25 Lessons of MLM Busi Ness: J Ames Vagyi

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F E P L A IN RE U I T C O
1. Lesson of MLM Business
1 NETWORKING IS A BUSINESS
The Direct Selling/Network Marketing/MLM industry is growing with tremendous speed. Average people from all walks of life are joining and reaping the benefits of this phenomenal business opportunity. Millions of people are involved around the world and billions of Euros worth of business turnover is created every year. The industry is thriving with or without you or me, but if you want to make money in networking you must first understand what you have become a part of and how to make it work for you. The most important thing to understand about networking is that it is a business! Establish the purpose of your business and set up a business plan before you start. Define the exact reason why you want to develop a network. The primary objective of a business is to make a profit and generate extra income for the owner. How would the perfect outcome appear to you? How much income do you want to generate with your business every month? Write it down! Work out the ideal structure of your business on a piece of paper. The money will come from creating a network of people who use and sell products. Draw up your plan on a piece of paper to see how many people you need in your network to produce the required volume. Imagine that you already have the kind of business you desire! Once the idea is locked in your mind, your focus shifts automatically towards getting all the information you need in order to have the desired results. The information on these pages will be useful to you in proportion to your desire to have a network and to the degree of your commitment to make it happen! I work from the assumption that you want to create a profitable network for substantial income. Most of the people who come into the Direct Selling/Network Marketing/MLM industry have no business experience. Studying my friend Brian Tracys Entrepreneurship and Economics Course on
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this website gives you all the information you need to understand the aspects of a business. In networking you do not have a boss and you are not the boss of the people in your network! We are all volunteers. Our thoughts and actions have an effect on our team and we can influence them by doing and saying the wrong or the right things. Showing a good example is the best way to lead our network. You need to develop the characteristics of a successful entrepreneur/leader in order to build and lead a successful business. The statistics say that 90% of new businesses fail in the first year. Why is that? In networking we are not paid for our work but we are paid only for the results of our work! You can work a lot and make little or no profit or even a loss, and you can work smart and realize great results! Entrepreneurs do not work for money. They create profitable businesses that give them all the money they desire. Most people work for money in a job. They sell their knowledge, expertise or labor for a fixed salary. In networking there is no such thing as a fixed salary. Only the results count. When you start to build your network you have to understand that you are in business for yourself and the rules are different from working on a job. Having a job is a great thing and has many benefits, but it also has disadvantages. Being in business is a great thing and also has disadvantages. When you make the choice to start your career, it is fundamental that you realize what you are in! The main difference between having a job and being in business is the income potential! In a job you work for somebody else: a boss, the government, a company, etc. Somebody else makes the decisions affecting your life and career. What you should do, how much you earn, etc. The potential for income is limited because there is almost always somebody out there who can replace you for the same or even less money! In business you are the boss, you have to make decisions that affect your life and career, what you should do, how much you earn, etc.

The potential for income is unlimited because you create the money! The extra money is created by your added value that you bring into the marketplace! That value/money never existed before you applied yourself! The results come from the combined efforts of you and your entire team. For many people being in business seems risky! They daydream about job security. For the entrepreneurs it is the ultimate way to express themselves by providing solutions for the needs of other people. The people who join your network want to have a better life. Probably they need extra money to finance their standard of living, or for paying off debts, buying a new car or house, etc. Whatever they say, the number one reason for people to join your network is to make more money! Your job is to become an entrepreneur/leader in order to lead them successfully in this business environment. We have a vested interest in the success of the people in our network, but at the same time we are in business for ourselves! The great danger comes when well meaning but ill informed people want to help another person to succeed like the blind leading the blind. When you go to school, you do not expect the teacher to help you read, but to teach you how to read! In networking you can not expect anyone to help you build your business but to teach you how, and show you how to do it! Helping people is great through charity, but it has no place in business. Everybody buys the same kit when they start a network. Some succeed and many do not! Why is that? The difference is the attitude and the added value to the kit! The added value comes from doing the right things in the ways I describe them in this etraining program. The attitude is the way you apply yourself to the challenges and opportunities while building your business. The right person gives
everything in order to be able to gain everything. Ultimately it is the way you respond to the people and their problems along the way! There will be problems! Big problems! The bigger the problems the more money there is to be made! Most people are afraid of the problems and try to avoid them. Every business exists to solve some sort of a problem. The Direct Selling/Network

Marketing/MLM industry is here for us to solve the problems of the distribution and sale of certain goods and services. The concept is brilliant and works wonderfully, but not for everyone. Most people approach this business environment with an employee mentality and they are surprised when they do not succeed. Having an employee mentality in a job is great but in business it is the perfect recipe for failure! This is one of the main reasons why many people never succeed in networking. They never develop the mindset and the skills of an entrepreneur/leader! Lets look at the profile of the entrepreneurs/leaders, those who drive the business. 80% of them are women, 25-49 years of age, running their business from home, part time, as an independent business owner. Because most of the product lines distributed in the industry are beauty related, health related or household products, it is no wonder women are in charge of the industry. They use and buy these products in the first place and they are ready to try out new ones. They are open to new ideas for saving time and saving/making money for their family. Women tend to talk about, as well as recommend every good thing within their circle of friends. The networking business is a family business and it is based on word of mouth. In most families the women keep up the relationships with other families (other women). Networking provides an excellent opportunity for them to earn extra income part time, if they are ready to learn the rules of the business. It is a must for both husband and wife to see the business opportunity together. However, it is very unlikely that both of them will have the same level of excitement at the same time! It is perfectly normal for the husband or the wife to see more in the opportunity and to take a leading role. Couples should work out between themselves the roles they will play in the business venture. Do not fall into the trap of waiting for the other one to do it. Usually there is one person in charge. Some men feel awkward because their wives/partners are in business and earn in many cases more money than them. My suggestion is to encourage the women and enjoy the process! It works the

other way around too. When a man feels encouraged by his wife or partner, he can achieve extraordinary results. Encourage each other in the business and in whatever you do. Being excited is fantastic, feeling encouraged is great, but sooner or later you have to realize that in order to have a prosperous and profitable business, you need to develop the skills of an entrepreneur/leader, and you have to do the work. You also need to learn the specific skills required to build a network. If you are an entrepreneur in another industry you need to go back to school to learn how networking works. This may pose a great challenge for you, but it is absolutely necessary to understand the game in order to make it work for you. Most people will never take the time to fully understand the rules of networking. They are setting themselves up for a big disappointment because sooner or later reality will catch up with them. First you need to reorganize your time so you can apply yourself in the business. Most people start networking part time, while they keep their existing job, career or conventional business. Therefore networking is kept out of normal business hours of 9 to 5. It is the evenings and the weekends when most of the networks are created and the products are moved. This is the time frame when most people are at home and that is the perfect time to approach them with a business proposal. This fact separates people into two categories: 1. the ones who are willing to give up some of their free time in order to develop a part time business and 2. those who are not prepared to do that. Sometimes it becomes obvious after they have joined the business that they are not ready and they simply quit. How much time you allocate to developing your business is entirely up to you! However, most people who produce results spend 3-4 hours of 3-4 evenings during the week and one day on the weekend. This is a total of about 20-30 hours per week. This is about the same time people spend in front of the television! How you spend your time every day will have a huge effect on your life! You can become a millionaire while other people watch TV! Many people complain that money is not divided evenly amongst all people and that

this is unfair. Time is equally divided amongst everybody. Look at what people do with it! Some are watching horror on TV, some are reading a love story, some are drinking in the pub, some are playing with their children, some smoke a pack of cigarettes a day, some are giving blood in the hospital, some are hanging around the shopping mall, some study a new language, some are playing the slot machines, some are investing in the stock market, some are watching porno on the internet, some are going out with their sweetheart for a romantic dinner, some are sitting in their cars in a traffic jam and some are building a network for freedom. Yes, it is true! Things get worse before they get better. So get prepared that you might have to give up some of your free time now in order to enjoy the benefit of your dream life later. You may have to spend more money in the beginning on inventory, phone calls, travel costs, business support materials: (BSM) audio programs, seminar tickets, business books, e-training programs, etc. in order for your business to generate a profit! This fact also separates people into two categories: 1. the ones who are willing to invest some of their money into the development of their own business and education and 2. the ones who are not ready to do that. Money can be viewed in many ways, but the network builder/entrepreneur uses it as a tool! In the early stages of starting your network you may need to feed it with money. All the profits may need to go back into the business. Therefore, open a separate account for your business and keep records of where the money goes. Most businesses are starved to death because of the lack of money. Every business needs working capital, the sum of money that is locked in the business, and also has operational expenses. To set yourself up in networking you are looking at around 400-900 EUROS for the professional start up and 90-400 EUROS monthly expenses if you work your business in your hometown. If you leave your town, traveling costs can add substantially to your expenses. Your business will be profitable only when the income exceeds the expenses! You have to understand where the breakeven point is in your own business! Many

people throw their household money into the business and never know exactly where they stand. Set up your business properly from day one! We all start our business with what we have and that is perfectly ok. No real capital is required, we do not need a special permit, do not need employees, or an office, etc. This way the door is open to virtually anyone who wants to get involved and that is great news. As a result of that thousands of people join the Direct Selling/Network Marketing/MLM industry every hour of every day! One of the questions people ask is this: if this business is so great, how come only a few people succeed? This is because most people have everything it takes to join a network, but have very little skill as an entrepreneur and as a leader necessary to make it work beyond the starting point. This e-training course is part of a training program designed for those individuals who want to become great in networking, who want to know more about the business they are in, who are open to learning new skills, and ready to do whatever it takes for them to achieve their goals and dreams. This is the 3rd area that separates people into two categories: 1. the ones who want to be excellent in networking, the ones who are hungry to learn and willing to commit themselves 100% to becoming an entrepreneur and a leader, and 2. the ones who are not committed at all! The 3 separators (time, money, and commitment) act as a filter to keep the right people in the industry and recycle all the others back to where they came from. Is this bad? Some people think so, but the funny thing is that they never do anything about it! Instead they wish that things in networking would be different. It should be easy and everybody should make big money forever, without working and learning anything new at all! This attitude is disrespectful to all those people who have succeeded regardless of the hardships and sacrifices they had to go through. And besides that, we should respect every person who ever started a networking business regardless of their level of achievement because of their courage to start something new in order to have a better life! There are very good reasons why people are successful in

networking, and there are very good reasons why they are not. The difference is that a successful person will give you the reasons for both, and an unsuccessful person will give you the excuses for both! That brings up another important question: what is your reference point, what is your source of information, who do you listen to? Be very careful who you are listening to when it comes to networking. Free advice seems cheap, but it can cost you a great deal! You can lose time and money by listening to people who have never built a successful business. Avoid them at all costs. Take advice only from people with proven success behind them! The industry is full of charlatans, pretenders and opportunists who are ready to offer their help so they can do you out of your fortune. This website was designed to give you at least one reference point (my perspective) about networking, entrepreneurship and leadership. Is it perfect? No! Is it working? Yes! I have experienced many things, good and bad in the past 15 years. Starting my Network Marketing business was one of the best decisions of my life. Yes, I am biased because I have a very successful business! I have seen people change their lives for the better in dramatic ways very quickly and I am very proud of them! I will introduce them to you one-byone on this website! We all started our network by ourselves and made it work. It is possible for you too. I would like to encourage you to keep learning and take a closer look at how and why things work in networking. Use this e-training program to get an insight into professional networking in order to create a profitable business for you and for your family. You can also utilize this website to train your people while you are also a student. Learn from the high achievers as much as you can, as fast as you can, and apply it in your business as soon as possible. Its what you do that counts!
Achieve Success, Freedom and Happiness!
James J. Vagyi

2 WIDTH/DEPTH STRATEGY The question is often raised: Should I go wide, or should I work in Depth? Yes! is the correct answer. We have to examine this question according to the context of our business plan, the size of our existing business, and what we plan to achieve. We need to select the most suitable strategy for fulfilling our business plan which will determine what we are going to do in regards to width and depth. The goal determines the way. Generally the reason we choose to go wide is to enable us to start working with someone in depth in order to build qualifying legs (lines). The Marketing Plan is based on the compensation method in which the company pays for a combination of both volume and legs. The Marketing Strategy is a system, or rather a process, in which we work towards our desired results, consisting of three Schools and their infinite number of combinations. The essence of the Width School is that we put everyone we know on our frontline as fast as possible. We expand our names list and continuously sponsor new people, and we never stop this activity. Out of the people we can not sponsor, we develop an extensive customer base, and generate as many points as possible for ourselves. We train our business partners to do the same, motivate them, and leave the rest up to them and to the law of averages. This strategy pays off best where the larger part of the potential income is a result of personal sales volume. However, in the Network Marketing/MLM business the larger part of the potential income is available through the qualifying legs. The disadvantage of the Width strategy is that it is not up to us what happens in depth and this puts us at the mercy of our business partners sales activity therefore we are unable to control when they will become qualified legs. According to the Depth School, as soon as we sponsor someone on our frontline, we should immediately sponsor a new person on his/her frontline as fast as possible, and another one on the frontline of this new person, and so on,

until the leg gets deep enough to qualify. We do not leave the process up to anyone else, we do it ourselves, and as we work in depth, we teach the techniques to all the active people in the leg until we find someone capable of duplicating the process. The advantage being that the control is in our hands and it is up to us only as to what extent we drive the leg. It is my experience that in order to be effective in depth, I can work in only three legs at a time. The disadvantage to this strategy is that it enables us to go only one or two levels deeper per week and it is easy to get bogged down on the bottom of the leg. The Stacking School says that we should insert some people from our names list into those legs that we are driving deeper. We can make an agreement with the new person that he/she will do the same. This way we are able to speed up the process as the legs get deeper, and according to this process, we are able to go ten or even twenty levels deeper weekly. Not only do we use our own techniques and the law of averages, but we are able to benefit from the multiple affect as well. The essence of Stacking is that it turns around the process and at first focuses on building at least one qualifying leg as quickly as possible therefore qualifying all of the other legs as well for the maximum bonus (21%) from that point on. In addition to this, each person from our names list will sooner or later end up in a qualified leg and this may motivate otherwise inactive business partners to utilize their positional advantage to become the active business builders of the future. This simultaneously makes them eligible to receive the maximum discount for their personal volume. From our side we can be assured that no matter what they do, they are in the best possible position. Even if they do not take advantage of the possibilities, it is not our problem. The advantage to this system is that total control remains in our hands enabling us to properly place the prospects and new applicants in a unique position in the leg. The disadvantage being that more people from our names list may end up in the same leg that in turn could have been qualified to establish separate legs for us.

The solid and profitable businesses are those which in addition to being qualified legs, also have supplementary side volume. The number of legs together with the personal volume gives us profitability. We want to build legs that qualify month after month with growing volume. We would like to have legs with lots of core people in depth so we are not subjected to individual attitudes or affected by the fluctuation of the business volume. The core person is the leader who builds legs. The depth gives the business stability. The proficient business is the one which is in balance, therefore paying exactly as we imagined it in our business plan. Which School we should use is determined by the amount of money we wish to earn, how fast, and for how long we wish to earn it. Also, whether we would like to remain active business builders forever, or if after some time we would like to walk away from the business. A choice or change of strategy is in every case a question of consultation. Everyone should discuss this with his/her sponsor or active upline. Besides ourselves only our upline has a vested interest in whether our business qualifies. When we become a qualified leg (Q12) for our upline, we can no longer expect them to work with us in our depth. Their job becomes the same as ours which is to build another leg in width. The ones who deserve the highest respect in this industry are those who have built three or more qualifying legs. You can learn how to build a leg only from people who have already done it. Seek out the company of those leaders on your upline who have built three or more legs already. In the ideal business in addition to the qualifying legs (Q12) there should be at least 10 bonus paying legs with a total turnover of over 20,000 points per month. Example: your personal volume is 200 points, plus # 1 Leg 7,000 points, # 2 Leg 4,000 points, # 3 Leg 2,400 points, # 6 Leg 1,200 points, # 7 Leg 600 points, # 8 Leg 600 points,

# 4 Leg 2,400 points, # 5 Leg 1,200 points,
# 9 Leg 200 points, #10 Leg 200 points, total: 20,000 points.
The essence of building our network is to have as many new applicants in our business as possible. When there are 100 new applicants in a leg that leg picks up momentum and it will qualify and continuously grow. If everyone joins with 200 points, the leg acquires 20,000 new points every month. Such legs can only be built with knowledgeable and systematic work. The reason there is no competition in the Network Marketing/MLM business is because very few people build legs knowledgeably and systematically. 70% of the people who join the network will not sponsor anyone. Most people count on someone else building the business for them. First they hope that their sponsor or upline will build legs for them. Sooner or later they realize that even if their upline is working in depth, he/she will build only one leg and only until the leg picks up momentum and qualifies. Having only one leg does not pay! This is the principle of minimum guaranty. This means, and rightly so, that the leadership bonus generated by the qualified leg will pass up line to the first qualified leader, and will be paid to the person who built the leg in the first place. After realizing this, many people hope the people they sponsor will build the business for themselves, and therefore they do not have to do anything. We could also call this lottery mentality, which has no room in the world of network building. For the right people who are willing to work, the field is completely open and anything can be achieved. The ideal candidate for a core person would be the one who fulfills the following criteria: 1.) Shows a minimum of 15 Marketing Plans per month 2.) Has 10 customers and generates a minimum of 200 points monthly 3.) Uses all the companys products 4.) Attends all meetings and events 5.) Continuously listens to audio programs (Cassette/CD/Internet) 6.) Reads a recommended business book every month

7.) Works as a Team player It is not compulsory to be a core person, everyone decides for themselves as to what they are willing to do in order to have a fast growing, professional and profitable business. In the Network Marketing/MLM business everyone is in it on his/her own free will and can do whatever they want. Anyone could decide to become a core person, but only a few will actually succeed. One riddle comes to mind regarding this: Three pigeons are sitting on a fence. Two of them decide to fly away. How many are left on the fence? (The right answer is: All three because none of them actually flew away, only decided to.) The core person is a rare individual, and anything that is in short supply increases in value. This works the same way everywhere in the business world and we call it the law of supply and demand. Plenty of anything has no real value, rarities are valuable. Funny, most people never realize this. They wish that building a business would be easy. At that moment the business opportunity would cease to exist for us because there would no longer be a need for our work. As long as people do not understand how the Networking Marketing/MLM business works, they do not believe that it works at all until they realize that for the qualified person it could be an inexhaustible gold mine. How does the core person work in depth? The core person knows that no one will build legs for him/her, therefore he/she is determined to acquire the knowledge and technique of building a leg and then to become a master at it. Continuously learns, works independently and persistently, and does not wait for anyone. Regularly consults with his/her upline and with his/her business partners. Only shares the vital signs of his/her business with his/her upline. Shows a good example with his/her behavior and leads the business this way. He/She approaches all events with positive expectations. Does not complain, criticize, and condemn others. Encourages and praises continuously his business partners, the company, the products, the system, his/her children and spouse. Recognizes and appreciates even the smallest achievements. Patiently reassures

and encourages his/her business partners because he/she knows we all learn from our own mistakes. He/She is determined to bring the best out of every person and every situation. He/She focuses on the things that he/she can do, and ignores the things that he/she is unable to influence. Works smart a lot. He/She gives everything in order to reach the best results in the least possible time. He/She does everything to help others, but doesnt do it in their place. Very strict with the finances. Always pays on time, and never owes money. Uses and promotes the learning aids (tools), and the meetings and events. Capable of inspiring people. Arrives on time for appointments and meetings. Dresses in business attire when working. Works with the kind of posture that leaves no question he/she is serious about the business. Asks questions instead of explaining too much. Mannerly but firmly handles the objections. Learns from his/her mistakes and failures, and never gives up. Would you like to have a person like that in your business, or many of them in all of your legs? There is only one proven method that guarantees you will have at least one such person in your business and that is if you become that core person. At that very moment when you become a core person, everything changes in your business. The results are proportionate to your work. This inflates your self confidence to a level that makes you irresistible to the right people. Like a magnet, you will attract the kind of people into your business who have similar principles and /or qualities to yours. People are not willing to follow a person who is just trying something, however many will follow the person who knows exactly what he/she wants. Those people who follow your good example will also become successful. We call this process duplication. It makes a huge difference what kind of methods and principles are duplicated in your business. Because everything duplicates it is a smart move to utilize the principles listed above. Apply such a system that not only works for you but for your business partners as well. We will reap what we sow! Core is the gate to a fast growing, professional, and profitable network. Core is the line amongst

those people who are successful in the Network Marketing/MLM business and those who have decided to do it, but are still sitting on the fence. I have met thousands of people in the last 15 years, and one of the most frequently asked question is this: How can I convince my business partners to become core? My answer is very simple: I dont know! Throughout my career I was only able to convince one single person to become a core person for a relatively short period of time, and that person was me. When you work in depth, you set an example. Your actions, behavior, words, gestures, everything you do, the reason you do it, the way you do it, everything you say, why you say it, and how you say it all counts. People are watching you and primarily they would like to find out what your intentions are and how they motivate you. If they feel that you want to take advantage of them for your business so you can obtain your own goals and ambitions, then they will come up with every excuse under the sun to get rid of you, even if they otherwise like the business opportunity. However, on the other hand, if they feel that you want to use the business to help them achieve their goals and ambitions, you will be able to sponsor regardless of the objections and no matter what type of company you are working in. Everything depends on your intent and attitude. The reasons why we work in depth: 1.) Because nobody else will do it in your place. 2.) To find those who by following our example will become core people of the future. 3.) To show and teach them the process of how to create results in the business. 4.) To get to know them in order to develop and maintain a mutually beneficial long term business relationship with them. Because the core person works systematically, for him/her the business is completely predictable, on the other hand, most people find the whole thing imperceptible. There is a demand for our work because we have to show and

explain to the people how our business works. When someone goes out amongst the people with this understanding, and works like a core person in depth for at least one or one and a half years, he/she will gather enough experience so as to give him/her the right to expect to reach all of his/her goals in the business. Working in depth requires self discipline. We need to go even if we are not in the mood. We need to do things that may not be comfortable and we need to endure things that may not be pleasant. When something is valuable we need to pay the price for it. If you are prepared to work for 2-5 years like no other person, you will be able to live the rest of your life as very few people can. A core person works in depth like a gold-digger, who understands that in order to find gold nuggets he/she has to shovel through lots of earth. While building the business we have to meet lots of people in order to find those few we feel are capable to work with effectively in developing a network. The gold-digger knows that the gold nuggets exist and they are out there somewhere so he/she keeps searching persistently. The core person knows that those people who will build the business and become core people in the future exist somewhere, and all he/she has to do is find them. Working in depth is nothing more than a knowledgeable and systematic searching process. First step is to find them. Second step is for them to become core people by following our example. There is no question that there will be new core people and successful network builders in the future. The only question is how many of them will be in your business? There are only two options left: either you find them or somebody else will. Those who seek will find! Achieve success in networking! Become core! James Vagyi

3 INVITE FROM YOUR LIST
You will meet people everywhere you go. Remember, all of your friends were strangers before you met them. Make a conscious effort to get to know new people, and add them to your name list. This way you will never run out of people to call. Print business cards for yourself and for your wife/husband. There is no company name on my business card. It has my name, address and phone number only. (No title of intergalactic e-commerce CEO). Keep it simple, but classy. I use every situation to talk to people and get to know them. I usually start the conversation with a genuine compliment when someone, for example, did a great job for me, and say this: That was done very professionally, thank you. I would love to work with someone like you in my own business. If he/she asks what business I am in, I just say casually that I am in marketing. Then I may ask questions about his/her family, occupation, hobbies, or other subjects to find out why the business would be a benefit to him/her. I find it very interesting getting to know new people. I hand over my business card and say this: It was very nice talking to you, here is my business card, you never know, we may be in business together one day, do you have a card? If he/she has no card I hand over another one of my cards and ask him/her to write his/her name and phone number on the back. I want to leave him/her curious, so when I call, he/she will have an open mind. When I go home I add his/her name to my name list and call him/her within 10 days. You can do the same. The most important part of the invitation is to know exactly why you want to invite the people from your name list! When the why is crystal clear and correct, you will find the appropriate how and your invitation will be irresistible. If you invite people because you think that you can make money off of them, or that they are going to work for you to make you rich, then you have set yourself up for a huge disappointment. Somehow people sense our

intentions on the other end of the telephone. If you think that other people can be just as excited about the business opportunity as you are, and that it can be of great benefit to them by improving their lives, that too will come across to them in your invitation! Just imagine, you find Aladdins magic lamp, and when you rub it, the genie comes out. He gives you the only deal he has left, and says this: I will place 300 gold bars (each worth 1 million dollars) in your bedroom. You can keep half of them for yourself and the other half is for your friends and relatives. Here is the catch: When you invite your friends (you can not invite strangers), you can not tell them about why you have invited them, and especially nothing about the gold (they may think you are crazy), and if you do so, the gold bars will automatically disappear from your bedroom. For every successful invitation, each of your friends can take home one gold bar and after that you can keep the other half for yourself. To get the 150 gold bars for yourself, you must first give away the 150 to your friends, inviting them to your home. If you can not give away all of the 150 gold bars successfully to your friends, you will get nothing. You have 24 hours! Go! How would you invite? Use your imagination! Play with this scenario! Each name on your name list could be worth millions of dollars to you, and your business offer could be worth millions of dollars to each person on your name list! The problem is that you may have the rest of your life to invite them unless somebody else knows the people on your name list. Invite everybody from your name list before someone else invites them! Go! There are three ways to invite people to your meetings: 1. Invite face to face Do it only if you have no other choice, and you can handle the questions and objections that will be sure to arise. Use similar words as those in the example below of a telephone invitation, following the same logic.

I have invited people successfully face to face and from that developed qualifying legs, but, if possible I avoid that and use the telephone. 2. Invite via mail Inviting via mail, fax, SMS, or e-mail is not the preferred way in networking because it is impersonal and not very effective. Its like a shot in the dark. Since a follow up call would be necessary anyway, why not start with a quick telephone call in the first place. I have never used this technique myself, but one of my business partners sent an invitation letter via fax to a friend over 5000 km away and she flew to the meeting, later becoming a great leader in the business. 3. Invite on the telephone The most effective way to invite people is over the telephone. The telephone is a fantastic tool to use for the invitation. Setting up an appointment over the telephone is the most critical step to learn for the newcomer in the business. The success rate is in proportion to the preparation: (most people never prepare!) It is our job to prepare our new business partners for setting up the invitation. I expect my new business partners to follow the guidelines below: 1.) Have your written name list ready 2.) Set 2 or 3 possible dates on your calendar 3.) Write down why the business would be beneficial to your prospects 4.) Write down what you plan to say to the prospects (script) 5.) Prepare for handling questions and objections 6.) Practice your script 4-5 times before you call anyone 7.) Invite them 2-3 days before the chosen dates 8.) Always invite couples together 9.) Make your calls when prospects (husband and wife) are home 10.) Smile and have positive expectations when calling 11.) Keep calling until you have 15 couples who say yes to every date 12.) Confirm with all prospects 1 or 2 hours before the meeting Example of how I do it:

Hi, Tams, this is James! I am just making a quick phone call. Are you and Julia free on Tuesday evening? I first clear the date, and wait for the answer! (When I ask a question I always wait for the answer!) If he says that they have something on, I ask if they can change it. Can you change it? If not, I say this: Are you and Julia free on Thursday evening? If not, I may give a third option, but not more! What about Friday evening? If that is no good, than I say this: Never mind, I will get back to you at another time. Bye! I do not say anything about why I called them. If he keeps asking, I just repeat the same sentence again. Never mind, I will get back to you another time. Bye! I hang up without engaging in small talk because I want to continue in order to fill my living room with other people. I deliberately leave him curious. When I call him again a week later, (I do not wait longer!) I will most probably have a very interested prospect. If they are free lets say on Thursday, I continue like this: Judit and I have started a new business venture and we are looking for a few business partners who would like to earn part time an extra 2000-5000 Euros monthly. The reason I am calling you is because we will be showing some of our friends what we do on Thursday 8 oclock at our home. Could you be there by 7.45? I wait for the answer! If he says ok, its great. However, most people are curious and ask questions! What kind of a business is this? What is this all about? Is it selling? What are the products? No matter what the questions are, this is my answer: I knew you would be interested, that is the reason we are have this meeting on Thursday at our home, where we can show you exactly what we do. Can you be there by 7.45? I wait for his answer! If he says ok, its great. If he asks further questions: Is this AMC/Amway/Avon/Oriflame/Tupperwareetc.? I say this: This is a business of our own, with my wife, and we have a proposition for you on how you could make 2000-5000 Euros monthly, part time. We will show you the details on Thursday at our home. Can you by there by 7.45? If he still insists: But tell me something! I just keep repeating one of these two

sentences, with a question mark at the end, waiting for his answer. The purpose of the exercise is simply to set up an appointment and not to give information over the telephone. You need to prepare your own invitation using your own words, and write it down (script)! The better you prepare yourself, the more people will come to your meetings. The invitation is critical because it sets the pace of the numbers game and the speed of the duplication process. We can not control how many people will say yes or no to our proposition, but we can control how many people we invite to the meeting, and how professional and effective our invitation is. I follow up with a quick phone call to all the people I have invited in order to confirm the appointment one or two hours before the actual meeting. Example: Hi, Tams, this is James. I am just making a quick call about tonight. No flowers or wine please, this is a simple business meeting, o.k.! Can you and Julia make it by 7.45? I wait for the answer. If the answer is yes, then there is a good chance that they may turn up. Or if he comes up with an excuse: Something comes up. My dog is sick. I am not sure I want a business. I make too much money alreadyetc. Rather than waiting hopelessly at the door at 7.45 to see who turns up, I want to know exactly who is coming and who is not before the meeting starts. When they give me an excuse, it means they are not convinced that it is worth their while to listen to my proposition. If that is the case I do not take it personally. For me it is an intellectual game. Like a chess party with carefully selected words. I say this: Oh, I am so sorry that you can not make it tonight. Are you and Julia free on Friday then? I immediately offer him a second date in order to book another appointment. If he accepts, its great. If not, he may come up with another set of excuses. I am not interestedetc. This is the time to try out other questions and then practice. Use your imagination. Keep your position of strength and never beg. Be nice and firm. I might say this: Tams, making an extra 2000-5000 Euros a month on top of what you earn doesnt interest you? I wait for the answer! Yes, but tell me what this is all about. I knew

you would be interested, that is the reason we are having this meeting on Friday at our home where we can show you exactly what we do. Can you be there by 7.45? The more you practice, the better you get at it, and your invitation ratio will improve. He may say this: If you do not tell me what it is, I will not come. Tams, I called you because I want to tell you and Julia about our business proposition. That is the reason we are having this meeting on Friday at our home. Can you be there by 7.45? Some people criticize this technique because they think we should come out with the name of the company we are associated with, for example:
AMC/Amway/Avon/Oriflame/Tupperwareetc. The first problem with this is that we do not own those companies and we do not work for those companies. We are Independent Business Owners therefore we can only represent our own business. Our own business is what we own. The second problem is that those company names may or may not mean anything to our prospects. They may have never heard about those companies. Or they have heard something already from someone else. What they have not heard yet is our proposition. Our proposition is our time and effort to work together with our prospect to make his/her business succeed. We invest our time and effort in order to succeed together with them. Our offer is unique to us and only we can offer it, nobody else. When I say to someone that I will show you how to do it, and that you can count on me all the way, I trade a piece of my life for the success of that person. No company can do that. This is the real deal, and this is my offer, irrelevant to the company name. None of those companies can make us succeed, but we can succeed with those companies if we are prepared to work together with people. Our invitation is about our offer to another person, not an offer from a company to a person. We are inviting those people, not the company. People will join us first, before they join any company! Successful inviting! James Vagyi
4 YOUR PROPOSITION
Most people mix up the explanation of the compensation method with the business proposition in the Marketing Plan Presentation! The essence of my business proposition is this: I am going to do this business with or without you! If you decide to work with me, then I am prepared to invest some of my time and effort into developing your leg in order for you to have business volume. Once you join me, from then on, I have a vested interest in the success of your leg (not necessarily you) in order to qualify. Unless the leg has business volume, I will not make money on that leg. When I show the Marketing Plan, I make it very clear that this is not something I try, and I am not out there to help anyone in particular to build his/her business! Working with someone (counseling) is a business decision, and a calculated risk on my part. Therefore, when I make an agreement with someone it is extremely serious and very personal. My agreement (to give my time) is in force as long as the commitment level of the new business partner is equal to or greater than mine, in terms of making his/her business succeed. I only have time for 3-4 people in a particular leg, and I choose the people based on those with whom I can create the best results. I will move down the leg (working in depth) continuously looking for the next person with whom I can create results in order to add volume to the leg. Working in depth is a commitment to the process and to the particular leg with all the people in the line. Working with a person (couple) is a personal choice and a business agreement. I am going to counsel them on a regular basis, and it has to be a win/win deal. I am going to show the Marketing Plan to my frontline and in their depth. No matter where I show the plan, my offer is the same and my commitment is the same. I have great leaders who I sponsored on my frontline, and I have great leaders who I met and worked with (as if they were on my frontline) in depth. I make sure that my offer has value. This makes the difference which is the added value to the starter kit. For most people the

Marketing Plan is the mechanical explanation of how the compensation plan is calculated. For the right person it is the proposition of an unconditional commitment (core) to the process of building a leg, and a win/win agreement (counseling) with the right people (3-4) in the legs. The goal is to find 3-4 people in each leg, and team up with them to create new apps and volume. The core person shows the Marketing Plan (his/her business proposition) at least 15 times every month, for as long as it takes for him/her to reach his/her goal. The Marketing Plan has five elements: 1.) The products and services of the company 2.) The compensation method regarding how the company pays and rewards 3.) The business building strategy to create new apps and volume 4.) The training system, the tools and the association of leaders 5.) The time, work, and commitment that you put into the business You are the 5th element in the business, and you are the most important one. Nothing happens until you do something. If people are convinced that you are serious about the business (your offer!), they will listen to the rest of your story. If people feel that you are not convinced, than the first 4 points become irrelevant, since they need to join you first. The Marketing Plan is about your proposition to the prospects. It is more important what you offer, rather than the company, because without you nothing will happen (in your business). You are the key to your success! There are three types of Marketing Plans: 1.) One-on-one presentation (you talk to one person or one couple) We can show the business (our business proposition) virtually to anyone in any situation, if a prospect is interested. For example you are sitting on the plane next to someone, and he/she is interested in what you do. Never say anything about your business unless you have at least 20 -30 minutes to go through the whole Marketing Plan Presentation! Showing the Plan one-on-one is the least

efficient method, because it lacks any leverage. If you want your network to grow fast, use the home meetings. 2.) Open Plan presentations (you talk to 50-500 people) The open plan is a regular weekly meeting where everybody comes and invites people from all different legs from the area, and usually a very successful person gives the presentation. It is a very effective training tool for the leaders, and an excellent opportunity for the new people to learn how to give the presentation from the best network builders, and to invite people at the same time. 3.) In home presentation (you talk to around 15 people) Home meetings, with around 15 people (7-8 couples) in the living room, are where the fast growing, professional and profitable networks are built. When I set up a home meeting, I follow some simple guidelines: as a host (I invited the 15 people to my home) I act and dress business-like, do not serve people food or drinks, I just tell them that if they need anything, they can help themselves before the meeting starts. I do not rearrange the chairs in the house, because if some people dont turn up (even though I have confirmed them just 1 or 2 hours ago) nobody will notice it. I do not say anything about how many people I have invited, or who is not coming. I am not going to explain anything to any of my guests! As people arrive, I introduce them to each other if they have not met before, saying a few nice words about them. For example: Tibor is my childhood friend and he works as a bank director. His wife, Csilla, teaches part time in the elementary school. They have three wonderful children who cost a lot of money. I introduce my sponsor or upline to my guests, one by one. First, I introduce my guest couple to my sponsor with a few words, as in the above example, and second, I introduce (and edify) my sponsor to my friends, saying something like this: This is Michael Abrahams, my friend and business partner, who is going to explain to you how our business works. Michael works as a captain in the army, and my wife and I are in the process of developing our business together with him. Michael is very

successful in the business already and I am honored that he has decided to work with us tonight. I make sure that nothing disturbs the meeting: I have someone to look after the small children, put out the dog, turn off the phone, etc. I put away everything relating to the business! (Products, brochures, catalogs, etc.). I set up the whiteboard (not my upline!), or projector or whatever is needed for the plan to be presented, and say something like this: Hi everybody, Judit and I are very excited to have you here in our home tonight. As I mentioned on the phone, we have started developing a fantastic business that can bring all of us an extra 2000-5000 Euros or more every month part time. Michael is already very successful in this business so I asked him to explain to you, in detail, how our business works, and what our offer is to you. I would really appreciate it if you could turn off your mobile phones for the next 40 minutes so we do not disturb each other. Here are pens and paper if you would like to take some notes, and if you have any question during the presentation, I suggest that you write them down and we will be more than happy to answer them after the presentation is over. Here is my friend and business partner Michael Abrahams. I sit down in the front (not to the side or the back!), lean forward, look interested and take notes because Michael told me that I have to learn how to give the presentation as quickly as possible. After I introduce Michael, I do not say anything (unless he asks me to), he is in charge. My job is to learn what he does and how he does it. After the presentation is over, (should not be longer than 30-40 minutes) he will ask me to say why my wife and I are in the business, and I will say something like this: Judit and I just started this business last week and this is our first/second home meeting. We are very excited about this business opportunity and are convinced that with the guidance of Michael and the training system, we can build a fast, professional and profitable network. We believe that with this business we can make enough money to pay off our debts and retire financially free 5 years from now.

The products are fantastic. Judit will show them to you in a minute. The reason we invited you is because we believe that we can do this, together with you, so you too can make an extra 2000-5000 Euros every month. If you have any questions we would be more than happy to answer them now. After answering your questions, you can register with us right now, or you can order some products to test the waters first. How to handle objections and how to start people up correctly will be covered in the next two lessons. Lets look at the Marketing Plan Presentation from the presenters perspective (I show the Plan to 15 people invited by my downline): If the invitation is the first real hurdle in the business, showing the plan is the second one. The most important thing to understand is why we show the Marketing Plan in the first place. I show the Marketing Plan for two reasons: 1.) to find the next person to register in the business on my front line or in depth, in order to create volume, momentum and excitement in the leg 2.) to teach the next person (my front line or the host couple in depth) how to show the Marketing Plan Presentation, in order to duplicate myself We can give the presentation on a piece of paper, on a whiteboard, using a flipchart, an overhead projector, an iPod, a computer or the television, etc. No matter how we show the Plan, we need to talk to people and verbalize our business offer. When I show the Plan in depth, I arrive 15-20 minutes before the meeting to make sure everything is going as planned. (No dogs inside, TV is turned off, etc.) I usually wear a dark suit (blue, charcoal or black) with a white shirt and tie that has some red in it. (For ladies a business suit is recommended). I stand up during the presentation, and I always start by saying a few nice words about the host couple: Hi, everybody! Tams, thank you very much for your introduction. It is a pleasure for me to work with you and Julia this evening. You have a wonderful home, and it appears to me that

you have invited some really nice people. I met Tams and Julia only (ten) days ago and I am impressed by how committed they are to making their business succeed. The reason they invited you here is because they are looking for some smart and ambitious people to expand their business network. I am going to talk to you on their behalf to show you exactly what we do. I am going to explain to you how much money you can make, about the products and the services of the company, and how to make the business work. I started this business 15 years ago in Sydney, Australia and became financially independent, two years later, at the age of 32. Now I am working with some great people like Tams and Julia here in (Budapest) to show them how to do the same When I give the presentation I always use notes. The reason I do this, is not because I do not know the words, but because I would like Tams to show the plan next week, and I want him to feel free to use notes when he shows the Plan for the first time. It is not about how brilliant my 1000th Plan is, but it is all about his first plan and the duplication process. The more simple the Plan, the easier it is to duplicate. When I show the Plan I look into the eyes of the people. I speak a little bit faster and a little bit louder than normal to keep their attention. If someone makes a comment or asks a question during the presentation, I handle it this way: It is an interesting question (comment), please write it down and I will be more than happy to come back to that after I have finished the presentation. I say this with a smile and keep on going as if nothing happened. I never make people feel bad or embarrassed in any situation, no matter how provocative the question or the comment might be. My presentation is structured in such a way that I preempt all the questions that people would normally ask. I answer almost all of the questions in the Plan, before they can ask them. People may not understand at first how the business works, but when I show the plan, they should understand one thing, that they have met someone (me) who believes in the business and who is very serious about the business! Please note, this is not about how

successful I am already, but about how committed I am! I want Tams to show his first Plan with that posture (He has no effective success to show yet) coupled with his excitement. Everything I do and say when I show the Plan, I want Tams to be able to duplicate! After the Plan is over, I ask Tams (and/or his wife) to say a few words about why they decided to start this business. I go over it with them in the start up session on how to do that, so by the end of the plan they are prepared. (More on that in the lesson on Starting Up People). After the impact statement made by the host couple, I ask them to bring out the Info Packs, the Registration Kits and the products. While they do that, I get back to that persons question from during the presentation, and invite people to ask questions. (More on that later in the Handling Objections lesson). Before the prospects leave the house, I will give them an Info Pack, and at the same time I set up an appointment with them, one by one, for the next 24-48 hours. Tams and/or Julia is/are standing next to me, with their planner open, because he/she/both is/are coming with me to learn the follow up and how to start people up correctly. After all of the prospects have left the house, I stay with the host person/couple and congratulate them for having a successful meeting. Than I ask the following question: Tams and Julia, what would you really like to achieve with this business? I wait for the answer! This is a very important part of the first meeting of a new business partner, because this is the time to find out what their dream is! I reinforce that they have made the right decision by starting the business, because their dream can come true. I look at Tams notes and tell him that we are going to show the next Plan together. I will ask him to take over in the middle of the next Plan to show the numbers. I do this for two reasons: 1.) I want him to show the Plan a.s.a.p. and in front of my eyes so I can give him some instructions afterwards on how to do it the right way.

2.) I want the prospects to see that showing the Plan is something anyone can do, because in a few days time (if they say yes) it is going to be their turn to show their first plan. Most people never show the Plan correctly and regularly, and out of the few who do (core), hardly anyone does it the way I described it above! It is your choice why and how you show the Plan. Why not make the most out of what you do?! The successful Marketing Plan Presentation is not about money or the company, but about you and your commitment to building the business and finding and teaching the right people. Showing the plan 15 times a month is the minimum (core) in order to expect good results. In the first two years, my average was over 30 Plans per month! My record was 86 Plans in one single month. I showed the Plan at 6 oclock and 8 oclock during weekdays and at 10 oclock, 4 oclock, 6 oclock, 8 oclock, and 10 oclock on Saturday and Sunday. (I did this for only one month, and only because I showed all of the Plans in depth, and had my team of leaders (3-4 core people in each leg) to set up the meetings and to do the follow ups/start ups). I got to this stage working very hard in order to find the 3-4 good people somewhere in each leg (I could drive only 3 legs at the time) to work together with me to create this momentum. Building a network is a team sport. The reason we show the Plan is to find the right people to work with, and to teach them how to do the same (duplication)! Whoever shows the most Plans (the right way) wins!
Show the Marketing Plan and profit from it!
James Vagyi

5 HANDLING OBJECTIONS When we have made our business proposition (Marketing Plan), we can expect three possible answers from our prospects: yes, no, or maybe. However, most people will come up with objections, excuses and questions before making a final decision. About 10% of the people fall into the yes/no category after the Marketing Plan, the rest of them can go either way. How to handle the objections and the questions (or how to close the sale or ask for the business) is the third major hurdle in the business. We have to be prepared to handle the questions and objections that will be sure to come up after the Plan, and at the follow up/start up sessions. Sometimes people are not very polite in verbalizing their opinion about the business or our proposition, so the most important thing to learn is not to take anything they say personally. People have the right to say whatever they want, and we have the right to take it in whatever way we want to. I never take comments from prospects personally. Whatever they say, it is their problem, not mine! They know next to nothing about the business so I treat them accordingly. When people ask questions, form an opinion, or come up with an objection, that means (to me) that they are interested! Most people are afraid to enter into this confrontation zone because they do not know what might happen. They are scared to death about what people might think or say about them, so they do not want to leave their comfort zone! So lets see what can happen and prepare ourselves for this most interesting part of the business. This is where it all happens. This is where the business is built. Eye to eye, one-on-one, belly to belly, between two people, or a person and a couple. This is my favorite part of the business, and this is what I am the best at. Everything is a lead up to this point. Everything I did so far, setting goals, putting together my business plan, organizing my
time, writing my name list, inviting my friends, showing the Plan, was to reach this point. This is the moment of truth. I put my prospects into a position where they have to make a decision! They are at a crossroad and they need to make a step (they say something) that determines the direction they will choose. Most people do not like to make decisions. Look at the woman in the morning agonizing about what she should wear, or the husband, when the wife asks the question of what he would like to have for dinner that night? He would say, doesnt matter, anything would be fine, so he does not have to make a decision. After the Marketing Plan, people have to make a decision, and I want to know what the decision is. They can not keep it to themselves, they have to tell me what they think. I always start the conversation with a positive alternate question: Which part of my business proposition do you like more, the time or the money? I wait for the answer! If he/she/they say we like both, then I can move straight to the point: Great, you can register right now, as a private person/couple or as a company. Which way would you prefer to register? If they say through their company, that means they are in. But they may come up with objections. What is an objection? For example any sentence that has a but, This business looks good, but it is too late. The products are good, but they are too expensive. This business is for people like you, but not for me. Rule number one: never argue with the prospects! Rule number two: ask questions! Rule number three: listen to the answers! I never say no, it is never too late to start this business (argument), instead I ask a question: What makes you think that it is too late for you to start this business? I wait for the answer, and listen. I listen very carefully when other people speak to me! I am the best audience they ever had! My full attention is on what they say, I look deep into
their eyes, and my mind is in top gear to figure out what is behind their words! I am prepared, but he/she/they are not! I have the facts, he/she/they are guessing! I know that people say no to my proposition (offer) no matter what I do, for 4 reasons: 1.) They do not understand the business and/or my proposition (need more information). My solution: Info Pack-Open Plan-Audio Recordings-Books-Seminars 2.) They do not believe it works, or that it can work for them (need a third party). My solution: Info Pack-Open Plan-Audio RecordingsBooks-Seminars 3.) They are afraid of the business, money, work, me, people, etc. (need encouragement). My solution: Info Pack-Open Plan-Audio Recordings-Books-Seminars 4.) They are lazy (who knows what they need). My solution: I avoid them. In order to successfully handle objections and excuses, to close the sale, or ask for the business we need to master the art of asking questions and listening to the answers. There are four kinds of questions: 1.) Questions other people ask me (How do you make lots of money in this business, James?) 2.) Questions other people ask about themselves (What have I done wrong, James?) 3.) Questions I ask myself (Why am I doing this business?) 4.) Questions I ask other people (Why not make more money for you and your family?) When someone asks me a question, I pause for a second, smile, look into his/her eyes and always say this: That is a very good question! The reason I do this is because I want the person to feel good about
asking the question, and feel important. This also gives my mind some time to look for the best answer. If I do not have the answer to the question, I never improvise just to come up with something, I would rather say this: I do not have the answer for that, I will write it down and ask my upline, or the company, etc. and get back to you with the answer next time. Where do the answers come from? Answers come from our memory. It is based on our previous experience and knowledge. If someone would ask me the question of how to land on an aircraft carrier at night, what could I say? I could guess, (and look like an idiot) or say the above sentence! When I am prepared (Info Pack-Open Plan-Audio Recordings-Books-Seminars) and have some personal experience (input) than I can give an answer that has credibility. This is the reason I listen to audio recordings on CDs, read a new book every week, download information from the Internet, and go to every seminar organized for the business. I do not want to look like an idiot in front of the prospects. I want to have the answers to the questions, excuses and objections stored in my mind, so when they come up, I know what to say! Most people never go to the trouble of putting all the answers into their minds, and they are too surprised to answer when people say no to them. If there is nothing inside, what can come out? I realized long ago, that there is a right answer for every question in every situation. All I have to do is find it. I have put together 101 objections and 202 questions, and I will give an answer to every one of them, as part of this e-Training course. There are many possible answers to each objection and question, depending on the situation. Practice your own answers. I decided long ago to use the wisdom and knowledge of other people. Over the last 20 years, I have collected lots of answers and experiences practicing out there in the field, and through the audio recordings, the books, the Internet, and the seminars. My experience is one of the values that I
bring into the business, and this is one of the reasons I am successful at it. I am prepared! Are you? Are you listening to audio recordings of successful people? Are you reading business books? Are you going to the seminars to learn from the best network builders? If the answer is yes, I would like to congratulate you, because that is exactly what I have done in order to succeed. If the answer is no, why not? What about the people in your network? How would you like to train them to become effective network builders (core)? Are you out there in the field putting your knowledge to the test and turning it into experience? If the answer is yes, I would like to congratulate you, because that is exactly what I have done in order to succeed. If the answer is no, why not? What about the people in your network? How would you like to train them to become great network builders? We can handle the questions and objections after the Marketing Plan individually or in a group situation. Both have advantages and disadvantages. To handle everyone separately requires another appointment in the next 24-48 hours (follow up). We have to go to the prospects place where he/she/they are in charge, and navigate through the follow up process in an unpredictable environment. This is very time consuming and slows down the business building process, because we may be wasting our time with people who will not register into the business and may not buy any products. However if we make a mistake or bump into a real obnoxious person/couple, he/she/they will not infect the other prospects with his/her/their negative opinion. It can also turn into an advantage for us that we are in his/her/their home, because we can find out lots of things about our prospect if we open our eyes and look around. To speed up the process, I often handle the questions and objections in a group situation. My time is more valuable than to sit down one-on-one in a follow up with everyone when only one out of four or five will actually say yes. So I want to know what people think right
after the Marketing Plan, and book appointments with people for start ups rather than follow ups. I expect questions and objections, and I am prepared to answer them. When someone asks me a question, I often ask in return: Why ask? I wait for the answer! The reason I do this is because whoever asks the questions is in control! I want to take control, and in order to do that I have to ask the questions. I can only control the process by asking questions! I often ask myself questions to control myself: What is the right thing to do? What are my choices? What is the right answer to this question? What is in it for me? What have I done wrong? What do I have to learn from this? What is it that I really want? How could I be more effective? I realized long ago, that only I have the answers to these questions, nobody else! Nobody else can answer for me these questions that I ask myself. Most people, when asking these questions, are waiting for the answers from someone else. They never realized that the right answers are hidden inside themselves! Because they are looking for the answers in the wrong place (from outside of themselves), they have no chance of finding them. When people ask me the question: James, tell me what have I done wrong? My answer is this: Probably everything! (How should I know?) Than I ask back immediately: What do you think? And I wait for the answer! Most of the time people are surprised to find out that they knew the right answer, all along. An objection is not a question. Here is a classic example: It is too late, the market is saturated. What do you mean by that? Everyone is doing this business already. Are you and your friends, your relatives, your colleagues all doing this business? No. How many of your friends, relatives, colleagues are actually doing this business? I can only think of Jzsi at work, nobody else. Ok, so in your world nobody is doing this business except Jzsi, right? Yes, you are right. If Jzsi is the only one doing this business that you
know of, then is the market saturated or not? No, its not. Ok, do you have any other concerns, or can we welcome you onto the team? I finish with a question asking for the business, and wait for the answer! Here is another one: I dont have time. What do you mean by that? I am very busy! Would you like to have more time? Yes, of course! How would you like to achieve that? I have no idea. What if we build this business so that you can have all the time that you need? That should be good. Ok, do you have any other concerns, or can we welcome you onto the team? I dont have any money. What do you mean by that? I have no money to invest into this business. Would you like to have more money? Yes, of course! How would you like to achieve that? I dont know. What if we build this business so that you can have all the money that you need? That should be good. Great, do you have any other concerns, or can we welcome you onto the team? I dont know anyone who wants to do this business. Do you know anyone who wants to make more money? Yes, of course, everyone wants to make more money. What kind of opportunities do people have in order to make more money? There are not very many opportunities around here. What if we show them this business opportunity in which the income potential is unlimited? Well, after all, why not. Ok, do you have any other concerns, or can we welcome you onto the team? I never ask questions where the answer can be yes, or no. For example: Would you like to try the products? (No!) I always ask alternate questions: Would you like to try the small toothpaste or the more economical large one? I wait for the answer. This technique does not come naturally for most people, and needs to be practiced over and over again. When we learn how to ask the right questions, we can easily navigate ourselves through the objections and the excuses. One of my
favorite techniques is reversing or repeating the question, or objection. It is like throwing the ball back to the other side. For example: The products are too expensive. Are the products too expensive? I wait for the answer. Using this simple technique, many times I can get the prospect to answer his/her own question or objection. Another technique I use is that I completely ignore the question or objection, and change the subject completely with another question. For example: The products are too expensive. May I ask how much money you would have to make a month to be financially secure? I wait for the answer. The original objection that I ignored may never come up again. If it comes up again, then it means it is a real concern and it needs to be handled more thoroughly. Sometimes people have real problems. We have to be sensitive enough to differentiate a problem from an excuse or objection. For example: I do not have any money. What do you mean by that? I have to wait for the next pay check because I spent all of my money already. No problem, I can register you in the business right now for only five Euros, and cover the rest of your start up costs on your pay day. Do you have any other problems, or can we welcome you onto the team? When we are faced with a problem, we have to get into a solution mode, and find the best solution. There is the right solution for every problem in every situation! All we need to do is to find it. How do we find the best solution? We prepare, and practice, practice, practice!
Be good at asking questions!
James Vagyi
6 STARTING UP PEOPLE
Starting up people correctly is another hurdle in the business. If we take a person to the dance floor and ask them to tango with us, we ought to know the steps. We are inviting people to join us in a new business venture (networking is a business!), therefore it is our responsibility to lead the prospects through the process. The problem is never the prospect! It is the person who starts them up who has the responsibility to do it right. The prospect has no idea about the process of the ideal start up. Most of the people, who join the Direct Selling/Network Marketing/MLM business, have never been in business before. We all know that according to statistics, approx. 90% of all new businesses fail in the first few years. In networking most people fail in the first ninety days! They simply fail to do the things that create results. What happens in the first ninety days determines the future of most people in the business! What happens in the first ninety days in the business is what the start up is all about. We have a short window of opportunity to get things right, otherwise our chances are most probably lost forever. In most cases we have a three fold problem (remember, that all businesses are about solving problems): 1.) The prospect has never been in business before. My solution: Starter Pack, Open Plan, Audio Recordings, Books, Seminars, Brian Tracys e-Training course Entrepreneurships and economics on this website 2.) The prospect has never built an MLM business before. My solution: Starter Pack, Open Plan, Audio Recordings, Books, Seminars, e-Training on this website 3.) The prospect has never been in business with me before. My solution: I assume that the prospect will be the next superstar in the
business and I treat him/her/them accordingly unless proven otherwise. We have two choices in the start up process: 1.) We start up the prospect based on his/her/their terms or 2.) We start up the prospect based on our terms If we start people up based on their terms, the chances for a good start are next to nothing. There is only one way to start up a McDonalds business, and there is only one way to build the business with me! I have my way of starting people up, and I do not leave much room for the prospect to have his/her own way. Even if the prospect said yes to my business proposition, the whole start up process is a continuous sales situation. I have to sell the prospect on every single step along the way. The prospect wants to sell me his/her opinion, and to do the business with me based on his/her terms (thats all he/she knows) and, at the same time, I want to sell him/her my way of doing the business with him/her based on my terms. If he/she gets his/her way, we both loose. If I get my way, we may both succeed (assuming that the way I build the business is producing results)! For the correct start up we need two things: 1.) To develop our start up formula so that it creates results and can be quickly duplicated. 2.) To learn to sell our formula to the prospects! For me the start up process is a one way street, in which we need to walk through, together with the prospect, in order to succeed. I never let the prospect take me down the street the wrong way! I owe it to him/her/them, and to myself, to set ourselves up for possible success, rather than certain failure. This is the position I take in the start up session, and this gives me the position of strength and posture to get it my way or to sell my formula. I am certainly not in the business of buying the prospects ideas! Most people mix up the filling out of the application form with the start up process. Registering with a company is
like buying a Ferrari Spider, without knowing how to drive. The start up process is when someone shows you how to drive it, and therefore how to take the maximum out of it. The start up process is about passing over our winning formula (know-how) together with our commitment to the next person. This know-how can not be given, it can only be taken. For some reason unknown to me, most people resist just about any winning formula! Formulas for business success, financial success, health, relationships, etc.! Sadder than that, is the fact that most people never even come across a winning formula, therefore never even having a chance to resist it or apply it. My formula works for me, but it is not perfect. I can only start up every fourth or fifth person/couple the right way. These are my numbers after being in sales for more than 20 years. We need the right formula coupled with the right person (core) in order to create results. Most people want to change the formula, and adopt it to the person, instead of changing themselves so they can apply the formula effectively. To cook a specific meal we have to put all of the ingredients into the dish in the right order. If we leave something out, or do it in the wrong order, the result would be different from what we expected! In the start up process we need to put in all the ingredients of success in the right order. And at the end we will eat what we cooked. Here are the twelve steps to my start up formula: 1.) I sell the concept of core, and we discuss the strategy of how we are going to build the business together We have to be careful about the words people use. A no could mean yes and a yes could mean no. Ultimately, their actions tell the real story, but initially we need a verbal agreement. When I talk to prospects, I always refer to the training system. I always use the same words, and say this: The first step in the business is to become core. The second step is to go Leaders Club. You can do that in the first month. We are
going to work together as a team. My job is to show you how to build the business, and your job is to learn as fast as possible. Do you want to build this business fast, professional and profitable? I wait for the answer! 2.) I sell the Starter Pack, and teach them how to use it If the answer is yes, I say this: For those people who want to build the business fast, professional and profitable, there is a Starter Pack on networking. Everything you need to know to start your business is in the Starter Pack. You have access to the knowledge of the most successful people in the business. Study the manual because everything is described step by step in it. In order to be up to date and learn the current trends from the best leaders, we have a recommended monthly training program (SP) with audio recordings (2 CDs with 2 speeches on each) and a business book. Would you like to learn very fast from the best leaders and make money as quickly as possible? I wait for the answer! 3.) I sell the monthly Audio/Book Program, and teach them how to use it I say this: All right then, here is this months Audio/Book set. Listen to the people on the CDs. These people are fantastic and through listening to them, you can pick up the nuances of building the business. All of the successful people go to seminars regularly to celebrate their successes and learn from each other. There are two types of seminars, one day seminars (BBS) and three day weekend seminars (WES). I have the tickets for both of the upcoming seminars here for you and your wife. This is part of your professional start up package. 4.) I sell the tickets for the next Seminars (BBS and WES), and teach them how to use them

I say this: At every seminar there is a special leadership meeting for those people who sell at least 10+ tickets to the seminar. We are going to work together so you can qualify for the next leaders meeting. 5.) I ask him/her/them to pay for the above materials I say this: The most successful people set themselves up for success right from the very beginning. Your professional start up package costs 600/800 Euros (single/couple). Would you like to get an invoice, or not? I wait for the answer! This is a critical moment of the process. If the person/couple is not really serious about the business and just played along up to this point, the truth will come out here. This is where we can expect the objections and the excuses (sometimes the real problems) to come to the surface again. If they are not prepared to come up with 600/800 Euros to invest in a professional start up, then they disqualified themselves from building the business with me. I may register them in the business with 200 PV, anyway, or just turn them into retail customers. I know, however, that they are not ready for the business world yet. Maybe they incubate for a while, just using the products, or listen to a CD, or they may come to a seminar, but they are not ready to become an entrepreneur right now. For the right people 600/800 Euros is a joke. I respect the position of every person/couple, and I never make them feel bad. Exactly the opposite! I want every person I come in contact with to understand that it is perfectly ok to do whatever they want. But at the same time, I want them to realize that I have a choice, and I will only work with those people who follow my instructions! When I have received the money for the materials, then we are in business! 6.) I teach them how to write down the name list, and how to scan the list

I move on to ask him/her/them to write down at least 50 names on a piece of paper, and then I go through the exercise with him/her/them as described in Lesson No 2. I show them how to register for the e-Training course, and refer them to the first three lessons. I ask questions about the people on their list, and about why in their opinion this business would be good for them. I want to know the type of people on their name list. 7.) I book appointments for 2-3 home meetings I book 2 or 3 home meetings for them, and invite them to the next Open Plan. This means that within the first ten days they have 4-5 dates, altogether, where they can invite to, and show the business proposition to their prospects. 8.) I teach them how to invite and confirm the appointments I explain the importance of the invitation. I refer to the manual, and the information on this website. Then I practice the invitation with him/her/them. First, I invite him/her/them, than I ask him/her/them to invite me. I practice with them until they get it right. I want a firm commitment to have at least 15 people (7-8 couples) at every Plan. 9.) I teach them how to set up the home meeting, what to do, and what to say I refer to the meeting in which he/she/they saw the Plan first. If the Marketing Plan Presentation was a successful meeting where he/she/they first saw the business, then it is going to be easy to explain to them what to do. I say this: Remember what happened at your sponsors place last week? The same thing will happen here at your place. Lets practice how to introduce me to your friends. When we do the right things it saves us lots of time in the process. Whatever we do happens in front of the eyes of our future network builders. What we do, speaks louder than what we

say. The reasons we do things in a specific way are explained here on this website. 10.) I sell the importance of starting with 200 PV, and teach them how to order, use, and sell the products I say this: It is critical to place your 200 PV product order right now because you need the products before your first home meeting. Delivery takes about two days so you will have just enough time to try them out. The best and easiest way to order is through the Internet. Give away your brand X products to a nursing home or a charity organization and replace them with the new products. Your prospects have to see your products in your house. This gives the credibility to your business proposition. 11.) Finally, I ask him/her/them to sign the companys registration kit Signing the application form is the final ceremony for me, and everything must be clarified beforehand. The signature on the paper solidifies our agreement and closes the start up process. I say this: I would like to congratulate you for starting your Network
Marketing/MLM business. You are positioned to have the best possible start in the business, and I expect great results to come out of your first 2-3 Plans. It is up to you how well your business takes off. The more people at the first 2-3 Plans, the better your chances will be. You are on the right track for a great start. 12.) I go through the first eleven steps with the new person/couple in order to teach them how I do the start up procedure I say this: Lets go quickly through what we have just done here. There is a very good reason I started you in this particular way. I want the best for you. I want your business to take off in the right direction. I would like to start up your prospects exactly the same way, and I want you to
learn to do the same as quickly as possible. When you can start up people correctly, only then can you build the business yourself. Most people never master the start up process. So if you want to build your business fast, professional and profitable learn how to start up people the right way. The reason I sell the company Registration Kit at the end is very simple. I want him/her/them to buy into the whole concept of how to build the business with me, based on my terms. If they are not prepared to do that than I may not even accept them into my business, because we would just be wasting each others time. As soon as he/she/they have signed the form, I loose my leverage on them. All I am left with is our unwritten verbal agreement that we came up with before. They have their own business now, and they can do whatever they want with it. They are volunteers, and they do not have to listen to me or my formula. The only thing that holds together our agreement is our commitment to our given words! I will keep my commitment in proportion to theirs. My job now is to hold him/her/them accountable for his/her/their own promises. Most people regularly lie to themselves, and they bring up any excuse not to keep their promises. It is very easy to lie to ourselves because nobody will find out. But if another person knows about our promises he/she can hold us accountable for our own words, and this makes it more difficult to cheat ourselves! Without this leverage the whole business building process would be left to chance and it would be nothing more than just a shot in the dark. By using this leverage we can bring the best out of the new person/couple for achieving mutual benefit. I always have at least 10 company registration packs at home, and some inventory of the best selling products, so I can sell them to my prospects on the spot! I also have Starter Packs, Info Packs, CDs, Seminar Tickets, Books and all other tools available to start up the people correctly. Before I go to the start up session I prepare
and put together the whole package which I am going to sell to the new people. The reason I do that is because I want the tools to teach them after I leave their home. I want to replace myself with the tools so I can spend my time with the next prospect. Let the tools do the job for you, too.
Start them up for success! Replace yourself with tools!
James Vagyi

7 USING AND SELLING THE PRODUCTS This subject may look very obvious, but in my experience this is one of the most misunderstood parts of the business. Every business, enterprise, company sells something. Usually it sells a solution to some sort of problem. It sells a product or a service. We, as individuals, sell our labor, time, knowledge, and experience. A company, a business or a business opportunity can be a product, as well, and needs to be sold. In the Network Marketing/MLM industry the number one product is the business opportunity itself. When we give the Marketing Plan Presentation we are selling ourselves and the business opportunity to potential buyers (prospects). When we sponsor or register someone in the business, it means that we have successfully sold them the business idea and/or ourselves with our formula. Sponsoring is selling. We all buy and sell all the time. When we buy something it means that someone sells the very same thing on the other side, and makes money on our purchase. Please observe the flow of money. It always goes from the buyer to the seller! Who makes money (profit, margin, rebate, bonus, premium or markup) on the transaction? Always the seller! Wouldnt it be smarter to take a position on that side, and sell something? Anything! We are all in the market place as long as we interact with other people. We sell (exchange) our time or expertise for a company, the government, or a boss. We make money on the transaction (wage, salary, commission). We also sell our ideas, beliefs, and opinions to our spouses, children and friends, and they do the same things back to us. So everyone is in business for themselves, and buys and sells all the time! The only difference is that most people have very little value when measured in the market place, and they have almost nothing to sell. Worst than that, most people think selling is a lowly profession, and they want to avoid it
at all costs. In this lesson I want to sell you on selling! Selling is one of the best paid professions in the world. When you learn to sell, you can sell any product, service or idea, anywhere anytime. It is a portable and universal skill, and in high demand all the time, all over the world. When you read the financial news about the GDP of your country, just remember that every single item or service that makes up the GDP is sold by someone who made a profit on it! Even better than that, when you buy something next time just stop and think about the fact that someone made money on your purchase! Go through that mental exercise every time you open your wallet or purse and pay for something with cash or credit card. Think about the bank that makes a profit on your transactions, purchases or cash withdrawals every time you use your credit card. Selling is a natural part of our everyday life. There is no better way to learn how to sell than in the Direct Selling/Network Marketing/MLM industry. When we join the business we are buyers. We buy our sponsor, the start up formula, the business concept, the products and the tools. When we want to build the business we have to make a transition from buyer to salesperson, and to learn how to sell. Most people never make that transition. They open up shop, and they want to succeed without selling. They wish that buyers would pave a road to their door. Nothing sells automatically. Someone has to sell the mission to Mars, the Airbus 380, the candy in the corner store, or the concept of brushing our teeth regularly. There are ten things I sell in the business: 1.) I sell myself, first impression, smile, appearance, partnership, knowledge, experience, commitment, (win/win) 2.) I sell my formula, the strategy, my start up procedure, the way I do the business (core) 3.) I sell the concept of how the company pays the bonuses and rewards higher achievements (4%)
4.) I sell the products, where the money comes from, why to serve customers ($) 5.) I sell self development, why lifetime learning pays off (applied knowledge and information is power) 6.) I sell the tools, how to replace ourselves for fast duplication (BSM) 7.) I sell my upline, why I need a third party, role model (mentor) 8.) I sell the leaders, edify them in front of their groups (10+, LC) 9.) I sell the system, the environment for fast growth and success (Diamond Alliance) 10.) I sell the dream, financial and personal independence (FREEDOM) Lets go to the market place and observe what is involved in the sales process out there: 1.) The Product (idea, service) is a solution for a problem, or need 2.) The Salesperson (owns the right to distribute the product to make money with it, and looks for all potential buyers) 3.) The Prospect (potential buyer for the product, who may or may not have the problem or need right now) 4.) The Buyer (the person with the problem or need who finds the solution in the form of the product) 5.) The Money (the exchange medium) 6.) The Invoice (record of the transaction, so the government can take its share in the form of sales tax) Lets say I am the salesman, and I have toothpaste as a product. Who are my potential customers? Everyone who uses toothpaste, and knows about my selling toothpaste! Those people who use toothpaste, but do not know about me selling toothpaste, are someone elses potential customers. The more people who know about my selling toothpaste, the more chance I
have of selling it. (This is the reason I put everyone on my name list!) When I show the Plan, it is like putting everything I have on sale (the ten things listed above) in front of the potential buyers (prospects), knowing very well that only a few will buy the business, and a few will buy the products (they qualify themselves)! I want everything I sell to look as attractive as possible. That is why I dress well and fix my teeth (and brush them with my own toothpaste) so when I smile and talk about the benefits of my product, I have some credibility behind my words. I am selling the toothpaste directly to potential customers (Direct Selling). Indirect selling is when a company pays a sexy model with perfect teeth to sell us the toothpaste via television or magazines (advertisements), and we take it off the shelf at the supermarket. I want my prospects to know that my product is as good, if not better, than the one they are currently using! Why do I use all the products that my company offers? Because they can make me rich! The more I use them, the more I can sell since I have the personal experience and credibility when I talk about the products (advertise) to potential customers! How would it look for a BMW dealer to drive a Mercedes? It may sound ridiculous, but most people who join the Direct Selling/Network Marketing/MLM business are not using the products they are supposed to sell! My wife, Judit, and I work from our home. I sell the business concept and she sells the products. Every month we have 500-600 PV personal volume. Some of that is our personal use, and some is sold to our regular customers. Her customers are our friends and relatives. She usually places an order twice a month through the internet. Before she makes the order, she phones around to her customers and says this: I am going to order today from the company. Which products would you like me to order for you? And she waits for the answer! Our friends and relatives place their orders if they need something. Women love to shop! Everyone who knows us
knows that we have a virtual shop and we sell products. It works like this: Judit puts on her new make up and her friends want to know everything about it. Next time, when they stop by, she will demonstrate the products for them. Judit takes her new nail polish to her beautician and every woman is aware of where she got it from. When we invite our friends over, or go out to eat with them, we always take our vitamins with our meals, and people ask about it. When our friends and relatives come over to our place, they see the products in our home that we use personally, in the bathroom, in the kitchen, in the garage etc. Judit gives products as gifts to our friends and relatives. We keep an inventory of the best selling products in our home, because we want to be able to serve our customers immediately if needed. We replace the products with the next order. When our business partners come to our home or office, they also see that we use the products we are selling. If I do not use all of the products myself, how could I expect my business partners to use them? It would be an obvious contradiction between what I teach and what I do. I like the products because they are delivered to my home free of charge, they are top quality, economical, environmentally friendly, and they make me rich. When I reach my 200 PV (core) every month, I have the right to expect the same thing from my business partners. I want them to duplicate my 200 PV personal volume in my business. I also want my business partners to learn to sell. I know how to do it, because I have done it myself and that gives me the ability to teach my business partners how to do it. I have increased my value in the market place because I have developed new skills: to create volume every month, and to teach how to do it. Most people misunderstand the point. They think that Judit and I have customers because we need the retail margin of 100-200 Euros. We do not need that money at all, however we do need the right to be able to expect duplication, we need the
experience and skill to be able to teach it to our business partners, and we need the maximum discount on our personal use! We want to buy everything at the lowest possible price for ourselves. No matter what we buy, we always ask for a discount, and one out of every four or five times we get it. We never buy cheap things, only the best of everything, but as part of the game, we are curious to find out how much cheaper we can get it for. Asking for a discount is selling! It is not about the money, but the principle. Ask and you shall receive! Selling and asking for the business is the same thing. It is a part of our nature, and it is a habit that we have developed over the years. We want to buy smart and we want to sell smart. Buying our own products and becoming our own best customers was a very smart decision because we set the right example for duplication. Having customers is a very smart move for the same reason, and as an added benefit we get testimonials about how good the products really are. Nobody praises our products better than our retail customers. I am biased but my customers are not. When they tell me how good the products really are I get an invaluable feedback. Finally, making money from selling products to retail customers can be used to pay for the expenses associated with the business. For most people, an extra 100-200 Euros a month in the beginning can make a huge difference. Their retail customers can practically pay for their business education. Once we learn how to sell the products that are physical things, we can move on to sell intangible things, concepts and ideas. In the Marketing Plan Presentation we are selling everything weve got! What we sell and how we sell it makes a huge difference. How many things we sell at the same time and how fast we sell them makes an even bigger difference. How many people who sell well in our business makes the biggest difference!
Thousand of books are written on the subject of selling, but to master it we have to go out and talk to people. Most people want to learn it first, so they can avoid the mistakes, and then be able to sell more after that (practice). In my experience, it works the other way around: first we practice and make mistakes, then learn the lessons from our own mistakes. Try it again, make mistakes, learn from those mistakes; just exactly the same way we learned to ride the bicycle. No matter how hard we sell, or how smart we are on closing the sale, we can not make the prospect buy. The buying decision is a biochemical impulse in the mind of the other person. We can control the process, we can ask questions, but we can not control the outcome. Some people will say no and some people will say yes, no matter how we sell or what we sell! Selling is a numbers game. Before I started my networking business I was a professional salesman. I worked in a broker house and I was selling savings plans and private pension plans (they call them superannuation in Australia). After that, I was selling fax machines and photo copiers, and finally moved to a company selling mobile phones. No matter what products I was selling, on average about every fourth of fifth person said yes, all the others said no to me. I have learned a lesson: I can not control the end of the sales process, (making the prospect buy) but I can control the beginning of the process. I can call more people, I can qualify them better before I see them, and I can improve my presentation. I have decided not to worry about the things that are out of my control, and learned to focus on the things that I can control. I also learned how to handle rejection. Perhaps this is the hardest part of the business. For every yes, I get three or four nos. These are my numbers, and I have not been able to change them over the past twenty years. I have decided to respect the numbers and learned to live with them. I never take a no personally because I understand that it is not about me, but it
is the law of averages at work. I turn those people who say no to my proposition into customers if I can, and I turn those people who say no to the products into a learning experience. I make money from the yess and I learn from the nos. No matter what the outcome, I will win. This way selling is fun for me. I have turned it into an intellectual game that I enjoy. Here again preparation is the key. I know exactly what I am going to say to the prospect (script). I know in advance what I am going to say when the objections come up, and I know how to take control of the sales process by asking questions. Because I am not worried about myself or the outcome, I can pay attention to the prospect and really find out his/her needs. I have learned to listen and to be a great audience. One of the typical mistakes in sales is that someone tries to convince the prospect and therefore talks too much. We have two ears and one mouth, and it pays to use them in that proportion. Nobody can teach us how to sell, the same way in which nobody can teach us how to ride a bicycle. It is up to us to do it. I decided to learn to sell. It was very difficult and uncomfortable in the beginning. It cost me a great deal of money buying all the best books on selling, buying the best audio programs and going to sales seminars. I spent about 20,000 Australian Dollars on my self development, including my professional sales training before I started my networking business. Investing in my own education and learning how to sell was one of the best decisions I ever made in my life.
Learn to sell! It pays well!
James Vagyi
8 USING THE TOOLS Every trade and profession uses some sort of tools to make their job easier. The carpenter uses a hammer, the surgeon uses a scalpel, and the pilot uses a compass (navigation system). In the Network
Marketing/MLM industry there are some very powerful tools that we can use to make our business grow faster, more professional and more profitable. These tools are called business support materials (BSM). These tools are produced by the most successful leaders in the business. The primary purpose of these tools is training and education. In addition to that, tools carry information and motivation. The tools also provide a foundation for the duplication process, and ensure that the right winning formula is reachable for new applicants everywhere in the whole organization. The tools can help us to get from A to B faster! Tools can save us time, and help us to reach our goals faster. Tools are solutions to specific problems. We can walk from Budapest to Moscow, or we can use a tool, the train or an airplane to get there. Which one is faster? The problem in networking is speed (momentum), and the solutions are the tools! If there is a secret as to why my business is one of the fastest growing organizations on the planet right now, it is because of the duplication of the effective use of the right tools! These tools are: 1.) Audio Recordings 2.) Business Books 3.) Seminars and Meetings 4.) E-Training Nobody has to use any of the tools! It is possible to get from Budapest to Moscow by foot! However, I have not heard of anyone, lately, taking that option. In the same way, it is possible to build a fast, professional and profitable network without the use of tools! I just havent met anyone yet

who has done it that way in my 15 years in the industry. There are people (mostly company bureaucrats, who never built a network) who know better, and argue that the tools are not necessary for building the business. I agree 100%. Tools are not necessary for building a network, in the same way that it is not necessary to take the train or an airplane in order to get to Moscow. It is my choice that I use the tools! I do not know any other way to build the business but with tools. I use all of the available tools because I want to, not because I have to. If I do not use them, someone else will, and I will fall behind. I owe it to myself, to my family, to my business partners, to my organization, and to my company to build the business as fast, as professional and as profitable as possible. I want to be the best in the following two things: 1.) To learn fast by using the available tools 2.) To teach fast by using the available tools I understand why most people have a problem understanding the concept of using the tools. This is because they have a huge problem with learning and education. Most people stopped learning after they finished school. Only 9% of the adult population reads regularly. They have been conditioned by the school system that most of the things they learned during those years are useless and a waste of time! So why keep learning? There is a joke that comes to mind: Those people who study are stupid, but those who do not, stay stupid! With most people the school system killed the excitement of learning new things. As a businessman, the people that the school system provides me with, in order to build a network, are not trained for the job! On top of that, they do not know the value of life long education. They think that they are finished for the rest of their lives! Therefore they do not read and do not want to study anymore! Worst than that, they do not have any business experience! They do not know how to handle money, how to sell, how to make an
appointment, how to communicate, how to deal with people, how to ask and answer questions, how to make a business work, how to make it profitable, how to solve problems, etc. As long as the school system churns out such people into the work force, as long as the companies in the Network Marketing/MLM industry welcome everyone to join, and as long as my company holds me responsible as a sponsor to train and to motivate them in order to build the business, I am going to use all of the tools! Every month, tens of thousands of new people join my network. Who is going to train them? Their sponsors, who joined the same day or the day before? This is the reason I develop and use the tools. I realized 20 years ago that in order to succeed in life, I have to set up my own personal educational system. I hated going to school; it was like a prison for me. However, at the same time, I wanted to learn so many things! I learned a new language (English), and a brand new world opened up for me in Australia. I wanted to become a millionaire and I knew that I needed to learn how to do that. I knew, also, that school teachers are not millionaires. Exactly the opposite, teachers are one of the lowest paid people in almost every society. So, instead of going to a University to suffer for five more years, learning next to nothing about how I could become a millionaire, I decided to study on my own. I considered myself a very good student, so I set up a training program for myself. My own personal training program consisted of: Hands-on training (being a professional salesman), audio recordings (cassette tapes at the time), business books (top 100), and seminars (sales and personal development). This was long before I had ever heard about the Network Marketing/MLM industry! I bought the best of everything, and it cost me around 20,000 Australian dollars at the time. I invested 20,000 dollars into my own education, and that knowledge and experience enabled me to make millions of dollars a few years later and from then
on. Now I know how to do that and I want to share this knowledge with you. That is what this e-Training course is all about. I went into sales because my first boss told me that if I want to make more money, I should learn to sell, because that is where the big money is. When you are in the Direct Selling/Network Marketing/MLM business you are automatically in sales. However, being in the business does not make you a professional salesperson, the same way as sitting on the bus will not make you a professional bus driver. It is one thing to be in something and another to create something! Our job is to sponsor people (to build a network) and to create volume. You need to learn how to do that. Because you are reading these pages you are on the right track. In addition to that 20,000 dollar initial investment, I have invested far more in my own self development in the past 15 years building my business. On top of that, I made many mistakes that cost me a lot of money, and learned valuable lessons from them! I am not proud to admit it, but the lack of knowledge and experience cost me millions of dollars over the years. People took advantage of me, used me, tricked me, stole people from me, manipulated my business to their advantage, etc. My knowledge and experience that I share with you on these pages cost me literally millions of dollars! When you paid 20 euros for this e-Training course, you made a decision to become my student and to buy my knowledge and experience for a small amount of money. I think you have made a good deal, and I hope you feel the same way. First, I wanted to become the best student, and then I wanted to become the best teacher in my own business. When I came over to Hungary, I was by myself. I had no options, I had to teach my new people who came into my business what I know, because nobody else would. And in order to be able to teach more effectively, I used the tools! My formula was very simple: first I
became the best student I could possibly be in the business in order to

find my winning formula (key person). Second, I became the best teacher I could possibly be in my business (to teach key person), and third I used the tools as effectively as possible to train as many people as possible, as fast as possible (to be key person). Most people get stuck in the very beginning when they find out that tools cost money! They wish that the tools would be for free. If someone has that mentality, the chances of that person building a successful business are next to nothing. In business, there is no such thing as something for nothing! In business, we always exchange something for money (or barter). If someone nickel and dimes the cost of his/her education, then that person has not considered the costs of not having his/her education. Most people have very little knowledge and experience which is needed to survive in the business arena. That is the reason most of the new businesses fail in their first year. To buy business knowledge from a successful person via audio programs, books, seminars or e-Training programs, is the smartest, fastest and cheapest way to get that information. To this day I listen to audio programs when I sit in my car. I read books regularly, on average one every week. I go to seminars and listen to successful people. I am a subscriber to different newsletters in the fields of leadership and investment. I am a subscriber to the Harvard Business Review, and read international and local business publications regularly. I am a life member of the National Geographic Society. I also read and listen to the summaries of the 30 best business books published each year in the USA. Even today I am a student, and I love it! I do not believe in the school system, but I believe in the power of education. I have not fallen into the trap of believing that the school system or the government is responsible for my education. I have taken full responsibility for my own education. What about you? It is never too late! What are the other options? You can learn anything you really want to, very fast! Faster
than in school! Networking in the 21st century is about fast learning, fast teaching and fast duplication. I want people around me who believe in the same principles. Knowledge is power, and applied knowledge opens the gate to success. I use the audio programs (CDs and downloads) to learn the latest business building techniques, and to get inspiration when I feel discouraged. I sell the audio programs to my business partners because if I do not sell them, they will not buy them automatically. Everything needs to be sold. Everyone sells all sorts of things to the people in my organization: cigarettes, junk food, vodka, music, videos, etc. I am going to be the one (probably the only one) who sells them the benefits of audio programs. I read books because I believe in the value of reading books! The reason I am up to date in the business world is because I read a lot. I get new ideas that I can implement in my business, and I can improve my understanding of how and why things work. So, I sell this concept to the people in my whole organization. I go to the seminars that are organized for the business because I want to meet my upline, and to learn from the most successful people in the business (they are the speakers). I also want to see the new achievers on stage in order to understand what kind of people are doing the business. I want to see the excitement in their eyes, and the enthusiasm that comes from being on stage for the first time. I want my sponsor to see that I am at the seminar, and I want him to know that I was able to restructure my time to fit the seminars into it. I want my upline to see that I am committed to my own education and success in the business. I want to be recognized on stage for my achievements, and I want my sponsor to see that. I want my sponsor to be proud of me. I go to the seminars because I want to meet my business partners. I want to show them a good example (key person). How could I expect them to go to the seminars if I am not there? I want to see who is there and to
congratulate them on their decision. I want to reinforce the fact that they have made the right decision by coming to the seminar, because those people who stayed at home do not learn much about how to build the business, and do not see the recognitions, and do not feel the excitement. I want my business partners to know that they can count on me, and they can always find me at the seminars. I go to the seminars because I want to see my business partners recognized on stage. I want to see the tears and the joy when they are on stage for the first time in their lives. I want to be the first one to congratulate them on their achievement. I use the seminar to motivate the people in my group. I use the seminar to build belief, to answer questions, and to show a bigger picture. I want my business partners to feel the atmosphere and the group dynamics, and to experience the team spirit in the business. I want my business partners to get committed to their own education and success in the business. I want them to realize the importance of the seminars and to bring their business partners to the next one. I want to sell tickets to my business partners for the next seminar. I want to see who is committed enough to come to the next one, and I want to know who is excited enough to be ready to bring more people to the next one. I go to the seminars because that is the most effective place where I can influence my business partners. I go there to work. I go there to sell! I use the seminar as a tool to help me lead my business partners in the right direction (to business success). I use the seminars to determine who I should work with. I am going to invest my time in the people who come to the seminars, who bring people to the seminars, who are on stage at the seminars, and those who put people on stage at the seminars. I can select the best 3-4 people from each leg based on their attitude at the seminars. I then introduce them to each other so I am able to edify them in front of the others, saying nice things about them. I can not do that one on one. It would not
have nearly the same effect and it would probably sound phony. The reason I put my best people in a circle at the meetings is because I want them to know that they are not the only ones I have! This way I increase my influence factor with them. I make them realize that I have made a choice to work with them, and I can only work with so many people. So, to be my partner they have to be in the top 3-4 in the leg! I want them to understand that I always give my time to the top 3-4 people, and anyone from depth can fill these positions. This way I introduce a little bit of competition between the best people. All of that happens at the seminars and meetings. Associated with the seminars are various challenge meetings. For example, there are special Leader Meetings for those people who sold 10 or more tickets to the seminars (10+). I want to qualify for that meeting, and I want my business partners to qualify for that meeting. I want every leg of mine to qualify for the 10+ meeting, and I want my 3-4 leaders from every leg to qualify for the special meetings! I want them to feel good about themselves and their progress. I want them to show the way to their business partners. This is how the duplication works in practice. From the seminars come the audio recordings where all the action is. This is the reason why the audio recordings are so powerful, because they are recorded live! Real leaders speak in a highly charged situation in front of the best business builders (their piers), and in front of their own business partners and their crossline. In this situation everyone gives his/her best, and we can profit from it if we use it as a tool. With the audio recordings, whether it is a cassette, a CD, or a downloaded mp3 file, I can take the seminar home to the people. I use the tools to teach and to motivate my business partners, especially when I am not around! Use the tools to do the job for you! James Vagyi
9 KEY PERSON
Being a key person (core) is not a business level, but it is the first step towards becoming a network builder. It is a decision and an attitude. It is an approach to the business, and more like a habit. Nobody has to be a key person! We can decide for ourselves if we want to follow this path or not. When I started my business in 1990, in Sydney, Australia, my upline, Michael Abrahams, talked to me about the concept of the key person. I had made the decision, back then, to become the key person in my own business. I realized very quickly that unless I become a key person, I do not really have a business. I may own a kit and the opportunity to make it, but unless I do something, nothing much will happen in my business. When someone asks the question: What should I do to take my business off the ground? the answer is: Become a key person in your own business. Do the things that create results and set the right example. The key person follows the 7 points below: 1.) Shows a minimum of 15 Marketing Plans per month 2.) Has 10 customers and generates a minimum of 200 PV monthly 3.) Uses all the companys products 4.) Attends all meetings and events 5.) Continuously listens to audio programs (Cassette/CD/Internet) 6.) Reads a recommended business book every month 7.) Works as a Team player The points in number 1, 2, and 3 are about attitudes toward business building. The points in number 4, 5, and 6 are about attitudes towards learning. The last point is about the attitude towards working with people. The benefits of being a key person are not obvious. It requires us to develop some new habits, and to move out of our comfort zone to do the things that make the business grow. I did not want to become a key
person because Michael told me to, but because I realized that I must show the right example in my business. If I do not do that, nobody else will. If I want to have key persons in my business, then I have to become the first one for the following reasons: 1.) to learn how to do it 2.) to learn what it takes to develop the habit 3.) to show an example 4.) to be able to teach it 5.) to have the right to expect it from others I became a key person in my second month in the business. It was uncomfortable in the beginning, like any new thing that we have to learn. I practiced and made some mistakes, then I changed my approach to do things better. The mistakes gave me the negative feedback needed to get things right. I remember the feeling when I became a key person, and I was recognized for the first time in front of other people. People congratulated me with such admiration that I was shocked! Besides being uncomfortable, it was not such a big deal, I thought. I was wrong! Becoming a key person is the deal! It is the internal agreement that I make with myself that I am going to do it! That is what becoming a key person is all about! It is my commitment to myself that I am going to follow the 7 points, period. It is an internal victory on a very deep level. I can develop new winning habits. I can make myself do things that are uncomfortable! I looked around the room, and looked at all the people there, and it suddenly hit me! They tricked me. Nobody is really a key person! I am the only one who got sucked into it. Nobody is really doing this. I knew instinctively inside that I had done something here that is very profound, that most people are not willing to do. An incredible feeling came over me: the absolute certainty that I am going to make it, because I had found the key. The key to make me
do the things necessary to create results in the business! I knew exactly, without a doubt, in that very moment, that I was going to be a Diamond. I did not know exactly how, but I knew that I could make it, because I had unlocked the power inside to make me do whatever it takes to achieve it! Inside, I went Diamond when I realized what it really means to became a key person. Two years later, in Hungary, I was in Diamond qualification, and made the front page of The Wall Street Journal. Becoming a key person is not something that happens to us, but something that happens inside us! It is an internal deal! I wanted to be able to tick off all the seven points on the list. Fast! Not for Michael or anyone else, but for me. I showed more than 15 Plans that month, sold products to my customers and had more than 200 PV personal volume. I changed all the products in my household and started to use them. The tapes, books and meetings were not an issue for me, because I knew the value already, so I immersed myself into the training program. I sponsored people and became a team player. My planner was full of appointments for Marketing Plans, Follow ups and Start ups. I wanted to become the master of the process. What was uncomfortable in the beginning became second nature. It became automatic. I developed my winning formula, the habits of the network builder. I wanted to be excellent in network building. Michael was a perfectionist and a master network builder himself. I copied Michael. Monkey see, monkey do! None of the 7 points on the list are really difficult! Anyone could do them. But to make ourselves do them is difficult! So why cant we make ourselves do the things we know we should do? Because we have not yet developed it to the level of a habit! It is not automatic, it is uncomfortable! This is the reason why the first 90 days are so critical in the business. I remember how excited I was in the first few months in the business. I wanted to prove in front of the other people, to Michael, to
my business partners, and to myself that I can do this business. I was like a sponge soaking up every bit of information available on the tapes, at the seminars and in the books. My first 90 days in the business were like magic. In the third month, I went 12% Leaders Club. Michael was 17 deep from me in my deepest leg. Not bad for working in depth in a 20 year old market! I had developed a relationship with Michael. I was 8 deep from him in depth, but we lived only two streets away from each other. He was my age, and it was an instant connection that developed into a lifetime friendship. Michael said this in the very beginning: I have 75 people on my frontline (he was a Ruby at that time) and I do not have to work with you. I can choose from amongst many people as to where I invest my time, however, it would be very convenient to work with you since you live so close. Lets make a deal. As long as you have 15 people in front of my white board, I will stay in your leg two nights a week, and drive it deeper, because this could be my next qualifying leg. (He had a Platinum leg already, built by his upline). So Michael was building his first leg to 21% and I saw him doing it. Our relationship was based on the above agreement. I had 15 people at my first two Plans, and Michael showed the Plan. Out of those two meetings I built two legs. One is a Q12 Ruby leg in Poland, with Magda and Dariusz Rycaj, and the other one is a Q12 Crown leg with Kati and Attila Gidfalvi in Hungary and Ena Natalya in the Ukraine. Michael was a brilliant teacher, the perfect role model, and a great example for me. Michael was a key person, and I wanted to be just like him! Michael was a fantastic team player. Coming from the military, everything was perfectly thought through and organized. We were like a trained commando of network builders, armed with white boards, info packs, starter packs, tapes, books and tickets, a fantastic business opportunity, and the unshakeable belief that we can do it, whatever it takes. We were irresistible! Success breeds
success. No wonder Michael was 17 deep in my leg. The business got momentum, and one thing reinforced the other. More new people meant more money and excitement in my business. The money created more belief and even more excitement. That fueled more phone calls, better invitations and more Plans. Out of those Plans, we had more customers (more volume) and more new people. We went to the first away weekend seminar (WES) at Mudgee, (a beautiful vine region) to learn about the business and to be recognized for our achievements. I had more than 20 people at the seminar, and I qualified for the special leaders meeting for the first time. That was the place where I first knew that I had what it takes, because people were following me. I learned to treat all people with respect. I never complained, criticized or condemned anyone. I was thankful from day one for every person contributing to the success of my business. I have learned the concept of no crosslining. A crossline is someone elses business, so I have nothing to do with it, and vice versa. I am not interested in hearing about the latest ideas or the problems my crossline has. I work together with my crossline to create the best atmosphere for the business, and treat them like brothers and sisters. When the tide comes in, all the ships go up. We work together to make the tide come in. They are not my competition; they are my allies in showing more success in the business. I have learned to use the concept of edification. The way I talk about my upline, Michael, in this lesson is what edification is all about. I build up Michael in front of my business partners, and he can build me up in front of my business partners. I say good things about him, and he says good things about me. I can say things about him that he can not say about himself, and he can say things about me that I can not say about myself. Nobody can be a prophet in his own land. Nobody can promote himself/herself. I need an upline who is not me, to promote me to my business partners. Beyond a certain point
I can not sell myself to my organization, I need a third party to do that for me. I need someone else, an expert with a briefcase. I have Max Schwarz as my upline in Europe. Max is an icon in the business, and a very successful business man. He is the number one race horse owner in Germany. He is a brilliant man and the best role model in the business for all of us to follow. I work with Max to build my business. Edification is one of the most powerful concepts in the business. The absolute master of edification is Attila Gidfalvi. (See, I just edified Max and Attila)! I edify my upline and I edify my downline. I promote them and I make heroes and superstars out of them. I look for the good in them and use words to describe them in a positive way. We can build people up by using the right words, and we can destroy people with careless words. One of the most powerful tools mankind has is his words. Lets use words to build up (edify) and never to destroy. Gossiping and bad mouthing someone creates nothing but unsympathetic feelings for the person who gets involved in such behavior. I decided long ago that unless I can say something nice, or uplifting, I would rather not say anything at all. In my first 90 days in the business, I established a counseling relationship with Michael. Counseling is a working relationship between two people. When two people join forces, they can increase their power not only two times, but ten fold. Counseling for most people is like reporting to a boss. It is a mechanical exercise with drawings and numbers, waiting for the upline to troubleshoot their business. Counseling is a continuous communication between two Independent Business Owners about the business, enabling them to create something together that would otherwise be impossible to create alone. I have a fantastic relationship with my upline, Michael and Max, and we talk (counsel) whenever we need to. In this same way, I have fantastic relationships with people in my organization, and we talk to each other whenever we
need to. For me, counseling is not a regular monthly report in which we go through the motions and nothing much happens, but continuous communication with my top leaders (3-4 in each leg) where most of the things happen. I do not counsel with people who are not key persons, because there is nothing much to talk about. I may talk five times a day with someone, or once every five months, depending on the circumstances. Reporting formally to an upline once a month in writing is not my kind of counseling. It is a waste of time. If I need a report in writing to know what is going on in your business, then I have disqualified myself from giving advice to you, because that means we are not real partners in building the business together anyway. I only counsel with my upline or downline when we can create something bigger together for mutual benefit. I respect the time and privacy of my upline, and I do not bother them with questions that only I can answer from within myself. I would rather call them or talk to them when I believe that together we can find a better solution or create better results. I always prepare when I want to talk to my upline so as to be as effective as possible. I love to talk about the future, the vision for my organization, the successes and the achievements. I do not use my upline as my emotional trash bin. I want to be a low maintenance person for my upline (more achievements than problems), and I want to duplicate that in my business. I would like to achieve that, so when my upline thinks about me they have a good feeling. I want my upline to be proud of me, and feel good about me. Becoming a key person is about taking full responsibility for the success of your own business. When I became a key person, I stepped through a door into a brand new world. I became an entrepreneur. I have found myself in a world of unlimited opportunities, unlimited supplies of money, and unlimited access to all resources. I immediately realized that this is where I belong. Three
months later, I quit my job as a telecommunications consultant (salesman for short) and flew over to Hungary to build my business in EasternEurope. The rest is history, and I have never looked back. For me the magic happened when I became a key person. I stepped over to the other side and found very few people there. Although 90% of all money and wealth of the world is on the other side, most people would rather stand in line at the unemployment office. The people here make things happen, build businesses, solve problems, invent new things, make improvements to existing things, write books, write songs, and finance most of the charitable organizations. Here are the shakers and the doers of our world. These people are different because they have taken full responsibility for their lives and live in the land of their dreams. Most people never make it to this world. They will never unlock the potential inside themselves so they can make it to the other side. Why is that? I believe everyone has the potential to do as little as the 7 points of the key person, but I know now that only a few people have the will power to develop the habits needed to make him/her go all the way. They would rather stay poor, bring up all the excuses, and take their God given talents to their graves. I have seen many people in the past 15 years who were smarter than me, better looking than me, more educated than me, falling by the wayside, and never coming even close to becoming a key person. These people make me look smarter and more brilliant than I really am. As the saying goes: Amongst the blind, the one eyed is the king! In fact, I have not seen anything else as simple as this business. There is plenty of room for you and your business partners on the other side. The door is open and thousands of people have already crossed the line to the other side using this business. Why not you? Become a key person! James Vagyi
10 BECOMING A LEADER
Becoming a leader is about bringing out the best in ourselves, and being a leader is about bringing out the best in other people. Leadership starts at home (in our mind), taking full responsibility and control of ourselves, our thoughts, words, habits and actions. If we do not have the self discipline to control our own thoughts, words, habits and actions, and lead ourselves, then how can we lead other people? When someone becomes a key person, he/she demonstrates to the outside world that he/she is in charge at home. He/she was able to convince himself/herself to do the right things. This is why becoming a key person (core) is the first step in the business. When someone becomes a leader, he/she crosses the line from being a guest to being a host. He/she becomes a pilot or a crew member on the plane and no longer behaves like a passenger. The leader takes ownership of the business. In the Direct Selling/Network Marketing/MLM business leadership
development is a process, and it starts with being a key person. A leader/entrepreneur is someone who wants to go somewhere (Diamond) and wants to take other people with him/her (6 Platinum). A leader/entrepreneur is a person that other people are willing to follow, not because they have to, but because they want to. What is the difference between a follower and a leader? Follower mentality: - what do I get? - I do the minimum to get by - It is not my fault - I want to look good - I am proud of myself - I did it Leader mentality: - What can I give? - I do whatever it takes - It is my responsibility - I want the team to look good - I am proud of the team - We did it
- I am the best - Will it pass? - I do it for the money - Pay me first, then I work
- We are the best - Is it my best? - Money is a byproduct of my work - Create results and money comes
Take a moment and observe your words. The words we use will give away who we really are. Observe other people to see what language they speak. Followers speak the language of a follower; leaders speak the language of a leader. Poor people speak the language of the poor and wealthy people speak the language of the wealthy. Open your ears and listen. When someone has a goal and is serious enough about achieving it, people will feel it with their sixth sense. A person with a real goal activates the law of attraction. When someone makes a decision, people take notice. When we start the business, we sponsor our friends and relatives, our neighbors and colleagues. They know that we are not leaders, for them we are just that: friends or neighbors, etc. Then we work in depth and get to know some new people. Because they do not know who we are, for them we are just that: a stranger. On top of that every business partner is an Independent Business Owner. We are not their bosses and they do not have to follow us at all. So how could we become their leader? The only way to win the respect of other people and to gain leadership position in the beginning is to do more than what they are doing. It may sound like an enormous task, but becoming a leader/entrepreneur is a step by step process in the business. First, we become a key person, and then we qualify as Leaders Club (LC). It starts with doing the right things, creating results and reaching new levels of qualifications. This business is driven by qualifications! This business is not driven by the market demand for the products! Half of the volume of the business is realized in the last week of the month, and half of that is realized on the last day of the month! Why is that? The reason is very
simple: many people need a few hundred extra points to reach the next bonus bracket. This drives the business! As a leader we have to realize that our business partners stretch for the next bonus bracket not just for the money, but because of the higher qualification. They get the money transferred to their business account the next month in an unceremonious way. Most people spend their money anyway even before they receive it. However, reaching a higher level in the business gives them the recognition on stage, and strengthens their leadership position. We all look smarter than we really are when the business grows and has momentum. People work for money and recognition as well. I used the seminars to grow as a leader myself, and to grow as the leader in my business. I had decided to qualify for every possible challenge meeting. I had decided that I will be on stage as much as possible by reaching new levels in the business and/or to put as many of my business partners on stage as possible. I had decided to become a great speaker so I can be on stage for my business partners. Being on stage and talking to thousands of people was one of the most difficult things for me. Even today, after talking to hundreds of thousands of people over the past 15 years, I do not feel comfortable on stage. I would much rather listen to the stories of the great achievements of my business partners. The only comfort I have is the feeling that I am the most experienced person in my business, and I sincerely want to pass on my knowledge and experience to every single person in my organization. As a leader I was using the seminars and the stage to drive my business. The seminars were the most important tools for building my business, and they still are. The meetings and the seminars are the places where ordinary people can develop into network leaders. First they talk in front of 50-100 people and say their name, city, and their occupation. Then they may talk in front of hundreds of people, and say a few sentences about why they do
the business. At the big seminars they may talk in front of thousands or tens of thousands of people. These people are not academics delivering a speech about a subject. These people are ordinary people doing extraordinary things in front of our eyes. These speeches are charged with emotions and real life experiences, and that is the reason why they have such a profound effect on us. They are inspirational and motivational, coming from the heart. The first meeting a new person goes to is the Open Plan. At that meeting he/she/they can meet other people just like him/her/them and meet his/her/their upline and also the active local leaders. The next meeting is the day seminar (BBS or SP) where hundreds or thousands of people come together from the region. These seminars are inexpensive (around 10-20 Euros), and provide an excellent opportunity to recognize all of the latest achievements. At the away weekend seminars (WES) only the highest qualifiers have time to speak on stage. As a leader I want to put as many of my business partners on stage as possible. The only way I can do that is to create results and to reach new levels in the business. In the Direct Selling/Network Marketing/MLM business the living rooms and the stages at the seminars are the places where the fastest growing, professional and profitable businesses are built. Leaders can move people and take them to the seminars. Leaders can sell the benefits of the seminars, and they can sell the tickets to the seminars. They can look into the eyes of their business partners and ask the question: How many tickets do you need for the next seminar? They understand that if their business partners stay at home, they are already on the way out of the business. Every business either grows or declines. Every person is either getting more committed towards the business or loosing the grip. This business is like a spinning platform, like a carousel, where the centrifugal forces are the strongest on the outer edge where new people
enter the business. The centrifugal forces are the weakest in the center where all the leaders are. Everything revolves around the leaders in the business. The closer people get to the center (leaders) the bigger the chances of their success. If people stay at home and do not come to the seminars where all the action is and where all the leaders are, all of the forces will go against them, and they will have nothing working for them. The most important task of a leader is to promote the principles that lead to success in the business. Platinums are born at weekend seminars (WES). I was born in Mudgee, Australia. At the weekend seminars the right person may get the picture and say to himself: this is for me; if they can do it, I can do it, too. Networking is a people business. We are in the line of sponsorship (LOS) somewhere and there are people upline from us and there are people downline of us. Beware! There are all sorts of people getting into the business. Do not be so naive as to think that because it is a great business opportunity, only great people get involved. In fact the bigger our business, the bigger the chances that we get the total spectrum of society involved in our business. I mean everyone, from crooks to geniuses. My approach is this: I respect every person who contributes to the success of the organization, no matter whom they are and where they come from. It is not my job to judge them or correct them. I have enough problems correcting myself all the time. Yes, people make mistakes, and it is sad to see some people disappear from the business. Instead of being the judge myself, I let the normal cleansing process of natural selection and the market forces (supply and demand) take care of these situations. As a leader I can not afford to take sides. All I can do is be a mediator and ask the parties to sit down in order to find the best solution in a specific situation. Problem solving is a critical area in the business, and we, as leaders, have to be very careful how we get involved. I remember, when I was a child, we went for an excursion with
the school. Two boys started to fight about something and one of them was much stronger. I thought I should do something because the bigger boy could hurt the little one. Guess what happened? The little one pulled my hair while the big one kicked me in the face. I learned a valuable lesson; to stay out of the fight! I am not a judge, psychologist, marriage counselor, sex therapist, political know-it-all, financial advisor, or the pastor of a religion, just because I am an upline! There are experts in each of these areas, and I am not one of them. As a leader, I want everyone to feel good in my business, regardless of their age, the color of their skin, financial status, level of education, nationality; or regardless of their political, sexual or religious preferences. In my opinion, it is highly inappropriate to use the business platform to promote any kind of personal preferences for others to follow. I want my business to be united not divided. There are five different levels of leadership, and people will follow us because of: 1.) our position in the business (we are upline, we have a bigger pin) 2.) we have competence on the job (we can create results and growth) 3.) we have a charismatic personality (we are a great speaker or we look good) 4.) we have integrity (we are trustworthy, we never cheat or lie) 5.) we are connected spiritually (our values and principles are in line with theirs) I am the spiritual leader of Diamond Alliance. I want my organization to grow, and every single person to prosper in it. I want to bring out the best of everyone on an individual level, and I want to bring out the best from the whole organization on a business level. However, when I think of my business, I never think of the numbers, or the money. I always think of the people in it. I have sponsored my parents into the business, my sister, my best friends, and found incredible people in depth. To me
my business is like my wife and my children. I love them, I am responsible for them, and I am very proud of them. I am not interested in hearing anyone elses negative opinion of my wife, my children, or my business. I stand up for my wife, my children, and I stand up for my business. I represent my business with this posture. People will not follow a weak person who falls apart when challenged. Be prepared for people to test your metal, because they want to know whether you are made of dough or made of steel. They want to follow someone who is strong, but at the same time has a good heart. You can choose what kind of leader you want to be. Just like in the real world there are two different leadership styles in the business: 1.) Dictatorial leaders: - lead by themselves - make decisions by themselves, or with an elite few - control as many tasks as possible - can not handle leaders, only comfortable with followers - threaten and punish - look out for their own interests first - take only for them - take as much money for them as possible 2.) Democratic leaders: - lead through a team - involve others in making decisions, and consider others opinions - delegate as many tasks as possible - are comfortable leading leaders - negotiate and correct - look at the organizations interest first - give to the organization - make as much money for the organization as possible
The Direct Selling/Network Marketing/MLM business is a team sport. Everyone is a volunteer, an Independent Business Owner. So why follow someone else? Why cooperate with others? The reason is very simple: together we can reach our goals and ambitions faster than by ourselves. There are certain things that individuals can not accomplish, but teams can. For example building an airplane is a team effort. Thousands of people work together for months to build an Airbus A380. Building a fast, professional and profitable network is a team effort also. It takes you and 3-4 key persons in your business to go 21%. When those 3-4 key persons go Leaders Club, your business will qualify as a Q12 Platinum. When you have reached that level you will know how you did it, and you can teach and inspire your business partners to duplicate you. You have the knowledge and the experience. It is yours. Give it away to everyone in your business. Will everyone learn from your success and follow your example? The answer is: only a few! Most rock bands have 4-5 musicians in them: drummer, bass guitar, lead guitar, pianist, lead singer. When they play in harmony, they can fill stadiums around the world. When you and your 3-4 key people play the game of networking in harmony, you, too, will fill stadiums with people around the world. I do that with my winning team: Kati and Attila Gidfalvi, Ena Natalya, Gyngyi Szalai and Gbor Mt, Trixi Rinalda and Ali Schermacher. Do you have a team? Do they play in harmony? Do the people like the music?
Become a leader and build a winning team!
James Vagyi

11 PERSONAL DEVELOPMENT
Building and creating a network is a learned skill. None of us were born as a network builder. I have made a conscious decision to develop the skills and techniques required to effectively build a fast, profitable and professional network. I have allocated some of my time and money to invest in my personal development. The areas I needed to develop: 1.) sales skills 3.) leadership skills 5.) communication skills 2.) management skills 4.) financial skills 6.) negotiation skills
I am continuously improving myself in these areas even today, and I will do that for as long as I live. My commitment to my own personal development is like an internal deal. It is an irrevocable agreement between me and myself about becoming the person I am capable of becoming. I believe in the evolution theory. Every generation is smarter than the previous one. Our children will be smarter than we are. They are at the pinnacle of evolution. Although this may be true on the general level, it is not true on the level of the individual. There are huge differences between people in every age group. As we get older, the differences get greater and greater. Most people do not want to change! They want to stay the same. We can see people who dress like people in the 80s or the 90s. Their hairstyle and their clothes give them away. They got stuck in a time when they were in top form. That was their prime time. What is not as obvious as the clothes is the mental state of a person. I have met many people who looked good on the surface but got stuck in the mentality of the past. The world has changed around them and they stayed the same. What was working 20, 10 or even 5 years ago, may not be working today. Viruses adapt to vaccines. Mosquitoes adapt to pesticides. Some people do not adapt to the changes around them. I
want to make sure that my knowledge and skills do not become obsolete as I get older. I want to be up to date in the world that I live in. Therefore I go with the flow and reinvent myself on a regular basis. I change my clothes every 6-12 months. I give away the old ones to make room for the new ones. I use the latest mobile phones, computers, cars, etc. I keep in touch with the latest trends and developments. I have an open mind and a student mentality. I want to change with the times and adapt to the world that I live in. The world that I see around me is a mixed place, full of great people, fantastic places, wonderful things and huge opportunities, and at the same time I see natural disasters, sickness, wars and all sorts of human problems. Personal development means to me that I am living my life in such a way that I am part of the solution, rather than being part of the problem in our world today. As a leader/entrepreneur I need to give the right answers to the questions that we face today as an organization. As a husband/father I need to give the right answers to the questions that we face as a family. This is the reason why I keep learning and changing as long as I live. Unfortunately I do not see the same commitment in most people. I see huge problems in the lives of many people in todays society! Most people do not read. According to the latest statistics, only 9% of the adult population reads regularly in Hungary. Most people sit in front of the TV or computer terminal. They use their spare time for being entertained. Most people do not exercise, and many eat unhealthy food. Most people do not have a self development strategy. Most people live like this: 8 hours work, 8 hours entertainment, 8 hours rest. There is no room in this model for learning, changing and self development. This is the rat race! I was living my life like that for many years before I had enough of it and decided to change. My winning formula looks like this: 4 hours work, 4 hours play, 4 hours entertainment, 4 hours self development, 8 hours rest. I can do this because I do not have a job and I
do not have a boss. People who are at work do not have time to become rich. They are working to make their boss or their company rich. My first goal was to make enough money so I would never have to work for anyone else. I was 30 years old when in Sydney, Australia I fired my boss and never looked back. I became financially free in my spare time at the age of 32 while other people were watching TV! Now I am unemployable because I can not think like an employee anymore. I have developed myself into a leader/entrepreneur. Many employees do only the minimum required to stay on the job and therefore never realize their full potential. I have observed that most people do not give their very best. They are running their engine on idle. They are holding back, waiting for something magical to happen to them. Magic doesnt just happen to people, but those people who give their very best every time experience a kind of magic inside them, and as a result become successful at whatever they choose to do. I have decided to give everything I have. Full power ahead and I found out that I have far more energy than I thought I had. In fact the more involved I am with the project I am working on, by giving my full attention, instead of getting tired I get highly energized. It is like when children are playing. Having fun is never tiring. Becoming a smarter, better, more valuable person is exciting. Self development is about becoming the person that we could possibly be. Whatever we focus on grows and develops. It is true of positives and negatives in all areas of life. If we want bigger muscles we focus on exercising that muscle. We lift weights to make it grow. The more we use it the stronger it becomes. The muscles that we do not use disappear. When we focus on our self development we grow as a person. The use it or lose it principle applies the same way. Nothing is static in the universe. Everything is either expanding or shrinking. We may not lose the things that we have learned, but it becomes passive, irrelevant,
obsolete or useless. Focusing on our self development and exercising our mind keeps us in the growth phase, in touch with the progressive forces of nature. The key person stimulates his/her mind by listening to audio recordings, reading books and articles, and going to the seminars. Listening to audio recordings and reading books or these pages are passive learning. Active learning happens in practice. I learn best when I do new things. Most people do not want to try new things because they are afraid they may make a mistake. What is the point of listening to and reading new things and not applying them? Unless we are prepared to do new things we do not need to learn new skills! It is a waste of time. Most people are not open to new ideas and not prepared to apply new things. Because I am a contrarian (I do exactly the opposite of what most people do), I decided to be open minded to new ideas and try new things. This is one of the reasons why I started my Network Marketing/MLM business. When I look at a person, I always observe the direction of his/her thinking. Some people tend to think backwards (past) and some people tend to think forwards (future). Some people tend to think negative (pessimistic), some people tend to think positive (optimistic). Some people see the bad (problem) in everything; some people see the good (opportunity) in everything. If I can make a choice, then I want to develop myself towards being a more future oriented, optimistic person, who has an eye for seeing the opportunities. The opportunities are almost always wrapped up in problems. This is the reason why two people who are looking at the same thing see two different pictures. When I look at the Network Marketing/MLM business I see a huge opportunity, and yet when another person looks at the same thing he/she sees it as something that can never work. I believe that we all have the potential to develop a winning mentality. However, it takes a conscious effort on our part to focus on the right things. There are
many things that can take our focus away from the really important things: our own progress, our dreams and goals, our happiness and freedom, and our loved ones. I focus my attention on the things that I want, rather than things that I do not want. When I look at people I view them more like what they could be (look for the best in them) rather than what they are. I have developed a tendency to view everything as it could be (the best possible outcome) and not as it is. I believe that there is always a better way in everything! In most cases 10 times better! It is possible to make a quantum leap in everything! Therefore I am looking for a better way in everything I do. I am also looking for my better self in me. I constantly want to improve myself as a husband, father, friend, leader, entrepreneur, investor, author, etc. In every
enterprise/business/company there is a Research and Development department. This department is responsible for searching for new ideas and new ways to do things and based on that, they develop new products and services. People are constantly searching for better answers to the questions and problems we face today. My life is also an enterprise and it has an R & D department (information search and self development part). I believe in the correlation between a highly developed personal R & D and success in life. I have an R & D department in my mind that acts like a search engine. My dreams and goals are the indicators of what to look for. The more relevant information I put in contact with my mind, the more chances I have of finding good answers. Great books, audio recordings, articles, websites, newsletters, speeches at live seminars, new thoughts, new information, discussions with people who are more successful than I am, are input for my brain to find better ways for myself. I am looking for the best information available that is relevant for my personal growth. I enjoy learning new things and it is fun for me. I am excited to know that I am getting better and better every day in all
areas of my life. However at the same time I see many people going down. They do things that sooner or later will for sure bring them bad outcomes: drugs, drinking, smoking, bad company, junk food, excessive TV, lack of exercise, bad debt, pessimism, negativity, complaining, blaming, fighting, hatred, violence, etc. Bad thoughts, bad activities and bad company attract bad things. Good thoughts, good activities and good company attract good things into our lives. This is called the law of attraction. I became a key person because I wanted key persons in my business. I became a leader because I wanted leaders in my business. It takes one to know one. Only a mother knows what it is like to be a mother. Only a leader can recognize another leader. When we develop the leader inside of us we can recognize the leaders around us. We will see the qualities in other people when we have developed them within ourselves. If we want to attract the right people into our business we have to become the right person first. The best we can do for the world, for other people and for ourselves, is to fulfill our own potential. We can not change other people, but we can change ourselves. We can change the direction of our lives along with the choices we make. With every step we take, we are either getting closer to the land of our dreams or getting further away. I often ask myself this question: Is this thing that I am doing right now getting me closer to my dreams or further away? If I want to get closer to the land of my dreams I have to take the right steps. In order to be able to take the right steps I have to become the right person. First I have to be, before I can do. Why change? Are we not good enough just the way we are? Should people not accept us the way we are? The people in our business expect the very best from us and they have every right to do so! When we take our child to the doctor do we not expect the very best from him/her? When we go to the theater do we not expect the very best from the actors and actresses that night? It is part
of human nature that we expect the very best from other people. If we do not expect the very best from ourselves, then we do not have the right to expect it from other people. If we want to earn the right to expect people in our organization to grow and develop, then first we have to grow and develop ourselves. Our parents want us to do our best. We as parents want our children to use their talents and do great in life. When we were small children our parents sent us to school to learn and to develop into a successful adult. There is no question that every parent wants the best for his/her children. They handed us over to the school system believing that we would get the best education and with that knowledge we would succeed in life. The problem with the school system is that it can only teach a limited number of skills necessary to be successful in life. The school system was designed by the government to serve the governments needs. The government first of all needs bureaucrats, soldiers and taxpayers. This is the reason why creativity is discouraged and conformity is the norm in the school system. Many people who perform well in school fail miserably in life. Why is that? Because they were led to believe that if they get good grades in school they can get a good job. If they have a good job, that is all they need to have a successful life. In the 21st century a school education in most cases is not enough for us to have a successful life. In addition to the few skills taught in the school system, we need to learn many other skills in order to be successful and fulfill our potential. Because of the continual progress of mankind, we need to keep up with the changes around us and be a student for the rest of our lives. Learning how to build a network is a process. It is something that we can not learn by going to school. The only way to learn this skill is by doing it, making mistakes, learning from our mistakes, and doing it again. We learn to do this business the same way we learned to walk. Learning to walk is a natural process. Sitting in school in a uniform
memorizing what the teacher wants to hear was an unnatural process for me. Many people were conditioned not to think, and to behave a certain way in school. I was a rebel in school because I resisted this unnatural concept. In a sales situation, in a business building situation, and in any crisis we have to think on our feet. We are all by ourselves and nobody else is there to do the job for us. That is the moment of truth and the moment of growth. Most people want to avoid these situations, but the right person uses these situations to learn and to grow. I finished school when I was 21 years old, but I have not yet finished learning and studying because I have entered into many such situations over and over again in the past twenty years. The skills that I have developed since I finished school have enabled me to build a fast, professional, and profitable network. I want high achievers in my business who value the concept of continual education. If I could choose from 100 highly qualified people who do not learn and develop anymore, or 10 unqualified people who are eager to learn and study, I would always choose the 10 unqualified but teachable people because I could easily outperform with them rather than the other group over the long run. I want an open minded, dynamic, optimistic, action oriented and teachable team of leaders around me. First, I search for such a person inside of me, and then I look for such people outside of me. I realized a long time ago, that before I can have, first I have to be! Be all you can be!
Search and develop!
James Vagyi

12 THE WINNING SELF IMAGE
A country, an industry, a company, an organization, a product, or a person, all have a reputation and an image. How other people view us as a company or as a person is very important, but even more important than that is how we view ourselves. We, as human beings, all have a picture of ourselves stored deeply in our mind called our self image. It is our view of ourselves, it is what we think, feel and believe we are. It is the way we see our capabilities and limitations in all areas of life. We are what we think we are! We can not become more than what we calibrate into our self image because it is inconsistent with our internal makeup. We can only do and achieve the things that are consistent with our self image. Nobody ever said that I have surprised myself and became successful but we hear all the time that I had a dream, I set goals, I worked hard and I had to change to become successful. In most cases changes must be made regarding how people see the world around them, and how they see themselves. For whatever reason, most people are conditioned to resist change. This is the reason why most people who have a dream set goals, work hard, and want to achieve higher results, but are not willing to change, can never make it. What they think about themselves deep inside their subconscious mind, may limit or even sabotage the very thing that they want consciously, and therefore achieve exactly the opposite result. Look around you and observe the people who go on a diet because they want to lose weight. Most people never make it or they may get even heavier. Why is that? This is because their image of themselves is that of an overweight person (with strong emotion). Unless they see themselves the way they would like to look (with strong emotion) nothing will change, regardless of what they do. The same is true in the business. Most people who come into the business lack
something, and want to achieve more: more money, more time, more travel, more friends, more recognition, etc. In order to have more, they would have to do more, and in order to do more, they would have to become more. Most people fail in the business because they are not willing to become more in order to be able to do more. They want to have more, but on their own terms: stay the same. These people go through the motions and appear as though they are doing the right things however, inside they have not done their homework. Most of the hard work in the Network Marketing/MLM industry is to change and to develop ourselves into a productive network builder (key person). It takes a dedicated and committed person to go through the test phase. Whatever we do and how we do it is a reflection of who we are inside. Being successful in all areas of life is an inside game. Everything (good and bad) first happens inside as a thought process, and then it manifests itself into our outside world. When we hear successful people talking about change, they are usually referring to an internal process of viewing the same things differently. We can also view ourselves differently! I grew up in a small village in a poor country. We had no running water in the house, and the toilet was outside. My family was equally as poor as all the other people in the village. I had a poor self image because that was the only thing that I saw and experienced. It took me a long time to realize that during my childhood I had developed a lousy self image. It became more and more obvious to me when I settled in Sydney, Australia, where I met people who had a healthy self image. I had to change my self image in order to become successful! I had to change from being a poor boy into a wealthy man. I had to change inside first! I had to redefine many things about myself, and about the way I viewed things. I was willing to learn, to work, to practice, to sacrifice, and to fail and try again, as long as it led to succeed. I had made an irrevocable
internal agreement with myself to change for the better and it was final. I was true to myself all along the way. Most people have no internal agreement with themselves, and if they do, they cheat and lie to themselves most of the time. If someone can not trust himself/herself, how can he/she expect other people to trust him/her? When we learn to keep our own promises to ourselves, only then can we expect other people to trust us. When I set up an appointment at 6 oclock, it is an agreement. If I do not make it, it puts me in a bad position. It shows that I either can not control myself, or that I do not respect the other persons time. Being on time is an indication of how disciplined I am on the inside. I go to the extreme to be on time and keep my agreements. If I know that I wont be able to make it for whatever reason, I let the other person know before he/she finds out. How much we respect other peoples time comes from respecting the time we have. Respecting other people comes from respecting ourselves first. We can not give a lot of something that we have very little of! If we have little respect for ourselves, we can not express great respect for other people. If we can not trust ourselves, we can not trust other people either. When someone lies to himself/herself (thinking that nobody will find out) he/she will lie to other people, too. The way we do business with ourselves inside is exactly the same way we will do business with other people on the outside. I had to learn to keep my promises, first, to myself, and then to other people as well. I had to learn to respect myself and to trust myself. I have heard many people say that they are going to do the business, but I have seen very few people who have kept their promises. Be true to yourself, and keep your promises inside and outside. Many people criticize themselves and only see their past mistakes. They identify themselves as losers. The way they see themselves becomes their self defeating prophecy. On the other hand some people identify themselves
as winners, and that too becomes their self fulfilling prophecy. I have made many mistakes in my life, and I had to learn to forgive myself in order to change my life for the better. I had to face my failures and take my losses so I could move on to a brighter future. Forgiveness comes from love. Learning to accept and love myself, together with my shortcomings and mistakes was a long process. I remember listening to an audio recording in my car from Brian Tracy about 20 years ago in Sydney, Australia. Brian was talking about a simple exercise: stand in front of a mirror and say the words I like myself over and over again. This exercise made a huge impact on me and even today, every time I stand in front of a mirror, these words automatically pop into my mind. When you look into the mirror what do you see: your weaknesses or your strengths? Who you are, or who you could be? Your shortcomings or your potential? Your pimples or the sparkle in your eyes? Your mistakes or your achievements? The loser or the winner? When you look at the people in your business, what do you think about them, what do you see in them? What we think of ourselves has developed over time based on our past experiences. We have formed our opinions and self concepts about ourselves, and internalized other peoples opinions about us. Our parents, family members, friends, teachers, colleagues, spouses, children, political ideologies, religious teachings, our role models, mentors and heroes, our enemies and competitors, the newspapers, the books, the radio, the television, the movies, conversations with people, and all other influences formed our self image. We are the sum total of what we think about ourselves. We have developed our own self concepts about every area of our life: how good or bad parents we are, how well we dress, how we drive, how we learn, etc. It is in our power to change all that, and form our winning self image. I had to learn to forgive myself, and to take off my poor clothes and dress up into something that I
carefully picked out for myself. In addition to my self image (who I am now), in my mind I have an exact picture of the person I want to become. This is my self ideal. Personal growth to me is changing my self image to be more like my self ideal. If you could choose your skills, qualities, and values, and shape your own character at will, what kind of a person would you want to become? What would your ideal self look like? Wouldnt it be perfect and beautiful? Isnt a little child exactly like that? I believe that part of our purpose in life is to develop ourselves into our ideal self, a better, more loving creative and productive human being. Change is a natural process, supported by the creative life forces. We have the freedom to choose who we want to become, and we have the capacity to change if we want to. The only thing that stands in our way is our existing self image. When we change our self image, our whole life will change. There are many techniques on how to change our self image just as there are many techniques for any worthwhile undertaking. Anything will work as long as you believe in it! I have learned that what I say to myself about myself has a great impact on my self image. I have noticed that there is an internal conversation going on in my mind most of the time. Who is talking to whom? Can I direct this conversation between me and myself? What should I say to myself? Who knows the answers to my questions? I have realized that nobody has a universal answer for me, and I have to find my own answers for myself. When I talk to my children, I talk to them with the deepest love and the highest respect. I talk to my wife this way, I talk to my parents this way, and I talk to myself this way most of the time. Statistics say that about 80% of people talk negatively about themselves most of the time in their internal conversations. With their self talk, they turn themselves into losers. What we say internally about ourselves with emotions will have an effect on what kind of a person we become. People with negative or
loser mentality can not lead others because nobody will follow them. This explains why most people will not make it in business as a leader/entrepreneur, because people who can not manage themselves into a productive human being can not manage a team of people in a company or an organization. Be aware and observe what you think and say about yourself. Stop using negative or belittling statements about yourself. Stop criticizing or putting yourself down. Start to think of yourself in positive terms. You have the right to be a happy and successful person. No other human being can take that right away from you unless you give them permission, or you believe you do not deserve it. I have seen many people who had everything it takes to build a successful business, but deep inside they thought that they did not deserve the good things in life. They developed a mindset that good things are reserved for other people. They devaluated themselves to a lower level, and conditioned their thinking to support that belief. I use the same technique in the opposite direction. I elevated myself to a higher level, and conditioned my thinking to support that belief. I think success, I dream success, I talk success, I read success, I write success, I eat success, etc. I have my self concept and winning formula about success. Success is a choice, not something that happens to people. I saw myself as a successful husband, father, leader and entrepreneur even before I became one. Perhaps the most misunderstood part of the self image psychology is that we have to act confidently as if we are already the person we want to become. We have to behave as if we already have the qualities and the characteristics of the person we are capable of becoming. The self confidence and the posture required to create a successful business from scratch comes from a healthy self image. The right person sees himself winning before it all happens, and that picture pleases him/her very much. The right person sees himself/herself
becoming his/her ideal self before it all happens and it is so exciting that nobody can stop him/her. First we have to create this right person inside of us. This person will do the job for us, and will take us to the land of our dreams. We can encourage this person or discourage him/her. We can draw out the good qualities and skills of this person or neglect him/her. We can nurture him/her or abuse him/her with our words. This person can be our best friend or our worst enemy. This person, our best self, has unlimited power. He/she is a genius, and locked inside of our subconscious mind, like the genie in the bottle. We need to rub it gently and he/she will come out and do whatever we want him/her to do. He/she has the capacity to make all of our dreams come true. Nobody else! He/she is locked inside of our mind and waiting for our crystal clear instructions about who we want to become, what we want to create, what we want to accomplish, what we want to experience, how we want to live, who we want to serve, and what we want to have. Talking to ourselves in present tense, writing down our goals, visualizing the prefect outcome, and using our imagination are some of the techniques available to unlock the potential that we all have inside of us. There is a distance between who we think we are and who we can become. I have decided to travel the distance to get closer to my self ideal. I am on my way to becoming my ideal self. I enjoy the journey. As an example, I will share an exercise with you that I learned at a seminar in Sydney, Australia about changing my self image: Sit down by yourself in a quiet place, close your eyes and imagine yourself on your mental screen in a framed picture, looking your very best: looking perfectly healthy, having your ideal weight, beautifully dressed. Everything is perfect about you; your hair, your skin, your teeth, your bones, your organs and tissues, and every cell in your whole body. Imagine this picture of you in a frame of white light. When you see this
beautiful person (you!) on that picture, on your mental screen, in your own hand writing write down the following words on your portrait: I am Confident, Courageous, Decisive, Enthusiastic, Happy, Healthy, Honest and Loving. Put your signature on your picture! I did this exercise about 20 years ago, and I have added a few more words to my self portrait since then. Most people identify themselves with their profession, job, or position: I am a lawyer, I am a teacher, I am a soldier, I am a director, I am a student, I am a housewife, I am a pensioner, etc. Some people identify themselves by their failures: I am an idiot, I am nuts, I am a basket case, I am a loser, etc. Create your own mental self ideal about yourself by choosing the right words for you. My words are an example only. The whole purpose of the exercise is for you to take personal responsibility for becoming the person you choose to be! Write it down in your own words, and repeat them over and over again saying those words to yourself in present tense, reminding yourself of who you really are! Your list of words is very personal, and you do not have to show it to anyone. Imagine your ideal self portrait on your mental screen, with emotion, when you are repeating your words! You can play your favorite music while you do this exercise. Just keep doing this until you fall in love with that person on your mental screen!
Bring the very best out of you!
James Vagyi

13 DEVELOPING GOOD HABITS
We all have two kinds of habits: good ones and bad ones. The good habits we have will take us closer to the land of our dreams, and the bad ones will take us further away from the land of our dreams. Good habits create good results and good outcomes in our lives, bad habits create bad results and bad outcomes in our lives. Habits are like
programs stored in our subconscious mind. They are automatic thought processes on the subconscious level and can not be changed at will. It takes time for a habit to be formed, and it can not be undone because it is permanently recorded in our mind. For example: riding a bicycle. We can not unlearn how to do it; we will remember it as long as we live. We can however replace it or override it with a new habit. We can decide never to ride a bicycle again, and decide to learn how to ski instead. Many of our day to day activities are governed by our habits. Brushing our teeth, turning on the TV, eating, drinking, and smoking. We do not need to think about these activities any more, they run on autopilot. Some of our habits were developed in our childhood, and some of them later on either by our choices or because of the influences of other people. I own my set of habits, and you own yours, and so does every other human being. One of the first things I did when I learned about the importance of habits was to identify and to take inventory of the habits I owned. The second thing I did was to evaluate all my habits and put them into two categories: the ones that I do not need, because they are bad ones or do not serve my goals and ambitions anymore, and the ones that I need, because they are helpful to me. The third thing I did was to look around for new winning habits that successful people had, and which I needed to develop in order to get what I want out of life. After that I started to replace and override my useless and bad habits with new
winning habits. Developing new habits is a learning process. It takes a minimum of 21 days to form a new habit through visualization, practice and repetition. In a more practical way it takes about 3 months to develop any new winning habit. The problem with developing new habits is that we already have an old one and it runs parallel to our new one, until the new one takes over. Our old habit in many cases conflicts with our new chosen one. For example: smoking. If we want to give up smoking, we have to override our smoking habit with our new nonsmoking habit. There is a gigantic conflict in our mind for about 3 months while the two habits fight with each other about who is in charge. Habits are so powerful that it takes all of our willpower and self discipline to protect our new habit from being killed by the old one. The same mechanism is true with all habits. This is the reason why change is hard, and most people never make it. Their habits are stronger than they are! They become hostages of their own habits. One of my strengths is my ability to change and adopt. I have enough willpower and self discipline to control myself, and direct my mind to do what I want it to do. The first habit I had to change was not reading. I graduated from college at the age of 21 without having read a single book. At the age of 27, I started to read business books about success, self development, selling, marketing, and money, and I have never looked back. My average is one book a week. I have developed one of the single most important habits which has helped me become successful in business: reading. From the books I have learned many new ideas and habits, and as a result, I have developed positive thinking and the process of talking to myself positively as I described in the previous lesson. I have decided to smile as much as possible. I have developed the habit of listening to audio recordings almost every day. I have switched off the radio and the TV, and turned on the cassette player, CD player and mp3 player. I have
changed from being a loner to meeting and mixing with successful people. Instead of staying home, I visited a business building seminar almost every month. Because I want a healthy body, I have changed from sitting on the couch, to exercising and swimming 3-4 times every week. Instead of drinking Coca-Cola, I drink 2-3 liters of pure water every day and a glass of quality red wine in the evening. I eat healthy food with no preservatives, no fat, and no genetic manipulation. I grow vegetables and fruits in my own garden. About once a week I take my wife to a nice restaurant where we can be together without our children running around us. Every week I bring fresh flowers to my wife and say the words I love you to her many times every day. I also spend quality time with my children every day. Instead of criticizing, condemning and complaining, I decided to give compliments to all the people around me. Instead of picking up the telephone every time it rings, I have switched the telephone in my home to the answering machine, and I have decided to pick up my mobile phone only when I feel like it. If the call is important, they will leave a message and I can call them back when it is more convenient to me. Every day I look at my e-mails and surf the net for new information. Instead of doing everything myself, (better than anyone ever could) I have developed the habit of delegating tasks that other people can do for me. I only do what I like to do, and the things that nobody else can do, but me. Instead of driving fast, I changed to driving comfortably; instead of driving myself everywhere, I have a driver to take me around when needed. Instead of holding on to my things that I do not use anymore, I give them away. I give away the newspapers, magazines, clothes, mobile phones, computers, furniture, etc. and replace them with new ones. Instead of being cynical, critical and pessimistic, I have developed the habit of optimism and of seeing the positive in everything. Instead of explaining and talking too much, I
have learned to ask questions and to listen with undivided attention. Generally speaking, I have developed the habit of doing just about everything exactly the opposite of most people. Instead of being busy all the time, I have developed the habit of stopping and doing nothing for a while. I often sit down in my study by myself, relax and just listen to the silence, or walk out in my garden and listen to the wind. I stop and think and meditate regularly. Instead of spending all my money, I have developed the habits of channeling some of my income into profitable investments, and of giving regularly to charity. I also have a habit of asking for a discount or of buying everything at the lowest price possible. These are some of the habits I own. I own these habits because they are working for me and not against me. They are my slaves and I am the master because I have picked them and I can override them with new ones any time I choose to. This is the power I have over me. What about you? What kind of habits do you own? Do you have any bad habits that own you? Would you like to develop new winning habits? You are only 3 months away from owning a brand new winning habit that can serve you for the rest of your life! When I started my Network Marketing/MLM business, the first thing I did was to develop the habits of a key person. The reason it took me less than three months to become a key person is because I already owned the habits of delivering presentations regularly, serving customers regularly, reading business books regularly, listening to audio recordings regularly, and going to seminars regularly. I had to change the products in my household, and instead of buying them at the shopping center, I had to order them from my upline. I understand that many people are emotionally attached to the brands of washing detergent and toothpaste they use. I wasnt. I was single at the time, and for me it was not a big deal to replace the dishwashing liquid in my kitchen. But for most people, it is a big change
in terms of their shopping habits. In most households the women do the shopping, and for them shopping is a social event. They even dress up for the occasion. So shopping directly from a company via the internet takes some time to get used to. The second thing I had to develop was the concept of working as a team player. When I started the business I worked as a professional salesman. I was on commission only and worked as a lone wolf. I did not have to report to anyone, and I had no colleagues working for me. Occasionally I talked with my boss, the secretary, or the technical staff, but my income was based entirely on my own sales activity. I had to develop new habits regarding working together with other people in order to, in a team spirit, create new business every month. For most people, in addition to these two new habits, they have to develop the other five as well. Developing seven new habits at the same time can be quiet difficult for many people. This is the reason why so few people become a key person and why most people never make it. Once we understand the mechanism of habit formation, we can apply it to developing any new winning habit. Lets observe the process of smoking. Nobody was born a smoker; it is a developed habit. All children are nonsmokers and they were meant to enjoy healthy fresh air. As they grow up they see some of the adults smoking and enjoying it. It looks interesting to the children because those people look cool. They are curious to find out what it is like to smoke a cigarette. Monkey see, monkey do. They want to look like the adults. Sooner or later someone will offer them a cigarette to try it out. They hesitate at first, but they taste it. It is awful; they may even vomit or get dizzy. The encouragement and recognition comes quickly from the other party; congratulating them on what a proud act it was. Then comes the second occasion, the third, the fourth, the first packet, the second, the third; and eventually this person will develop the habit of smoking! This happens
every minute of every day to little children all over the planet. Developing bad habits is easy, but getting rid of them is very hard. Developing a good or a bad habit is a step by step process. When we choose a habit, what we really want is the benefit! Lets look at reading as an example. Reading books regularly is a habit. Most people do not like to read. I do not like to read either! I would much rather be riding my Harley-Davidson! What is the benefit of reading for me? The information! By using that information I can become more successful, faster, and I can afford to buy a V-ROD for the price of two family cars, and I have the time to take it out for a ride whenever I want to. This makes sense to me, so I read the books even though I do not like to read. I read not for the sake of reading, but because of the benefit. This is the case with most of the good habits that I own. I do not find much joy in brushing my teeth 2-3 times every day, but I do it anyway because of the long term benefit. Most people are prepared to do only the things they like, and they wish that they would be rewarded with a successful life for that. Good luck to them! I do not like many of the habits I listed above, but I love the benefits of all of them! If I want the benefits, then I have to do them whether I like them or not. Developing a new winning habit is difficult, but living with it is easy, and the benefit is long term success. Developing a bad habit is easy, but living with it is difficult, and the benefit is failure. We have the freedom to choose either one, and suffer or enjoy the consequences. Do you have enough willpower and self discipline to do the things that you do not like in order to have more of the good things in life? I did and I will as long as I live! It is a small price to pay for the benefits on the other side. Most people think the opposite. They do not do much for the beautiful life that they daydream about. Maybe they play the lottery. That is easy. Becoming a key person is not easy. It is a real hard test to see if we are serious enough to take a
group of people on the journey of a successful business venture. It is a test to see if we have the willpower and the self discipline to develop new winning habits in order to become a key person. If we make the test people will follow us with confidence because we have been able to win their respect. We have demonstrated leadership qualities of taking charge of ourselves. The key elements of habit formation are practice and repetition. Most people reject this concept because they think it is childish. Children are incredibly smart and they learn best by practice and repetition. They observe what their parents do and they copy them; they pretend and they act it out as if they were adults already. Children use their imagination and visualize themselves as being a pilot, doctor, race car driver, etc. They make up little stories in their minds, and they are the heroes and the winners. Visualizing and/or imagining the perfect outcome over and over again, with feelings, has an incredible effect on our mind. Lets play movies in our mind about the perfect outcome, a happy ending. This way we can condition our mind to know exactly what we want. Our subconscious mind stores all of our thoughts and feelings, and can not tell the difference between the real ones and the imaginary ones. Whatever we think about most of the time will become our destiny. Be careful how you think because your whole life is shaped by your thoughts. Imagine that you lead a fast growing, professional, and profitable Network Marketing/MLM organization. There are thousands of successful people in your business. Many people from your organization come together for a business seminar, and you are the speaker. They applaud and cheer when you go up on stage. You can feel the heat on your face from the spotlights. Your favorite music is playing. The atmosphere is fantastic, everyone is happy and excited. You are dressed beautifully for the occasion. You look around and see all those wonderful people. You tell them your story about how you
overcame the obstacles on your way to becoming mega successful. The people laugh and cry as they listen to your moving story. You are very proud of your achievements, but you are also humble because you know where you have come from. You talk to the people from your heart because you want to encourage them to do their very best. The people in your business like you and respect you very much and you feel like a winner. This is a dream that I have for you because I am a dreamer. What do you dream for yourself? I dreamt about a wonderful life for myself and for my family when I had nothing. Who gave me the right to do that? I did, because I believed that I deserve it. The reason I believed I deserve it is because I was willing to give everything I had to give, and I was willing to do whatever it took. Developing new winning habits was a small price to pay for having a wonderful life. At least that is the way I think. What about you? What is your dream for you? Do you believe you deserve it? Are you willing to pay the price to have it all? When do you start going for it? Why not NOW? One of the worst habits is procrastination. Putting things off! We know what we should do, but we do not do it NOW, because we can do it tomorrow or any other time. But tomorrow never comes. The only medicine against procrastination that I know of is decisive action. Do whatever you can do right now and do not wait for the right time, because the right time is NOW!
Take immediate action! That is the best habit of all!
James Vagyi

14 FINANCIAL STRATEGY
Every single person has a financial strategy. Most people have losing financial strategies, and a few people have winning financial strategies. Most people who come into the Network Marketing/MLM business bring with them their losing financial strategy and bad habits about handling money. Before I started my Network Marketing/MLM business in Sydney, Australia, I was in a total financial mess. I had a mortgage on my house; I had a lease contract on my car, two credit cards on the maximum limit and a department store charge card on the maximum limit. When I paid my bills and my monthly installments on my debt I had hardly any money left for myself. I was in deep trouble. If I would have missed my monthly payments I would have lost my house. Most people live today exactly like I did 20 years ago. The financial pressure on me was so high that I was desperate to do something. My first idea was to take a part time job in the evenings delivering pizzas. The extra money helped me survive the sudden death, but did not solve my problem. I had spent more than I could afford. I had a losing financial strategy. Initially I thought that earning more money was the solution and most people think the same way. They daydream about winning the lottery and think that their financial problems will go away. The truth is that my financial problems had nothing to do with the amount of money I earned, but it had everything to do with the amount of money I spent and the way I spent it! Because I had no financial education I had no idea what I was doing. By the time I realized what kind of a mess I had gotten myself into, it was too late to get out of it without incurring considerable financial losses. I had to pay for my financial education out of my own hard earned money. Money is a sensitive subject. People do not like to talk about it. People who do not have money in many cases
think that money is bad and the root of all evil. They do not want to talk about it because their words would give away their lack of understanding on the subject. Some people think that money is not important and it is not even worth talking about. Those people who have money in most cases do not talk about the subject because they do not want to invocate jealousy in other people. The rich think it is useless to talk to those people who do not have money about the subject of wealth because they would not understand their concepts anyway. This is the reason why money is so controversial. Who should we learn from about the subject of successful money management? Who knows how to handle money in such a way that it leads to financial independence? Why would anyone tell us their secrets anyway? I was on the brink of bankruptcy and I had to find my way out. I had lots of questions about money and wealth. I had decided to investigate this subject, and to learn about it as much as possible and as fast as possible. My future depended on it. I applied for a job in a brokerage house. My job was selling savings plans and pension plans to people. I had to analyze the prospects financial situation first and then recommend our products to them. I met lots of different people ranging from the average to multi millionaires. It was a very interesting job because I had the opportunity to look into hundreds of successful peoples financial strategy. I was looking for the answers to two questions: who had the money, and how they got it? Because of my profession I had to read books about money, banking, insurance, tax planning, wealth preservation, estate planning, stocks, futures, options, bonds, treasury bills, annuities, mutual funds, real estate, foreign exchange, commodities, and many other financial instruments. I have seen the total panorama of the haves and the have-nots in one of the richest countries of the world. I had found the answers to my questions because I had personal experience regarding something that most people
guess about: I knew who had the money and I knew how they got it. It was no longer a mystery to me, and step by step I have taught myself the principles of handling money successfully. Understanding the nature of money played a key role in my success in the Network Marketing/MLM business. Money is a concept, an idea. It is an exchange media between people for their labor, goods and services. Before the invention of money people used gold, before gold they used colored stones and other things to exchange for their goods and services. Bartering or exchanging goods and services for other goods and services became inconvenient as people started to trade. Money was portable and traders could carry it around with them. Even before money existed there were wealthy people and poor people, so the problem was never money itself but the people involved with it. Almost everyone who starts a Network Marketing/MLM business wants to earn more money. But if they have a losing financial strategy, having more money will create more problems for them. The first step is to set up the correct structure of the business. Usually there are two choices: build the business as a private entrepreneur or build the business as a company. There are differences in terms of costs, liability, bookkeeping requirements and taxes. Most people do not understand the different tax regulations associated with different company structures; many do not even understand the concept of taxation or of reading a financial statement. Every person and every company with a taxable income has to understand the rules and regulations regarding taxes. Simply put, the government wants a certain percentage of our taxable income. It means that part of our income is not ours to keep. Many people think that the income from their Network Marketing/MLM business is the same as the salary they take home from their job. Lets say someone earns 1000 Euros from his/her job. He/she wants to earn more money and he/she builds a business that brings in a 1000 Euro income a month. The
first typical mistake is mixing the two incomes together and not separating them into two different bank accounts. The second typical mistake is to think that the two types of income are equal amounts. The difference is that the 1000 Euros from the job is an after tax income, the 1000 Euros from the business is a before tax income. The reason this is so critical is because most people about this time when their income from their business reaches the income from their job, want to leave their job going full time in the business. Lets see what happens: out of the 1000 Euros he/she has to pay taxes, lets say 20%. He/she has 800 Euros left, but there were some expenses associated with running the business (phone calls, travel costs, books, brochures, audio recordings, seminars, stationery, photocopying, etc.) to the tune of 400 Euros. The spendable income left at the end of the month is 400 Euros. When this person had his/her job and the part time business together, his/her total spendable income was 1400 Euros per month. If he/she gives up his/her job at this point, how much spendable income will he/she have left? 400 Euros! The third biggest mistake people make at this income level is leasing a new car! They think that out of the extra 1000 Euros from the business they can afford to pay 200-300 Euros on a lease contract to get a new car. They want to show off to those people who said no to their business proposition. Many people think that showing off in a fancy new car is all that it takes to make the business grow faster. Exactly the opposite is true: profitable financial strategies make the business grow faster therefore enabling the owner to drive fancy cars. The fourth biggest mistake people make at this level is to borrow more money from friends, relatives and business partners to finance their losing strategy. They are convinced that having more money will solve their problems. They believe that in a few months time they will reach a higher level in the business and then they will be able to pay back their debts. The fifth
biggest mistake people have at this stage is that they have more than half of their business in one leg. When that leg qualifies, its volume is no longer part of his/her business volume, it brakes away. In this case his/her income can drop 30-40%. Now our friends income dropped from 1000 Euros to 600-700 Euros. His average monthly business expenses are 400 Euros, the lease on his/her car is 200-300 Euros. He also gave up his/her job when he/she doubled (1000+1000=2000) his/her income. What is left at the end of the day? Zero! This person is bankrupt. He/she turned a profitable business into a losing game for himself/herself. The sixth mistake people make at this stage is that they put pressure on their group to make as much money as possible for them. They usually stop doing the very things that helped them to create their business in the first place, and they start to come up with new ideas as to how to make more money from their business. They print their own booklets; set up their little seminars, selling pirated cassettes and CDs, and by doing these things they lose their credibility in front of their own business partners. Nobody will follow him/her anymore; people stop and quit the business. Our friend failed in the Network Marketing/MLM business! This scenario happens every month to thousands of people in the industry all over the world. When I started the business my financial strategy was very simple: earn as much money as possible, as long as possible! I kept my job and worked even harder to make more money there, and in addition to that I had my business part time. I had my job to pay for my living expenses, and I had my Network Marketing/MLM business to take me to the land of my dreams. I wanted to be free and financially independent. A business primary objective is to be profitable. Meaning that after everything is paid (taxes, expenses, etc.) there is money left over at the end of the month. The same is true of our personal finances. Most people spend all of their money and
there is very little left at the end of the month. The problem is not the spending. Holding onto and not spending our money is also a losing financial strategy because of lost opportunities and inflation! When you put your money in the bank what do they do with it? They spend it and/or loan it out as fast as possible! The difference between the haves and the have-nots is what they buy with their money. We can spend our money on two things only: things that appreciate in value and things that do not. In other words we can spend our money on things that make money or on things that lose money. Most people spend most of their money on things that lose money; wealthy people invest a portion of their income into things that make money! The first thing I did on my way to financial independence is that I learned to live off 80% of my spendable income. Out of every 1000 Euros I made in a month, I set aside (paid myself) 200 Euros. I had developed the habit of saving a portion of my income for investments that would make me more money. People in the western world are conditioned to spend all of their money and on top of that borrow against their future and spend now what they will be earning in the years to come. Most people spend money that they do not have on things that lose money just to impress some people they do not even like! I was exactly like that! I was living in a posh suburb in a townhouse on borrowed money, driving a fancy new car on borrowed money, I went to Hawaii on borrowed money, and I dressed and looked like a million dollars on borrowed money. The problem was not the money, not even borrowing the money! My problem was spending borrowed money on things that lost money and at the same time not investing any money into things that would make money. The outcome was a financial mess and as a result I had to sell my house. The reason I took the pizza delivery job was because I wanted to hold onto my house as long as I could since property prices started to go up in
Sydney. I held on to the house for another year and prices doubled. I sold my house and made more money from it than all the money I had made so far in my life. I have made an interesting observation that it is possible to make far more money by investing money than by working for money! Money has the ability to work, and we can make money work for us or work against us. Because I do not like to work, I was working very hard to make my money work very hard for me. There were three of us working now making more money: I was working in a job making money for myself, I had my part time Network Marketing business making money for me, and I had my invested money making money for me. I had three income streams. The more money I made, the more I invested into profitable (money making) investments. There are not very many places that we can invest our money which will enable it to work for us: our own business, other businesses (shares), government papers, currencies, real estate and commodities. These are the things that can grow in value. In my opinion, having a business of our own is the best investment vehicle because we can make the very best return on our own company. If I look at the value of a Network Marketing/MLM business, it gives an incredible return on investment. If a business generates a monthly income of 1000 Euros, it means to me that in order to have a similar income, I would have to invest at the annual rate of 12% on an amount of 100,000 Euros cash. How long would it take to save 100,000 Euros in cash? Forever! How long does it take to build a business that nets a 1000 Euro income? Average 3-6 months! In the first 3-6 months in a Network Marketing/MLM business, people can turn their life around financially and move on to financial freedom, but at the same time they can turn their own prospering business upside down and head for bankruptcy. I have seen both cases many times. Money has the tendency to go to those people who understand its nature and handle it
well. An entrepreneur and an investor think differently about money than an employee. Most people come into the business world as an employee and they have to change their employee mentality into an entrepreneurial one. This change is a learning process. It requires an open mind and a willingness to learn and to develop into a more productive human being. An entrepreneur provides added value that is turned into profits. This profit can be described in monetary terms or it can be exchanged for currency. Employees earn money, professional people make money and entrepreneurs create money. When an enterprise makes a profit and that profit is translated into money that money is new money because it did not exist the month before! It was created, and now exists. This new money is the key to the success of any company or business. My financial strategy is to create new money through my Network Marketing/MLM business not just for myself, but for all those people who are participating actively in the business building process and add value for other people. As a leader I am responsible for not only creating new money but for sharing it with those people who have contributed to the creation of this new wealth. This new money is distributed proportionately amongst the people who created it! Do you want to belong to those people who earn money, to those who make money or those of us who create money?
New money is waiting to be created! Welcome to the game.
James Vagyi

15 CREATING NEW VOLUME
If we want to create new money and growth every month, first we have to create new volume, and to be able to create new volume we need to bring new people into our business. There are many people, especially company owners and bureaucrats, who fantasize about the increase of sales per person in the network. They wish that they could somehow make more money on everyone in the business. The idea is great but nobody has been able to change the numbers significantly. The effort required to increase the volume per capita is not in proportion to the financial return. For the company owners or the shareholders the results would be phenomenal, but for the network builder who actually has to do the job it is not worth the effort. Therefore, the name of the game in networking is new applications every month. New applications create new volume, new volume means more money, more money creates more success, more success means more belief, and more belief creates more commitment, more commitment means more activity, more activity brings in more applications. This is the network building success cycle. The key person understands this cycle, drives the business accordingly, and controls the process of how new people come into the business. When I started the business I realized that the whole string of events that lead to creating momentum in the business starts with bringing in new people. I spent 80% of my time bringing new people into my business and 20% of my time with my existing business. Every company is focusing on new business. Every car maker is bringing out new models nearly every month. Every mobile phone company does the same. Computers double their capacity in 18 months. Fashion changes every season to attract more new business. Some people worry about the market being saturated by one company or a specific
product while the same company they worry about is fighting hard to keep its market share by acquiring new business every month. One of the reasons why every company brings out new models is because they know that some of them will outperform the existing ones (their own models and/or the competitors ones). The same principle is true in the Network Marketing/MLM business: some of the new people who come into our business will outperform the existing ones in our business. We can only change the characteristics of our existing business through the new business we create every month. Our existing business is what it is. The only thing that is in our power to change is what we do from now on. We can recalibrate our business at the point where new people enter our business. Once they are in, there is nothing much we can do to influence them. We need only one great person/couple to come into our business and everything will change dramatically. If we believe that such a person/couple exists, sooner or later we will find him/her/them. If we do not believe that such a person/couple exists, someone else will find him/her/them. Whatever we believe to be true becomes our self fulfilling prophecy. The key person works out there because he believes that the next great network builder is out there somewhere waiting to be found by him. If we look at the whole network building process, which step can we control? Is it in our power to make people to do more in the business? No. We can control ourselves as to whether we do more or not, but we can not control other people. Can we make other people be more committed to the business? No, in the best case we can develop more commitment ourselves. Can we make other people believe more in the business? No, it is their choice how much they believe in themselves or in the business. We can increase our own belief. Is it in our power to make other people successful? No, everyone makes himself/herself successful. We can become more successful ourselves. Can we force
other people to make more money? No, we can make more money for ourselves and create more opportunities for other people to make more money for themselves if they want to. Can we make other people create more volume? No, we can create more volume ourselves. Can we make other people bring more people into the business? No. We can bring in more people if we want to. Can other people make us do any of these things? No! It is entirely up to us if we do any of these things or not. The future of our business depends on us, on our activity in regards to bringing in new people every month. This is the only thing that we can control in the whole business building process. When I look at the vital signs of a business, what I usually ask are the following questions: How many people joined their business last month? Who are the people who brought the new people into the business? And how did they start them up (how many products and BSM)? The reason why I ask these questions is because I want to know who drives the business, who creates momentum, who is the real leader. If we focus on new volume, and our business qualifies with that alone, then we can ignore our existing business, putting us in a position of strength and leadership. We do not depend on our existing group. That gives us incredible power over our business. After I became a successful entrepreneur, I decided to invest some of my money. I learned to focus on making my money at the time I entered into an investment. If the profit was not there when I made the deal, the chances were that it will never be there later on, and after I signed the papers there is nothing much I could do except to hope and pray. For example in the case of a property investment the profit has to be there at purchase in the form of a discount or reduction from the market price, or as a profit potential from future rental income. The same concept is true in the Network Marketing/MLM business. We have to make our money when we start new people in the business because
that is the only time when we can control and influence the outcome. For most people, signing up people in the business is a social event, and as a result they make lots of money for the supply company by signing up people and completely forget to make money for themselves in the transaction! The first typical mistake that many people make is signing people up with no products (200 points or more)! In this case the supply company makes huge profits on the starter pack but the person who did the job makes nothing! The supply company does not even care if this new person ever buys any of its products because they made their money on him anyway. But the person who did the job did it for nothing and also lost the best opportunity to sell the products on his/her terms. After the paper was signed in most cases he/she can only hope and pray. The second mistake people make when they start up people is that they do not set them up for success with the right tools (BSM). The purpose of the tools is to teach and motivate people to do the business and that way they increase their probability for success. When a person misses the best opportunity to create new business and to make money for himself/herself at the start up, he/she is setting himself/herself up for failure in the business. At the same time by showing the wrong example he/she is setting up the new person for failure too. I look at the process of starting up people like an investment opportunity. I invest my time into a new person, showing him how to build the business, teaching him what to say and how to say it, all these things that you are reading through in this e-training course and more! I give him/her my time by counseling and providing challenge meetings for his group, etc. Time is money! My time is very precious to me. So when I spend my time with a person in a business situation, I treat it as an investment and I want to make a return on my investment. I think like the manager of a professional boxer. If I spend my time and money to promote the boxer and he wins, I made a
good investment. If he loses it means I made a bad investment because it cost my time and money that I could have invested into someone else. When I start someone up, I do not leave it up to blind luck as to what will happen in terms of making money. I want to make sure that I am going to make money no matter what the new person will do next. By selling him/her products (200 points or more) and selling him/her the right tools, I create new business, making money for myself and I ensure that the right example is set for duplicating the winning formula. From this point on it is the new persons problem as to what happens next! If he/she wants to make money for himself/herself, he/she can follow my example. If he/she does not do anything, and 70% of the people do not, I do not really care because I made my money anyway when I started him/her up. My approach is very simple: if the new person that I started up means new volume in the business, then it was a good investment, if the new person brings no volume, then it was a bad investment. This approach helps me to identify who I should spend my time with, and what activity to focus on in order to make my business grow. Most people work only with those people in their business that they like. They do not understand the difference between making money and making friends. Making friends is not a business activity, and it has nothing to do with creating volume. Making money is a business activity and while we are busy doing that we can develop friendships with like minded people. I work with people whether I like them or not because they are in my business and they create volume. If I would have worked only with the people I liked in the business I would not have been able to create the network I have. There are one or two things in almost every one of my business partners that I do not like, and I am sure I have many things that they do not like about me. We work together not based on sympathy but based on creating new volume month after month in a win/win
arrangement. As an entrepreneur I am searching for good investments. Good investments in the Network Marketing/MLM business come in the way of people who create volume for the business. Many people misunderstand this concept and they are looking for either nice people that they like as one extreme (too weak approach), or for people that mean only numbers to them as the other extreme (too inhuman approach). The key in this concept is to find the balance in the way we do business with new people when they start the business. How to do that? Practice and repetition! There in no other way. Creating new volume with every person that we come in contact with, while building the business, is a habit. Keeping our expectation high is a commitment! The way to start people up with the right tools and 200 points or more is through negotiation and selling. The more we practice this process the better we become at it. Creating new volume always happens one on one. If we meet 10 new people every week (40 a month) one on one, in a follow up/start up situation and our success ratio is 1 to 4 (every fourth person joins our business) then we can calculate 10 new applications every month. This is what the average key person does. If we multiple the new applications by 200 points as our minimum expectation, then we can count on 2000 new points every month which we create for ourselves in addition to our existing volume. When we have four key persons in our business who do the same as we do, then together with them, we can bring in 50 new people with minimum 200 points each. That equals 10,000 new points every month. When there are 10,000 new points in the business it means that about 3000 Euros of new money is created in the form of bonuses that will be divided amongst the five key persons. I have developed the habit of asking myself this question: where is the money in this? In the Network Marketing/MLM business a leader/entrepreneur has to understand that the money is in new
applications. We have to use all of our talent and creativity to bring new people into our business as fast as possible. Nothing creates more success than success itself! When 100 new people join in a month the business gets momentum. Something happens at that number and the business takes off like a rocket. 100 new people in a month is the number! 100 new people with 200 points mean 20,000 new points! When we have 50-100 new people in our business we need tools to train them. These people need to learn what we already know about the business. It is impossible for the 5-10 key persons to teach, to train and to motivate their 10 new people within a single month. The information in this e-training course alone will be 240 written pages. Just to read them takes about 20 minutes for each lesson, times 30, equals 600 minutes or 10 hours. To teach the same content to the 10 new people individually would require 100 hours of our time every month! I am not prepared to tell the same story every month to every single new person who joins my business. This is the reason why I have developed this e-training course. I use this tool to do the job for me to save time because time is money. The biggest mistake people make when they have 20-30 new people in their business is that they start to train them and to counsel them one by one. They spend 80% of their time with the people who are already in their business, thinking that they can help them to be more successful. It is a fatal mistake because even if they would be successful helping the other person, the new money would go to this other person and very little to them, and if they would not be successful in helping, neither one of them would make any money. Even worst than that is the time factor. They have allocated their valuable time to the wrong activity, away from the prime activity of creating new volume. In this case I would spend 80% of my time bringing new people into the business, and the remaining 20% I would spend with my upline and the 1-2 key persons in my
business. All other people are prospects in my opinion and they should learn from audio recordings, books, seminars and e-training to get more information about the business. When they are serious about the business I am ready to work with them and invest my time. But I am not going to wait for anyone because I can focus on bringing at least 10 new people into the business every month. I have developed the habit of delegating as much work to the tools as possible. I use the tools to do the prospecting, to show the presentation, to do the training, to provide motivation, etc. I use the seminars to build belief and to give a platform for recognizing the new achievements. I use the e-training to provide the basic training for every new person who joins my business, so I do not have to do it over and over again. As an investment is working for me to make me more money, the tools are working for me to make me more money, too. This way I have time for the most important thing in the business: to build and maintain win/win relationships with the right people. Focus on new people, new volume and the key persons in your business!
Use the tools to do as much as possible for you!
James Vagyi

16 PRINCIPLES AND VALUES
Every Direct Selling/Network Marketing/MLM organization is built on values and principles. The values and principles provide the foundation and the guiding posts as to how the business develops and overcomes the challenges along the way. The challenges can be external and internal. When an organization is united internally, it can easily overcome the challenges of the market place. External challenges can come from competing organizations, other companies, changes in market conditions, government regulations or media attacks. Organizations with the right values and principles grow under pressure, those with shaky business practices crumble under pressure. Every organization is made up of people with different values and principles, whether it is a company, church, government or military organization. The internal conflicts usually come from people inside the organization competing with each other for money and power. Every business leader has an ego, and in many cases emotions get in the way of values and principles. The biggest problems come from incorrect business practices. Incorrect behavior inside the Network Marketing/MLM business is called crosslining; correct behavior is called teamwork. Teamwork is when people in the organization feel safe and secure enough to build their own businesses. The atmosphere is positive and filled with high expectations. Leaders treat each other with respect, like brothers and sisters treat each other in a family. In a crossline situation some people, instead of building their own business, are speculating on taking away other peoples businesses. Some people manipulate and maneuver the rules to their advantage at the expense of other people. They fish around to see if they can poach some people. How could that be possible? If we would all agree in the Network Marketing/MLM business that we do not take other peoples businesses
away, there would be no such problem. Some people think differently about this because they have different values. Some people steal cars, some steal money and some steal groups if they can. I have an alarm system in my car because I know that somebody might want to steal it from me. I have an alarm system in my house because I know that somebody might want to break in. I have realized that my business is not what I built, but what I can keep! The no crosslining principle is like the alarm system installed in our house or car to deter thieves from breaking into our business. Although we own the business, we do not own the people. People can be active or inactive in the business, and they can come and go within the rules of the particular company. There are always people who want to leave a country, a company, a system, a group or a leader because of various reasons; and there are always countries, companies, systems, groups and leaders who are willing to take them. At the same time there are always people in every organization who like to fish, and they will take those who fall for the bait. The grass is always greener on the other side. Usually they promise that they will help you build your business. Why would they do that? They are crossline from you so they can not make money on your business! Probably they like you so much that instead of building their own business where they make money, they would build yours where they dont make money? No! They make money on your business with the tools (bsm) and they do not care whether your business qualifies or not. They say bad things about your sponsor and/or upline, and you spread that across your group to justify your change to the better system. Your relationship with your original upline is broken beyond repair so you have nowhere to go. You are locked in a situation where you have no power and no leverage! It is an ideal situation to take you for a ride. That is the strategy behind crosslining. I was naive and did not
understand the crosslining principle for a long time. When it hit my business I was not prepared and as a consequence I lost part of my business. I have learned a valuable lesson: anybody can become a crossline! Crossline can be anybody from another company, another system, inside our own system, our downline, our upline, even our own sponsor!!! The premise that in a Network Marketing/MLM business what we built is ours to keep forever is true only if we can keep the people. We need to protect our business and the best way is no crosslining. In most cases people leave a system or a group because they have a conflict with their sponsor and/or upline. These conflicts are usually centered on the differences in values and principles. There are three areas where most of the conflicts come from: 1.) Incorrect business behavior (power) 2.) Mixing business with pleasure (sex) 3.) Untrustworthy financial practices (money) In the past 15 years I have seen many business relationships broken because of these three reasons. Unfortunately, I have personal experience in all three areas, and for me in every situation the end result was losing trust and losing business. Edification (promoting our sponsor and/or upline) is one of the most powerful business building principles. When edification works well between two people, it can drive the business through the stratosphere. With edification we give power to another person (third party), usually our sponsor and/or our upline. When we edify the right person he/she can use that power to build us up with his/her words, when we edify the wrong person he/she can use that power to destroy us with his/her words. Edification is the positive words that we use when we talk about another person, product or company, and works like advertising. Words have incredible power. Words are the most powerful tools or weapons depending on how we prefer to use them.
Using the wrong words can destroy relationships, too. I select my words very carefully in every business situation because I do not want to make enemies for myself. When somebody is careless about his/her words or tells lies, the results are predictable: loss of trust and loss of business. When trust is lost between people, that relationship is over, whether it is business or personal. I have seen people competing or fighting for power with words in an upline downline situation about: who has the biggest group, who has the biggest pin, who has the most people, who has the most recognition, who is the better speaker, who puts together the program, who is the MC, who prints the tickets for the seminars, who sits where in the seminar, how long is the speaking time, who speaks first or last, etc. Healthy competition for market share is part of team work. Fighting for power and position can destroy trust inside the organization and lead to loss of momentum and loss of business. Team work can be summarized in win/win relationships, crosslining can be summarized in win/lose, lose/win and lose/lose relationships. A healthy team work environment is centered on mutual respect, mutual trust and integrity. Crosslining and a fishing environment are centered on mutual suspicion, mistrust and manipulation. I structured my business practices around market principles (supply and demand, and added value). This helps me to build and to keep win/win business relationships with the right people. Most people think different: they think that in business the only way to make money when they can manipulate people is in a win/lose relationship. In the Network Marketing/MLM industry, win/lose relationships will not work for very long, and the end result is loss of trust and loss of business. The same is true with casual intimate relationships between upline and downline. While the relationship is on it may feel great for both parties, but what happens when it is over? Usually when a casual intimate relationship is
over it is because of a new partner. In most cases one of the parties feels cheated or hurt. Trust is gone and the relationship can never be the same. Former lovers can turn into bitter enemies because they want to defend their own position by saying bad things about the other party. If a person is untrustworthy in a personal relationship, cheats and spreads lies, it is predictable that he/she will behave the same way in a business relationship, too. The great danger in having an affair inside the organization is that somehow everybody finds out and forms a negative opinion about the parties involved. Therefore, the loss of trust between two people can spread across the whole organization like a virus, raising questions about the trustworthiness of the parties involved. The higher the pin, the greater the danger. Again, the end result is loss of trust and loss of business. To build and to maintain a win/win business relationship takes considerable time and effort. To destroy it takes no time at all. One wrong move or one wrong word can destroy a relationship forever. The single most important factor, however, to make or break a business relationship is the way people deal with money. Every business has cash flow, and that cash flows from one person/company to another based on market principles. When people break the market principles sooner or later they will lose they business. Market principles are like gravity: they work all the time and they are the same for every person, company or country. For example, communism wanted to change the market principles of supply and demand to planned economy and failed miserably. Most conflicts between people in the Network Marketing/MLM business revolve around money. Most people do not understand the nature of money, and they have the false belief that having money is the power. The truth is exactly the opposite: the ability to add value and to create wealth is the real power, and money is only a measuring medium. When we start a business we have to
understand that there are two kinds of money: our money and other peoples money (opm). How we handle our own money will determine our personal financial success in life. How we handle other peoples money will determine whether we can stay in business or not. 9 out of 10 new businesses fail in the first 5 years. Why? Because of money. Money is an important factor in every single business deal. With every business deal we can reinforce our commitment to a win/win position or we can lose it forever. Nobody wants to deal with an untrustworthy person; therefore money and trust go hand in hand. In the Network Marketing/MLM business we have to handle other peoples money. For example, when I start somebody out, I take his/her money for the first order, and I send in the application myself. I have other peoples money (opm) in my hands. When a customer orders a product and I take the money, it is opm. When I deliver a product, it is not mine, it is owned by the customer who paid for it with his/her money (opm). When I sell a ticket to the next seminar the money is opm, etc. How we handle opm will determine our business career. By looking at most peoples financial intelligence it is easy to predict future problems. Most people have never handled large amounts of money, and they have to learn how to do that. As a principle I am very strict when it comes to handling money, especially opm. There is no room for mistakes. I believe one of the reasons why my business has grown this big and it is continuously growing is because my business partners know that I am trustworthy when it comes to opm. On the other hand I have seen many people who abused opm, and as a result lost trust and lost the business. Some people collected money for starter kits before the market opening and disappeared with the money. Some people collected money for product orders and lied that the money was stolen from their car. Some people photocopied the seminar tickets and sold them to other people. Some
people sneak through the back door at the seminars. Some people loaned money to their business partners and used that leverage to manipulate them. Some people borrowed money from their business partners and never gave it back. Some people illegally copied CDs, cassettes, and books, and sold them to their business partners. Lying and cheating may work for a while but the moment of truth will come and the price will have to be paid. Usually the price is losing trust and losing the business because people are not willing to work with that untrustworthy person anymore. A great team works together based on the market principles of give and take. Some people want to turn around this principle and take first and give later. Some other people want something for nothing. These people want free starter kits, free products, free seminar tickets from their sponsor, etc. I try to avoid people with this mentality as much as possible. I believe that life supports those people who follow lifes rules like the market principles of give first and take later, and those who add value and create wealth in a win/win relationship. I am looking for and want to work with people who are like that. I also believe that opm is looking for these people too. If trust is the foundation of long term win/win business relationships in the Network Marketing/MLM business, then I know what kind of people to look for and who to work with. I have observed in the past 15 years that people may come and go but the principles stay the same. I can only trust a few people, but I can trust all of the principles all the time. When I look at the behavior and character of people in relation to success principles, I can predict their potential in the business. This helps me to evaluate with whom I should spend my time. Every leader/entrepreneur has the right and the responsibility to choose his/her businesses values and principles. The right values and principles are timeless and have worked through the ages for those people who have used them. These are the same principles
and values that have enabled mankind to reach the present and to go on into the future. When a leader/entrepreneur aligns his/her business practices with these values and principles, all of a sudden life will start to promote him/her. This is the greatest power of all. Opportunities, people, and opm will flow to him/her who understand this power. When somebody goes against these values and principles, sooner or later life will withdraw its support and opportunities, and people and opm will turn away from him/her. This market principle is based on supply and demand. This principle says that there is huge demand for trustworthy creative entrepreneurs in every society, and there is an unlimited amount of cash (opm) waiting to support such a
person/organization/company. The only question is this: who wants to become such a person, who wants to create and lead such an organization/company? Pretenders need not apply! I am sad to say this, but in my observation most people would not make the test. There are only a few people in every society/company/organization from every generation who live by these high standards, not because they have to, but because they want to.
Choose such values and principles that are supported by life.
James Vagyi

17 HANDLING REJECTION
Our greatest enemy in the Direct Selling/Network Marketing/MLM business is the fear of rejection. We worry about what other people might think about our proposition. This emotion is so strong that it can virtually paralyze us from achieving what we are otherwise capable of achieving. In order to be able to achieve our full potential we have to learn to handle the fear of rejection. People are afraid of many things, most of them being imaginary things that might happen to them. People are afraid of snakes, falling off a cliff, flying in an airplane, dying and as number one on most peoples list, the fear of public speaking. Why is it that people are more afraid of public speaking than dying? It is because if people ridicule them after they die, they know they will not feel the discomfort of it, but if they criticize them after their speech it will be painful. Because we are conditioned to seek pleasure and avoid pain, some people would rather die than speak in front of other people. All through my childhood I was a very shy and introverted boy. I was afraid to talk to people and I preferred to sit in the corner and say absolutely nothing. In school I sat in the last row, as far away from the action as possible. When I got into sales, I realized that I had to change in order to achieve results. I had to learn to handle the fear of rejection. The first step I took was to expect the rejection, the second step was to accept the pain, and the third step was to prepare myself not to take it personally and not to take it to heart. The final step was to do the very thing that I was afraid of. I was afraid to pick up the phone, so I picked up the phone. I was afraid to talk to people, so I talked to people. I was afraid to ask for the business, so I asked for the business. Action kills the fear. In sales and in business not everybody will say yes to our proposition, and that is perfectly normal! Expecting everybody to say yes to us is not normal! For every yes we get about 3 or 4 nos in the Network Marketing/MLM business. In order to find a person who will say yes to our proposition, we

have to talk to 3 or 4 other people who will for sure reject us with our proposition. Is this bad? Only if we think so! Most people think it is bad, but actually it is great news, depending on how we look at it. If we know our numbers and accept them as facts, our sales activity becomes predictable, and as a result we become confident. Our self confidence kills the fear in us because we know in advance exactly what will happen. Many people are afraid to pick up the telephone because they worry about what other people will say. So lets examine what other people could say so we can prepare ourselves on how to handle whatever they might say. In essence whatever they say and however they say it can only mean yes or no. There are no other options. How they say yes or no is where our feelings can be hurt if we let that happen. People are afraid of the unknown if they do not know what comes next, and they are not prepared to handle it. That is where preparation comes in. We have to sit down and think through all of the possibilities and come up with the right answers. By now I know almost everything that people could say, and because of my experience I have many different answers. Beforehand I prepared a script of the most frequently asked questions and objections, and the best answers for them. Every time I made a phone call, I used my script. The prospect has no script on the other side of the phone; therefore it is a huge advantage to be prepared. In my initial sales training I learned to accept the emotion of fear as being perfectly normal and part of the game. I have realized that when I fight the feeling, it becomes stronger and it can grow on me and paralyze me, but when I accept the feeling it loses its power over me and disappears. Acceptance has the power to take away the pain. In my initial sales training I also learned to expect questions, excuses, objections and rejection as part of the game. If I expect something, I can prepare myself in advance to be ready when it comes. I expect people to say no to me, to ask questions, to bring up excuses, to come up with objections and to reject me and my proposition altogether. Sales is like a stack of cards: there are good cards and bad cards mixed together and whichever

we pick, we have to play the game accordingly in order to bring the most out of the situation. Occasionally we will pick the joker. The fear of rejection disappears when we understand the game and we have a game plan for all possible situations. Lets start with looking at the worst possible scenario: because of our fear of rejection we stop and do absolutely nothing! No dreams because they may not come true. No goals because we may not reach them. No invitation because people might not come. No business proposition because people might turn us down. No seminars and audio recordings because somebody might not like them. So the worst case is when our fear stops us and we do nothing: no progress, no new business and no extra income. This scenario worries me more than making a phone call or selling a product! The worst case to me is totally unacceptable. My fear of living a poor, meaningless and unsuccessful life is far greater than whatever I have to do to avoid it. I learned to live with my fears and use them to propel me forward towards my dreams and goals. When we finally take action the following things could happen in a sales situation: 1.) We get a question 2.) We get a comment 3.) We get a criticism 4.) We get an excuse 5.) We get an objection 6.) We get a no 7.) We get a yes All professional boxers prepare themselves before the fight, all professional athletes prepare themselves before the game, and all professional network builders prepare themselves before they call or meet a prospect. Prospects are not prepared, amateur network builders are not prepared, professional salespeople or network builders are prepared. They study in advance what the prospect might say and they prepare the right answers for them. They take their

time to think through what might happen, before it happens. They take the element of fear out of their game because they know the other persons every possible option, and are prepared for all of them. Most people in the Network Marketing/MLM business are not prepared when they come into the business and it is not a problem. It takes time to learn and to practise. The problem comes when somebody is not prepared to learn and to practice. When I started my Network Marketing/MLM business I was very humble about learning the nuances and the techniques of building the business. I realized that the business was working fine without me, and there were some people who made a fortune with it. My fear disappeared when I realized that the business is full of amateurs and pretenders who are not prepared to learn and to practise, in other words not prepared to pay the price. Those people who are not prepared to pay the price and want something for nothing have every reason to worry about what other people might say to their proposition. I am confident because my proposition has value. If the other person does not see the value in my proposition, he/she will turn me down. It is perfectly ok, and it does not mean that what I am proposing is not good. Lets say we are selling BMW sports cars and our prospect buys a Ferrari instead. Does that mean that our product or our proposition is bad? No! We just have not found the right person and we should not feel bad about being rejected. The prospect thinks that the Ferrari suits him/her better, so we need to keep searching for the one that thinks the BMW suits him/her better. Have you noticed that every car finds his/her owner? There are more than 2000 different models and when we buy one, does it mean that we have rejected all the other 1999 models? No! We have found what we need. Some people buy Ferraris, some buy BMWs and some people do not buy cars. The same is true of our Network Marketing/MLM business and our products. Some people say yes and some people say no. No matter how clever the business, or how economical the products are; only a few people will buy them. When I realized that no matter what I do, most people would turn down my offer

anyway, and I became relaxed and more confident. I took the approach that if the prospect does not understand my proposition or does not see the value in it, it is his/her problem, not mine. He/she is the loser, not me. After all I am going to succeed anyway and I will take some other people along with me. I will do it anyway with or without a particular person. If they miss the opportunity, it is their problem, not mine. During my third month in the business I became 100% confident that I was going to be a Diamond. The reason I was 100% confident is because I looked around and saw the other people in the business. I realized that most people were not going to make it, not because the business is no good, but because the business is full of people who are pretenders. They are not ready to work, they are not ready to learn, they are not ready to change and they want something for nothing. When men go out to play soccer it takes only 5 minutes for everybody to understand how well everybody else plays the game. When women sit down to talk it takes only 5 minutes for everybody to understand how everybody else feels. It took me 3 months to understand how most people play the game of the Network Marketing/MLM business. Most people want other people to build the business! As I mentioned in the previous lessons I am a contrarian, which means I do the opposite of most people. If most people dont prepare before they pick up the phone, then I will, if most people want somebody else to build the business, then I am going to build it myself. When you make the decision that you will make it, no matter what, only an idiot would reject you, and you would not feel too bad about that, would you. If you know that you wont make it, however, and you want something for nothing, you should be rejected, wouldnt you agree? It is the market principle of give and take. I have decided to give without necessarily receiving on the other end. The results are phenomenal. When I focus on giving my very best, I know that sooner or later, one way or another I will get something in return. I may learn a lesson and by applying what I learned, it will allow me to profit somewhere else. I invest my time with one person and I may get the reward with somebody

else. In my view every rejection happens for a reason and contains a lesson for me. This lesson is very valuable to me because it teaches me something and I can get smarter for the next time. It is the negative feedback that guides me towards the results I desire. Every question, comment, criticism, excuse, objection, no and yes happens to me in order to bring me closer to my dreams and goals. I learned very little from the yess I got, but I learned a great deal from the nos! When somebody thinks that a no is bad, he/she will be paralyzed because he/she wants to avoid getting a no at all costs. These people procrastinate, and sabotage themselves from talking to prospects. They know what they should do and they may even be excellent at it, but their fear stops them from going out and talking to people. When I get a yes it is great because I achieved something. When I get a no it is great because I have learned something. When I learn something new I can apply it the next time I talk to someone and I can increase my chances of getting a yes. I win either way. It is like the stock market. Amateur people invest their money in the hope that the stock goes up in value. Professional investors are speculating for the stock to fall because that is where the biggest potential for gain is. Rejection is good because it teaches me, and it gives me the negative feedback I need to correct my strategy. In my opinion, rejection is good because it keeps the pretenders away from business and increases the value of the business building activity. If there would be no rejection in the Network Marketing/MLM business or in the sales profession, the money would be far less! The reason there is so much money in the business is because of the rejection factor! When somebody understands and accepts this concept, he/she can learn to control the emotions associated with the fear of rejection. I expect to get yess and I am thankful when that happens, and at the same time I expect the nos, too, and I am also thankful when they come. The key is to not take the rejection personally! When you offer somebody a glass of vodka and the person says No thanks, I do not drink alcohol! do you take it personally? When you offer

somebody a cup of coffee and the person says No thanks, I do not drink coffee! do you feel bad about being rejected? When you offer somebody a cigarette and the person says No thanks, I do not smoke! do you take it to heart? This is exactly how I handle the rejection when somebody turns down my business proposition. Vodka, coffee, cigarettes are products, and people are selling them to their friends all the time without getting any money for it! Vodka, coffee, and cigarettes could be bad for our health, and we can get sick or even die from them. But people offer them to their friends without any bad feelings! When it comes to offering a business opportunity or a simple product like toothpaste, all of a sudden these people start to worry about what their friends might think. The fact is that most people do not think much of their friends and relatives, and chances are that your friends and relatives do not think much of you either! In a crisis, most of us could only count on one or two friends and/or relatives, if any. In the time of need there are not many people that stay around us, so why worry about what they might think about our business proposition or our products? Who needs such friends anyway who may ridicule us, discourage us, says bad things about us or belittle us? I can call somebody a friend if they encourage me no matter what I decide to do. The fact is that most people do not care about you, and they do not even know that you exist. There are only 200-300 people who know who you are and that is it. The other 6 billion people on the planet earth function without you, and they do not think anything about you because they do not even know you exist! The paradox of the Network Marketing/MLM business is that we need the 200-300 people who know you to get to the 6 billion. Worrying about what other people might think is a useless emotion. Get rid of it because it is standing in your way to achieving your dreams and goals! As the popular song says:
Dont worry, be happy!

James Vagyi

18 THE NUMBERS GAME
There are only three types of people: those who can count and those who can not! I love numbers because numbers tell the truth. The numbers in the Network Marketing/MLM business can work for us or work against us. There are many aspects of the business that can best be described with numbers. Here is the Pareto principle that says 80% of the volume is created by 20% of the people. This means that out of one hundred people, 20 will do something and the other 80 will do hardly anything. The reason why this is so important to understand is because we have to allocate our time to whom we are working with. Everybody has 24 hours in a day. The way we spend our 24 hours will determine our fate in business. Amateurs tend to spend their time with the 80%. I spend my time with the 20%. I rank the 20 people based on performance, and my number one business partner is the one who creates the biggest business. I spend most of my time with the best 4-5 people I have got. The Pareto principle also says that 20% of the people will make 80% of the money. This is logical based on the first principle. When I started my Network Marketing/MLM business I wanted to fall into the 20% category. In order to achieve that, I had to become a key person. The key person is partly described by numbers: minimum 15 plans a month, 200 points, 10 customers, etc. Our business building activity can be best measured by numbers: how many phone calls have we made? Out of those calls how many people actually picked up the phone? How many appointments have we put into our planner? How many people turned up at the meetings? How many follow ups/start ups have we booked in our planner? How many people said yes, how many said no? How many people started with 200 points? How many tickets have we sold for the next seminar? How many people in our business use the training system to read books, listen to audio programs, attend the seminars, use the

e-training, show the plan, attend the open plans, and respond to challenge meetings? These numbers are the vital signs of our business and of our own business activity. When I show the plan, I know that every fourth or fifth person/couple will say yes to my proposition. Out of the numbers we can form statistics, and out of the statistics we can draw conclusions for ourselves as to how we want to build the business in order to achieve the maximum results in the shortest period of time. The most important company statistic says this: 70% of the people who join the business will not sponsor another one! This means to me that when I sponsor 100 people, 70 would do nothing and 30 would sponsor another one. If I want 6 active legs I have to put 20 people on my frontline. These are the numbers of the game based on the law of averages. Statisticians say when we sample 1550 people (Diamond business) we will be within 3% of the truth. Nobody can change the law of averages, but by observing the numbers we can fine-tune our game plan for maximum results. It is important to note that the law of averages works with large numbers (1550). I have heard many people complain that the law of averages is not true in their case. Some sponsored 2 people and both of them became successful (100% success rate), some sponsored 12 people and none of them did anything (100% failure rate). How could this be possible? This is possible because we need large numbers, at least 1550 to be 3% accurate, and in this case we have to take other factors into account, for example: the quality of the people, the quality of the proposition, the quality of the start up, etc. There is another important statistic concerning the training aspect of our business: only 10% of the people who join the business would read books, attend the seminars, use the e-training, or listen to audio recordings. Taking into account the fact that most of the active people are couples and that they attend the meetings together, the seminar numbers are even lower than 10%. What does this mean to the professional network builder? Great news! The business is not based on guess work, but it is 100% predictable. The numbers tell the story. It took about 30 years in Europe to

reach the annual business turnover of around 500 million USD. There are about 5000 qualified Platinums and above who are responsible for creating this volume. By the year 2010 the company predicts to reach sales of 1 billion USD. What does that mean? First of all there will be 5000 NEW qualified Platinums and above who will be responsible for that new business. Secondly these new people will come into somebodys business. Thirdly it is going to happen in the next five years, 6 times faster than previously. I am excited about these numbers because the business is gaining momentum! To move our business off the ground takes considerable effort on our part in the beginning. We are by ourselves, with little experience and little success to draw upon. It is like launching a rocket into orbit. The rocket burns most of its fuel on the launch pad in order to lift off the ground. But once it is off the ground, it accelerates and gains such a speed that it can go into orbit and circle the earth hundreds of times. It needs very little fuel because it has enormous momentum. The Network Marketing/MLM business works the same way. It is slow and hard in the beginning, but when it picks up momentum nobody can stop it. In order for our business to gain momentum we need numbers. It is like nuclear fusion, it needs a critical mass. In the Network Marketing/MLM business the critical mass is 100 new applications per month. That is when the business takes off. Nobody can put 100 new people in the business by himself/herself. To create momentum we need a team. Usually the team has 4 or 5 key persons in it, like in a rock band. The mission of these people is to bring new people into the business as fast as possible and with at least 200 points. Key people can bring 10-20-30 people into the business at will every month. Therefore the name of the game in the Network Marketing/MLM business is key person development! When I started my business, my first goal was to become a key person and my second goal was to reach 12% Leaders Club. After that my mission was to find and train people to become key persons. In my experience only a few people will become key persons and only for a certain period of time. This is the window of

opportunity for me to create some results with them. The leaders have to get together on a regular basis and bring their people with them. That is the reason we have the meetings and the seminars. How many people follow us to the training camp will determine how fast our business will grow. The ultimate indicator of the state of a business is the number of people at the weekend seminars. People make decisions, get committed, form plans, develop alliances, dream big, set goals, and get mad at the weekend seminars. That is the place. All people go through different stages in a growing business. 1.) Stage one: Sponsoring 2.) Stage two: Learning 3.) Stage three: Building 4.) Stage four: Managing 5.) Stage five: Blaming Most people jump to stage five and then quit the business. Professional network builders stay away from stage five and continuously involve themselves with the first four stages. The growing businesses also have rhythms. For example: the results usually come a few months later. We work very hard for months giving everything weve got, and nothing seems to happen, then we slack off a little bit, and all of a sudden things start to happen as if we had nothing to do with it. Then we start to work again, and the business slows down because of our inactivity in the previous months. Farmers understand the principle of sowing and reaping. The harvest is always in a different season. Amateur network builders do not understand this and they stop before they can pick up the benefits. It is great news, however, for the smart network builder who hangs in there, no matter what happens, because the quitters will not be around at harvest time. My biggest leg was sponsored by my friend in Sydney who quit the business. One of my legs in Poland was sponsored by my other friend in Sydney who also quit the business. Another one of my legs was sponsored by my father who is inactive in the business. The lesson is very profound: if you

quit, you leave behind your business for those people in your upline who do not quit! The smart network builder understands this concept and builds his/her business accordingly. When I sponsor somebody, my first goal is to work with him/her so he/she can sponsor somebody for himself/herself as soon as possible. This way my new person has something to lose if he/she decides to quit the business. On the other hand I do not depend on his/her activity to develop the leg. I have the next person to work with. Starting up the next person in the business is the prime activity of a key person. How many new people a key person starts up in a month is the most important vital sign in the business. If the number is low, momentum may not take place because it might take forever to reach the critical mass. The combination of time, volume, money, excitement, expectations, recognition, information, training and the number of new applications are amongst the many things that are important factors in creating and maintaining momentum. We live in the information age. How fast and how effective the information flows from the leaders to the new people who join the business plays a decisive factor in creating momentum. Most people do not want to learn so they will go out into the marketplace without knowing how to build the business. What happens with the amateur boxer who enters the ring without knowing the rules and how to fight? He gets knocked out in the first minute. What happens to the novice network builder who goes out first to gauge what his/her friends think about his/her new business? He/She gets knocked out in the first minute. Basic training and preparation is vital, but at the same time too much training is lethal. The balance is critical in creating momentum. The reason I am working on this e-training project is because in my opinion it serves the network builders in the most practical way. New people do not depend on training because they have access to the basic information. Rather their progress depends on their own ability to learn and practise. There is no business without investment. To create something we need to put in the ingredients: our time, money and effort. We do this in the hope that we will

make a profit and we will get a return on our investment. Return on investment is a critical number in every business. The other critical number is the break even point. Most people who come into the Network Marketing/MLM business have no idea what these phrases mean and what their numbers are. The break even point is where the income from our business equals all of the expenses. The return on investment is what we receive in return for what we put into the business. I have invested my spare time and my spare money into my Network Marketing/MLM business. The reason I did that is because in my evaluation it was going to be a good investment. Most people can not evaluate a business opportunity. They have no idea how to analyze a business, or how to read a balance sheet. They can not tell the difference between a good investment and a bad one. How do I know that? It is very simple: most people are not educated about business and money matters, and as a result they are broke and struggle to make ends meet throughout their entire lives! Before I started my business I watched TV in my spare time just like most people do. I have spent my time and enjoyed entertainment from it as a return. I spent my spare money on clothes, on my car, on travel and I got some convenience and some memories in return. When I invested my spare time and money in my own Network Marketing/MLM business I got extra time, passive income, luxury travel, great friends, personal independence, financial freedom and endless choices as a return. Every person will spend all of his/her time on something, and every single person will spend his/her money on something. How we spend and invest our time and money is the key to our success. I became a millionaire in my spare time by the age of 32 using my spare money. It happened very fast! It took me 18 months to go from being completely broke to earning my first million dollars. The Network Marketing/MLM business works best when we build it fast. In fact I do not know any other way but to build it fast. After 18 months the numbers in my business grew to astronomical levels. I had 20,000 people attending the seminars. The point here in not the number of people, but

that it took only 18 months! It takes 18 months to create a large network. That is the number! How are you going to spend your spare time and your spare money in the next 18 months? What is the return you expect? Here is the sad statistic from the richest country in the world, the USA, on how people invest throughout their lives: 100-64-5-1. What do these numbers mean? These
numbers mean that out of 100 people at the age of retirement (65), only 64 will be alive, only 5 will be financially secure, the others will depend on government pensions, charity or relatives to survive, and only one will be rich! 94% of our entire generation at the age of 65 will be dead or broke! Only 6% will make it financially, and 1% will be rich! These numbers tell me that most people are not going to make it, and that they will never be financially free, even in the richest country in the world. I did not want to wait until 65 to be rich; I did it halfway through at the age of 32. I did it in 18 months! It was a phenomenal return already on my investment, but the best part of the business is that I do not know the exact number of the return on my investment because most of the money has not come in yet! The work that I did 15 years ago pays every month, and continues to pay in the years to come. It is very likely that my children will spend some of the money that will come in the future as a result of my investment in my own business. What about you? How do you spend/invest your spare time and your spare money? What is the return on your investment? Are you getting what you want out of life? If your answer is yes to these questions, I want to congratulate you. If your answer is no to these questions, then probably you are exactly where I was 15 years ago. I wanted to change my future and I wanted to break out of the rat race very fast. I used my Network Marketing/MLM business to be a free man forever.
It took me only 18 months!
James Vagyi


19 WORKING WITH PEOPLE
In the Direct Selling/Network Marketing/MLM business we are working with people. Our customers are people, our upline are people, our business partners are people, and our crossline are people. Many insiders call it a people business. People come in all shapes and sizes. They come into the business with various backgrounds, different personalities, but usually with the same motives: they want to earn some extra money so they can improve their financial situation. Every person who joins the business has to have a sponsor, so he/she is going to be in an existing business. It is like when a baby is born into a family. The upline most probably has a culture, a winning strategy and operates a training system. In the business proposition these things are outlined and offered as a package deal: the marketing plan of the particular company, the line of sponsorship and the training system teaching the winning strategy. There are also some rules on how the team should work together, and some system principles as to how the business operates. Besides these rules and principles, there is human character and behavior that plays an important role in the relationships between business partners. In this respect the business environment is no different from everyday life. The ancient teachings from all religions can be guiding posts as to how people should live and work together in peace and harmony. There are millions of books written on this subject that we all have had to study throughout our lives. Here are 21 dos and 21 donts of dealing with people in the business that I have observed: Be fair Be ready to change Smile Ask questions Update your style Dress for success Do not take sides Do not criticize Do not drink alcohol Do not use bad language Do not make enemies Do not tell dirty jokes

Encourage Listen with attention Remember names Give a firm handshake Fix your teeth Look into the eyes Be optimistic Be humble Be trustworthy Recognize achievement Be proactive Respect Forgive Be brave Be true to yourself
Do not complain Do not be late Do not judge Do not compare Do not be jealous Do not gossip Do not talk too much Do not offend people Do not cheat Do not lie Do not steal Do not brag Do not worry Do not be sheepish Do not hold yourself back
Nobody has to follow any of these suggestions; everybody is an independent business owner. But we have to take full responsibility for our own behavior because what we say and do will have consequences. Smart people are proactive and think through the consequences of their words and actions before they open their mouth or do something. It is much easier to hurt somebodys feelings than it is to lift their spirit. We can tell a great leader by how he/she handles little people. The existing business environment is a fertile ground for the new people to learn and to develop into a successful entrepreneur. They will duplicate what they see around them. Monkey see, monkey do! Nobody has a boss, everybody is a volunteer. So far everything sounds like a fairy tale, so where is the catch? People! Where there are people, there will be problems. All sorts of problems! In order to develop and to maintain win/win relationships in a large organization we need to learn how to respond to, how to handle, and how to solve problems. As I mentioned in the previous lessons, most

problems are centered around power, sex, and money. People make mistakes and those mistakes will affect their relationships with each other. In a large organization there will be friction between people the same way there is friction in any family. Some people grow faster than others, some people make more money than others, some people look better than others, and some people have more influence than others, etc. As we are locked together in a family for life, similarly, we are locked together in the business with our business partners. Some stay around us for a while and some stay around us for a lifetime. Lifetime relationships are based on win/win arrangements, forgiveness, mutual trust and respect. In times of trouble relationships get tested and become either weaker or stronger. In order to hold together our group we have to understand the problems of our business partners. There are two different kind of problems: our own problems and other peoples problems. Unless we solve our own problems, we can not really assist other people in solving their problems. If we focus on our own problems, we probably will not even notice other peoples problems, let alone being able to give them a helping hand. As the saying goes: Bitten by a mosquito hurts me more than you being bitten by a dog! We have to solve our own problems first, making sure that we are not part of the problem, but part of the solution. When I started the business my first problem was that I was not a people person. Some people are very open and outgoing, at ease amongst other people. I was exactly the opposite. I did not know how to start a conversation, what to say and what not to say. I was very timid and shy, almost sheepish. The first lesson I learned in order to overcome my problem was to take an interest in other people. I learned the technique of asking questions and listening to the answers with my undivided attention. In my conversations with people I listen 80% of the time and talk only 20% of the time. When I talk with people I always encourage them. Criticizing, blaming, and condemning create negative emotions and do not work. I do not criticize my business partners for doing something wrong, but instead I usually ask some

uncomfortable questions in order to make my point. I tell them how I would have handled the same situation, or point out what the possible consequences are that they might have to face. The worst thing a leader can do is to criticize people publicly from stage or behind their back. If I can not say something good about a person, then I would rather keep my mouth shut. On the other hand I am not prepared to listen to those people who criticize, blame or condemn others. Some people are so jealous of the success of other people that it oozes out of them. In team play like the Network Marketing/MLM business jealousy is a self distracting emotion. People will feel it and they will avoid the jealous person at all cost. The rules are very simple: Do unto others as you would have them do unto you. Words and deeds are like a boomerang: they come back! Being judgmental does not help to form or to keep a win/win relationship either. Nobody likes to be judged by other people. Sometimes upline think that they know everything and they are right all the time. If this were the case, then they would have to ask themselves the question of whether they want to be right or they want to be rich? People will avoid those who belittle them and perform best in a positive atmosphere where they feel important. Our business partners feel important when we know their names and the names of their children! Our business partners feel that we care about them if we spend our time with them! They feel special when they get a hand written note or postcard. When I talk to people I always look into their eyes with genuine interest because I respect them. I want them to know that I want the best for them. Some people use their business partners to get ahead in the business. Where their heart should be there is a cash register. They treat their business partners like numbers not like real people. This behavior may work for a while, but sooner or later people find out and the relationship will be over forever, usually in a dramatic way. Some people think that their job is to help their business partner build the business. I do not think Michelin makes tires in order to help BMW sell cars. I do not think Microsoft makes software to help IBM sell computers. I have never

promised people that I will help them build their business. Why would I do that? My job is to build my own business and to feed my own family, not somebody elses. Some people in their proposition enthusiastically say that they will help their downline build their business. In my opinion, helping people in a business environment does not help them at all. It just makes them weak and dependent, but not successful. If you give him a fish you feed him for a day, but if you teach him how to fish you feed him for life as the Chinese saying goes. I would like to empower people and act as somewhat of a catalyst enabling them to build their own business without too much involvement from me. When I am able to achieve that, then I am truly free because my business functions without me. I do not want my business partners to depend on me; I want them to be independent of me. I set up my business in such a way that it works with or without me. Therefore I would rather promise less and deliver more than over promise and deliver less. I never make a promise that I know I can not keep in the first place! As soon as I realize that for whatever reason I can not keep my promise, I call the other person and explain the situation. As in politics, in business apologizing can show a sign of weakness, therefore an explanation is much more appropriate. I gladly visit the homes of my business partners and eat with them if they invite me to do so. I love to eat and my business partners know it. So if they want me to come over to their place, all they have to do is say that there is going to be food there. Eating together with people in their own homes has something sacred and intimate about it. It is the best place to form a relationship. When I have a challenge meeting, I like to start by eating together with the people because it opens them up. With a pizza party sometimes we can achieve more than with a serious business meeting. I have no recollection of the great problems of building the business, but I have great memories of eating together with my best business partners. I never drink alcohol when I am building the business! I want to give my very best and I need 100% of my mental faculty. Drinking alcohol is reserved for private occasions.

Because the business is based on performance I am very lavish with recognition. Congratulating people for their achievements, shaking hands, giving hugs and flowers, giving compliments, little or great gifts create unforgettable memories and strengthen the relationship. When Anik and Gbor Nagy reached the Emerald level, I invited them to our holiday home in Spain to spend some special time with them. My wife and I took them to our favorite seafood restaurant on the harbor, and we talked about their achievements and their future plans in the business. When my childhood friend Gbor Mt and his wife Gyngyi Szalai went Diamond, I drove them to Monte Carlo in my brand new BMW M3. We dressed up for the occasion and played in the Royal Casino all night. When Kati and Attila Gidfalvi went Diamond my gift to them was a trip to Hawaii. I booked the best room for them on the top floor of the Waikiki Hilton overlooking the ocean, and hired a Mustang convertible so Attila could go back and forth with me from the hotel to the CompUSA computer shop. Kati and Attila kept reaching new levels in the business so we had to take them to a more exclusive location. Judit and I decided to take them to the Formula 1 race in Monte Carlo. We stayed in the same hotel with the drivers. Attila met Barichello in the elevator; I had breakfast with Jarno Trulli who won the race. We have created unforgettable memories. These things certainly build good relationships, but what about the problem people? Well, these are the problem people! The reason they are on the top of my list is not because of not having problems, but despite of our problems we made it together. There was a survey in the USA about what activity is the most likely to hold a marriage together, and the answer was: camping! Why is that? Because when a family is going camping, something ought to go wrong. Solving the problems together, forgiving and helping each other, bonds a couple and a family together. Overcoming the challenges create unforgettable memories. The family members will laugh and talk about them for many years to come. The same thing happens in the Network Marketing/MLM business.

When we face the challenges and problems in the business together with our business partners it can reinforce our win/win relationships. We may laugh and cry together, but at the end of the day we only remember the good things. Some people stay open minded and are willing to change and adapt to new circumstances, but most people want to stay the same. Most people resist change, and they want to keep the status quo. They want other people to change for them; they want the whole world to change for them. I have seen many people in the business who wanted to change their business partners and failed miserably. There are three types of birds in the Network Marketing/MLM business: The turkeys, the chickens and the eagles. Turkeys are one of the dumbest animals on the face of the earth but some people can outperform even them. Nothing is good enough for a turkey type of person. They are the trouble makers and the losers of the business. Chickens do not make much difference. They pick a little here and they pick a little there. Chicken type people make up most of the Network Marketing/MLM business. They are not really committed and they do not really build the business. Sometimes they do something but lose focus very quickly. Eagles are free and fly high in the sky. Eagles have sharp eyesight and they focus on what they want. In the business, eagle type people are the real leaders. Most people instead of becoming and finding an eagle want to make eagles out of chickens and turkeys. They want to help them, and to teach them how to fly. They give them seminars about flying and spend their valuable time and effort trying to change them. Do not waste your time! Turkeys and chickens will never fly no matter what you do with them.
Become an eagle and find an eagle!
James Vagyi


20 THE WINNING ATTITUDE
When we look at the game of life some people have a winning attitude that separates them from the rest of the people. Most people will never be successful and they will lead a mediocre life. In the Network Marketing/MLM business there are also winners, those people who develop large organizations with outstanding people (winners). What makes the difference? Why is it that some people are more successful than others? Is it in their genes or in their upbringing? Is it because of their education or were they simply lucky? What separates the winners from the average people? Throughout history in every generation there were outstanding people. They were not satisfied with the state of things around them and they wanted to change things for the better. These people are the movers and the shakers of every society. They are statesmen and artists, athletes and entrepreneurs, teachers and philosophers, scientists and religious leaders, inventors and revolutionaries. These people think different, learn different, behave different, and work different because they developed winning habits. They use their power to influence people to be better and achieve more. Winners are those people who are on their way to realizing their full potential, who are on their way to becoming the very best person they could possibly be. Winners are happy people, with beautiful families, enjoying life to the fullest. Winners are genuinely respected by their peers, their friends and their family. Winners have a great life that is worth living. Winners are achievers in the most important aspect, meaning they have made a success out of their own lives. They became successful not at the expense of others, but rather by creating opportunities for others. Winners are optimists and they expect great things to happen to them. Winners give their very best in all situations because that is just the way they are. They are upbeat, energized, enthusiastic, and smile a lot. Winners are team players who work best with people. Winners are students for a lifetime, because they decided that they will never stop learning,
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changing and developing into a better, more caring and more productive human being. Winners inspire others to do their very best. Winners uplift and encourage people everywhere they go. Winners see and/or create opportunities around them. Winners are lovers of life: they enjoy the sunrise and the sunset, the sea and the mountains, their youth and their old age. They are happy in winter and they are happy in summer, they feel great by themselves and they feel great amongst people. No matter what happens to them, they turn it into their own advantage: they either learn or profit from it. Anybody could be a winner but most people will not be. Every single person has an attitude and it is either positive or negative. People with a positive attitude see the bright side of everything; people with a negative attitude see the down side of everything. Positive people see the opportunity in every problem and negative people see the problem in every opportunity. Positive people think about how it can be done, negative people think about why it will not work. When I started my Network Marketing/MLM business I was a total failure and I had to reinvent myself in order to become a winner. The first thing I did was to change my attitude about success, work, learning, money and people. I had to redefine what success and failure meant to me. I realized that success is not a destination, or having money and material things, but a state of mind. I feel successful when I am getting closer to my goals and dreams, and I feel unsuccessful when I am getting further away from my goals and dreams. I have met many unhappy people with lots of money who felt unsuccessful because they were getting further away from what they really wanted. When I started my Network Marketing/MLM business I had no money but I had a winning attitude. I was ambitious and I was ready to learn and ready to do the job whatever it took. Although I was completely broke, I felt extremely successful when I sponsored my first business partner, my friend Peter Pawlek, into the business. Peter quit two weeks later and he gave me back his starter kit demanding his money back. He told me that his friend who had just come from Poland explained to him that the business was a pyramid and
therefore it was illegal. But by the time Peter quit I had sponsored my friend Phillip Morgan into the business. Although I lost half of my business in one night I was optimistic that I was going to make it. I felt excited and like a winner because I was on my way towards my dreams and goals of becoming a millionaire entrepreneur. From the day I sponsored Phillip my Network Marketing/MLM business grew exponentially. I have surpassed my initial dreams and goals a long time ago, and set new ones over and over again. Many people think that they already have to be successful in order to sponsor people. No! They have to be hungry for success and that is all it takes to sponsor people. Nobody can resist a committed person who has a burning desire. Most people never commit to anything because they can not make up their minds what to stand for. Because they do not stand for anything they are prone to fall for everything. Most people who start their Network Marketing /MLM business would not stand up for their own business. They think that the business is good as long as their friends think it is good. They poke it with a stick to see whether it moves like when you poke a dead snake to make sure it does not move. Most people are so insecure of their evaluation that they need other people to reinforce it. That is one of the reasons why seminars are so important, because most people in the business are not sure that they are in a good business. Why are they not sure? Because they can not tell the difference between good and bad! Is smoking good or bad? Is drinking good or bad? Is eating junk food good or bad? Is taking drugs good or bad? Is spending borrowed money on consumer goods good or bad? Most people give the wrong answers to these questions. Most people give the wrong answers to the business proposition. We should not be discouraged by this fact but be excited because in the Network Marketing/MLM business there is no competition. Most people never make it, not because the business is no good, but because most people will not recognize how good it really is. I had to change my attitude about work. I was employed at the time I was sponsored into the business, working as a professional salesman,
flogging office equipment, mainly mobile telephones. My turnover was over 100,000 AUD every month. I had a minimal retainer salary and a percentage of the sales volume. I had my own office on a busy street, a top model mobile phone and a fancy business card. My income was over 5000 dollars every month. Most people would love to have a job with such an income! In todays money, adjusted to inflation, it is worth about 10,000 dollars. The reason most people would never get a job like that is because it was not a job, but a business arrangement! It looked like a job on the surface but in reality it was a business. In a job people get paid when they show up for work, in a business people have to create volume, and part of the profit is theirs to keep. As a professional salesman I have developed the entrepreneurs work ethic, and when the Network Marketing/MLM business opportunity came, I was ready. Chance favors a prepared mind as the saying goes. Most people are not prepared to work under the conditions of business. They want job security, a fixed salary, retirement benefits, paid holidays, etc. Who pays for all that? The entrepreneur! Most people in a job work as little as possible for the money they get. Business owners work as much as they have to in order to maximize profits. My attitude about work is this: I am prepared to work as hard as very few people would. But at the same time I am not prepared to work for money! This was a radical change in my attitude about money. In my observation those people who work hard for money have no time to create wealth. They use all of their time, energy and mental power to earn money and that is it. Most people do not take the next step to free them from the slavery of money in order to become truly wealthy, and financially secure and independent. How do I know that? 100-64-5-1! So when it comes to money, most people have no idea what is going on. In a capitalistic society where mans wealth revolves around capital, I decided to be good with money. Over the past 20 years my hobby was to study the nature of money. I have read hundreds of books and articles on the subject, interviewed hundreds of people in my previous profession as a financial planner, and
counseled hundreds of my own business partners in my Network Marketing/MLM business. My observation about money is this: money does not exist by itself, but coexists with its owner! Every single penny is owned by somebody, and I view money together with its owner. Individuals own money, institutions own money, companies own money and governments own money. It is not how much we earn or how much we own that makes the difference but what we do with our money. The very best investment I have ever made was investing 20,000 AUD into my own education. I bought 100 books, hundreds of audio recordings and attended dozens of business seminars. Most people do not understand the value of self development and they would rather spend their money on fancy televisions and hi-fi sets, clothes and mobile phones. The funny thing I have observed is that the dumber a person, the least he/she values education, the smarter a person, the more he/she values education. A dumb person does not want to know more, a smart person wants to know even more. The more I know, the more I realize just how little I know. When I started my Network Marketing/MLM business I adopted a teachable attitude. Although I was a professional sales person I realized that there were differences between selling pension plans, mobile phones and a business opportunity. I wanted to learn as much as possible as fast as possible about my new business. Most people who come into the Network Marketing/MLM business think that they know everything already and they do not need to learn anything. How do I know that? Because 90% of the people who join the business do not even come to the training seminars! I believe that I can stay ahead of most people if I am smarter than they are. By being smart I mean street smart! Sitting in a classroom learning something from an unsuccessful teacher on a minimal wage with a fancy title next to his/her name is not my way of getting smarter. It may be good enough for the average person, but it would be a waste of time for me. I want to learn from the very best person in any given field! Yes, it costs more money but the information has infinitely more value. When I started to build my
Network Marketing/MLM business I wanted to learn from the best network builders. That was the reason why I went to all of the seminars and listened to all of the audio recordings. Most people think they know everything already and that they do not need to learn anything new. I was very humble from day one, and I am very humble even today because I know that I need to learn more in order to become more. In fact, I see my life as a continuous educational process of learning, changing and adapting to new situations day after day. Because in the Network Marketing/MLM business we are working with people, I had to change my attitude about how I think about people. Before the business I was a loner and very much self-centered. Other people were a nuisance in my life and I wanted to avoid them as much as possible. I did not like to go out and socialize with people; it was a waste of time in my opinion. When I went to the first business building seminar somebody said in a speech that the business was very simple, and all you had to do was sit down to chat and drink coffee with people. I almost died when I heard that statement because I immediately felt the pain of the enormous change I would have to go through to be able to build the business that way. I had to change my attitude about people in a big way. I had to go out to meet people and actually talk to them. Living in a foreign country complicated my situation further because I knew my English was not 100% perfect. This was an excuse of course, but it was a very handy one. And to make things even worst I never liked the taste of coffee and I do not drink the stuff. For a brief period of time I thought that the Network Marketing/MLM business was not for me. Talking to all sorts of strange people and drinking coffee with them seemed too much of a price for me to pay. But I changed my attitude. I thought, well, I can drink tea instead of coffee, and if I keep asking people questions I do not have to talk too much because they will do all the talking. All I would have to do is to listen to them. I thought it was a small price to pay to become a millionaire. Thats how I changed my attitude about people. Over time I began to love people. I gave up a long time ago trying to
change them. I accept people the way they are. Many people do not understand how on earth I can work together with strange people who are very difficult to deal with. My secret is very simple: I accept them the way they are and I do not try to change them! Instead of looking at their shortcomings, I look at their strengths. There is good in every person, even in the hardest criminal. And at the same time there is some bad in every one of us, even in the very best person. So why waste our precious time on the hopeless task of changing another person when we need all the time we have assigned to us to change ourselves for the better? So I accept people the way they are, and I do not want to change them at all, but I always look at them as to who they could be! I had to change my attitude dramatically in order to be able to build a large, profitable and professional Network Marketing/MLM business. This is the reason why I respect so much those people who are willing to change themselves. The reason it is not easy to change ourselves is because our attitudes are locked together with our habits. The way we see things and the conclusions we reach because of this are distorted through our prejudices, habits and attitudes. Developing a winning attitude is like looking at the world through a different pair of glasses. With our existing pair of glasses we can not see a better future for ourselves. We can only see what we have already seen. If we want to change our future for the better we need a new pair of glasses. Remember this: you are going somewhere where you have never been before, but where you are going in the Network Marketing/MLM business, somebody has already been there before! You can learn a lot from those people who have already been there and done that!
Enjoy the journey!
James Vagyi
21 PUBLIC SPEAKING
When I started my Network Marketing/MLM business I joined just two days before a business building seminar. My sponsor, Grant Hilford, sold me a ticket when I joined the business, as he should have, and I attended my first meeting. There were lots of people at the seminar and everybody seemed very excited. Successful network builders were the speakers, and they were talking about their story and why and how they built their Network Marketing/MLM business. The speeches were really interesting. There were also some recognitions of the new achievers. In the beginning, people said their name, their suburb or city, their profession, and the names of their sponsors and upline leaders. Some people were so excited and/or so nervous that they forgot the names of their sponsors and upline leaders, and some even forgot their own name! There were two nurses introduced who had reached the Pearl level in the business, and the one who got the microphone first was so nervous that she could not say her name! I thought if these people had reached the Pearl level, then I am going to be a Diamond in five minutes. Speaking in front of people is not easy. When I was a kid I was very shy. Once I had to recite a poem in front of the whole school. After the second paragraph I forgot my line and I started to cry. Everybody laughed. At home my parents watched the evening news and sometimes I watched it with them. Every now and then the news reporter would make a mistake. I felt so sorry for the poor person that I started to worry about whether he/she would make another mistake. In Sydney, Australia, I wanted to start my own business, and I went to a government sponsored agency similar to the chamber of commerce. There were four or five other people there like me, and an officer from the agency. The officer asked everybody to introduce themselves and in a few sentences explain the kind of business each one of us wanted to start. As I stood up my face turned red like a herring and after finally saying my name I forgot the type of business I wanted

to start. I was very embarrassed. Every time I had to say something in front of people my face turned red. This was the main reason why I wanted to avoid talking to people. At my first job in the electronic company I asked my boss for a pay rise, and instead of giving me more money he said this, If you want to earn more money you need to learn English, open your mouth and get into sales. That is where the big money is, not in manufacturing. When I applied for a job in a brokerage and got into sales I had to learn to talk to people. I talked to people over the telephone in order to set up appointments, and I talked to them in person about their financial situation. At first I was very nervous and focused too much on myself so as not to make a mistake. Then slowly my focus shifted to the other person and things started to fall into place. In my initial sales training they told me how to deliver a presentation and how to handle the various situations that might occur. By the time I got into the Network Marketing/MLM business I knew how to handle people in a one on one situation, but I did not know how to talk in front of crowds of tens or hundreds or thousands of people. Many people are frightened about the aspect of public speaking when they join the business. They can not imagine what they would say, and they worry about what other people might think. They look at the excellent speakers on stage and they conclude that they could never speak like them. Nobody was born a public speaker, everybody learned it. People have different personalities, and some feel very comfortable on stage and some of us do not. I have never felt at home on stage, it is not my scene. However, without talking to and influencing people nothing much will happen in our Network Marketing/MLM business. Speaking in front of people is the most important tool for building the business. It starts with the marketing plan presentation, our proposition, and as the business grows, we have to address our people on different topics and for different reasons at larger meetings. What is the definition of a good speaker? A good speaker gives his/her very best on stage because he/she has a clear goal as to what he/she wants to achieve with his/her

speech. A good speech contains the elements of relevant information: motivation, personal stories, examples, humor, edification, and inspires people to take action to do something great with their lives. A good speaker holds the attention of the people and makes them laugh and cry in order to lift their spirit. There are a few people who trained and perfected themselves to be great speakers. My three favorites and close friends are, Bodo Schaefer, Brian Tracy and Doug Wead. I have listened to hundreds of speakers, but in my opinion Doug is the greatest of them all. The very first professional speaker I ever heard was on a cassette tape, by the name of John Lees. John was talking at a conference about sales techniques and I bought his tape. Later on I met him personally and we played soccer together for a while on Sundays in the old boys club in Sydney. The reason his speech made such a huge impact on me was because he was totally confident and utterly humorous in delivering his speech. I liked his speech very much and even 20 years later I can still remember some of his jokes. I asked myself the question when I started to build my business of how to become a good speaker? There are many courses that teach people how to speak in public. Many of these courses cost a lot of money. As I mentioned in the earlier lesson, the greatest fear people have is of public speaking. The good news is that in the Network Marketing/MLM business becoming a speaker is a necessary but a fairly natural process. Usually before people realize it, they have already become public speakers. How does this happen? As a network builder goes through the process of becoming a key person, automatically as a byproduct, he/she is becoming a public speaker. It starts at the first group meeting, where the new people are introduced and they are asked to stand up and say their name, profession and the reason why they started the business. It is a very friendly environment designed to make new people feel accepted and appreciated. They learn from each other what to say and how to say it. The reason this environment is not threatening is because everybody is very much the same. The first time I went to a group meeting I had

to stand up and introduce myself because I reached the 3% level. I was worried that my face would get red so I was hoping I could get away with the recognition part. But my sponsor was so excited that he specifically pointed out that he had found somebody who just started the business and everybody had to listen to this guy. When I stood up I was very nervous but funny enough my face did not turn red. I was kind of proud of my achievement and from then on my face never turned red again. Every time I reached a new level I had to tell others how I did it at the recognitions. I realized very quickly that I wanted to tell my business partners how I build the business because I wanted them to succeed just like me. That was the turning point for me. Although I never liked the stage, I wanted to share my experience with my business partners, and as the numbers grew, and numbers grew very fast, the meetings got bigger and bigger. 18 months later I filled the Budapest Sports Arena twice with 10,000 people. By the time I realized it, I had become a public speaker and so had my business partners who had people at the seminars. I learned some lessons on the way. I showed more than 1000 marketing plans, 99% being in home or open plan presentations. After the open plans I always do a second part, a start up session or a specific topic. I have attended over 500 seminars being a speaker myself, and listened to other speakers. I listened to over 1000 audio recordings and read more than 1000 books and articles. I spoke in Hungarian and in English, I spoke with translators, I translated myself for hundreds of speakers and I translated for myself from English to Hungarian while on stage. I have spoken all over the world to thousands of people: in Australia, Hungary, USA, India, Turkey, China, South Africa, Italy, Romania, Greece, Slovakia, Czech Republic, Ukraine, Germany, Poland, Croatia, Austria, UK, Slovenia, and the last time in Russia in front of over 20,000 people. The Network Marketing/MLM business is built with meetings! Speaking to people is a great opportunity and a huge responsibility at the same time. When I went Pearl I was invited to Canberra, Australia to speak at a weekend seminar. I got 45 minutes to tell my story, but

they changed the program and my speech was cut to 15 minutes. The only problem was that they forgot to tell me! The 15 minutes flew by so quickly that I could hardly begin my story. After 15 minutes the MC tried to signal that my time was up, but I was so nervous and so excited that I did not notice him. Two large guys came up on stage; they grabbed me by my arms, lifted me up and physically removed me from the stage. This was my first professional speech and it happened in front of 2000 people. It was very embarrassing and not a great start. Later on I found out about the mistake but I have learned a great lesson: keeping the time is very important! I have learned many other lessons on the way, so here are some of the dos and donts of talking on stage: - Put on the right clothes. I wear black or blue suits and ties with some red in them, because these colors have the most authority on stage. Dove grey and brown is what old people wear, not young dynamic entrepreneurs. People believe more from those men who wear dark blue or black. Other colors like red or yellow or green might be ok at a beach party but they are a big no for onstage. For women the best is a business suit. Avoid the clothes that you wear for a romantic evening because other women might be jealous of you and not listen to your speech, and men may look at your legs and they may think about other things rather than your speech. - Decide what you want to accomplish with your speech. There has to be a specific reason for every single speech. I know exactly what I want to achieve with my speech: I may want to inform, to teach, to motivate, to inspire, to correct, to edify or to promote something or somebody using the stage. Never promote yourself because people will turn away from you. Promote the leaders in the room. - Use the language that you use when you talk to your spouse, children and friends. Official language is out of place and sounds phony when we

sponsor our parents, brothers, sisters, children and best friends into the business. Create the atmosphere of a large family. - Refer to a third party. Nobody likes to be told. Do not use the You have to. You must. phrases too often. I would rather say this: The system teaches that The leaders do thisThe key person does thatetc. - Use personal stories to illustrate your points. Be extremely careful using stories about the people in the audience. They may not take it the way you meant it. If you mention the name of a leader in the audience you should mention all the others, too. You have to know their names otherwise you may make a fool out of yourself. - Do not talk about sex, politics and religion on stage promoting your own views as the ones to follow because these topics can divide people and you want your organization to be united, not divided. Do not use bad language because it may offend some people and they may think that you are primitive or an outright idiot. - Always use notes. I always have a piece of paper in my hand or in my pocket but I never read my speech. On the piece of paper I write down the key points of my speech and what I want to achieve with my speech. When on stage I look at my notes every now and then, I do that to change the subject or the rhythm of the speech. Do not look at your shoes or the floor but always look in the eyes of the people. I often talk like I would talk to just one person in the audience. - Change your pace, your rhythm, or the tone of your voice in order to keep the audience interested. Be very careful how you get the audience involved. You may ask questions and the audience can respond by standing up or raising their hands. Never ask or provoke the audience to clap for somebody. It is unprofessional. If they want to clap they will do it anyway, and if they are manipulated it is going to backfire on you

anyway. Do not shout at people. You may raise your voice to get attention, but shouting is offensive and very unprofessional. - Get used to the lights. Do not say that, Oh, I can not see you from up here because the lights are pointed in my eyes. Nobody is interested in hearing that. The spotlights are necessary so people can see you from a distance and because of the picture quality of the projectors and the video recordings. Spotlights are hot, the atmosphere is hot, and so chances are that you may sweat on stage. It is perfectly ok to dry your face with a handkerchief or to drink a little water. - Keep the time. Before I go up on stage I always confirm with the MC how long I have to speak to avoid such a mistake like the one at my first speech. I always look at my watch when I go up on stage, and if I do not have a countdown clock set up for the speakers, I ask somebody in the front row to remind me 5 minutes before the end of my speech. - Leave with your best punch. Build up your speech in such a way that it leads up to a conclusion of your main message. Accept and thank people when they are clapping, but do not stay up there too long. Get off the stage before the clapping starts to vein. Be ready to receive the congratulations of your peers and people from the audience, but do not spend too much time with any single person because you do not want others to stand in line and wait for you since the show must go on. Great speakers speak from their heart. That is the reason why they do not have to write down their speeches in advance and read them from their notes; it is written in their heart. They listened to the audio programs, read the great books, and attended many seminars. They have something to say because they did the job. Their heart is full of their own stories and experiences because they built a profitable and professional Network Marketing/MLM business. When they speak from their heart people love to hear them.

See you on stage!
James Vagyi

22 COMMUNICATION
The chain of command and the communication between leaders is a critical element of every organization. In the Network Marketing/MLM business, communication starts with communicating with our sponsor and/or our upline. In the beginning our sponsor or our upline should initiate communication because he/she wants to set the stage for building the leg. Our sponsor already has a way of communicating with his/her business partners so it is our job to fall in line. Here are the most important questions about communication: 1.) With whom should we communicate? 2.) How should we communicate? 3.) Why should we communicate? 4.) What should we communicate about? The reason why we need to communicate is because we might have a problem or a question and we want to find out how our sponsor/upline would handle it. We may need a second opinion or advice. We may need to counsel or change the strategy. We may have to give information or instructions to our business partners, or we may just want to share the good news with each other. Good news should travel right across the whole organization, bad news and problems should go upline only! When our sponsor or our upline found in us a person who wants to build the business, the communication should start to go back and fourth. There is no specific rule as to how many times or which way business partners should communicate with each other. Common sense says that as often as needed. Sometimes I get 10 phone calls from the same person in a day because things are moving so fast, sometimes there are no calls for weeks. When somebody becomes a key person, from then on he/she should call his/her sponsor and/or upline. The concept is very simple: everybody makes just one phone call upline, instead of everybody making 10 or 20 calls downline. Sometimes our sponsor is not active, or not a key person or he/she may be

jealous of us, so in that case we need to find the next key person on our upline. Never take counsel from somebody who is not your upline, or who is not actively building the business, or who you can not set up a win/win arrangement with. Communicate only with people on your upline who have an interest in your success. It is not necessary for our sponsor to have an interest in our success! Based on the compensation plan and common sense, our sponsor should be interested in our success but people can be strange sometimes. Some fathers may be jealous of their sons and some mothers may be jealous of their daughters. Some parents sell their children, some dump them on the street, and some may even kill them. Do not be nave! Your sponsor may quit or he/she may turn out to be a complete idiot. Think for yourself and work with somebody on your upline you can trust to develop a long term win/win relationship with. This is the most critical step in the business, to find somebody that you can trust and you can communicate with openly. In building our Network Marketing/MLM business we communicate with five different categories of people: 1.) We communicate with our sponsor and/or our upline 2.) We communicate with our business partners 3.) We communicate with our customers 4.) We communicate with our crossline 5.) We communicate with our prospects When I started my Network Marketing/MLM business my sponsor was not very active in the business, he was much younger than me, and far less experienced in dealing with people. The great thing Grant did though was that he introduced me to our upline Ruby, Michael and Julia Abrahams, right away at the first business building seminar just two days after joining the business. From then on I was communicating with Michael only. Why was that? Because I had nothing in common with Grant, and he lived in Richmond very far away from where I lived in Sydney. But at the same time Michael was my age and I had

very much in common with him. It was like a perfect match, an instant win/win relationship. He lived just two blocks away from me and it was very convenient for me to meet him in the evenings. After showing marketing plans at 6 oclock and 8 oclock in the evenings, I went over to Michaels place and we talked for hours into the night drinking some red wine or port. We were excited about the business and we talked about our wild dreams and goals! I liked Michael because of his values and the kind of person he was. Communicating with Michael was easy, spontaneous and natural, and it still is today. I had found somebody I could trust to maintain a win/win relationship with. Something like this is very rare in life and it occurs even more seldom in the Network Marketing/MLM business. Going over to Michaels place was fun and uplifting. He lived in a beautiful villa in one of the most expensive suburbs of Sydney. Not very many 30 year old young men were living the life of Michael. He had a fantastic career in the Australian Army, he had a beautiful wife, Julia, he was driving a Porsche, and he had a fast growing, profitable and professional Network Marketing/MLM business. Going over to Michaels place I noticed something. In his home office he had a telephone with speed dial functions. The 10 speed dial buttons had names assigned to them. The names were written below the buttons in the little spaces on the top of many layers of liquid paper. In the third month my name appeared on Michaels phone. I became one of his 10 best business partners, and I wanted to be number one. I learned a great lesson: people come and go in the business! When calling Michael or going over to his home I did not want to burden him, be a nuisance, or waste his time. When it comes to our business partners, communication may not be as simple or easy as this. Some people are high maintenance and they use their upline as an emotional garbage bin. Some people expect or demand regular counseling sessions on a monthly/weekly/daily/hourly basis. Some people want to sit down formally, setting up an official appointment using statistics, charts and numbers to talk about the business. Some people never open up, and they keep an arms

length distance from us for some unknown reason. Some people want to use us and manipulate us. Some bend the rules, twist the numbers, have a good explanation for everything and think that he/she knows everything better than anybody else. The way I communicate with my business partners is very simple: I listen and think! I do not say anything, just listen and try to figure out where the other person is coming from. Why he/she is saying what he/she is saying? What is the real and/or hidden agenda here? How can I help or add value in this situation? Should I offer a solution or just ask a question? I keep my communication very simple, and I always make sure that the other person understands what I am talking about! When I communicate with people I always tell the truth! Even if the truth might be painful for the other person to hear! If we really care about somebody then we owe it to him/her to tell him/her what we really think. People do not like to hear the truth; they like to hear what they want to hear. How we tell the truth makes all the difference! Some people are very arrogant and insensitive when they communicate with their business partners. Being brutal can hurt the feelings of many people, especially women. If we really care about somebody we can package our words the right way, and even if we make a mistake we can apologize and we will be forgiven. Some people use the tactic of threats and blackmail. They say something like this: If you do not come to the seminar I will not work with you! or If you do not follow the system I will not counsel with you! My absolute favorite is this one: If you do not do whatever I say you will be kicked out of the system! As the president of Diamond Alliance I have never authorized anybody to say something stupid like that. Nobody can kick anybody out of my system! This is not how Diamond Alliance works. Communicating threats to instill fear in people is the usual tactic of a dictator type person. Manipulation might work well with some people for a while, but I would not want to build my business that way! Some people manipulate the information and usually refer it back to their upline: I talked with my upline and he/she said

this If it is true of course we can refer to our upline in our communication, but some people systematically say things that the upline has never said. Lying is the worst type of communication, but it is not absent in the Network Marketing/MLM business. The most intensive communication occurs in the Network Marketing/MLM business at the end of the month. The phone lines are red hot because everybody wants to rake in all the points for his/her business. Last minute orders and applications can mean the next business level for many people. Because the business is driven by recognition, everybody is focusing on reaching the highest volume possible up until the last closing minute. Because there is a deadline, there is urgency. Smart network builders are very organized and highly effective in communicating the relevant information through the line of sponsorship in order to achieve maximum results. Communicating with our customers is different from communicating with our business partners. We sell products to our customers so that requires another approach. Rule number one: the customer is always right! Rule number two: in every other case the first rule is applied automatically! Our customers are handled by Judit and she is a master communicator. She has lots of friends and they love to talk to her because she listens to them and genuinely cares about them. She usually orders twice a month and before placing the orders she calls her friends to find out what they want to order. Because of the timing there is an urgency factor in the call and she says something like this: I am going to order this evening, what would you like me to order for you? Thanks to Judit, our average personal volume is around 800 points every month. How to communicate with our crossline we have covered in the earlier lessons. You may talk about anything but the specifics of your business. Communicating with our prospects is a critical part of the business. There are two kinds of prospects: The ones who are on our list, and the ones who are not on our list. The first number is around 200-300; the second number is in the billions. Everybody is a prospect who is not already building a Network Marketing/MLM

business. We can get to know people or make friends with anybody that we choose to. All we have to do is to talk to them and to take a genuine interest in them. Everybody can be sponsored into the business if we communicate the opportunity the right way to them. Many people mislead their prospects in the way they phrase their invitation and/or their proposition. The following phrases communicate weakness, and they can be misleading: You do not have to do anything, I will build the business for you! or I will help you build your business! or There is no selling involved! or All you have to do is just join and I will make you successful! etc. Our words should communicate confidence and commitment. I communicate with people either by using the telephone, by e-mail, sms, internet, Skype, fax, mail (sending postcards) or in person. I use the mobile phone most often and I always stand up when I am talking business on the phone. Sitting in front of the computer is not my scene (I would much rather be with my wife and my children), but when numbers are involved I like them to be written down. That is when I use e-mail, sms, or fax. I use this internet e-training to communicate my knowledge and my experience with my business partners. I send them postcards from exotic locations to motivate and to inspire them. Because of the size of my business, I run an office and I employ people who help me to communicate with my business partners. When I am traveling, or counseling, or speaking to people, or being with my family I do not pick up the telephone. Very often I am in another country. My staff is always around to pick up the telephone, to receive the mail, and they know exactly how to reach me if something is urgent or important. They are a great help to me because I can delegate many tasks to them. My staff handles my correspondence, my banking, my invoicing, and my bookkeeping. They send out the e-mails and all other information to my business partners. They handle the orders, the tickets, the books, the audio recordings, the e-training, the website,

and organize the meetings and seminars. They organize my trips, and book my flights and accommodations. They communicate with the staff members of my business partners. No matter where I happen to be in the world, I can send and receive information and my staff will execute my instructions immediately. The basis of good communication is honesty and integrity. It is impossible to communicate with somebody who is not telling the truth, or who does not care. We communicate not just with our spoken or written words, but with our behavior and our body as well. Observing how people behave and how they treat their spouse, their children, and other people tells a great deal about them. Through our body language we also communicate with other people. The reason I stand up when talking on the phone is because this way I show respect to the other person. He/she can not see it, but will feel it 100%. We also communicate with our eyes and smile. When we smile at people, 8 out of 10 will smile back at us. It is a nice way to start any communication. When I look in the eyes of somebody it tells me everything, therefore looking in the eyes of people is the ultimate way of communication for me. Seeing eye to eye is where real communication happens. No matter what the story is, no matter what the words are, the eyes do not lie! That is the reason why we have to sit down and communicate in person, because we have to look into each others eyes. By looking into each others eyes we can reinforce our win/win arrangement without necessarily saying any words. We need somebody on our upline with whom we can communicate openly and effectively, and at the same time we need to find people in our business with whom we can do the same.
You can be the one!
James Vagyi


23 GROUP DYNAMICS
Groups behave differently than individuals. Putting like-minded people together in the Network Marketing/MLM business creates a special atmosphere in the air. It is very difficult to describe it or to explain it, but we all feel it. Something happens when ambitious people with similar mindsets get together. This magic can happen when two people unite their power for a common goal. There are two people in a marriage to start a family. There are two pilots on every commercial airplane. When two people work together to drive a leg in the Network Marketing/MLM business the results can come very fast. In my third month in the business I reached the level of 12% Leaders Club because I was working very closely with Michael, driving one of my legs to 17 deep. When three people form an alliance their power is unbreakable. It is easy to tear apart one thread but when you put together two cords it is very hard to break. Three cords put together are unbreakable. Wolves go out to hunt in packs and work together as a team. Birds fly in V formation to reduce drag in order to be able to fly further distances. These birds are so smart that they know the destination and how to get there, and take turns on the most tiring front position to save their energy. When a tired bird drops out of the flock another one stays behind to help. Cavemen were gathering by the fire every night. People go to church every week. Even when people get together without a leader or a purpose they can behave differently than they would by themselves. For example: normal people may behave violently at a soccer match simply because of group influence. There is a special atmosphere at rock concerts not just because of the band or the performers, but because of the kind of people in the audience. When people get together for a specific purpose, to support a leader, or to protest for or against something, the group has incredible power. Politicians know this, union leaders know this, entertainers know this, sport promoters know this and professional

network builders know this. There are different kinds of meetings where we bring people together in the Network Marketing/MLM business, because without meetings there would be no business at all. The first one is the in-home presentation of the marketing plan and/or the Open Plan. There are many reasons why putting people together to show them the marketing plan in a group situation is better than one on one. One aspect is group dynamics. People do not feel singled out or threatened amongst others because the information is not directed at them. The down side of this is that some people think that the information is for all the other people but them. The same applies to new distributor orientations, group meetings, nuts and bolts sessions, party plans, challenge meetings and business building seminars. We can achieve far more by being together than by ourselves individually. All of the great achievements of mankind were a team effort. All of the wars and revolutions that shaped our history so dramatically were possible because masses of people united behind a common cause. The roads, the bridges, the cathedrals, the universities, the pyramids and factories were built by thousands of people in an organized way. Leaders are the organizers. They organize masses of people for wars, revolutions or building something great. In the Network Marketing/MLM business the ultimate place to be is at the away weekends or as we call them: the weekend seminars. That is where it all happens. The people, the leaders, the atmosphere, the speakers, the recognitions all play a part in this special thing we call group dynamics. People go away from home to the seminar location and break away from their routine, spending three days thinking about their future. The reason we go away is to look at our life and our achievements from a different perspective. We dream about how we would live if time and money would be no object. We think about what ifs, other options, our jobs, careers, other possibilities and opportunities. We think about our spouses, our children, our family and our business partners. And we think about what we would need to do to build a fast, professional and profitable Network Marketing/MLM

business. Most people never take time out of their busy schedule to stop and think about the direction of where their life is headed. Most people go through life without coming in personal contact with a successful individual. They have no comparison of what else is out there, what else is possible; all they see around them is the same people all the time. People at the away weekends stop to think about their options for breaking out of the rat race. They have a window of opportunity to recalibrate the way they think about success, wealth, work, money and friends. They see lots of different people who are succeeding in the Network Marketing/MLM business, who have created new options in their lives with their own business. Successful networkers tell their story and how they built their business. People influence each other at the seminars in such a way that no individual by himself/herself could ever do. Scientists explain this phenomenon with the 100th monkey theory. A group of scientists observed the behaviors of monkeys on a remote island. When the monkeys accidentally dropped their food in the sand, they would not eat it anymore. All monkeys behaved this way on the island, and all monkeys behaved the same way on all of the other surrounding islands as well. The scientists observed that some of the monkeys, when they dropped their food in the sand, they washed it in the ocean and ate it afterwards. More and more monkeys followed suit and this new behavior spread across the whole island, monkey see, monkey do. But by the time a certain number of monkeys started to behave in this new way (that is the reason why they call it the 100th monkey theory), all of the other monkeys on all of the other islands started to behave in this new way, too, all at the same time! As if they were connected not physically, but in another mysterious way. Other scientists call this phenomenon the master mind principle. Napoleon Hill describes this principle in his famous book called Think and Grow Rich. It is as if we are connected together in an unknown dimension, and we have an uplifting, positive effect on each other. Nobody knows exactly what happens when people get together at the weekend

seminars in the Network Marketing/MLM business and start to think about the possibility of becoming successful, but one thing is for sure: that is the place where the leaders are born! People make decisions and get committed to build their own business at these seminars. New people often ask me the same question: Who should I take to the weekend seminar? I always have the same answer: Only the ones that you want to keep! It is like brushing our teeth. We need to brush only the ones that we want to keep. Those people who do not turn up at the weekend seminars do not build fast, professional and profitable Network Marketing/MLM businesses! I have not met anyone, and I have not heard of anyone who has built his/her business without the seminars. When I started my business I used my sales skills to sell as many tickets to the seminars as possible. The reason it was not difficult for me is because I realized that the seminars work for me to build my business. Amateurs look at a seminar ticket as an expense, professional network builders look at a seminar ticket as a tool! People at the seminars see a bigger picture than what I could ever show them by myself. The seminars advertise me as a leader and reassure my skeptical business partners that they are in a good business. I use the seminars as a tool to drive my business. People want to belong to somewhere, preferably a winning team. They belong to clubs, special activity groups, religious groups, political parties, environmental groups, and support various sports teams. Bringing people together at the weekend seminars provides a unique place where they can pick up the winning attitude and the right behavioral models from the successful network builders. They can find role models for themselves or they may find somebody who makes them really mad. Sometimes those successful people who look ugly, have no education, can not speak at all or say stupid things on stage motivate people more than the smart and the bright ones. It takes away their excuses and replaces them with the if they can do it, I can do it attitude. People learn from each other at the seminars about what to say and how to say it, they motivate each other, they put pressure on each other, and

they compete with each other. The professional network builder understands the importance of taking people to the weekend seminars. Wishful thinkers, pretenders and amateurs try to build their business by themselves at home. People left to their own devices will not come to the seminars, the same way as children left to their own devices will not brush their teeth. New people lack the perspective of an experienced leader, and they do not understand the concept of group dynamics, or if they understand it they may think that it does not apply to their people because their people are different. People may appear different because of the color of their skin, religious beliefs, educational or professional background, but in the Network Marketing/MLM business they behave exactly the same way! This was a very important realization for me in the beginning of my business because this principle enabled me to build an international business. My advantage was that I started to build my business in the multicultural country of Australia. I had all sorts of people in my business from day one: engineers, doctors, lawyers, teachers, factory workers, and sales people, who were Aussies, Irish, Welshmen, Chinese, Indonesians, Poles, Czechs; and I had one Hungarian, also, who quit my business after two weeks. The way people behave in the Network Marketing/MLM business is 100% predictable! People behave the same way in every soccer stadium around the world. The spectators behave the same way at every Formula 1 race track around the world. People behave the same way in the military, in restaurants, in politics, on the beach, in the factories, in business and in their homes. People are very much the same everywhere. Economists call this trend globalization. New age gurus call this phenomenon oneness. We call this behavior in our business group dynamics. Because people respond to the business in a similar way in almost every country, it makes our business portable, and our knowledge and experience usable all over the world. It is like playing chess, it does not make much difference where we play it. Once we know how to play the game, we can make money with it, at will, any time or anywhere in the world. This is no small feat

in the information age because there is a global demand of our knowledge and a global opportunity for our business. People respond the same way to
challenge meetings. These types of meetings play the part of an important tool in the repertoire of a network builder. Challenge meetings are like catalysts, they increase the speed and the intensity of the business building process. Challenge meetings have a specific purpose and a deadline. The challenge itself can focus on volume, for example: 200 points in 3 consecutive months, on sponsoring, for example: 5 new frontline in a given month, or on training, for example: 10 people at the weekend seminar. I never launch a challenge with more than two criteria because it may be confusing for some people, and I never run a challenge for more than 3 months because people get bored with it, or new people have no chance to qualify for it. My favorites are the combination of either 200 points with 10 people at the weekend seminar, or 200 points with the e-training card in a given month or over a 3-month period. The best results are achieved at those challenge meetings where there is food involved. Eating together creates a kind of family atmosphere. The whole purpose of a challenge meeting is to provide an opportunity for the right people to rise up to the challenge. And when they do so, we have to recognize them for it. People behave the same way everywhere in the world when they are being recognized. People work hard for money, but many times they work even harder and smarter for recognition! Recognizing the new achievers in front of their peers and business partners is the most powerful part of every meeting. Success breeds success! Why is recognition so important? Because the Network
Marketing/MLM business is driven by recognition. The drive to reach the next level forces people to create new volume every month. They would not do it for the money alone! There is no real money in the business below the 12% level, so recognition is our only leverage to motivate people. The other important aspect of public recognition is to edify people in front of their own business partners. Because we sponsor our family, our neighbors, friends and

colleagues into the business, we need the seminars to tell them that we are their leaders. Nobody can promote themselves, so we need the seminars to promote us in front of our own business partners. We use the challenge meetings to separate the leaders from the followers. Those who reach the requirement get the recognition and the respect of those people who did not respond to or could not meet the challenge. This is part of the process of leadership development in the Network Marketing/MLM business. I have realized that to build a fast, professional and profitable business I have to take people to the meetings. The in-home presentations, the Open Plans and the group meetings feed the business building seminars, and all of these meetings combined feed the weekend seminars. There are three weekend seminars in a year with the other smaller meetings in between them. The whole system of meetings has a rhythm that is aligned carefully with the fiscal year of the business. I build my business from one weekend to the next which is usually a four month period. My mission is to take as many people to the next weekend seminar as possible. The reason I do this is because I have observed in the past 15 years that those people who I do not invite to the meetings will not come by themselves. They will come up with all of the excuses under the sun as to why they can not come. And at the same time I come up with all the reasons I can think of why they should come! The reason I do this is because I care enough about them to tell them the truth. Only those of us made it in the Network Marketing/MLM business who systematically used the weekend seminars!
Take all your people to the next weekend seminar!
James Vagyi

24 THE POWER OF DREAMS
What drives a man/woman/couple to achieve outstanding results in the Network Marketing/MLM business? Is it the company because it is growing? Is it the marketing plan because it is so brilliant? Or is it the products because they are so economical? No! The dreams and ambitions are the driving force behind every great achievement in the business. There are two kinds of dreams: the ones that we have in our sleep, and the ones that we have when we are awake. We can fantasize or daydream about something, or we can have a dream with a burning desire. Only those dreams with a burning desire have real power, and that is the kind of dream required to achieve great success in the business. The same is true in all human endeavors, in politics, in sports, in science and in any business. I have always been a dreamer, and my dream was to be a free man. I left communist Hungary and ended up in Australia because I wanted to live in a free country. My dream was so powerful that nobody could stop me. Just living in a free country however did not give me what I wanted. To have the freedom that I was dreaming about I needed to become personally independent and financially free as well. That is when the Network Marketing/MLM business came into my life. When I started the business, my sponsor, Grant, asked me the following questions: James, if time and money would be no object, where would you live? I said: In a beautiful villa, overlooking the water. James, if time and money would be no object, what car would you drive? I said: A Porsche 911. James, if time and money would be no object, where would you go on a holiday? I said: To Hawaii. Then my sponsor said: James, in the Network Marketing/MLM business all of your dreams can come true! He was right! In my observation most people do not have dreams. They are wishful thinkers, and say something like
this: Yeah, it would be nice to live in a villa, drive a Porsche, and go to Hawaii, but When there is a but there, it is no longer a dream, only a wish. Or they say: Of course I want to earn lots of money, everybody wants that! Wanting it is not the way of getting lots of money, which is the reason why most people will stay poor throughout their lives despite the fact that they all want lots of money (100-64-5-1)! Wanting something is not a dream. Some people say this: I need a new car, or I need to take a break and go on a holiday! A need is not a dream. In a sales situation it is important to know what the customers needs are, but in the Network Marketing/MLM business we are looking for the dreams. The dream is the driving force of the network builder. The dream is something we want so badly that we are not prepared to live without it, and we are so obsessed about having it, that we are prepared to move mountains in order to get it. The dream is the reason why we build a Network Marketing/MLM business. Most people do not know exactly what they want, therefore they can not dream about having it. The dream is a specific outcome or a particular thing that we do not possess yet, but in our mind we imagine having it already. The dream is an exact picture in our minds eye, where we see ourselves already owning the particular thing or enjoying the desired outcome. Most people imagine the bad things that might happen to them. They only prepare for the worst, and it becomes their self fulfilling prophecy. Dreamers prepare themselves for the very best, too. They see the beautiful things available around them and choose the best things for themselves. It is like choosing from the menu in a restaurant. Every nice thing is available to anyone who really wants it, and who is prepared to pay the price to have it. The price is our whole life, and we have to give it anyway: failures give their whole lives to be a failure, mediocre people give their whole life to be mediocre, criminals give their whole life to be a criminal, and winners
have to give their whole life to be winners. If we have to give our whole life anyway, then the only logical choice in my mind is to go for the gold and to go for our dreams and the very best things in life. The beautiful homes, the fancy cars and motorcycles, the yachts, the private jets, the Swiss watches, the nice jewelry, the trendy clothes, the best food and wine, the top hotels and holiday resorts, these are the material things that most people want. In my opinion they come as a byproduct automatically if we focus on having win/win relationships with our business partners and having a loving relationship with our spouse. The true values for me are far beyond what money can buy: successful and meaningful lives, a beautiful family, true friendships, personal independence, financial freedom and a piece of mind. I feel very fortunate that I have been able to experience most of these things already. Yes, but I do not have the money and I can not afford those things, say most people. There is the catch. Most people reduce their dreams to their income level and they rationalize why they can not afford certain things. This is the losers mentality. In my opinion it is irrelevant what things cost. The important thing is to have enough money to buy what is really important to us. My secret is this: It does not take any money to dream big! When I was a kid I was dreaming about cars and girls. I collected brochures and cut out pictures of the cars I liked from the age of 8. I had a dream book with Porsches, Ferraris, Mercedes, BMWs and Lamborghinis, Jaguars, Bentleys and Rolls Royces. I collected the Playboy magazine and I dreamt about taking out those beautiful girls in those fancy cars. Most people would say that dreaming like this is childish. I agree, and at the same time I feel sorry for those people who say this, because I know that they rationalized away their ability to dream. I feel very fortunate that I have not lost my ability to dream like a child, and I am 100% convinced that this is part of the reason why I
became successful in the Network Marketing/MLM business. I was very surprised to learn that most people do not have a dream book, or cut out pictures about the things they want. I have pictures in my computer about the things I want, I have cutouts in a folder and I have my dreams written down in my own handwriting on the pages of an A5 spiral notebook. Dreams are for free, and they cost no money at all. Unfortunately people do not set aside some time for themselves to dream regularly, and they rob themselves of the wonderful things in the world that are out there waiting for them. I was dreaming about becoming a millionaire when I was broke, not when I had the money already! Most people say this: I believe it when I see it, and I say this: I see it when I believe it. This is the paradox: it is easy to believe that you are a millionaire when you have the money in the bank already, but it is very hard to believe that you are a millionaire when you are completely broke. Please note my words! I did not say to believe that some day you will be a millionaire, but to believe that you are already a millionaire despite the fact that you are broke! Being a millionaire is not about the amount of money we have in the bank, but it is a mindset. Here lies the power of the dreams: whatever we imagine and believe with feelings, becomes our reality. I went Diamond in the Network Marketing/MLM business at the 12% Leaders Club level! I became a Diamond mentally in my third month in the business, and acted as if I were already a Diamond. I talked like a Diamond, I walked like a Diamond, I dressed like a Diamond, and I behaved like a Diamond. I played a mental movie in my mind, and in that movie I was a millionaire Diamond, owning a fast, profitable and professional international Network Marketing/MLM business. In my dream I was living in a beautiful villa, driving a Porsche, and taking holidays to Hawaii, before it all happened. The reason I could imagine these things for myself is because:
1.) I have personally experienced the good things beforehand 2.) I believed that I deserved them 3.) I knew deep down inside that I could discipline myself to learn and to do whatever it took to have them Dreams are not realistic! Realistic dreams do not exist, they are called rationalizations. Realistically speaking I should have been a nobody in my little village of Vsrosdomb, Hungary. It was all against the odds for me to become a millionaire entrepreneur featured on the front page of The Wall Street Journal. I had a different plan for myself, and my dream was to be somebody. Look at how the people in a restaurant choose something from the menu. Most people have trouble choosing because they do not know exactly what the food will be like since they never had something like that before. Those people who do not know about or who have never experienced the good things in life have trouble identifying what those things are in the first place. Most things in life are useless and not worth having at all, but there are a few things that have real value. Identifying and choosing exactly what we want is the first step. I was living with my millionaire uncle in his brand new contemporary villa in Canada for 3 months at the age of 13. I was touching Porsches, Mercedes and BMWs in the showrooms when I was living in Munich, Germany, at the age of 22. I was driving my uncles brand new Lincoln Continental Mark VI and his Mercedes 380 SL on the winding roads of the Rocky Mountains. I have smelt the leather, heard the grumbling of the V8 engines, and felt the sunshine and the wind blowing in my face with the top down. I went to Hawaii the first time when I was 28, having no money at all, and I saw how the rich people traveled. I have personally experienced, felt and touched some of the good things in life, and I decided to have them for myself. The reason why I believed that I deserve the best things in life is because I was (and I am) prepared to
give my very best in return. This was my internal deal, an agreement between me and myself. I knew I could discipline myself to learn and to do the things necessary to achieve my dreams. I was 100% confident in my own abilities to learn new things, and to work smart and hard. My dreams excited me and fired me up. I became highly energized because deep down inside of me I knew that my dreams will come true. I did not know how it would happen, and what I would have to do, but I was ready to give everything I had (my very best) in advance! Most people are not prepared to face the risk of giving their very best in advance. They want absolute certainty before they give their very best in a job, in a business enterprise, or in a relationship. It becomes their habit and they forget that they have the ability to perform in another dimension. They live their lives on idle, and they no longer use the gas pedal because they forgot what it was like to run with full speed as in their childhood, or they are afraid that they might run out of fuel before they get to the land of their dreams. Therefore they are waiting idle, unprepared for the right occasion or the right opportunity to come along. In their view the right opportunity has to be easy, where they can succeed big time without learning anything new, or without changing for the better and working hard. However the best opportunities come and go very fast, look like hard work, and will not wait for or change to suit unprepared people. For every dream, there is the matching requirement on our part, to learn something new, to change, and to work differently to have it. In order to have more we have to become more, to learn more, to do more and that requires the willingness to change. My dream of becoming a free man required me to change many times in many ways: I changed the countries and the continents where I lived, I changed the language I spoke, I changed my name, I changed my habits and attitudes, in order to become a leader, entrepreneur, and an investor, that
enabled me to be a free man. It took me 10 years to become an overnight success. Most people will never understand this concept which I am talking about here, and they would say this: James, you were lucky, because you were at the right place at the right time. I have small children and I love them very much. As every parent I want the very best for them. I want to prepare them for life so they can fulfill their full potential. As parents we read fairy tales to our little children to illustrate the wisdom of the ages in a way that they understand them best. As we tell the stories they imagine themselves as being the heroes, and the princes, and the princesses. With these stories we want to prepare them for the dragons, the 40 thieves, the 7 years in scarcity, and the witches which they have to face in life, but at the same time we finish every story with a happy ending, using almost always the same lines: and they lived happily ever after. Living happily ever after is the DREAM! What is missing from your life in order to live happily ever after? Do you know exactly what it is that you want? Are you looking for it in the right place? Are you prepared to fight the dragons, face the 40 thieves, live 7 years in scarcity, and outsmart the witch in order to live happily ever after? Does what you are doing right now enable you to live in the land of your dreams? In my opinion every human being owes it to himself/herself to at least once in their lifetime go after the DREAM of living happily ever after! I respect these kinds of people very deeply! I am very fortunate to have many people like that in my Network Marketing/MLM organization! They are the heroes, the princes, and princesses of Diamond Alliance. 15 years ago I was sitting in a small Jacuzzi with Michael Abrahams outside the garden of his beautiful home in Sydney, Australia. It was a clear Saturday night around midnight, and we were drinking red wine and dreaming. We were dreaming about a fast, professional, and profitable Network Marketing/MLM organization. As
we were looking at the stars we were imagining those stars being successful people in our organization. Michael looked into my eyes and said this: There will be tens of thousands of Platinums in the business in Eastern Europe in the years to come, just like those bright stars up in the sky. Most of those people can be in your business, mate! The idea to create what Diamond Alliance is today was born in that moment, 15 years ago. This idea became a DREAM in my heart, and this dream empowered me to be able to create this fantastic organization together with those wonderful people.
What is YOUR DREAM?
James Vagyi
25 GOAL ACHIEVING
There has been much said about the importance of goal setting, but very little about the human mechanism of goal achieving. I have seen thousands of people in the Network Marketing/MLM business that have set their goals, written them down and failed to achieve them. To set goals is one thing and achieving them is obviously another thing. Because goal setting looks very simple and almost childish, most people do not take it seriously in the first place. When we have a dream and we set up our plan on how to achieve it with a deadline and we write it down, it becomes our goal on paper. Goals are ideas and they behave like seeds in our mind. Goals on paper have no chance to materialize because they are not internalized in our mind, and they are like unplanted seeds still in a can. We have them, but we have not planted them in fertile ground where they can have a chance to grow. In order to give a chance for our goals to grow they need to be planted in the fertile ground of our subconscious mind. Most people do not even know that they have a subconscious goal achieving mechanism let alone how it works and how to control it. When we make an irrevocable internal agreement inside of us with ourselves on the subconscious level to reach our goal, no matter what, it sets in motion an internal guiding mechanism in our mind. Most people never transfer their goals from their lips to paper and from paper to their mind and heart. This is one of the reasons why most people never achieve their dreams and goals. Once our goals are programmed in our mind in a way that it understands them, the whole process becomes automatic. Our subconscious mind is like the genie in the lamp: when we figure out the way to control it at will, it will be our servant and it will give us what we want. However, if we do not figure out our own way to control our subconscious mind, it will control us and we will become its servant!
Other people have figured out ways to manipulate us through our subconscious mind. We are bombarded with all sorts of advertising, many times negative images, destructive ideas, negative role models, bad news, bad habits, etc. If we do not have crystal clear images about ourselves (self image) the vacuum will be filled anyway. In our mind there is a guiding system and it will take us to the land of our dreams or to the land of our nightmares. Our subconscious mind talks in pictures and feelings, so we need to learn to communicate our dreams and goals through visualization. Whatever we imagine for ourselves with feelings becomes the target for our goal achieving mechanism. Be careful how you think, because your whole life is shaped by your thoughts. Once the crystal clear image is locked in our subconscious mind, it starts to work like radar or a search engine to identify all data required and/or relevant to the achievement of our goals. If we were to set a goal to buy a pair of red shoes by the end of the week no matter what, write it down, and internalize it in such a way that our subconscious mind would understand it, what would happen? Our subconscious mind would work day and night to figure out a way in order to get that pair of red shoes. All of a sudden we would notice red shoes everywhere; in the ads on TV, on people in the streets, in fashion magazines, in the shop windows, everywhere. We would get in touch with people who own red shoes, who make red shoes and who sell red shoes, and we would have countless opportunities to buy a pair! At the end of the week all we would have to do is to choose the right one. Goal achieving is not an event but a mental process. Most people never realize this and they think that fantasizing about what they want or writing down their goals on a piece of paper is all it takes to achieve them, and they are very disappointed when nothing or the very opposite thing happens. The secret lies in the programming or the internal goal setting process that I like to call the internal deal!
Most people lie to themselves most of the time! They say to themselves on their conscious level: I will give up smoking this week, but the existing program in their subconscious mind does the opposite. They say: I will learn a foreign language this year, they pay for the whole years course, but they quit after the second session. They say: I will lose 5 kg this month, but their ingrained eating habits in their subconscious mind override their weak decision and they gain another 5 kg instead. They say: I will go 21% next month, but they do not turn up at the weekend seminar. They lied so many times to themselves that their subconscious mind does not believe them anymore and/or it sabotages and/or automatically inverts the message because it has been conditioned to deliver the exact opposite results for years or decades. Goal achieving is the ultimate internal mind game. Goal achieving is a habitual
mental process, similar to the operating system on a computer. The computer does not care what program we choose, it runs the program automatically. Our subconscious mind does not care how we set it up, it runs the program automatically. Our subconscious mind was set up for success or failure and it was programmed the following way: 1.) It was programmed to fail by other people 2.) It was programmed to fail by ourselves 3.) It was programmed to succeed by other people 4.) It was programmed to succeed by ourselves Most people are programmed to fail! The words and behaviors of our parents, relatives, teachers, preachers and friends, the books and articles we read, the radio, the audio programs and music we listened to, the TV programs and the movies we watched and the combination of our self talk, self image and our own experiences and conclusions formed our habits to fail or to succeed in the game of life! We learned by imitating our parents as little children, later on we imitated our heroes, role models
and friends, teachers, colleagues and peers. Can we learn a winning attitude and success principles from a loser? No! Can we learn a winning strategy from a failure? No! What are our chances to learn the right mental process when the end result is 100-64-5-1? Every human being was born a genius. Their mind is brilliant and they have the mental capacity to achieve all the good things in life: great relationships, perfect health and material wealth. What is the reason that most people end up being losers and only a few people become winners? In my humble opinion the answer lies in our own ability to reprogram our subconscious mind to win, and to control our thoughts, habits, attitudes and behaviors at will. In my observation, the more people can control themselves the more power they have. In the first 27 years of my life I was living my life with conflicting mental programming, and my life was a mess. I had to take inventory of my thoughts, habits, attitudes, principles and values. After I reviewed them, I had to replace and recalibrate them with new thoughts, winning habits and attitudes, and the right values and principles. I took full control of my mind, and my life changed dramatically. That is the reason why I deeply believe that becoming a Diamond, a millionaire, an Olympic champion or whatever else is the goal, is a mind game, and it all happens inside our mind first before it can happen in the outside world. Whatever we think about all day becomes our reality so be careful how you think because your whole life is shaped by your thoughts. Thinking about positive outcomes with belief and with feelings is dreaming. In our imagination when we play our mental movies we can attach real feelings to our dreams, and we can condition our mind to believe what we see. The more we think about what we want, with feelings, and imagine ourselves as though we already have it, the more we condition and energize our subconscious mind to get it. It is like charging the battery of our mobile
phone. Once it is charged it works. The same is true of our dreams, goals and ambitions. The more we charge them up with good feelings, the more chances we have of actually achieving them. It takes time to charge up a battery, and it takes time to energize our goals. Most people do not take time to think and meditate about their dreams and goals on a regular basis. They go through life in a mindless fashion without realizing or admitting to themselves that they are being caught up in the rat race. STOP and THINK! Take the time necessary to figure out exactly what you want and where you are heading. If you are not heading towards the right direction, change your course. In every situation and in every problem there is the right solution or answer for you. Most people are looking for universal answers and solutions, but there are as many answers or solutions as there are people and situations. THE answer does not exist! There are many possible answers that we can choose from, and our job is to find the one that is best for us. If we want to get from A to B (A is where we are now, and B is our goal, where we want to be in 12 months time) we will have to correct our course many times on the way. If we want to send a rocket from the Earth (A) to the Moon (B) we know exactly what we want. I want to be a Diamond! says the novice network builder. Then we have to answer the second question: How do we get there? For our rocket to reach the Moon we need to use a concept called negative feedback. Sensors monitor the course of our rocket and when it is going off course, it sends a signal (negative feedback) to the computer. The computer activates the steering mechanism to put the rocket back on course. Goal achieving in the Network Marketing/MLM business works the same way. The only difference is that a rocket does not have feelings and does not care about the negative feedback. We humans on the other hand have feelings and we do not like the negative feedback of problems, excuses, objections,
mistakes, failures and rejections. However, if we want to get from A to B, from where we are now and where we want to be in the future in the Network Marketing/MLM business, we need to learn to handle negative feedback! Nobody has any problems handling positive feedback: money, recognition, and things going right, but very few people are prepared to adopt the right attitude towards negative feedback. Most people want to avoid those things that they do not like. They want to avoid problems, mistakes, failures and rejection. This behavior creates an interesting situation in the market place where goods, services and money changes hands between people and business transactions are based on supply and demand. All business people compete for the customers - including the millions of network builders - in the same environment. In the Network Marketing/MLM business there is a huge supply of people who want to avoid the very things that are leading to success, and there is a huge demand for those of us who are prepared to go through this unpleasant field of negative feedback. In my observation the willingness to go through the negatives is what separates the winners and losers in the Network Marketing/MLM business. Most people wish for an easy way to becoming successful in the business. They somehow think that achieving success should be easy. It is NOT easy and NEVER will be because of the market forces called supply and demand! Easy things do not have value because anybody can do them. Those positions in life have outstanding value that most people are not willing to pay the price for. I had to ask myself a question: even if it is not easy to go Diamond and to become a Free Man, do I still want to do it? My answer was YES! The price to pay was to learn to handle the negative feedback. It was very hard in the beginning, but at the same time it was a very small price to pay for the life that was waiting for me on the other side. So if you are facing some difficulties achieving your goal in the Network
Marketing/MLM business, be rest assured that you are right on track. The challenges, problems, obstacles, difficulties, excuses, objections,
mistakes, failures, unpleasant situations and obnoxious people came your way to help you to STOP or to GO ON towards your goal! Most people will stop, but the right person will learn the lessons wrapped in every positive AND negative situation, using them to move closer to their goals! As long as a heat seeking rocket is locked on target, in motion, and has enough fuel, it will reach its target. When a man/woman knows exactly what he/she wants in the Network Marketing/MLM business and he/she is ready to learn the lessons and determined not to stop and to go all the way, nothing and nobody can stop him/her. Very few people will do that! Why is that? I do not know and I do not really care. On the side of the road towards success in the Network Marketing/MLM business there are signs to show the way. It is our job to learn to read the signs and to move on. The sure way to lose is to stop. If we are in motion (we do something and we are willing to learn from it) we can correct our course on the way towards reaching our target. So do not stop and never give up until you reach your goal! Even if you make a mistake, as long as you learn from it, it is helping you to get closer to your goals. Expect problems, challenges, difficulties, hardships, mistakes, failures and doubts to come your way because they are the sure signs that you are right on track. They are out there to stop the pretenders and to guide the right people! Be ready to change your approach and try out different things. Analyze what went wrong in a situation, and next time try a different approach. Ask yourself questions reflecting the given situation: Is what I am doing right now getting me closer to my goals? How could I do this better, faster? What should I do or say differently next time? Wait for the answers! Achieving our goals is a trial and error process, and no matter how much we learn and prepare, part of the
lessons waiting for us to be learned are hidden in the process itself. Prepare yourself to go with the flow. Do not force your approach. Force creates resistance. If you do or say something and it does not work, change it! Use the negative feedback to come up with something else, and see what happens. The amateurs go trough the motions mindlessly, expecting the process to do the job for them. Building relationships with strange people in order to create a fast, professional and profitable Network Marketing/MLM business takes more than that. Be alert to observe and to monitor the process through negative feedback. Our job is to find the best possible words to say, or the best possible things to do in relation to being able to achieve our goal. 1.) Know exactly what you want 2.) Learn to use negative feedback to stay on course 3.) Do not stop and never give up Our mind is a goal achieving organism, and it will take us to the land of our dreams if we learn to use it and control it. It takes practice through negative feedback to understand how our own goal achieving mind works. Nobody else can do this job for us.
The push buttons are hidden in our own mind.
James Vagyi

25 Lessons of MLM Busi Ness: J Ames Vagyi

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2 Lso s 5 esn o ML B s es f M ui s n

1. Lesson of MLM Business

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1. Lesson of MLM Business

Achieve Success, Freedom and Happiness!

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2. Lesson of MLM Business

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2. Lesson of MLM Business

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2. Lesson of MLM Business

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2. Lesson of MLM Business

# 4 Leg 2,400 points, # 5 Leg 1,200 points,

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2. Lesson of MLM Business

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2. Lesson of MLM Business

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3. Lesson of MLM Business

3 INVITE FROM YOUR LIST

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3. Lesson of MLM Business

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3. Lesson of MLM Business

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4. Lesson of MLM Business

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4. Lesson of MLM Business

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4. Lesson of MLM Business

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4. Lesson of MLM Business

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4. Lesson of MLM Business

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4. Lesson of MLM Business

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4. Lesson of MLM Business

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4. Lesson of MLM Business

Show the Marketing Plan and profit from it!