Understand and eliminate risk.
Yes. The word is magic, but…
Our passion, which drives our business and drives us can, in most cases, create a blind spot, and that can cost us a lot of ‘yeses’ and a lot more money.
Why?
Once we believe in what we are doing we can easily forget that we were skeptical – at least we acted like we were.
In truth, we all have some level of fear before we enroll. But once we do and get committed, the ‘built-in forgetter‘ kicks in and we develop a blind spot.
If you ‘get this’ and do a tiny bit of research, you’ll sponsor more people.
By eliminating financial risk in a prospect’s mind and putting peeps who enroll in positive cash flow instantly, you’ll sponsor more people and so will the folks on your team.
Why?
It makes joining a ‘no brainer‘.
Risk to reward ratio
Sound business decisions are made based on the Risk-to-Ratio.
High risk, low reward? Pass.
Low risk, medium reward? Strong consideration.
No financial risk and great reward potential? The answer is always ‘yes.’
I mean, really, if you knew you had zero financial risk, would instantly be in positive cash flow of $200-$400 a month, would you hesitate?
Of course not.
Neither will your prospect.
Success and failure
The successful person simply does the things that the unsuccessful person makes a conscious decision not to do.
Once I understood my blind spot, that most people who review information and have a reason to join but don’t was based on two basic fears – failure and financial loss and discovered the HBBTA (Home based Business Tax Advantage) enrollments jumped team-wide dramatically.
Sponsor More by Eliminating Risk
We simply did what successful people do. We followed through on this discovery with a little research so we could help people join risk-free financially and so we could teach it to people on our teams.
Once you eliminate the financial fear, most of the psychological fear vanishes. But a simple sentence and a question tips them to a ‘yes’ every time.
“Harry, now that you know you’ll be in positive cash flow from day one with the HBBTA, would it be OK with you if I explained this to 20-30 people for you so you could get paid?”
Always ‘yes’.
“And Harry, would it be OK with you if I kept working with you until you felt confident, competent and comfortable in explaining this to others?”
Always ‘yes’.
Need more information about the HBBTA? Here is a short training… I’ve used this for several years.
And if you need even more detail you can check out Sandor Botkin and/or Ron Mueller.
Join the conversation below. It’s not too late if you haven’t taken advantage of this in the past to get it all in 2012 and it may be possible to file an amended return for 2011.
Add this amazing fear buster to some simple network marketing skills and you and your teams will be sponsoring more people …and not a single one will ever lose 10 cents.
believe
mark januszewski
Great advice Mark, however not sure whether that works here in UK or elsewhere outside of North America. There are tax benefits I guess, but probably a bit different such as claiming back certain taxes or expenses. It makes sense to get to know your own countries tax laws involving home based businesses. In UK one of the benefits is paying less National Insurance for example.
Great advise! My Company has Tax savings as a part of their offering and believe me it’s big. I save over $120 each month just from the tax savings in working the business.
can you help me with the tax benefits by doing mlm in india, my upline or sponsor doesnt seem to know much about it.
Great advice Mark. I’m sure most countries would have tax laws around home businesses that benefit people being involved. In Australia my accountant lodges all my expenses accumulated from my business and offsets them against my profits.
I did hear about this subject at the Qivana convention in January 2012. I need to meet with my accountant and get the particulars so I can give more details to my prospects. Thanks!
I claimed 10 exemptions during the 90’s when I had a job and still got money back every year. My employer refused to let me take more because they didn’t want to fill out extra paperwork for the friendly IRS… and I’ve been audited 3 times and always was treated with BETTER interpretations of the rules than I was using. Yes, I am a bit anal about record keeping. Keep great records and know the rules and you can design a life that pays very few income taxes. Great post Mark and most people pay WAY MORE TAXES than they should. Just about everything you pay for now without a home business suddenly has write off potential.. all of it!
Great Information and yes I use this great technique and skill brought to me by you of course, but here is what I find. People don’t believe me when I say they can do that or they are afraid of that also…you know anything to do with the IRS seems to get people scared and they feel that if they rock the boat by using the HBBTA then uncle sam will come after them.
Your are right Chester
Here is what to do so that it happens the way you need it to
1 – Print out the Trump-Kiyodsaki article
2 – Print out the key page from Mueller’s site
3 – use the ‘two type of people’ when presenting – You know harry there are 2 types of people in the world – those who investigate and put 500 bucks a month in their pocket and those who are too lazy to investigate and pretend to be afraid of the IRS to cover up their pathetic laziness – which of the 2 groups do you find yourself in?
Hi Gwen,
This is great information that Mark J. gives. When talking to your prospects about taxes I recommend a simple example of the deductions and the tax savings. I did the presentation at the Qivana Convention in Orlando of “The Tax Advantages of a Home Based Business” and tried to show the basic items that people already spend their money on and can now make them tax deductions, like… cell phones, internet, homes, vehicles, etc. It’s such an untapped area and Mark J. is brillant to bring it to the attention of everyone when prospecting. It usually is an afterthought!
Take care,
Jennifer Martin
Are we talking about going tax exempt or are you increasing your tax exemptions like you would each time you have a child?
Where do we find the Trump Kiyosaki article? Thanks for all that you do.
This may the best recruiting tool that has ever been shown to me. I really appreciate the value that you continue to bring to us observers so we can be more effective. I am going to use this consistently and powerfully like you explain for Chester above.
Mark its a great idea, but as Jez states in the UK and elsewhere I am guessing this may not work as our tax laws are different. There are certainly tax advantages to being self employed. But if you are an employee you cannot offset any self employed tax losses against your employed tax in UK.
Surely…..it’s worth checking it out no matter which country you live in
Canada and US are similar; on the world, it’s a country to country thing
Children are a different thing altogether but a tremendous advantage in your business too
You can set up chores that relate to your business, pay them and deduct it. Kids get a an exemption of several thousand as students; very cool
All you have to do is 1099 them at the end of the year – a great way to start teaching kids how to handle money and at the same time increase expenses and decrease tax liability-
The key here is to remember that CPA are not tax educated and most of them know nothing about this massive benefit of over 150+ deductions you are entitled to
The links we’ve provided will get you started but here is something you should know – when people fill out the W-4 at work they believe [most people] that it means how many ‘dependents’ which is NOT the case – it’s deductions – by raising this number your take home pay increases – dramtically – several hundred a month, several thousand a year – to make certain you do not have a tax liability at the end of the year, all you have to do is treat is like and business and keep the records
We charted this for 3 years – and it took some time – a whopping 90 minutes a month on average to created an average of 454 for 10 reps per month – if you break that down it’s almost $300 bucks per hour and the best part is with 1 point and click in Feburary our taxes were done – very cool
Most mlmer say ‘if you treat it like a business it will pay you like a business’ – personally I believe it is irresponsible to sponsor people and not let them know, with about 2-3 hours of set up and 90 minutes a month they will never lose a dime – and if you think about it – it actually costs people 1000-4000 a year NOT to do MLM – EVERY YEAR
We are not giving tax advice – and suggest you do not either – but instead make sure they educate themselves, educate their CPAs and make wise choices – The IRS’s job is to collect the maximum they can legally……it’s not their responsibility to tell and teach you about taxes – Your responsibility is to learn how to legally leverage your business – like any other business – to your advantage legally – and, I might add that is exactly what responsiblie business owners do
My top producers over 20 years have all done the responsible thing and that includes learning how to deduct even their health insurance for their entire families – including the co-pay at their places of employment.
Please see Jennifer Martin’s comment – this is an expert in the field – and that is the point – use experts like all successful business owners do – and that means, if you are reading this correctly, that CPAs are not tax experts by definition – some continue to learn and grow, find one of them, bring them the information and use the information to the advantage of your business and your reps will follow suit
Thanks for stopping by Jennifer…..We know you are an expert and we appreciate you encouraging others to investigate
We’ll get it posted in a few days for you or you can google it
This is great stuff…and my own accountant just joined my team so he is one to know! As soon as he saw what i was into, he jumped on board, knowing he can stack up the many benefits and cost savings.
I never had a clue about this. This is a fantastic recruiting tool. It does make it a “no brainer”. Thanks a lot Mark!
Great point!! I’ve had a HBB for the past 20 years and have saved thousands of dollars in taxes. What I need now is to be part of the Go90Grow program. When is it?
Thank you for all the great information!