July 15, 2009
Interviewer: You know, one of the things that just blew me away seeing all your success and your last network marketing company, Corey. I know I watched you just climb the ladder so incredibly quickly over the past five years and basically generate an income of six digit monthly residual income, or a seven digit annual earner which just blew me away.And when you got that kind of income going you got to ask yourself when you see a friend do something like lose a network marketing company and actually starting a new one, what your reasons for doing that were.
Can you share with everybody why you decided to leave a six digit monthly residual income check and become a founder in Yoli?
Corey: Great question. I wouldn’t expect anything less from you…
Well, you know, we started a brand called “New School Network Marketing” and I coined the phrase “either evolve or revolve.” There are some great companies out there, some incredible success stories. But, you know, the Yoli founders got together and we just decided that hey, there have been some wonderful success out there but, you know what, we can do better.
Many people we have helped over the years of their health and their finances and their self development and all the wonderful things that come as a part of this industry.
We felt like we could help even more people and that’s really what it comes down to. You know, I want to say that all the Yoli founders absolutely love this industry. We have been doing it our entire adult lives. We really don’t know anything else but this business.
Quite frankly, we see Yoli as a way to give back for all the blessings that we have received over the years. As I mentioned we have been doing this for a very long time and Sheldon you know this more than anybody. We live, eat and breathe this business.
If you have read the book “Outliers” by Malcolm Gladwell, highly recommend that you consider all of the co-founders exactly that, outliers. Not only are the founders experts in our arena, in this profession, but we’ve also all enjoyed success outside of this profession in more conventional avenues.
I think that’s very, very important because we bring to the table a lot of dynamics. You really need that to play at the level that we are playing here with Yoli. And another thing, the specific time right now in the marketplace, we really feel like the world needs Yoli. The industry needs Yoli. And so, something that was meant to happen. It’s something that just had to happen.
Everything Was Leading To This…
And people really did need it the most. Take a look at the economy today. The economy, I don’t need to dwell on that. Everybody knows what’s going on. Fortunately our industry is anti-cyclical. So when the economy goes down, our business actually can do better. I said, can do better because theoretically it can do better.
A lot of companies are not doing better. And that’s really the conclusion that we came to. You see, Yoli is a company that is founded by distributors for distributors.
And what that means really, people say, what does that mean, Corey in real terms. Well, really what it means is that we see things that 99.9% of the corporate management teams out there don’t see. And here’s why they don’t see it. They couldn’t see it. They have never been distributors. They haven’t walked in our shoes.
They don’t go to bed and wake up thinking and just trying to figure out how to help people build a successful business. Here’s an analogy, as you know, my wife is pregnant. We’re going to have a baby at the beginning of October, but you know what, nobody can explain to me what it’s like to have a baby. It’s not possible because I haven’t had one yet. When I have one I’ll understand it.
It’s the same thing. At the end of the day really with all of our collective experience of 100 years in the industry, we know in our heart of heart that we are going to increase the odds in your favor. And I’ll tell you, we’re already accomplishing that goal. And really, it all comes back to why we started Yoli.
We started Yoli to create a culture and create an environment where anybody, whether they have enjoyed a lot of success in the industry or they are just getting started. Maybe they just lost their job. Maybe they are looking to transition and we thought, we know we could create a culture that would give people the best chance for success.
Listen, Yoli is not going to change human nature. I have no illusions. But we can increase those percentages. And one of the things I’m most excited about is the fact that many of my childhood friends. I heard from some of them here on the line tonight, are actually coming on board. That’s always been a dream of mine to be able to, not only work with all the new friends that I have met over the years in this great industry, but my original friends, friends that I have had since I have been five, six, ten years old.
They have always seen the success that we have enjoyed, the homes we have purchased and the lifestyle and the travel, but you know what, it wasn’t enough. And I want to get a little bit more specific with everybody tonight, because I’m not just going to talk in generalities.
I Want To Be Very Specific…
One of the things, you know, your friends are the most honest with you, right? That’s why they are your friends. And one of the things that I’m coming back to, all these companies out there are hypin’ and pipin’ about becoming the next household brand, the next Clorox or whatever it is, think of a household brand.
But the challenge is that they just don’t have the price point to merit that type of a claim. So the litmus test that I always teach people to ask themselves is would somebody buy my product from me if there were no opportunity attached to it?
Now, let me break that down for everybody here real quick. One of the things that I know is attracting people, even to a greater degree than I thought, is the price points for the Yoli. OK, I mean, this technology is awesome. This technology is going to change the beverage industry. It’s going to turn it upside down. We can really, really change people’s lives with this technology.
That was why we started with Yoli. We said, we’re not going to launch Yoli if another me, too, lotion, motion, potion, whatever it is. It had to be a wow factor. There had to be something that somebody saw and they said just that. Wow. It had to be something completely unique.
And we accomplished that, but you know what, if we went out there and we didn’t have a competitive price point, we wouldn’t see the number of people beeping in on the call right now. Or the hundreds of people that are on right now on a pre pre-launch.
And so, as a network marketer I’ll be honest with you. I could always justify higher price points and here’s how I would do it. Good, bad or indifferent, take a look at Starbucks. You can go to Starbucks. You can get a $4 latte but guess what, you can go to the Dunkin’ Donuts right down the street and you can get that same latte for half the amount of money.
Why do you go to Starbucks?
You go to Starbucks for the culture. And that’s why some of the company’s that we have seen have enjoyed such success is they have been able to build incredible cultures. I don’t want to take away anything from their success. They have deserved it. Incredible, incredible success stories.
But we knew we could do better. We could change things. We could turn the industry upside down. So we decided to come out with a competitive price point, not with network marketing companies, with convenience stores, your 7-11s, your Ralph’s if you live in California, Publix if you live on the east coast, whatever the grocery store is you happen to frequent.
We wanted to compete with those. And I think that that’s one of the things that people are seeing across the board that’s really, really resonating with people and I’m just delighted that people are seeing that.
Now, I Actually Coined The Term Called “The Embarrassment Factor”…
It’s wasn’t embarrassing for me, but your just ordinary person has a conventional business or maybe an employee of a company, they just couldn’t get their head around these very high price points. So the embarrassment factor is the moment in time when you’ve got to tell somebody how much your product costs.
So we wanted to completely eliminate that embarrassment factor because we knew that that was one of the main things holding people back from participating in this great industry. And this industry really, as I mentioned, this is the time to shine. And so the timing could not be any better.
Now another thing that we recognize in the network marketing industry was that it was very, very difficult for the average person to succeed, not just because of the price points. So one of the things we recognized was that it’s very difficult for the average person, here’s why: because it takes too many people to break even on their monthly product purchase.
Let Me Give You An Example…
With most companies and if you are in a company right now, take a look at this. How many people does it take you to break even on your monthly product purchase? Does it take 10? Does it take 20? Does it take 30? Does it take 40? And we found was the average comp plan will take you 25 to 30 people just to break even on your monthly product purchase.
Now, to make a few hundred extra dollars, you are going to need hundreds of people and so we said, what if we could put together a plan where it only took an average of three to four people to break even on your monthly product purchase.
Wouldn’t that be incredible if everybody at minimum was getting their product for free?
Would you have any attrition whatsoever if that was the case? Because from my 15 years experience and all my partners’, we found that building a network marketing business for most people… When I say most people let me qualify that. 98% of the people out there, it’s like trying to fill a bathtub when the drain is pulled out.
Let Me Give You Another Analogy…
It’s like washing windows when there are pigeons living about you on the roof. The dirty little secret and Yoli is about telling the truth. It’s only about exposing the truth about products. It’s about exposing the truth about compensation plans. And here’s the truth about compensation plans. The dirty little secret is that most of these plans, the vast majority, 98% of them are geared towards what we call the big hitters.
We love the hitters. Middle class. If you don’t have that middle and let me quantify that. What I mean by middle class is legions of people making $5 to $10, 000 per month. If you don’t have that, that’s the backbone. If you don’t have a ton of people making that kind of income, then guess what, the big hitters who are making those six figure monthly incomes or the multiple six figure monthly incomes, they are never going to be able to rest a day in their life.
They are always going to be fighting a losing battle. They’re always going to be trying to replace people faster than they leave. So we hear the solution. It’s not about a problem it’s about a solution. And that’s what Yoli is. It’s a solution. And the solution we came up with for the challenging marketing plans, compensation plans out there is we have launched a hybrid compensation plan.
So let me tell you guy a little bit about the hybrid plan that we have put together here. First of all the thing you need to know about our plan is that it is proven. You know, there are a lot of plans out there. Recently I have seen some single line comp plans. I’ve seen a three by seven matrix coming out again.
Guys, there is no precedent for these compensation plans working. It’s a very, very simple equation. Have they worked before? No. Across the board, you’ll never find a single line comp plan or a three by seven they don’t work, not in the 60+ history of our industry.
So let’s take a look at what is working. What’s working, what represents the future, quite frankly, of compensation plans are these hybrid plans. If you are new, this will go over your head. Don’t worry about it. Co-founder Robbie Fender will be conducting a compensation plan training webinar soon. We’ll get those details out to you.
What I want to share with you here is that this is a binary combined with a unilevel. You take the best of both of those plans, combine them together and what you get is the Yoli compensation plan.
A Quick Little Story…
As we were formulating our compensation plan and putting together the infrastructure we visited with a gentleman. The gentleman happens to be what we call the Godfather of compensation plans here in Utah. And we’ll get to that, why do you want to start a company like Yoli in Utah? You have to. If you want to play with the big boys this is the only place to start a company like this.
What he shared with me quite frankly was this: I asked him this. I said if you were to start your own company, what compensation plan would you use? He said, you know what, I would do exactly what you guys are doing.
So, guys, before I stop talking here, I want to mention one other thing that I think is really going to resonate with those of you who have participated in the network marketing industry. What we find is that many of these comp plans, the odds are so stacked against people that it’s very, very difficult to obtain the next level, the next leadership position in your compensation plan.
And so we said, you know what, what if we took a plan where normally they would divide it into two steps. What if we took those two steps and subdivided into five steps. And we made it so easy for people to advance from one level to the next in the beginning that as long as they are putting one step in front of the other, they are going to make it.
And let me share something with you about how important that is. Recognition is so important in this business and we knew as the Yoli founders that if we could help people put a win in the win column early on and then another win and another win. By simply increasing the volume by a measly $100 per week that they would start to enjoy success.
Many people would enjoy success that they have enjoyed before in this industry and it would give them the confidence that they would become the next huge success stories in this great industry. So, in summary, Shel, this is a long winded answer but I really wanted to cover a lot of territory because it’s an open question.
You ask why would I leave a seven figure annual income. Well, guess what, it’s not just one reason. There are many reasons and really what it comes down to is we knew we do better. We wanted to eliminate all the negative things that people attach to network marketing and not just the ones they are aware of but the ones that they weren’t even aware of and we know we accomplished that and proof of that is how many people we already have on this call.
Watch the Yoli Webinar for more details…