Abstract:
A method of training brokers in a multi-level marketing business to make sales of a product and to recruit new brokers includes the steps of presenting materials to train brokers on order form procedures. The order form procedures include collecting identification information and payment information. The method also includes presenting materials to train brokers on recruiting form procedures. The recruiting form procedures include collecting identification information, payment information, and the selection of sales packages. The method also includes presenting materials to train brokers on sales procedures. The sales procedures include the steps of listing prospects, approach prospects, provide a sales presentation, enroll members and brokers, and continually repeat the sales procedure.

Description:
TECHNICAL FIELD OF THE INVENTION  
         [0001]    The invention relates to a method of training brokers in a multi-level marketing business and structuring commissions including training.  
         BACKGROUND OF THE INVENTION  
         [0002]    Multi-level marketing, also known as network marketing, is a method of sales promotion in which a commission is paid to the broker responsible for making the sale, to the broker responsible for recruiting and training the broker who is making the sale as well, and possibly to brokers further up the recruiting and training chain. One of the most difficult elements of making this kind of system profitable is the training of the new brokers. Because the income of the system depends on the success of each broker in making sales and recruiting new brokers, it is critical to the success of a multi-level marketing business that each broker receive sufficient training to adequately perform the necessary sales and recruiting processes.  
         SUMMARY OF THE INVENTION  
         [0003]    The present invention disclosed and claimed herein, in one aspect thereof, comprises a method of training brokers in a multi-level marketing business to make sales of a product and to recruit new brokers includes the steps of presenting materials to train brokers on order form procedures. The order form procedures include collecting identification information and payment information. The method also includes presenting materials to train brokers on recruiting form procedures. The recruiting form procedures include collecting identification information, payment information, and the selection of sales packages. The method also includes presenting materials to train brokers on sales procedures. The sales procedures include the steps of listing prospects, approach prospects, provide a sales presentation, enroll members and brokers, and continually repeat the sales procedure.  
       
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0004]    For a more complete understanding of the present invention and the advantages thereof, reference is now made to the following description taken in conjunction with the accompanying Drawings in which:  
         [0005]    [0005]FIG. 1 illustrates a multi-level marketing business.  
         [0006]    [0006]FIG. 2 illustrates another aspect of a multi-level marketing business.  
         [0007]    [0007]FIG. 3 illustrates a flowchart of the process by which a broker recruits or sells products to prospective customers.  
         [0008]    [0008]FIG. 4 illustrates an outline of the initial training provided to a new broker.  
         [0009]    [0009]FIG. 5 illustrates the content of initial training program;  
         [0010]    [0010]FIG. 6 illustrates the sales form;  
         [0011]    [0011]FIG. 7 illustrates the process of filling out the broker form;  
         [0012]    [0012]FIG. 8 illustrates the commissions structure process;  
         [0013]    [0013]FIG. 9 illustrates a simplified illustration of an Internet communications system;  
         [0014]    [0014]FIG. 10 illustrates the online sales process;  
         [0015]    [0015]FIG. 11 illustrates the online recruiting process;  
         [0016]    [0016]FIG. 12 illustrates the communication services offered to brokers  
         [0017]    [0017]FIG. 13 illustrates the printed marketing materials;  
         [0018]    [0018]FIG. 14 illustrates an outline the commissions; and  
         [0019]    [0019]FIG. 15 illustrates an outline of the bonuses.  
     
    
     DETAILED DESCRIPTION OF THE INVENTION  
       [0020]    [0020]FIG. 1 illustrates a multi-level marketing business  100 . In a multilevel marketing business, brokers are recruited to sell products. The product offered for purchase may be a good, service or membership in a group. The product may be sold for a one-time purchase price or a periodic subscription fee. The product may be delivered immediately or ordered for later delivery. In the case of a membership sale, the purchasers information is collected for submission to the provider.  
         [0021]    First tier brokers  113  recruit second tier brokers  114  to sell a product and recruit third tier brokers  115 . In the example shown, a first broker  101  has at this point in time recruited four second tier brokers  103 ,  104 ,  105 , and  106 . A second broker  102  has recruited three second tier brokers,  107 ,  108 , and  109 . Brokers  103  through  29  form a second tier of brokers  114 .  
         [0022]    When the first tier broker  101  makes a sale of the product, broker  101  receives a commission on the sale. Similarly, when second tier broker  104  makes a sale, the broker  104  receives a commission on the sale. In addition, because broker  101  recruited broker  104 , when broker  104  makes a sale, broker  101  also receives a commission on the sale.  
         [0023]    For example, if broker  104  made a $20.00 sale, broker  104  may receive a $5.00 commission on the sale and broker  101  may receive a $2.00 commission on broker  104 &#39;s sale.  
         [0024]    The specifics of the commission structure may vary depending on the organization and economics of the provider and market. For example, sales and/or recruiting thresholds may be required before a first tier broker is eligible to receive commissions on sales made by second tier brokers.  
         [0025]    The second tier brokers  114  may also recruit third tier brokers  115 . In the present example, broker  110  was recruited by broker  103 . Brokers of both the first tier  113  and second tier  114  may receive commissions based on sales made by brokers of the third tier  115 . For example, a sale made by broker  110  could result in commissions being paid to broker  110 , broker  103  and broker  101 .  
         [0026]    In like fashion, the third tier brokers  115  recruit fourth tier brokers  116 . In the present example, broker  111  was recruited by broker  110 . Sales by broker  111  could result in commission paid to broker  111 , broker  110 , broker  103  and broker  101 .  
         [0027]    This commission structure may continues through as many tiers as can be recruited down to the nth tier  117  with broker  112 .  
         [0028]    Because each broker has an incentive to make sales as well as recruit brokers who in turn have an incentive to further recruit brokers and make sales, the sales of the product may quickly escalate.  
         [0029]    [0029]FIG. 2 illustrates another aspect of a multi-level marketing business  200 . Step  201  represents a first level broker who receives commissions on his own sales. When a first level broker  201  has recruited a specified number of first level brokers, the first level broker becomes a second level broker  202 . When a specified number of the first level brokers who were recruited by the second level broker  202  become second level brokers, the second level broker  202  becomes a third level broker  203 . This process continues as the brokers recruited by the broker are promoted through the ranks. Eventually a broker may reach some specified upper level of broker, a nth level broker  204 .  
         [0030]    [0030]FIG. 3 is a flowchart  300  of the process by which a broker recruits or sells products to prospective customers. The process begins with a customer contact  301 . The customer contact  301  may involve telephone calls, e-mail contact or face-to-face meetings. During the customer contact, the broker then introduces the product  302  to the customer. After the product  302  has been introduced to the customer, the broker proceeds to query the customer&#39;s interest in the product and the opportunity to sell the product.  
         [0031]    First, the broker may proceed to sell the product to the prospective customer  306 . The sales process may involve explaining the advantages of the product, including the quality, price and other features of the product. If the customer agrees to buy the product, a sales form is filled out  307 . When the information in the sales form is collected, the sales form is transmitted to the provider of the product  308  for processing. The provider provides the product to the customer in exchange for payment  305 .  
         [0032]    The broker may also proceed to recruit the customer as a broker  303 . The broker may explain both the advantages of the product and the advantages that accrue to someone affiliated with the provider and authorized to sell the product. If the customer agrees to become a broker, a broker form  304  is sent to the provider  308 . The provider enters the information on the broker form into a broker database and issues a broker ID number to the new broker  309 . Training is then scheduled for the new broker  310  and printed marketing materials are issued to the new broker  311 .  
         [0033]    When the recruited broker has agreed to buy the product as well, a sales form  307  is filled out and sent to the provider  308 . The provider provides the product to the new broker in exchange for payment  305 . Payment for the product may be included in the broker fees.  
         [0034]    [0034]FIG. 4 shows an outline of the initial training provided to a new broker  400 . When a new broker is recruited  401 , the new broker is provided with initial training  402 . The initial training  402  may include lectures by other brokers, provider representatives, experts and other teaching professionals  403 . The initial training  402  may include written materials  404 . The written materials  404  may include forms, brochures, textbooks and other documents. The initial training  402  may include audio recordings  405  and video recordings  406  which explain the product, the sales process, the recruiting process, the compensation systems, benefits and other relevant information. As well, the initial training  402  may include computerized presentations  407 , such as Power Point presentations.  
         [0035]    [0035]FIG. 5 outlines the content of initial training program  500 . The initial training  501  may begin with discussions about sales techniques  502 . A discussion of recruiting techniques  503  may be included to assist brokers in techniques of recruiting new brokers. A compensation structure is discussed in step  504  and the benefits to brokers are discussed in step  505 .  
         [0036]    The sales training program may include steps for implementing a repeatable sales procedure. In accordance with the preferred embodiment, the sales procedure steps are simple and based on the premise of never creating a stressful or unpleasant experiences for either the broker or the potential customer.  
         [0037]    The sales procedure begins with the step of making lists of potential prospects, both for customers of the product as well as recruits. An initial set of lists is compiled for contact within the first two weeks. It is generally expected that one out of every four contacts contacted will result in either a sale or recruitment.  
         [0038]    These lists may divide the potential prospects into groups divided according to their relationship with the broker. A first list may be developed including people who are very close to the broker, individuals who can be contacted with little explanation. These are the people who will be contacted immediately, who can be expected to listen to what the broker has to say without being judgmental.  
         [0039]    A second list may be developed including people who are well-acquainted with the broker, individuals who can be expected to respond receptively to contact by the broker. A third list may be developed including people who are acquainted with the broker, individuals who know the broker. A fourth list may be developed including people less familiar with the broker but who may be expected to benefit from the product or compensation.  
         [0040]    The sales procedure may include guidance on approach, the manner of making initial contact with the prospects, including instruction on approaches that can be used to makes sales and recruit new brokers. The approach is the method by which contact is made with a prospect and the course of by which business is conducted. Approaches may be prepared tracks or scripts to work with. Brokers may also be instructed on ways to deal with both positive and negative responses by the potential customers and recruits.  
         [0041]    The sales procedure may include training in making a sales presentation. The sales presentation may include multi-media presentation materials, including video, slide shows and printed material such as brochures.  
         [0042]    The training program may be incorporated in the multi-level marketing program to provide a further source of income to the provider, to enhance the abilities of the brokers and incorporated in the compensation system by making eligibility for certain bonuses depend on successful completion of the training program.  
         [0043]    [0043]FIG. 6 outlines the sales form  601 . The sales form  601  may include identification data  602 , for identifying the customer who is purchasing the product. The identification data  602  may include the name of the customer, the mailing address of the customer, the telephone number of the customer, the email address of the customer, the social security number of the customer and other identification information. Payment data  603  is collected to identify a method of payment that will used to pay for the product and details of the payment method. In accordance with the preferred embodiment, the payment data may authorize charges to a credit card or authorize a bank draft. Broker identification data  604  is provided by the broker making the sale, so that the broker is identified to the provider so that the broker may collect commission on the sale. When the sales form has been properly filled out, it is sent to the provider at step  605 .  
         [0044]    [0044]FIG. 7 outlines the process of filling out the broker form  700 . When a new broker has been recruited, a broker form  701  is filled out. The broker form  701  is filled out by the new broker and the recruiting broker. In step  702 , identification data is collected from the new broker. The identification data may include the new broker&#39;s address, the new broker&#39;s telephone number the new broker&#39;s social security number, the new broker&#39;s email address and other identification information necessary to identify the new broker. In step  703 , payment data is collected. The payment data  703  selects a method for payment of the broker&#39;s fees. In accordance with the preferred embodiment, the payment data will include authorizations for a credit card or an authorization of a bank draft. Step  704  allows the broker to choose between various sales support packages. Packages regarding sales tools are depicted in step  705 . In the preferred embodiment, there will be multiple levels of tool packages shown as level 1  707  and level 2  708 . A level 1 tool package  707  may include only the necessary tools to make the sales. A level 2 tool package  708  may include additional material including specialized telephone numbers, fax numbers, web-sites, brochures and other sales literature. Training packages are shown in step  706 . In accordance with the preferred embodiment, multiple levels of training packages  706  are shown including a level 1 training package  709  and a level 2 training package  710 . The level 1 training package  709  may include a simple instruction regarding the process of making sales. Level 2 training packages  710  may include further instruction on sales and recruiting techniques. In step  711 , the broker ID of the recruiting broker is provided so that the recruiting broker receives proper credit for recruiting the new broker. When the broker form is completed, the broker form is sent to the provider in step  712 .  
         [0045]    [0045]FIG. 8 outlines the commissions structure process  800 . The commissions structure  801  may be broken down into commissions on sales  802 , broker recruiting commissions  803 , recruiting revenue commission  804 , and bonuses  805 .  
         [0046]    [0046]FIG. 9 shows a simplified illustration of an Internet communications system  900 . The Internet communications system  900  may include one or more computers  901 . Generally, the computer  901  will be an standard home computer or laptop computer. Those having ordinary skill will recognize that other computing devices may be utilized. Computer  901  is connected to the Internet  902  using standard methods including telephone lines and broadband communication systems. A provider server  903  is similarly connected to the Internet  902 . Using the Internet communications system  900 , information can be sent from any number of computers  901  to the provider server  903 . As well, information may be sent from the provider server  903  to customers and brokers throughout the world via the Internet at computers  901 .  
         [0047]    [0047]FIG. 10 depicts the online sales process  1000 . An online sale  101  is initiated at a computer  901 . A presentation website  1002  may be displayed on the monitor of computer  901 . The presentation website  1002  may include information on the product, the provider and the broker making the sale. The presentation website  1002  may be linked to an online sales form  1003 . The online sales form  1003  is a website designed to allow customers to enter the information collected in the sales form shown in FIG. 6 by entering information at computer  901 . When the online sales form  1003  is completed, it is transmitted through the Internet  902  to the server  903  in step  1004 . The provider server  903  checks the information provided on the online sales form and if the online sales form is completed correctly, a verification message  1005  is sent via the Internet  902  to the customer and/or broker at computer  901 .  
         [0048]    [0048]FIG. 11 depicts the online recruiting process  1100 . When online recruiting is initiated  1101 , a presentation website  1102  is displayed at computer  901 . The presentation website may provide information about the product, the provider, the recruiting broker, compensation, benefits and other relevant information. The presentation website  1102  is linked to an online broker form  1103 . The online broker form  1103  is a website designed to allow a new broker to enter the information collected in the broker form depicted in FIG. 7. The new broker enters the information using computer  901  to the online broker form. When the online broker form  1103  is completed, it is transmitted from the computer  901  through the Internet  902  to the provider server  903 . When the provider server  903  receives the online broker form, the online broker form is checked for completeness and accuracy. If the online broker form is properly completed, a verification message  1105  is sent via the Internet  902  to the new broker and recruiting broker at computer  901 .  
         [0049]    [0049]FIG. 12 illustrates the communication services  1201  offered to brokers. The communication services  1201  may include customized telephone number  1202 . The telephone numbers  1202  may include numbers that are easy to remember. The brokers may be provided with toll free telephone numbers  1203  to allow customers to make phone calls to the broker from any location without cost. Fax numbers may be provided to brokers to allow brokers to receive faxes from customers, brokers and the provider. The brokers may be offered domain names and website services to allow them to provide online sales and recruiting pages  1205 . As well, the brokers may be offered e-mail addresses  1206 .  
         [0050]    [0050]FIG. 13 illustrates the printed marketing materials  1301  that maybe offered to a broker. The printed marketed materials  1301  may include brochures  1302 . The brochures  1302  may describe the product  1303 , packages of products offered by the provider  1304 , and information specialized to geographic areas  1305 . Brokers may be offered printed marketing materials  1301  which include pricing information  1306 . The brokers may be provided with order subscription forms  1307 . The brokers may be provided with broker recruiting forms  1308 .  
         [0051]    [0051]FIG. 14 outlines the commissions  1401 . The commissions  1401  may include a percentage of the sales of the product  1402 . As well, the commissions may include a percentage of the broker&#39;s fees collected from brokers recruited by the broker  1403 . A percentage of broker revenues  1404  may also be paid as a commission to each broker. The percentage of broker revenues  1404  will include a percentage of revenues of brokers recruited by the broker.  
         [0052]    [0052]FIG. 15 depicts an outline of the bonuses  1501 . Bonuses may be paid for the first level of recruiting and sales achieved by the broker  1502 . Bonuses may also be paid for accomplishing the first level recruiting and sales within a specified time  1503 . Further bonuses may be awarded for second levels of recruiting and sales  1504 . As well, additional bonuses may be awarded for achieving second level recruiting and sales within a specified time  1505 . The bonus process may continue to any level shown as nth level recruiting and sales  1506  and achieving the nth level recruiting and sales within a specified time  1507 .  
         [0053]    Although the preferred embodiment has been described in detail, it should be understood that various changes, substitutions and alterations can be made therein without departing from the spirit and scope of the invention as defined by the appended claims.