards and provides the best chance for long-term success. Anything less than a one-year commitment suggests that your new UnFranchise Owners may lack the seriousness and resolve to succeed in business for themselves, even with your help. Don’t settle for less than what you know it takes for them to be successful.

Your UnFranchise Owners should include the following considerations in their one-year commitment:

        •    Attend all Market America functions in their area (seminars, UnFranchise® Business              Presentations, conventions)

        •    Support the local Market America UnFranchise Owner GMTSS Association

        •    Develop a strong product/opportunity presentation

        •    Pursue the business plan they have established

        •    Never lose sight of their goals

        •    Devote at least one year before final evaluation of their Market America business

        •    Frequent discussions and meetings with you, or counseling sessions

These are basic and essential factors upon which your UnFranchise Owners should base their business-building commitment.

        (7)     Training: Schedule your UnFranchise Owners for the first New UnFranchise Owner Training (NUOT) and Basic 5 (B5) Training available in their area.

        (8)    Self-Improvement: Encourage your UnFranchise Owners to begin a self-improvement program consisting of daily exposure to positive and motivational audios, videos and/or books you and others have found helpful. As part of your UnFranchise Owners’ self-improvement program, it is essential that you provide reinforcement for your UnFranchise Owners’ accomplishments, as they occur. Encourage them to read their Goal Statement twice daily. They should show you their Goal Statement periodically. It should be modified and fine-tuned as they progress.

                As you engage in the foregoing steps, you will fulfill the responsibilities of a sponsor. These steps are very basic, yet critical to your overall success, based on your UnFranchise Owners’ success. This is not designated to do more than scratch the surface of what it takes to be a very successful sponsor (as opposed to a failure as a recruiter). A few additional helpful hints:

•    Be an effective listener •    Be an effective questioner •    Sell — don’t tell •    Lead by example •    Often ask yourself if you would be happier with a sponsor who performs as you do

                You may believe there are more effective ways then those outlined here. You may be right. However, these methods not only work, but your entire downline organization can duplicate these steps. Time and time again, this method has enabled numerous individuals to gain financial freedom by building a profitable network marketing business.

                Remember at all times that with our product lines on SHOP.COM and various websites and marketing structure, you have an incredible opportunity to build a rewarding personal business by retailing products and establishing a marketing organization through sponsorship. As with any worthwhile opportunity, time, effort, knowledge, and professional responsibility are essential. This responsibility demands that each of us demonstrates, by example, the necessity of follow-up with our retail clients and those we sponsor into the business.

                It seems unreasonable to assume that anyone who gets involved with our opportunity does it with the intention to fail. It would appear to be much more likely to assume that all people who join us in this pioneering effort expect to succeed and have their dreams fulfilled. Experience has shown us repeatedly that the key to an individual’s success is most often the leadership provided by both the personal sponsor and the upline sponsorship to which he/she belongs. 

                Let it never be said of any of us that we made it easy for someone to give up on himself and quit this business due to our lack of personal and professional effort. Together we are destined to win! Let’s get on to the business at hand. Make it one of your primary goals to be the best sponsor you can be.

SEC. 6    SPONSORING AT A DISTANCE

Long-distance sponsoring refers primarily to sponsoring Market America UnFranchise® Owners who do not live or work within your local area. These are people you will not be able to physically follow up with on a daily or even weekly basis. Successful long-distance sponsoring can greatly enhance your organization’s productivity. 

(A)    Keys To Sponsoring At A Distance: Successful long-distance organizations are based primarily on two things:

        (1)     The Strength of the People You Are Sponsoring: People you sponsor long-distance should be experienced networkers, have well-developed people skills and a large circle of influence, or must be willing to work very hard on their own to learn this business. Why? Because you are not going to be there every day to assist them when needed. They must possess a winning attitude that will allow them to meet the challenge of learning a new business and overcoming problems. Successful long-distance sponsoring is much simpler if you are dealing with people who consider themselves leaders.

        (2)     “You,” the Sponsor: If you are doing everything in your power to support your new Independent UnFranchise Owner, then sponsoring at long distances has a better chance of working out for you. You need to be prepared to spend a considerable amount of time on the telephone or on the internet with the UnFranchise Owners you have sponsored at a distance and to even travel to visit them once they have gotten started.

(B)     Steps In Sponsoring At A Distance

        (1)     You call the prospects. Do not attempt to have somebody else make your initial contacts for you. If they are to be your UnFranchise Owners, then you must make the call. The purpose of the call is to find out if they have any interest in finding out more about Market America.

        (2)     Prepare an electronic communication for your new prospect. You should include:

                •    A Market America video, your website address, SHOP.COM, marketamerica.com, any download referring to recommended products, including a Corporate Brochure with your information filled out on an application and order form

                •    Any information you have been able to find regarding local Market America meetings or                      trainings in their area (per the Global Meeting, Training and Seminar System – GMTSS)

                •    Shopping Annuity® Introduction

                •    Any other information you believe could enhance a buying decision, such as product                      information

                •    The name of the person in a leadership role that you may have talked with in your efforts                      to determine the degree of activity in your prospect’s area

        (3)     Send the information you have compiled to your prospect. Now call your prospect schedule him/her into an online meeting. (recommend Zoom vs Skype, WhatsApp)

        (4)     Follow up! Stay in constant communication, by phone, text and by email. Answer all of his/her questions. Have your Senior Partner Executive Coordinator or higher UnFranchise® Level get on the phone with them by initiating a three-way call or having your Senior Partner place a follow-up call.

        (5)     Set goals for yourself to visit your new UnFranchise Owner.

Successful long-distance sponsoring requires patience, diligence, and investment of both time and money. This should be with the understanding that sometimes your greatest intentions and plans end up in defeat. When you consider the profitability of a nationwide network of Market America UnFranchise Owners in your organization, it will seem like a very wise investment of yourself indeed!

SEC. 7    BECOMING A MODEL MOTIVATOR

Motivation is a two-step process offering your UnFranchise Owners the incentive to achieve and offering recognition for those achievements. Never pass up an opportunity to recognize an UnFranchise Owner’s achievement, regardless of how small it may seem. Regardless of your good intentions, motivation for any individual comes from within . . . you cannot force it. The networking opportunity is for those who want it, not necessarily for those who need it. Using proper goal-setting techniques effectively with your organization is the key to motivation. If they really want it, and they think they can get it, they can be motivated to go for it. Specific and detailed information on implementing your own goal-setting program is included in this Manual. Study and use this information yourself and use it to help the UnFranchise Owners you sponsor.

SEC. 8    PERFORMANCE AWARDS

In the goal-setting sessions with your Independent UnFranchise Owners, discuss their needs and wants. Listen to what they say and make a list of what you may be able to offer them as incentives. Remember, an incentive should be important to the person you are trying to motivate. An incentive doesn’t have to be expensive in order to be effective, but its cost to you should be paid for by the activity it generates.

(A)    Some further tips on performance rewards include:

        • Always present awards at meetings or group functions, so your UnFranchise Owners gain the added satisfaction of group recognition.

        • Make your incentive programs attainable through reasonable effort. A goal that is unrealistic becomes no goal at all.

        • It is preferable to offer a progression of small incentive programs rather than one big incentive. More people will want to participate, and you will be building the habit of success.

        • Awards or acknowledgement of achievements must be timely to be effective. Make presentations as soon as humanly possible after a goal is reached. Nothing is worse than working hard to reach a goal and then feeling that no one cares.

        • Deliver every incentive award, however modest, with an extensive dose of praise.

(B)     Examples of Incentives:    

        •    Special personal awards from you

        •    Trips to conventions, Market America Corporate Office, etc.

        •    Flowers or a fruit basket sent to the UnFranchise Owner’s home

(C)     Examples of Recognition:    

        •    A listing in your monthly newsletter

        •    Award ceremonies held at your meetings

        •    A personal phone call from you

        •    Congratulatory letters and emails

Be creative with your methods of recognition, have fun with it, and your UnFranchise® Owners will not only enjoy the special attention, but they will also be freshly motivated by the morale-boosting recognition.

SEC. 9    UNFRANCHISE AUTOSHIP PROGRAM

The Market America UnFranchise® Business Development System and Management Performance Compensation Plan (MPCP) is, without a doubt, the most powerful compensation plan ever created. It maximizes the effects of compounding growth, volume, and income. Because of continued new growth and sales, on top of regenerated sales, you can develop a tremendous and secure ongoing income. Your income does not have to be dependent upon what you produce or develop in new volume this week or month. This business is really quite simple when you think about it. First, we retail products. Not only does retailing yield an immediate profit, it generates Business Volume for commissions under the MPCP. We create our Shopping Annuity®. Then, we simply duplicate by sponsoring others and teaching them to do the same thing. It’s not what one can sell individually, but what many can sell collectively, that produces the tremendous earning potential in this plan. Not only do you earn on the new production from your time and effort put into the business this month, but what you developed last month, the month before, three months ago, six months ago, even a year ago! This is what is meant by a compounding effect. On a job, you only get paid for the time you put in this month. In a sales position, you only get paid on the sales you made this month from the time you put in this month. But if you work this business in a smart way, you can continue to get paid on the time put in over the past months, on top of what you get paid for your efforts this month. This is because what you developed in previous months continues producing sales and volume this month as well. This is why so much money can be made in this business. So, it is important to work smarter rather than harder. We want to maximize the compounding effect. We want to maximize the repeat sales, as well as new sales of each UnFranchise Owner on an ongoing basis.

The concept of UnFranchise AutoShip accelerates and encourages this process, as well as ensures the UnFranchise Owner is a product of the product and remains active in the business. First of all, UnFranchise Owners who use their own product and build their Shopping Annuity will increase their volume dramatically. Secondly, it increases what each UnFranchise Owner sells. When UnFranchise Owners use their own products and shop online, they not only learn about the products, but they come to believe in them. That makes it natural to tell people about the products. Furthermore, when they have the product in their home, people will ask about it. It’s simply a matter of sharing or “telling the story” — and friends, relatives, acquaintances, neighbors, and co-workers will want to buy. Thirdly, when an UnFranchise Owner has a small supply of products on hand to sell, it is much easier to take orders and complete a sale. The results are phenomenal. Lastly, the AutoShip Program enrollment helps to ensure that the Monthly Accrual Option will be exercised each and every month for qualified UnFranchise Owners. And, that your sponsor can place volume in your business centers. It also reduces administrative work. 

(A)     The Power Of Ongoing Income: AutoShip is the only smart thing to do. Certainly, if you owned a store, you wouldn’t go out and buy the same type of products at retail prices that you carry in your store — which you get at wholesale! Simply put, that would be foolish. As a Market America UnFranchise Owner, you literally own your own “Mall Without Walls™.” Look at all of the products carried in your “Mall Without Walls.”

        The average individual spends at least $300.00 to $500.00 per month on these same kinds of items at higher prices. Simply transfer those dollars to your own business and supporting your Shopping Annuity, and it doesn’t cost a thing. By becoming a Market America Household, your family can benefit from the personal use of Market America products, and you get to purchase them at UnFranchise Cost. In reality, you are “buying from your own business.” That makes good common sense!

        When you think about all the money that you and your household spend each year on products and services, and you methodically transfer just a portion of those dollars to purchases from your own business including SHOP.COM, you are well on your way to saving and earning money. You are building your Shopping Annuity®.  Plus, your friends, relatives, and customers will want to do the same: save money, as well as enjoy the convenience of having new products dropped off at their door. What appears to be a relatively small commitment can, in fact, grow into an enormous income.

(B)     Ensuring That The Monthly Accrual Option Is Exercised: For qualified UnFranchise® Owners, the Monthly Accrual Option is automatically taken care of by signing up for the UnFranchise AutoShip program. The “Accrual Protection” option for UFOs ensures, automatically, that appropriate monthly amounts are ordered as an UnFranchise Owner moves to new UnFranchise Levels. The Monthly Accrual Option is extremely important in the MPCP. To participate you have to submit a minimum BV order and a monthly subscription to the UnFranchise Management System by your assigned qualifying date (Q-date) each month. If you miss it, for whatever reason, the computer will flush your volume, and there is absolutely nothing that can be done about it. A simple way to take the worry out of it and ensure that you always exercise the Monthly Accrual Option is to go on the UnFranchise AutoShip Program.

(C)     Look At The Multiplier: Paul J. Meyers, the famous Founder of SMI International (Success Motivation Institute), once said to a group of leading sales representatives, “To achieve wealth in business, you must look for the multiplier.” He explained that virtually all super-successful business people found a successful concept or business and then duplicated it. In doing so, they created success and, in many cases, large fortunes.

        Nothing proves this point more than a successful franchise, such as McDonalds, or a network marketing company like Market America. The beauty of Market America is that you don’t have to find a successful concept or business; it has already been created for you. You don’t have to look for the multiplier; you simply look at the multiplier. Once you truly recognize the power of the multiplier and the power of AutoShip, nothing will stop you from sharing this opportunity with others. That itself produces the multiplier effect for you. The AutoShip formula with the Market America AutoShip program can help you lock in $1,500.00 to $3600.00 per week when duplicated in your organization!

AutoShip and Customers = Guaranteed Volume = Weekly Checks

        Learn this and teach it! There are numerous ways to capitalize on this system. This is a surefire system that helps you have the volume to qualify for checks weekly as you build your organization by implementing the AutoShip program. Make sure every UnFranchise Owner in your group becomes a Market America household and builds his/her Shopping Annuity. It only makes sense to exclusively work and build with people who will commit to do 50 to 500 Personal Business Volume per month. Otherwise, they really are not committed and are not using their own products, let alone selling them! If they don’t use them, they won’t sell them.

        (1)     AutoShip : It doesn’t cost you anything more to buy your own quality products than to buy similar products from the store. You, your UnFranchise Owners and your customers are simply transferring dollars you are already spending at retail stores to products from Market America or SHOP.COM. How many things in the price list do you already buy monthly? Everyone at least needs SNAP™ at-home-care products, and some nutritional products. Make a checklist. Go down the Home Shopping List and take the Shopping Annuity Assessment and check off what you need or buy monthly. Place a standing order for these items for 50 BV to 500 BV or higher amount.

        (2)     Planned Purchases : What items do you need in your house over the next year? Make a list:

                •    Every household should have a Pure H2O™ water filter

                •    Every woman should be using Skintelligence®, Cellular Laboratories®, Lumière de Vie®

                •    Everyone needs protection from the elements that can cause cancer and aging, and                      should have OPC-3® and Isotonix® Daily Essentials

                •    Everyone buys gifts for Valentine’s Day, birthdays, anniversaries, Christmas, etc., and                      should strategically purchase them from his/her own SHOP.COM site

        (3)     Inventory And Standing Orders: Every UnFranchise Owner should specialize in at least one Market America University Major, and sell out of that store. There is an old saying: “You can’t sell what you don’t have. You can’t sell shoes from an empty shoe store or ties from an empty tie rack.” It only makes sense to get a few of the product you are selling per month, so you have the product on hand to sell! Place a standing order. Every month it will be shipped to you like clockwork. You get the money back as you sell the product, plus you get your return profit. If everyone in your organization did this what would happen? First, everyone would sell more products, and everyone could count on the volume! Preferred Customers: Sit down with your Preferred Customers. Sell them the monthly SNAP Pack. Or, make a list of everything they are already buying and get them to order it from Market America rather than the store. Put in an AutoShip order. It really doesn’t cost them anything because they are already spending it at the store. If each UnFranchise® Owner in your group had two customers on AutoShip what would happen? Again, if you had 100 UnFranchise Owners at the end of six months, each with two customers on the AutoShip Program at an average of 50 Business Volume per customer, it could equal an extra guaranteed 10,000 Group Business Volume per month.

(D)    Teaching Autoship And Programming Your Organization: There are two simple steps to duplicating this concept in your organization and making it self-perpetuating.

        (1)     Marketing Plan Presentation: First, when we talk about “Create Business Volume,” the second step in the plan always identifies the ways of creating Business Volume:

                •    Personal use                 •    Retailing                 •    Merchandising                 •    Preferred Customers AutoShip                 •    One-to-One Marketing                 •    Online e-commerce sales

                Briefly explain each one of them. Give illustrations. When talking about AutoShip, pull out the Market America AutoShip Program and explain the program. Illustrate how it really doesn’t cost anything because they are simply transferring dollars, they are already spending at a retail store and they are actually saving money. Give examples. Show that the average person will spend $50.00 to $500.00. Use the Shopping Assessment to show (illustrate) the earnings. Secondly, when you talk about the Monthly Accrual Option, explain that if they are on the AutoShip Program, this is taken care of anyway.

        (2)     Post-Presentation Follow-Up: In the follow-up after the meeting, take out the Market America AutoShip Home Shopping List or better yet, do a Shopping Assessment with them. Review the savings and products. Show them how easy it can be to participate in the AutoShip Program and begin building their Shopping Annuity. 

SEC. 10    UNFRANCHISE® MANAGEMENT SYSTEM

The UnFranchise Management System (UFMS) is an important step in your career to becoming a professional! The UFMS can make a tremendous difference in your ability to manage your business, maximizing your weekly commissions, and continue growing. You will also want to encourage your organization to subscribe to the UFMS, not only to help maintain accrual of Group Business Volume from month-to-month, but also so they are not totally reliant on you and so they can better manage their own business. Service and privileges in the UnFranchise Management System include:

(A)     UnFranchise Owner Reports: It’s like being at the corporate headquarters — your home computer can tie into Market America’s computer system. With your phone, tablet or computer, you can access our system. Access your sales volume 24 hours a day for Detailed Sales Reports of your sales organization. Genealogy reports are available, providing names, addresses and phone numbers. They indicate personally sponsored UnFranchise Owners, UnFranchise Owners on AutoShip, UnFranchise Owners who are active in your sales organization, and what level of achievement they hold. The UFMS also includes Sales Volume Purge Reports — reports of sales volume that are in danger of purging due to lack of business order activity. You can print these reports for yourself or for your sales organization. You will be able to determine where to place new UnFranchise Owners and extra Business Volume (BV). Once you are on the UnFranchise Management System it will be hard to understand how you ever lived without it.

(B)     Annual Renewal Report: This report is designed to display all UnFranchise® Owners in your organization with the Start Month selected. This allows you to ensure that everyone renews their business in a timely fashion.

(C)     Certified Executive Coordinator Report: This report is designed to display a list of the active Certified Executive Coordinators (CEC) in an UnFranchise Owner’s downline. An Active Certified Executive Coordinator is defined as a CE that paid the annual renewal fee. 

(D)     Commission History Report: This report is designed to display all Commissions earned within the date range selected. The results will include the retail profit margin deposited to your credit on account as well as MPCP and IBVCP Commissions and Bonuses. 

(E)     Graphic Organization Report: This report is designed to display a graphical representation of a selected UnFranchise Owner’s downline organization. This will display the outside legs up to 13 levels of the selected UnFranchise Owner’s downline organization.

(F)    Master UFO Program: This report is designed to display progress towards qualifying and/or re-qualifying as a Master UnFranchise Owner. This form tracks the status of specific criteria and pre-populates that into the form and provides areas to enter and submit items related to additional criteria, such as trainings and event tickets. All fields must be completed for the quarter selected before it can be submitted. 

(G)    Network Sales Volume Report: This report is designed to display the group volume totals for the downline organization, much like a sales volume report. However, the report is formatted to display the group foe each Business Development Center (BDC) as you proceed down the genealogy. Much like an UnFranchise Owner Network Report. This report can be used to locate unlinked volume in the genealogy line and also find BV or IBV amounts for particular UnFranchise Owners in your downline.

(H)    Open Placement Report: This report is designed to show available placements on the outside legs of the BDC on which the report is being run. The report generates based on the ID and Extension entered and will show two placements, bottommost left and bottommost right open placements of the outer (team) legs.

(I)     Personal Volume Report: This report is designed to monitor the personal volume that has been placed directly in a particular Business Development Center (BDC). This report can be used to verify that monthly and quarterly personal business volume requirements have been met. 

(J)     Personally Sponsored Network Sales Volume Report: This report is designed to display the group volume totals for the personal sponsored downlines much like a Sales Volume Report. However, the report is formatted to display the group for each Business Development Center (BDC) as you proceed down the genealogy, much like an UnFranchise Owner Network Report. This report can be used to locate unlinked volume in the genealogy line and also to find BV or IBV amounts for particular UnFranchise Owners in your downline.

(K)     Post Purge Report: This report is designed to display the volume totals in the downline that have been purged.

(L)     Product Sales Report: This report is designed to show you an accounting for purchase or sale of all company exclusive branded products including the detail regarding the wholesale cost, retail profit, shopping and handling costs, taxes, and fees. This report should be suitable for bookkeeping and potentially tax reporting purposes.

(M)     Purge Warning Report: This report is designed to display UnFranchise Owners in your downline that are scheduled to purge, if their quarterly requirements (i.e. 150BV and Form 1000) are not met. In addition, this report will show UnFranchise Owners listed by their start month, who might be purging annually.

(N)     Qualified/Active Network Sales Volume Report: This report is designed to display a Network Sales Volume Report for Qualified and Active UnFranchise Owners in the downline. An UnFranchise Owner must qualify by generating product orders equal to or greater than 200 Personal Business Volume. An Active UnFranchise Owner has continued annually membership by submitting a paid Annual Renewal Form. 

(O)     Sales Volume / Detailed Sales Report: This report is designed to display the group volume totals on both sides of the downline organization. This is the same information that you received form Powerline Voice Link (PVL).

(P)     Convert Spending Into Earning Achiever Report: This report is designed to display an UnFranchise® Owner’s progress towards achieving Convert Spending Into Earning Achiever status. The report tracks the status of yourself or any UnFranchise Owner in your organization toward completing the criteria, and displays the detail associated with each.

(Q)    UnFranchise Owner Network Report: This report is designed to display the placement of UnFranchise Owners in selected UnFranchise Owner’s downline organization as well as other useful information about each UnFranchise Owner’s Organization. However, the main purpose of the report is to show any unlinked UnFranchise Owners in the genealogy. The useful information includes UnFranchise AutoShip Status and Next Order Date, BDC Status, Personally Sponsored Downline, Pin Level (this report will show above Master), UFMS status, Start Date, Q-Date, and Credit-Debit Balance.

(R)     UnFranchise® Owner Qualification Report: This report is designed to display various useful details regarding your UnFranchise Business or a particular BDC. You can see a variety of different values related to qualifications, for instance, Pin Level and Date, q-Date, Start Date, last Renewal Date and Status, Subscription status (UFMS, Convert Spending Into Earning Achiever), Forms Status (1000, 925, 1001) and UnFranchise AutoShip Status and Next Order Date.

(S)     Upline Vested Interest Report: This report is designed to display an UnFranchise Owner’s UVI (Upline Vested Interested) UnFranchise Owner. UnFranchise Owners designated as UVI UnFranchise Owners are determined by Market America to have greatest financial interest in a particular UnFranchise Owner within their organization.

(T)     Commercial Quote Assistance: When you need special pricing or information for commercial accounts, Market America will assist you. This service includes the calculation of special reduced prices with reduced BV for large-quantity commercial orders that exceed $2,500.00. It also provides for the special placement and staggering of BV so that you get the full benefit of the volume in the Marketing Plan.

(U)     Toll-Free Ordering: You may call toll-free from anywhere in the United States and Canada when placing credit card orders only. Available during business hours of 9:00 a.m. to 5:00 p.m., ET.

(V)     24-Hour Ordering By Fax: Order seven days a week, 24 hours a day, and enjoy the convenience of placing orders by fax.

SEC. 11    VALUE OF MAINTAINING A GOOD INVENTORY

In order to build a strong customer-service business, you must maintain a reasonable inventory to serve new customers and those who do not shop online. This is the first step in providing good service to your customers. By planning ahead, you’ll be able to fulfill your customers’ needs. A well-rounded inventory will also aid you in reaching higher sales goals, motivate you to seek new customers, increase customer satisfaction, and reduce business costs.

An UnFranchise Owner who is seriously interested in developing an organization and developing a solid customer-based business should consider at least the business-builder inventory of 1,000 BV. This would give a new UnFranchise Owner:

        •    Enough product to use personally and gain belief in the products         •    Some product to use for displays or samples to introduce people to the product line         •    Products to supply some of his/her initial customers immediately         •    Products to support a few new UnFranchise Owners to get started

Although there is no required purchase to become a Market America UnFranchise Owner, it only makes sense to build a small inventory. You can also have your clients order online to serve them. However, many customers who decide to purchase new products want them immediately. UnFranchise Owners who wish to reach their goals through a solid customer base and successful UnFranchise Owner organization must maintain an inventory based on the size of the business. The amount of inventory needed varies from UnFranchise Owner to UnFranchise Owner. You can order daily if necessary. A person who retails through shows requires at least a few of each item. An UnFranchise® Owner who sponsors or expects to sponsor heavily requires more than one person only interested in a small retail business. A good guideline to follow is to maintain one and one-half to two times your monthly purchase volume. If you are moving $1,000.00 per month, a good inventory might be $1,500.00 or $2,000.00.

Whatever you decide, keep in mind that you’re in business to earn a profit, not to spend money, while gathering information from your customer. The more times you visit your customer to deliver and complete a sale, the less you profit. The less product you have on hand to show, the less your sale will be, and in turn, the less your profit will be.

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How Tesla Planted the Seeds for Its Own Potential Downfall

Elon musk’s factory in china saved his company and made him ultrarich. now, it may backfire..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

From “The New York Times,” I’m Katrin Bennhold. This is “The Daily.”

[MUSIC PLAYING]

Today, the story of how China gave Tesla a lifeline that saved the company — and how that lifeline has now given China the tools to beat Tesla at its own game. My colleague, Mara Hvistendahl, explains.

It’s Tuesday, April 9.

So, Mara, you’ve spent the past four months investigating Elon Musk and his ties to China through his company, Tesla. Tell us why.

Well, a lot of American companies are heavily invested in China, but Tesla’s kind of special. As my colleagues and I started talking to sources, we realized that many people felt that China played a crucial role in rescuing the company at a critical moment when it was on the brink of failure and that China helps account for Tesla’s success, for making it the most valuable car company in the world today, and for making Elon Musk ultra rich.

That’s super intriguing. So maybe take us back to the beginning. When does the story start?

So the story starts in the mid 2010s. Tesla had been this company that had all this hype around it. But —

A lot of people were shocked by Tesla’s earnings report. Not only did they make a lot less money than expected, they’re also making a lot less cars.

Tesla was struggling.

The delivery of the Model 3 has been delayed yet again.

Tesla engineers are saying 40 percent of the parts made at the Fremont factory need reworking.

At the time, they made their cars in Fremont, California, and they were facing production delays.

Tesla is confirming that Cal/OSHA is investigating the company over concerns over workplace safety.

Elon Musk has instituted a kind of famously grueling work culture at the factory, and that did not go over well with California labor law.

The federal government now has four active investigations involving Tesla.

They were clashing with regulators.

The National Transportation Safety Board will investigate a second crash involving Tesla’s autopilot system.

Billionaire entrepreneur Elon Musk — friends are really concerned about him. That’s what Musk told “The New York Times.”

And by 2018, he was having all of these crises.

According to “The Times,” Musk choked up multiple times and struggled to maintain his composure during an hour-long interview about turmoil at his electric car company, Tesla.

So all of this kind of converged to put immense pressure on him to do something.

And where does China come in?

Well, setting up a factory in China, in a way, would solve some of these problems for Musk. Labor costs were lower. Workers couldn’t unionize there. China provided access to this steady supply of cheaper parts. So Elon Musk was set on going to China. But first, Tesla and Musk wanted to change a key policy in China.

Hmm, what kind of policy?

So they wanted China to adopt a policy that was aimed at lowering car emissions. And the idea was that it would be modeled after a similar policy in California that had benefited Tesla there.

OK, so explain what that policy actually did. And how did it benefit Tesla?

So California had this system called the Zero-Emission Vehicle program. And that was designed to encourage companies to make cleaner cars, including electric vehicles. And they did that by setting pollution targets. So companies that made a lot of clean cars got credits. And then companies that failed to meet those targets, that produced too many gas-guzzling cars, would have to buy credits from the cleaner companies.

So California is trying to incentivize companies to make cleaner cars by forcing the traditional carmakers to pay cleaner car makers, which basically means dirtier car makers are effectively subsidizing cleaner cars.

Yes, that’s right. And Tesla, as a company that came along just making EVs, profited immensely from this system. And in its early years, when Tesla was really struggling to stay afloat, the money that it earned from selling credits in California to polluting car companies were absolutely crucial, so much so that the company structured a lot of its lobbying efforts around this system, around preserving these credits. And we talked to a former regulator who said as much.

How much money are we talking about here?

So from 2008, when Tesla unveiled its first car, up until the end of last year, Tesla made almost $4 billion by selling credits in California.

Wow. So Musk basically wants China to recreate this California-style program, which was incredibly lucrative for Tesla, there. And they’re basically holding that up as a condition to their building a factory in China.

Right. And at this point in the story, an interesting alliance emerges. Because it wasn’t just Tesla that wanted this emissions program in China. It was also environmentalists from California who had seen the success of the program up close in their own state.

If you go back to that period, to the early 2010s, I was living in China at the time in Beijing and Shanghai. And it was incredibly polluted. We called it airpocalypse at times. I had my first child in China at that point. And as soon as it was safe to put a baby mask on her, we put a little baby mask on her. There were days where people just would try to avoid going outside because it was so polluted. And some of the pollution was actually wafting across the Pacific Ocean to California.

Wow, so California is experiencing that Chinese air pollution firsthand and, in a way, has a direct stake in lowering it.

That’s right. So Governor Jerry Brown, for example — this became kind of his signature issue, was working with China to clean up the environment, in part by exporting this emission scheme. It was also an era of a lot more US-China cooperation. China was seen as absolutely crucial to combating climate change.

So you had all these groups working to get this California emissions scheme exported to China — and the governor’s office and environmental groups and Tesla. And it worked. In 2017, China did adopt a system that was modeled after California’s.

It’s pretty incredible. So California basically exports its emissions-trading system to China, which I imagine at the time was a big win for Californian environmentalists. But it was also a big win for Tesla.

It was definitely a big win for Tesla. And we know that in just a few years Tesla, made almost $1 billion from the emissions-trading program he helped lobby for in China.

So Elon Musk goes on, builds a factory in China. And he does so in Shanghai, where he builds a close relationship with the top official in the city, who actually is now the number-two official in all of China, Li Qiang.

So according to Chinese state media, Elon Musk actually proposed building the factory in two years, which would be fast. And Li came back and proposed that they do it in one year, which — things go up really quickly in China. But even for China, this is incredibly fast. And they broke ground on the factory in January 2019. And by the end of the year, cars were rolling off the line. So then in January 2020, Musk was able to get up on stage in Shanghai and unveil the first Chinese-made Teslas.

Really want to thank the Tesla team and the government officials that have been really helpful in making this happen.

Next to him on stage is Tesla’s top lobbyist who helped push through some of these changes.

Thank you. Yeah, everybody can tell Elon’s super, super happy today.

[SPEAKING CHINESE]

And she says —

Music, please.

Cue the music. [UPBEAT MUSIC]

And he actually broke into dance. He was so happy, a kind of awkward dance.

[UPBEAT MUSIC]

And what is the factory like?

The Shanghai factory is huge. 20,000 people work there. Tesla’s factories around the world tend to be pretty large, but the Shanghai workers work more shifts. And when Tesla set up in China, Chinese banks ended up offering Tesla $1.5 billion in low-interest loans. They got a preferential tax rate in Shanghai.

This deal was so generous that one auto industry official we talked to said that a government minister had actually lamented that they were giving Tesla too much. And it is an incredibly productive factory. It’s now the flagship export factory for Tesla.

So it opens in late 2019. And that’s, of course, the time when the pandemic hits.

Yes. I mean, you might think that this is really poor timing for Elon Musk. But it didn’t quite turn out that way. In fact, Tesla’s factory in Shanghai was closed for only around two weeks, whereas the factory in Fremont was closed for around two months.

That’s a big difference.

Yes, and it really, really mattered to Elon Musk. If you can think back to 2020, you might recall that he was railing against California politicians for closing his factory. In China, the factory stayed open. Workers were working around the clock. And Elon Musk said on a podcast —

China rocks, in my opinion.

— China rocks.

There’s a lot of smart, hardworking people. And they’re not entitled. They’re not complacent, whereas I see —

We’ve seen a lot of momentum and enthusiasm for electric vehicles, stocks, and Tesla certainly leading the charge.

Tesla’s stock price kept going up.

Tesla has become just the fifth company to reach a trillion-dollar valuation. The massive valuation happened after Tesla’s stock price hit an all-time high of more than $1,000.

So this company that had just a few years earlier been on the brink of failure, looking to China for a lifeline, was suddenly riding high. And —

Tesla is now the most valuable car company in the world. It’s worth more than General Motors, Ford, Fiat, Chrysler.

By the summer, it had become the most valuable car company in the world.

Guess what? Elon Musk is now the world’s richest man.

“Forbes” says he’s worth more than $255 billion.

And Elon Musk’s wealth is tied up in Tesla stock. And in the following year, he became the wealthiest man in the world.

So you have this emission trading system, which we discussed and which, in part, thanks to Tesla, is now established in China. It’s bringing in money to Tesla. And now this Shanghai factory is continuing to produce cars for Tesla in the middle of the pandemic. So China really paid off for Tesla. But what was in it for China?

Well, China wasn’t doing this for charity.

What Chinese leaders really wanted was to turn their fledgling electric vehicle industry into a global powerhouse. And they figured that Tesla was the ticket to get there. And that’s precisely what happened.

We’ll be right back.

So, Mara, you’ve just told us the story of how Elon Musk used China to turn Tesla into the biggest car maker in the world and himself — at one point — into the richest man in the world. Now I want to understand the other side of this story. How did China use Tesla?

Well, Tesla basically became a catfish for China’s EV industry.

A catfish, what do you mean by that?

It’s a term from the business world. And, essentially, it means a super aggressive fish that makes the other fish in the pond swim faster. And by bringing in this super competitive, aggressive foreign company into China, which at that point had these fledgling EV companies, Chinese leaders hoped to spur the upstart Chinese EV makers to up their game.

So you’re saying that at this point, China actually already had a number of smaller EV companies, which many people in the West may not even be aware of, these smaller fish in the pond that you were referring to.

Yes, there were a lot of them. They were often locally based. Like, one would be strong in one city, and one would be strong in another city. And Chinese leaders saw that they needed to become more competitive in order to thrive.

And China had tried for decades to build up this traditional car industry by bringing in foreign companies to set up joint ventures. They had really had their sights set on building a strong car industry, and it didn’t really work. I mean, how many traditional Chinese car company brands can you name?

Exactly none.

Yeah, right. So going back to the aughts and the 2010s, they had this advantage that many Chinese hadn’t yet been hooked on gas-guzzling cars. There were still many people who were buying their first car ever. So officials had all these levers they could pull to try to encourage or try to push people’s behavior in a certain direction.

And their idea was to try to ensure that when people went to buy their first car, it would be an EV — and not just an EV but, hopefully, a Chinese EV. So they did things like — at the time, just a license plate for your car could cost an exorbitant amount of money and be difficult to get. And so they made license plates for electric vehicles free. So there were all these preferential policies that were unveiled to nudge people toward buying EVs.

So that’s fascinating. So China is incentivizing consumers to buy EV cars and incentivizing also the whole industry to get its act together by chucking this big American company in the mix and hoping that it will increase competitiveness. What I’m particularly struck by, Mara, in what you said is the concept of leapfrogging over the conventional combustion engine phase, which took us decades to live through. We’re still living in it, in many ways, in the West.

But listening to you, it sounds a little bit like China wasn’t really thinking about this transition to EVs as an environmental policy. It sounds like they were doing this more from an industrial-policy perspective.

Right. The environment and the horrible era at the time was a factor, but it was a pretty minor factor, according to people who were privy to the policy discussions. The more significant factor was industrial policy and an interest in building up a competitive sphere.

So China now wants to become a leader in the global EV sector, and it wants to use Tesla to get there. What does that actually look like?

Well, you need sophisticated suppliers to make the component parts of electric vehicles. And just by being in China, Tesla helped spur the development of several suppliers. Like, for example, the battery is a crucial piece of any EV.

And Tesla, with a fair amount of encouragement — and also various levers from the Chinese government — became a customer of a battery maker called CATL, a homegrown Chinese battery maker. And they have become very close to Tesla and have even set up a factory near Teslas in Shanghai. And today, with Tesla’s business — and, of course, with the business of some other companies — CATL is the biggest battery maker in the world.

But beyond just stimulating the growth of suppliers, Tesla also made these other fish in the pond swim faster. And the biggest Chinese EV company to come out of that period is one called BYD. It’s short for Build Your Dreams.

We are BYD. You’ve probably never heard of us.

From battery maker to the biggest electric vehicle or EV manufacturer in China.

They’ve got a lot of models. They’ve got a lot of discounts. They’ve got a lot of market growth.

China’s biggest EV maker just overtook Tesla in terms of worldwide sales.

BYD 10, Chinese automobile redefined.

I’ve actually started seeing that brand on the streets here in Europe recently, especially in Germany, where my brother actually used to lease a Tesla and now leases a BYD.

Does he like it?

He does. Although he did, to be fair, say that he misses the luxury of the Tesla, but it just became too expensive, really.

The price point is a huge reason that BYD is increasingly giving Tesla a run for its money. Years ago, back in 2011 —

Although there’s competitors now ramping up. And, as you’re familiar with, BYD, which is also —

— Elon Musk actually mocked their cars.

— electric vehicles, here he is trying to compete. Why do you laugh?

He asked an interviewer —

Have you seen their car?

I have seen their car, yes.

— have you seen their cars? Sort of suggesting, like, they’re no competition for us.

You don’t see them at all as a competitor?

Why is that? I mean, they offer a lower price point.

I don’t think they have a great product. I think their focus is — and rightly should be — on making sure they don’t die in China.

But they have been steadily improving. They’ve been in the EV space for a while, but they really started improving a few years ago, once Tesla came on the scene. That was due to a number of factors, not entirely because of Tesla. But Tesla played a role in helping train up talent in China. One former Tesla employee who worked at the company as they were getting set up in China told me that most of the employees who were at the company at the time now work for Chinese competitors.

So they have really played this important role in the EV ecosystem.

And you mentioned the price advantage. So just for comparison, what does an average BYD sell for compared to a more affordable Tesla car?

So BYD has an ultra-cheap model called the Seagull that sells for around $10,000 now in China, whereas Tesla Model 3s and Model Ys in China sell for more than twice that.

Wow. How’s BYD able to sell EVs at these much lower prices?

Well, the Seagull is really just a simpler car. It has less range than a Tesla. It lacks some safety measures. But BYD has this other crucial advantage, which is that they’re vertically integrated. Like, they control many aspects of the supply chain, up and down the supply chain. When you look at the battery level, they make batteries. But they even own the mines where lithium is mined for the batteries.

And they recently launched a fleet of ships. So they actually operate the boats that are sending their cars to Europe or other parts of the world.

So BYD is basically cutting out the middleman on all these aspects of the supply chain, and that’s how they can undercut other car makers on price.

Yeah. They’ve cut out the middleman, and they’ve cut out the shipping company and almost everything else.

So how is BYD doing now as a company compared to Tesla?

In terms of market cap, they’re still much smaller than Tesla. But, crucially, they overtook Tesla in sales in the last quarter of last year.

Yeah, that was a huge milestone. Tesla still dominates in the European market, which is a very important market for EVs. But BYD is starting to export there. And Europe traditionally is kind of automotive powerhouse, and the companies and government officials there are very, very concerned. I interviewed the French finance minister, and he told me that China has a five - to seven-year head start on Europe when it comes to EVs.

Wow. And what has Elon Musk said about this incredible rise of BYD in recent years? Do you think he anticipated that Tesla’s entry into the Chinese market could end up building up its own competition?

Well, I can’t get inside his head, and he did not respond to our questions. But —

The Chinese car companies are the most competitive car companies in the world.

— he has certainly changed his tune. So, remember, he was joking about BYD some years ago.

Yeah, he’s not joking anymore.

I think they will have significant success.

He had dismissed Chinese EV makers. He now appears increasingly concerned about these new competitors —

Frankly, I think if there are not trade barriers established, they will pretty much demolish most other car companies in the world.

— to the point that on an earnings call in January, he all but endorsed the use of trade barriers against them.

They’re extremely good.

I think it’s so interesting, in a way — of course, with perfect hindsight — the kind of maybe complacency or naivete with which he may not have anticipated this turn of events. And in some ways, he’s not alone, right? It speaks to something larger. Like, China, for a long time, was seen as kind of the sweatshop or the manufacturer of the world — or perhaps as an export market for a lot of these Western companies. It certainly wasn’t putting out its own big brand names. It was making stuff for the brand names.

But recently, they have quite a lot of their own brand names. Everybody talks about TikTok. There’s Huawei. There’s WeChat, Lenovo. And now there is BYD. So China is becoming a leader in technology in certain areas. And I think that shift in some ways has happened. And a lot of Western companies — perhaps like Tesla — were kind of late to waking up to that.

Right. Tesla is looking fragile now. Their stock price dropped 30 percent in the first quarter of this year. And to a large degree, that is because of the threat of companies like BYD from China and the perception that Tesla’s position as number one in the market is no longer guaranteed.

So, Mara, all this raises a much bigger question for me, which is, who is going to own the future of EVs? And based on everything you’ve said so far, it seems like China owns the future of EVs. Is that right?

Well, possibly, but the jury is still out. Tesla is still far bigger for now. But there is this increasing fear that China owns the future of EVs. If you look at the US, there are already 25 percent tariffs on EVs from China. There’s talk of increasing them. The Commerce Department recently launched an investigation into data collection by electric vehicles from China.

So all of these factors are creating uncertainty around what could happen. And the European Union may also add new tariffs against Chinese-made cars. And China is an economic rival and a security rival and, in many ways, our main adversary. So this whole issue is intertwined with national security. And Tesla is really in the middle of it.

Right. So the sort of new Cold War that people are talking about between the US and China is, in a sense, the backdrop to this story. But on one level, what we’ve been talking about, it’s really a corporate story, an economic story that has this geopolitical backdrop. But it’s also very much an environmental story. So, regardless of how Elon Musk and Tesla fare in the end, is BYD’s rise and its ability to create high-quality and — perhaps more importantly — affordable EVs ultimately a good thing for the world?

If I think back on those years I spent living in Shanghai and Beijing when it was extremely polluted and there were days when you couldn’t go outside — I don’t think anyone wants to go back to that.

So it’s clear that EVs are the future and that they’re crucial to the green energy transition that we have to make. How exactly we get there is still unclear. But what is true is that China did just make that transition easier.

Mara, thank you so much.

Thank you, Katrin.

Here’s what else you need to know today.

[CROWD CHEERING]

Millions of people across North America were waiting for their turn to experience a rare event on Monday. From Mexico —

Cuatro, tres, dos, uno.

— to Texas.

Awesome, just awesome.

We can see the corona really well. Oh, you can see —

[BACKGROUND CHATTER]

Oh, and we are falling into darkness right now. What an incredible sensation. And you are hearing and seeing the crowd of 15,000 gathered here in south Illinois.

Including “Daily” producers in New York.

It’s like the sky is almost —

— like a deep blue under the clouds.

Wait, look. It’s just —

Oh my god. The sun is disappearing. And it’s gone. Oh. Whoa.

All the way up to Canada.

Yeah, that’s what I’m talking about. That’s what I’m talking about.

The moon glided in front of the sun and obscured it entirely in a total solar eclipse, momentarily plunging the day into darkness.

It’s super exciting. It’s so amazing to see science in action like this.

Today’s episode was produced by Rikki Novetsky and Mooj Zadie with help from Rachelle Bonja. It was edited by Lisa Chow with help from Alexandra Leigh Young, fact checked by Susan Lee, contains original music by Marion Lozano, Diane Wong, Elisheba Ittoop, and Sophia Lanman and was engineered by Chris Wood.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for “The Daily.” I’m catching Katrin Bennhold. See you tomorrow.

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• April 12, 2024   •   34:23 How One Family Lost $900,000 in a Timeshare Scam
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• April 10, 2024   •   22:49 Trump’s Abortion Dilemma
• April 9, 2024   •   30:48 How Tesla Planted the Seeds for Its Own Potential Downfall
• April 8, 2024   •   30:28 The Eclipse Chaser
• April 7, 2024 The Sunday Read: ‘What Deathbed Visions Teach Us About Living’
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• April 4, 2024   •   32:37 Israel’s Deadly Airstrike on the World Central Kitchen
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Hosted by Katrin Bennhold

Featuring Mara Hvistendahl

Produced by Rikki Novetsky and Mooj Zadie

With Rachelle Bonja

Edited by Lisa Chow and Alexandra Leigh Young

Original music by Marion Lozano ,  Diane Wong ,  Elisheba Ittoop and Sophia Lanman

Engineered by Chris Wood

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music

When Elon Musk set up Tesla’s factory in China, he made a bet that brought him cheap parts and capable workers — a bet that made him ultrarich and saved his company.

Mara Hvistendahl, an investigative reporter for The Times, explains why, now, that lifeline may have given China the tools to beat Tesla at its own game.

On today’s episode

Mara Hvistendahl , an investigative reporter for The New York Times.

Background reading

A pivot to China saved Elon Musk. It also bound him to Beijing .

Mr. Musk helped create the Chinese electric vehicle industry. But he is now facing challenges there as well as scrutiny in the West over his reliance on China.

There are a lot of ways to listen to The Daily. Here’s how.

We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

Fact-checking by Susan Lee .

The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Katrin Bennhold is the Berlin bureau chief. A former Nieman fellow at Harvard University, she previously reported from London and Paris, covering a range of topics from the rise of populism to gender. More about Katrin Bennhold

Mara Hvistendahl is an investigative reporter for The Times focused on Asia. More about Mara Hvistendahl

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