“How You Can Literally Attract an Endless Stream of Prospects to You,

Credit Card in Hand, Ready to Join Automatically.”

Magnetic Sponsoring is the original course on attraction marketing. It’s

suitable f or anyone who wants to become a more attractive seller. In the
pages of the book, you will discover a little known Internet prospecting
secret that has been quietly making thousands of network marketers rich
–without rejection, f rustration, or spending any money on advertising. In
f act, should you discover this secret too, people will actually pay you to hear
about your products and opportunity.

Copyright 2007 All Rights Reserved – Magnetic Sponsoring, LLC

Disclaimer: Magnetic Sponsoring Support 3 is a valued independent "Elite Affiliate" for Magnetic Sponsoring. Please note
that Mike Dillard and Magnetic Sponsoring are not associated with any other businesses, opportunities, or services that may
be listed on Magnetic Sponsoring Support 3's bio page, or responsible for any claims made.
 doug thompson,

This Magnetic Sponsoring Book and all related materials are

copyrighted by Magnetic Sponsoring LLC. No part of this may be copied,
or changed in any format, sold, or used in any way other than what is
outlined within this Magnetic Sponsoring book under any
circumstances.

This course has been purchased by

doug thompson

on April 07, 2011

which means

doug thompson

will be held legally responsible if this copyrighted document is found

outside of his/her possession.

In such an event,

doug thompson

will be contacted by our attorney and prosecuted.

Do not share or distribute this book in any way. If your buddy wants to
read it, give him your affiliate link and tell him to buy a copy just like
you did.

If you are NOT

doug thompson

but are reading this message, please immediately contact us at

http://www.MagneticSponsoring.com/support. A reward will be given
for individuals successfully prosecuted.

Created For doug thompson

Copyright 2007 All Rights Reserved – Magnetic Sponsoring, LLC
Page 2 of 78
Monday, 9:47 PM
From: Mike Dillard

doug,

I’m truly glad you are here, and it is my sincerest hope that Magnetic Sponsoring exceeds all of
your expectations, but before you dive in, I must warn you…

Some say Magnetic Sponsoring is evolutionary. Others say it’s revolutionary. I’m not sure if it is
either, but I DO KNOW that your outlook and approach towards network marketing will never be
the same two hours from now.

There is a very good chance you will question and doubt most, if not all, of your current/past
education and approach to MLM after you have been exposed to these ideas.
I know I did.

In fact I found them so compelling, I took a 6-month exodus from my business once these
concepts were discovered. I simply couldn’t stand the thought of using the status-quo methods
one day longer.

Magnetic Sponsoring™ was born at the end of those 6 months, and over the past few years, it
has literally transformed an industry, creating two types of people... Those who choose to reap the
rewards that it offers, and those who must try and compete against it. I would not want to be in
the latter half.

Grab a highlighter and make this thing glow in the dark. I can say with some confidence that
you will find at least one idea or piece of knowledge on every page that can transform your career
in this industry.

I would also ask that you read the chapters in order, as each one builds upon the previous.

Best wishes,

Mike Dillard

Created For doug thompson

Copyright 2007 All Rights Reserved – Magnetic Sponsoring, LLC
Page 3 of 78
Mike,

I've almost completed the Magnetic Sponsoring book. Wow! I have studied network marketing for a
couple of decades and have never found anything close to hitting on all of the keys to success in
network marketing - plus providing a system for the old classic challenge of prospecting at the same
time. The way the ideas and insights are presented, one can't help but do some serious soul-
searching, as well, in terms of facing where the responsibility for success lies.

I will read and re-read Magnetic Sponsoring many times. Your honesty, wisdom, tips, and
marketing system are invaluable. The fact that you pull it all together in such a concise way is
frosting on the cake.

For anyone who has ever been in network marketing, has been involved but quit, ever entertained
the idea of committing to networking as a home-based business, Magnetic Sponsoring is a must
read. Thank you for converting your pain, acquired through the school of hard knocks, to the gain
of all those who will read this.
- Terri Riffe, Ph.D.
Magnetic Sponsoring is hands down the best “How To...” I have ever read on our industry. After
ordering, I couldn't wait to get my hands on it and have read and re-read it multiple times since
receiving it. There were many “aha” (I see) moments, that I could relate to.

I highly recommend Magnetic Sponsoring to everyone in the Network Marketing industry, no matter
if you are just starting out or you are a seasoned networker.
- Ilka Flood

Hi Mike,

Read your book this morning.

Just wanted to let you know that you've written the BEST book on the industry that I've ever read,
and I've most likely read them all. Magnetic is a classic.

Great job!
- Mike Stokes

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It makes a refreshing change to learn how to do something and have the tools to do it. Magnetic
Sponsoring has changed the rules! Finally someone is showing us how to do this business and make
money from the start. I'll never look at MLM the same way again and I've been around the industry
for over 10 years!
- Daniel and Helen Wright

What Mike Dillard goes over in Magnetic Sponsoring should be considered MANDATORY
READING for your downline members and especially for brand new distributors or representatives
that you bring into your business.

Save yourself a ton of time and agony and get Magnetic Sponsoring into the hands of your partners.
When a team member shouts for help just reply by saying “read Magnetic Sponsoring first and we'll
take it from there”
- Kevin Mallory, Founder - The Forward Online Group

After being exposed to Magnetic Sponsoring over a month ago, I knew Mike was onto something
big. His Magnetic Sponsoring System is taking the network marketing industry by storm. Finally,
someone put together a no “BS” strategy that tells it like it really is. This system alone will allow
many, many more people to achieve their dream of network marketing success.

After my partner and I teamed up with Mike, within our first 24 hours we had already made over
$100 in retail sales. The potential of this powerful system is endless. Bottom line, it works when
used correctly.
- Michael Shaw & Sherry Cantua
Dear Mike,

I have never sponsored any one before, and now after reading Magnetic Sponsoring, only three
days ago I have three people in my back office and because of you and your book I had the
confidence to phone them. An,d following your guide on advertising, I am getting visitors!

Thank you so much!

- Sandra

Hey Mike… I believe your Magnetic Sponsoring is going to change the way I market online for a
long time. I always used to advertise my MLM program first and I would usually spend more in
advertising then what I was making per signup in my MLM program.

I started using your suggestions in Magnetic Sponsoring about placing ads on Google Adwords and
I also placed the same ad on a free traffic generator.
Created For doug thompson
Copyright 2007 All Rights Reserved – Magnetic Sponsoring, LLC
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I just wanted you to know, between the two of them, for the week I have generated almost 77 live,
exclusive leads of my own, and have only spent $26 dollars in advertising! I haven’t even started
picking up the phone yet to build a relationship with the leads I have already generated. I can’t wait
to see how many I sign up in my MLM program.

Thanks to Magnetic Sponsoring, I can actually get paid to generate leads online instead of losing
money for the very first time.
- Shane Woods

I am a founding member of 3WTel SuperiorVoIP out of Dublin Ireland. I am currently the top
producer in the world for them. I have been marketing for over 20 years and have had my share of
ups and downs. I am one of the presenters for the company that does presentations on behalf of all
distributors using our new system. Magnetic Sponsoring is amazing...
Simon Taylor, the director of sales and Marketing for SuperiorVoiP and myself went to work to
create the SV Success System. This system is based solely on the idea of Magnetic Sponsoring. We
are now getting the quality people that are focused on starting businesses, not tire-kickers.
Magnetic Sponsoring is the bestbook I've ever read for Networking.

- Carl Haavaldsen

Hi Mike, I received your book yesterday and I'm absolutely satisfied with what it has to offer I'm not
finished reading yet but already I know that my business will not be the same after this!!!

Thanks a lot I'll keep in touch.

- Karlyson

Just wanted to say thanks for the course and the wonderful insights. I am tweaking my business
right now to reflect what you are saying. I think most of the tools are in place, but your attention to
detail has shown me a few areas I need to work on.
I sent out the site to a few of my downline to see what would transpire and you will find this
amazing (or not)… The very distributors who have a strong business sense are also the only ones
who are going through the boot camp and ordering the book.

I guess there are more of the lazy ones involved in our businesses than we think. I have contacted
my upline and we are going to make Magnetic Sponsoring part of our training program.

- Dan Brooks

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Page 6 of 78
Magnetic Sponsoring is the best affiliate program I've seen! As you may know, I just received
$4,600 in commissions. Best Birthday surprise I've ever had. Thanks for your commitment to
sharing this revolutionary material with others.

- Zach Thompson

So I tried returning the Magnetic Sponsoring book and it was returned back to me. I knew that was
a sign to read the book. So I read it, (shamefully a whole month and a half after my initial receipt)
and I finished it in 2 hours.

Not only has the knowledge you shared in the book made me change my whole approach to my
business, but it has also made me change my whole daily routine and my usual actions. My biggest
downfall was doing what unsuccessful people do...just enough or a little here, a little there, going
nowhere. Now I see why my upline is a leader and see how I will become one very soon. Thanks!

- Sonya P. Collins

I wanted to include this handful of testimonials for a reason, so if you didn’t do so, please go

back and read each of them carefully now.

First, I want to let you know that what you are about to learn is significant, and it works.
Second, I want to to point out something that has completely baffled me since I started offering
this course…

In one of the testimonials on the previous page, I underlined a sentence that caught my
attention:

“I sent out the site to a few of my downline to see what would transpire and you will find this
amazing (or not)… The very distributors who have a strong business sense are also the only ones
who are going through the boot camp and ordering the book.”

The irony is this…

Though I get VERY few returns for Magnetic Sponsoring, the ones I do get back always come
from people who are unsuccessful.

For one reason or another, they didn’t think this knowledge was “right for them.”

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 It absolutely blows me away when someone who makes FAR less money than I do, thinks this
book didn’t provide them with information that cost about as much as a brand-name t-shirt or a
case of beer… Just the sample ads in the bonus reports alone are worth $1,000’s!

On the other hand, the “thank you” testimonials and calls of appreciation always come from
people who are currently having success.

I will never understand this phenomenon, but I hope that you understand the mental
difference between these two groups of people, and pick the right category to add yourself to.

- Mike

Created For doug thompson

Copyright 2007 All Rights Reserved – Magnetic Sponsoring, LLC
Page 8 of 78
 “Magnetic Sponsoring”
by Mike Dillard
Table of Contents:

Introduction ....................................................................................................................................... 12

Chapter 1: Understanding The Source Of Personal Attraction.......................................................... 15

Chapter 2: Your Business Has Nothing to Do With Your Company ................................................... 29

Chapter 3: The Secret to Becoming A Professional ...........................................................................33

Chapter 4: An Introduction to Magnetic Sponsoring™ ...................................................................... 36

Chapter 5: How to Find Your Best Prospects ..................................................................................... 43

Chapter 6: How To Create A True Business Franchise ....................................................................... 47

Chapter 7: The Psychological Secrets Of Magnetic Sponsoring ........................................................ 52

Chapter 8: How to Position Yourself As An Expert And Attract Leads To You .................................. 57

Chapter 9: Funded Proposals: How To Get Paid To Prospect Even When People
Don’t Join Your Team ......................................................................................................................... 63

Chapter 10: Funded Proposals: An Inside Look At The #1 SLO/Funded

Proposal System In The Industry ........................................................................................................ 67

Disclaimer........................................................................................................................................... 77

Created For doug thompson

Copyright 2007 All Rights Reserved – Magnetic Sponsoring, LLC
Page 9 of 78
 ATTENTION - Important Download Instructions:

It’s always my goal to give our customers a product that’s worth 10 times more in value than
what they paid.

I know the price for this course is already too low, but as a customer who’s new to the
Magnetic Sponsoring family, I want to demonstrate this policy first-hand.

Along with the manual you’re currently reading, I’ve decided to give you several additional
training pieces worth over $300, at no additional cost including…

 The “Behind Closed Doors” Online CD Interview.

 The 19 Page “Essential Reports” Guide.

 The “MLM Domain Secrets” Ebook.

 A Free Magnetic Sponsoring Lead Generation and Affiliate System Account.

Please accept and enjoy them as a personal gift from me to you.

If you didn’t download these items at the time of purchase, you can find them in your
Magnetic Sponsoring System Back Office.

Created For doug thompson

Copyright 2007 All Rights Reserved – Magnetic Sponsoring, LLC
Page 10 of 78
 Visit www.MagneticSponsoringOnline.com to login as an affiliate, or go to:
www.GetMagneticSponsoring.com to set up your free account today.

As I’ve gone from waiting tables, to becoming the #2 distributor in my primary opportunity and
building the most successful online marketing company in this industry, I’ve documented my
strategies and processes, so you can apply my methods to your business.

If you need help sponsoring more distributors every month, or just knowing
what to say to your prospects on the phone, then check out
www.BlackBeltRecruiting.com and watch the free 60 minute training video I
did with my sponsoring mentor.

If you want my actual blue-print for building a seven-figure home business

online, then check out www.MLMTrafficFormula.com. This information takes
what you’ll learn today to an entirely new level, and is the most famous
“traffic” course of its kind.

Thank you for your leadership,

Mike Dillard

Created For doug thompson

Copyright 2007 All Rights Reserved – Magnetic Sponsoring, LLC
Page 11 of 78
Well hello there…

My name is Mike Dillard. Welcome to my world.

What I’m about to share with you will absolutely change your life if you put it to use.

You’re going to learn a lot, in what is a relatively short course. I’m very to the point,
so you will need to pay close attention, so you don’t skim through a simple sentence that could
make you millions.

Now before we dive into the nitty-gritty, I wanted to share a few things about myself with you
that I believe many of you will find important.

First… Everyone sucks in the beginning. (Pardon my Gen-X slang). I did for years and my
sponsors did as well, but many of them never bothered to mention that.

They just casually forgot to go over that little piece of info. Must have just been a busy day I
guess…

Anyway, looking back, I always wished that my first successful upline mentor would have
shared his story of struggle with me over eight years ago, because it would have made the journey
to where I’m at today, much faster and a lot less frustrating if I had known it was just a normal part
of the process.

So here’s my confession to you so that you know that I’m nothing special, but rather just
another struggling newbie who busted his tail and never quit.

I got started in this industry during my freshman year in college.

 I was extremely shy, had very little self-confidence, and I was dead broke.

 I was the guy who would drive his upline mad with endless questions, and who would do
whatever I could to avoid calling my prospects.

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Page 12 of 78
  I was on EVERY training call, went to every event, bought every book I could, and tried
every lead source in the world. Again… doing whatever I could to avoid the real problem in
the equation, which was me, myself, and I.

 I’ve been so low financially that I didn’t have furniture for three years after graduating
college, and even had to pawn my championship-winning bike along with my DVD
collection just to buy more ramen soup.

 I racked up tons of debt in those days and alienated a lot of friends.

This period of inner frustration went on for about four years and the end result was ZIP. No
money. No downline. No success. The only people I ever sponsored were in my family tree.

Fast forward to year six or so… (It’s getting fuzzy at this point).

 Any and all fears have been conquered.

 I’ve built the 2nd largest team in my opportunity.

 I’ve pulled in my first million while still in my 20’s, making up to $354,000 in less than 7
days.

 I’ve built one of the largest newsletter subscribers lists in the network marketing industry.

 My websites get more traffic each day than entire companies like Herbalife, XanGo, and
Pre Paid Legal… COMBINED.

 My work has been knocked-off, swiped, and emulated. It’s created dozens of other
networking “gurus” you’ve heard of who have essentially re-written and re-packaged what
they learned here.

 Anything you see on the “attraction and lead generation” subject in this industry is a result
of that person reading this book or MLM Traffic Formula. If this material sounds like theirs,
it’s because they learned it here. Not ego, just a comforting fact that demonstrates the
value found within these pages.

It’s been an honor and a privilege to see Magnetic Sponsoring become “THE” course on
attraction marketing and lead generation for the networking industry.

Which should leave you with one question…

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 What in the world happened during that two-year time period that made such a startling
difference?

Well, you’re about to find out because that’s exactly what I’m going to teach you in this book.

First, we’re going to venture into the psychology of attraction, then move into some brief, yet
extremely important insights on personal development, and then, finally, we’re going to dive into
the marketing side of this game, which is when things get really interesting. So read ALL of this
course NOW, and then come back and go through it with a comb later.

Let’s get started shall we?

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Page 14 of 78
 The title of this book is “Magnetic Sponsoring – How to Attract Endless New Distributors and
Customers to You.”

First, let me say that this method is real and is entirely possible. What you’re about to discover
has been used in the “real business world” for hundreds of years, but never really publicized or
taught in network marketing because it’s “not duplicatable”.

Well here’s the irony… 99% of the people in this industry never achieve a full-time income
level.

Are you really sure you want to “duplicate” them and what they’re doing?

Of course not, so get over that whole concept. The only people who make it big in this industry
are leaders. Period.

Discovering this methodology was a life changing epiphany for me, as it will be for you.

I was at a point in my career as a networker, where I had done it all as far as the normal status-
quo was concerned.

I had been buying every kind of leads for years.

I had made 100-200 calls per day to genealogy lists.

I had held meetings and done the referral bit.

And man, what a drag…

Calling garbage leads all day, and talking to people who have no business being entrepreneurs.
Doing the 20 questions interview thing. Going to the post office everyday to send out expensive
info packets. Scheduling and making follow up calls. Answering objections, and dealing with the
“my company is better than yours” crap.

BLAH.

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 I quickly realized that this is not how I wanted to spend the next 20 years of my life.

So I said to myself, “If I could only get 5 to 10 people to contact me everyday about my
business, I’d have it made, and this business would be fun!”

That idea was the catalyst that led to the discovery and eventual mastery of the Magnetic
Sponsoring concept.

And now it’s the choice that you need to make…

You can pursue, or be the pursued.

So how do you get people to contact and pursue you?

What makes a person attractive to others?

Why do groupies flock irrationally to celebrities and rock stars?

Why do people become “famous”?

Why do some women find certain men completely irresistible even if they’re dead broke and
usually jerks?

Why can you throw ten complete strangers in a group together, and within minutes, a leader
will emerge that the others will follow?

Why does everyone want to work with the top earners in your company?

Why can those individuals join any opportunity in the world and have a sizable organization
within weeks or months, with little or no effort compared to the average Joe who’s busting his tail
for dismal results?

And most of all, how do you tap into this phenomenon and become pursued yourself?

The answer lies in basic human psychology, so that’s where we need to start.

What I’m about to share with you is at the core of human-to-human attraction.

Know this: Attraction is not a choice.

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 It’s a biological/instinctual trigger that evolved millions of years ago to help keep you alive,
which is usually why it’s never consciously understood or perceived by people until they actually
start to study it.

Here’s a very basic version of a complex, PHD level subject…

By nature, people thrive and live in social groups. They follow a leader until they gain enough
experience and confidence to challenge for leadership themselves or start their own group.

This is a survival instinct that has been engrained in us.

People cannot survive on their own, so we’ve formed trusting groups and families.

The leader (usually referred to as the Alpha), was typically the strongest and most dominate
individual in the group or family, both physically and mentally. One of his primary responsibilities
was to protect his group, and in return for that protection, they would follow him.

Everyone lived longer and was therefore able to reproduce, passing down these survival traits
in the process, to the next generation.

That instinct is still present and definitely used today, but the inherent value of a leader is now
expressed through different abilities such as business savvy, sociability, monetary means, and
education, instead of physical prowess.

Essentially, we are hard-wired to find other people attractive or un-attractive based on the
level of value they have to offer, because we gain a portion of their power/value through
association.

Think of a celebrity and his or her entourage.

The people in their group gain social status through their association with him, making them
more attractive to others. They become “cooler” and more attractive to other people outside the
group who want in.

There are two important lessons here:

1: People have a subconscious attraction to others who convey leadership qualities and
have a high level of personal value.

2: If you want to make it big in networking, (or anything in life), you must learn to convey
those qualities, and eventually become a leader with value to offer others.

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Page 17 of 78
 If your prospect or new distributor doesn’t have these qualities, they will struggle as well until
they develop them. It’s likely that this process will continue for years until they finally gain the
right qualities by accident, or until someone nice happens to share this book with them.

Now when it comes to Network Marketing and sponsoring specifically, there’s one epiphany
that you need to have right now if you haven’t had it yet…

People do not join a business, they join YOU.

You see, there are basically three categories of people in life... Alphas, Pre-Alphas, and Betas.

You can also think of these as established leaders, up-and-coming leaders, and followers
respectively. Each category offers exclusive benefits and abilities, or lack-there-of, to the
individuals within them.

So which category of our three categories are you in right now?

Well here’s a really simple test that may not be scientific, but very effective none-the-less…

Next time you’re out in public and you make eye contact with an attractive person of the
opposite sex, take notice of when you break eye contact with them.

Did you look down and away first or did they?

If you looked away first, you likely have a Beta or Pre-Alpha state of mind. If you held the gaze
until they looked away, you’re probably Alpha.

Then, ask yourself if you’re worried about what that person thought of you? Did you wonder
what they were thinking? Were you concerned with being judged? If so, then you’re in a Beta or
Pre-Alpha mindset.

Well here’s the interesting part…

The group you’re in is determined not by money, experience, the job you have or anything or
anyone else for that matter.

It’s determined by your STATE OF MIND, which is not given or bestowed upon you by others.
Rather, your group reflects your personal beliefs about yourself.

 You, and only you, decide which category you are in. 

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 Society will either agree with you and comply, or will chastise you for being a “poser”,
depending upon whether or not your actions are congruent with your beliefs.

This is called your “frame”, or state-of-mind.

You cannot fake belief. You cannot pretend or act. You truly believe you are, or you are not.

You will likely feel like a “poser” when you start to adopt and accept a new belief system about
yourself. You will likely get “caught” by an Alpha prospect who can sense that you’re not being
genuine yet, but that’s the key word... “Yet”.

That’s what people talk about when they mention “fake it until you make it.” Well faking it
does not mean lying.

It simply means that you’re going to struggle a bit as you go through the process of moving
from a follower, to an up-and-coming leader, and eventually to a recognized leader.

Your friends, family members, and co-workers will challenge you. That’s why there’s always
animosity and resentment in an office environment when someone gets promoted from a
“worker”, to a management/leadership position.

Challenging your current views about yourself and acting like a different person is a scary, yet
wonderfully rewarding activity. Increasing your value to others, and taking the initiative to move
yourself from one group to another is what personal development is all about.

EVERY leader has been there, and you need to know this…

Belief always comes before results.

Belief leads to certain actions and behaviors. Those actions and behaviors are going to be
awkward in the beginning, but given dedication, time, and affirmation, those actions and
behaviors will turn you into the type of person you need to be in order to generate the results you
seek.

Your goal in the network marketing industry is to become what I call an “Alpha Networker™”.

An example of an Alpha would be a successful upline leader living in a mind-state of

abundance, and who is pursued and followed by others.

An example of a Pre-Alpha would be someone who's recently started to push their comfort
zone when it comes to expressing leadership. This is where the struggle is found before the big
reward.

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  They've started training their new distributors and providing them with instructions.

 Their posture on the phone with prospects has become more authoritative.

 They've started hosting and introducing guests on training calls.

 They've taken personal responsibility for their lead generation and marketing campaigns.

 Their level of personal confidence and self-worth has begun to rise significantly.

The third group consists of Betas. They typically have very little confidence or value to offer
others, so they simply flock to those who do have it in hopes that it will rub off.

They are essentially, “unsure” of themselves, or still uncomfortable with the idea of being a
leader. They typically live life in a state of “reaction”, where life events and other people dictate
their rules and reality. Everything is usually someone else's fault.

The primary difference between Pre-Alphas and Betas is that Pre-Alphas have the vision,
courage, and willingness to lead themselves through adversity and challenge. If you cannot first
lead yourself through struggles, how can you expect others to eventually follow you?

With that said, there are two important pieces of information to note: one cannot exist
without the other, and everyone must follow before they can lead. It took me six years to move
from a Beta, to a Pre-Alpha, to an Alpha.

The bottom line is that you want to be an “Alpha” in all aspects of life, but especially when it
comes to business.

Alphas are the people whom others want to be. They are leaders. They are sought-after and
pursued. They are attractive to others, and success comes easily. Here are common personality
traits shared by Alphas…

 Leaders are naturally attractive because they radiate confidence and are not concerned
with outside criticism.

 They know exactly what they want and focus their energies on achieving their goals.

 They have a frame that is so strong, people are sucked into their reality. Everything they do
reflects the rules of what's possible and what is not inside that reality.

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  They tend to have a lot of rules that you must follow when you are around them.

 They treat themselves with integrity and they absolutely will not tolerate disrespect; in fact
they punish it, usually by ignoring the person, or removing them from their life.

Quite a few people have found out that I work this way, as do Dan Kennedy, Perry Marshall,
and Yanik Silver.

(Have you ever seen how Donald Trump answers an ignorant or disrespectful question? He
doesn't. Period. He either ignores it, or provides an answer to the question he feels he
should have been asked in the first place).

 They offer tremendous amounts of value to others.

 They truly love themselves.

 They love and protect those who matter to them.

 They always radiate positive energy and optimism.

 They respect themselves, and their bodies, dressing with style, and living healthy lifestyles.

 They do what the majority is unwilling to.

The upline leader with a team of 10,000 is an Alpha. The guy you know who gets the hottest
girls is an Alpha. The woman you admire on stage, dressed with class, dignity, and style is an Alpha.
The guy in the Ferrari sitting at the light with you is an Alpha. The pastor at your church is an
Alpha. The woman who throws the party where everyone wants to be is an Alpha.

And in the particular case of network marketing, an Alpha is the person who sponsors people
effortlessly.

The differences between Alphas and Betas in lifestyle, income, social circles, opportunity,
respect, and admiration are vast.

Alphas get the guy or girl, the car, the respect, the money, and have more opportunities in life
to impact more people in a positive manner - whether it's through public service, creating a
charitable foundation, instructing, mentorship, etc.

When you're an Alpha Networker™, you offer value, and prospects automatically pursue an
association with you so they can share a little piece of that power and value.

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 This is the foundational concept of Magnetic Sponsoring.

The Alpha Networker™ doesn't need to make follow up calls or court prospects.

They don't need to answer questions about their income, or convince anyone of anything.

Their business thrives in a constant state of abundance where many times, they will need to
actually limit the new number of distributors they sponsor, or hand them down to one of their
group leaders because they simply don’t have the time to work with so many people themselves.

I’ve been in that position many times. Would you like to be there as well?

Of course you would.

Actually...

You don't have a choice.

Successful entrepreneurs, by definition, are Alpha. Beta entrepreneurs (and I mean “real”
entrepreneurs) do not exist.

So take some time to think about this information, and how it relates to where you're at in
your current state of personal development.

This business is 90% mental and 10% execution, because when you're an Alpha (a state of
mind), everything else naturally and automatically flows TO YOU, and any past struggles and road-
blocks fade away.

All of this naturally leads us to the question, “How do you become an Alpha Networker?”

Simple…

The best thing to do is find people in your life who are Alpha and start emulating them.

As you do, you’ll start do adopt the qualities they all share…

 You will have an abundance mentality. This is a core concept needed for success.

Alphas never come from a “frame of need”. You don’t “need” to sponsor people. You don’t
“need” people to join you. When you “need” something from someone, you are
automatically supplicating to them and giving them the power.

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 If you don’t have the power in a given situation, then you’re not the Alpha leader are you?

Any feelings of “need” are crushed by living in a frame or mindset of limitless abundance.
Abundance of money, abundance of prospects, abundance of opportunity, etc… When you
live in abundance, you do not fear loss or failure.

 You are unconcerned with criticism. When you’re an Alpha leader, some Betas will feel
insecure and blame you for all of their problems. Many of them resent successful people.
That’s what they do because it’s the only option available to them when they are unwilling
to take responsibility for their own life’s circumstances.

Alphas do not let these people or their comments affect them.

 You dictate the terms. You’re not mean, you are assertive. If other people want to interact
with you, it’s on your terms. This is commonly called “posture” in the work-at-home arena.

 You are willing to say “no”. You know you can’t please everyone, but it does not matter
because you live in a frame of abundance.

 As an Alpha, you give instructions just like the quarterback does or the head coach of a
football team.

 You protect and serve those who follow you. Your goal is to uplift and improve the lives of
those around you, not because you feel obligated, but because you want to.

 You respect yourself and your body, dressing with style, and living a healthy lifestyle.

 You take risks, but once again recognize there really is no such thing as risk when you live in
a mind-state of abundance.

 As an Alpha Networker™, you’re confident, socially powerful, outgoing, fun, a leader,

secure in yourself, filled with self-esteem, and are someone able to joke around with
others and be playful.

 You have a strong physical presence. Alpha males are relaxed (watch 007), take up space
with their shoulders and always hold eye contact. Alpha females sit up straight, hold eye
contact, and move with poise and purpose.

 You use a strong, confident voice and control the conversation. You tend to speak with a
relaxed authority and aren’t afraid to interrupt the other person.

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  When a prospect questions or challenges anything about a Beta’s product or opportunity,
the Beta will get frustrated, defensive, and/or offended. They will immediately begin to
seek the approval of the prospect.

As an Alpha Networker™, you take control of the situation before it happens, or simply
ignore it.

 You never seek approval by ending sentences with, “isn’t it?” or “right?” These questions
tacked onto the end of sentences make you sound weak willed, particularly if your vocal
pitch rises. Right?

 You are extremely protective of your most valuable resource, which is your time, and do
not give it away to others unless they deserve it.

After all of this is said and done, Magnetic Sponsoring and generating attraction is about
ONE THING: Increasing your value to others and to the world.

Alphas are valuable people.

The more valuable you become to others, the more they will seek you out.

The more valuable you become to others, the more Alpha you will be.

That’s THE secret.

After realizing this, I became a man on a mission.

I spent every dime I could on information, courses, and books. I went out and learned
marketing skills that others will be unwilling to learn – and in the process, I become extremely
valuable to others.

Again, in order to become “magnetic”, you must increase your value to others through
education and experience.

Believing and knowing that you hold true value to other people, gives you the confidence and
abundance mentality you need in order to become an Alpha Networker.

Sit down and ask yourself this question…

How do you bring value to the table right now in the eyes of your leads? Remember, your
company doesn’t matter. How do you PERSONALLY bring value to them?

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 Can you teach them how to advertise and generate leads? Are you great on the phone during
three-way calls? Can you host killer meetings?

If you struggle with sponsoring, it’s because you don’t bring any true value to the table yet.

If someone is going to join you, they’re looking to acquire some kind of power by associating
themselves with you.

If they’re not going to gain power of some kind by working with you, they won’t work with you.
They’ll just go find a leader who will provide them with that advantage.

Now here’s the great part… It doesn’t take a lot to increase your value in the eyes of a prospect
because most don’t have a clue when it comes to building a home business.

All you need to do is know just a little bit more than they do, and you’re instantly in a position
of power and value.

Before we continue, let me share a really big pet-peeve of mine when it comes to acquiring
value…

Specifically, it’s when people send me questions like this:

“Is this course going to tell me everything I need to know, or am I just going to have to buy
another book of yours after this?”

“I’ve already bought dozens of books on this stuff and I’m still not successful. Why should I buy
yours?”

Let me be blunt… These people are idiots. They just don’t get it. It’s not about them, or what
they’ll need to spend on another book. It’s about increasing their value to others so that they may
serve more people better.

They will never make it with this attitude and should go back to their job as quickly as possible.
They are looking for a book, or tool, or widget, or something else outside themselves that will
finally bring them success.

It doesn’t exist. I make more money than you because I work 10 times harder than you, I
sacrificed 10 times longer than you, and I invested 10 times more than you in my education.

There’s no secret here folks.

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 Your education never stops. Increasing your value to the world never stops. Do you want to
make seven figures in the next three years? Go spend $10,000 to $30,000 on courses and
consulting as quickly as you can during that time period.

Doing so guarantees you’ll hold more value than 99% of the people in this industry, turning
you into a “people magnet” in the process.

Check this out…

Pop Quiz:
$6,410 is what I ___________________________ From November 19 – December 19, 2005.

A) Made in My MLM opportunity.

B) Spent On Travel Expenses.

C) Spent on Books and Courses.

D) Paid Out in Affiliate Commissions.

Select Your Answer and turn to the next page…

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 What if I told you that from November 19 – December 19, 2005, I spent $6,410 on books,
tapes, and training to further my education as an entrepreneur?

Would you believe it? Would it make sense to you, or is your jaw on the floor in disbelief?

Well, that’s the total I came to when I sat down and tallied my receipts. I spent almost $400 on
other marketer’s products (marked with an *), just to study the format and packaging!

And this was AFTER I was already making at least $50,000 per month. The more money I make,
the more I spend on more information.

You see, I’m not a genius in any form of the word. I graduated college with a 2.0 in marketing.

But I know all of the answers I need to meet any challenge are out there waiting for me, and
I’m smart enough to invest in myself - to increase the value of Mike Dillard to the world, because
the more valuable I become to others, the more I am pursued.

The fact that you’re reading this course means that you understand this principle to some
degree.

Don’t stop now. INCREASE your pursuit of value-giving education.

Every single successful entrepreneur I know has studied and accumulated information on their
industry that is the equivalent of a Master’s or PhD.

Without exception, those with the biggest bank accounts also have the biggest personal
libraries, and they don’t stop learning when they reach their goal… They do the opposite - just like
I did. They start spending MORE. Much more.

This book is not the end of your education. It’s the beginning. You will NEVER find an “end-all,
be-all” course that will teach you everything you need to know.

It does not exist and never will.

Only a Beta would seek out a magic lamp of some kind that promises to bring them what they
desire.

When you’re buying information, you’re looking for just one good idea that you didn’t have
before. Just one. If that’s all you get from a CD set, book, or course, you’ve gotten your money’s
worth because it all adds up over time.

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 Don’t be afraid to spend big money on marketing courses either. I routinely buy CD and book
sets or conference tickets that cost $1,000 to $5,000 each without hesitation because what I learn
always ends up making me much more in the long run.

This attitude towards my education was a turning point in my career.

It’s like a puzzle, and every new resource you expose yourself to, adds a few more pieces.

Buy every single book you can get your hands on.

Reading and internalizing what is taught in this book, the Inner Circle Newsletter, Black Belt
Recruiting, MLM Traffic Formula, or any of our courses will automatically increase your value
to others tremendously.

You see, in the end, success in this industry comes down to just TWO things…

1. Becoming a leader to others by increasing your value.

2. The ability to express your value to prospects through marketing.

There are no short-cuts. Magic websites and lead sources do not exist.

I can give you free leads all day long, but if you don’t see yourself as a leader and express those
qualities, you’ll never sponsor any of them.

Everything you need is already in you.

You can do it!

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 Network marketing is not what it seems.

It took me close to five years to finally “get it,” but it turns out that our products and services
are not really our true products!

You see, we are not here to sell vitamins and long distance service. We are not here to “get
people into the business.”

In fact, here’s a brief list of everything that does not matter:

“My product is cheaper.”

“My product has a higher ORAC value.”

“My product has every vitamin and mineral under the sun.”

“My product has a patent.”

“My product is better than yours.”

“My product was used by the ancient pigmies of the Kukamunga tribe.”

Look. All that matters is that your product holds real value and provides a solution to the end
consumer, which is the necessary ingredient for long-term success.

So, you can stop worrying about the features and price point of your MLM’s product, and stop
worrying about the “competition.”

There is none.

Why?

First of all, competition is a GOOD THING.

If you don’t have competitors selling something similar, it means that there’s no real demand
for it to begin with.

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 Second, your business is marketing. He who markets and promotes best, wins.

Read that again… “YOUR BUSINESS IS MARKETING”.

I could dump two tons of the greatest new Super Vitamin 2000 on your driveway, but unless
you knew how to market it to the right people, you wouldn’t make a dime. The money is not in the
product. It is in knowing how to market the product!

So in reality, your product is the marketing system you use, and the people that come out the
other side as leaders or customers.

The next two sentences will change your life if you “get it”…

You sell a marketing system to distributors.

The marketing system sells your company’s products, (not the business!)

Let me share an example with you that might help. We’ll use a little company named
McDonald’s.

When Ray Kroc started McDonald’s, he didn’t care about the food or its quality. That’s not why
people eat there.

People eat at McDonald’s for the predictable experience, speed, and prices.

What Ray perfected, and what he SOLD to franchise owners, was a system for consistently
turning beef into cash.

After all, investors don’t buy a franchise because they have some mission in life to serve tasty
food. They’re buying the business to make money, and Ray had perfected the system better than
anyone else.

So Ray sold a “money making restaurant system in a box” to franchisers, and the system
cranked out the retail product to the customers.

It’s a paramount concept that you need to understand from the get-go.

And just what is a “system” anyway?

Well, boiled down to its most basic element, a system is nothing more than a standardized set
of tools and instructions.

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 Your system can be anything as long as there are a common set of tools and instructions.

Our job is to:

1: Market a system to distributors that retails the company products.

2: Teach them (you), leadership and marketing skills… To help our new distributors become
“Alphas”. This will allow them to effectively sell more franchises to future franchise buyers
(distributors).

Once you have developed or found at least five Alpha Networkers, you’ll be on your way to
financial freedom.

The greatest benefit this industry provides is not the money, the time, or even the friendships.
It’s what this industry can make of you – the “person you become.”

We all come to the table with the same tools, marketing materials, and systems. You and the
strengths you bring to the table are the only unknown factors in the equation.

Choosing the right company, with the right product, and with the right marketing system can
help you reach your goal faster, just as a sharp axe will out perform a dull one, but it will not
determine your end result!

My business took off once I decided to just simply 'help others,’ even if I didn't know
everything. I was going to try and help as many people as I could. I stopped worrying about the
marketing plan, the presentation, and all of that junk and I think this is the key for most people
who are 'stuck' - they are focusing on things like tools, websites, and compensation plans too
much, always looking for something outside themselves that will bring success. (A Beta behavior).

But the desire to help people wasn’t enough in-and-of-itself. I had to learn how to market so I
could get that message and that energy into the market place.

Intentions are useless without the ability to execute them.

This business allows us to change and inspire thousands of people around the world. Your
actions today will start an enormous chain reaction of events that will travel the globe for years,
and you will never be able to see or comprehend the impact you will have on generations of
people.

That is what motivates me personally. The way I view my life is simple… It’s a gift, and if I don’t
do everything I can to achieve greatness and make a huge impact on this world, I’ve wasted it, and
I’m a lazy SOB that deserves mediocrity and boredom.

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 I do not want to be just another face in a crowd, going through life just because they’re here
and they have to. This is a gift, and you have NOTHING to lose, so why wouldn’t you do everything
possible to live it at the highest level?

I want to taste the world’s best wines, experienced the world’s greatest foods, drive the best
cars, see the greatest sights, and experience as much of life as I can.

That’s why it’s here, and I’m only going to be in this world for a short period of time. So I want
to experience these things, and I want to empower as many people as I can to do the same.

Listen…

About 10 years ago, a conversation with a man who became my first sponsor in this industry,
set a series of events in motion that afternoon which have completely influenced and changed
every major decision of my life since.

Think about that…

One stranger and a simple phone call set my entire life down a certain path.

I haven’t spoken to him in years and I don’t know where he is today. I can’t even remember his
name. He has never seen the results of that phone call, and he will never know about the
300,000+ people whom I’ve impacted since then, but that one simple action is what started it all.

This book is in your hands today because that guy gave a call to one of his leads (me) over 10
years ago.

YOU hold that power in your hands this very moment. Pretty exciting to think about, isn’t it!?

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 As I think back over my first four to five years in this industry, and evaluate the reasons for my
set backs and successes, one thing becomes very apparent:

Success came when the emotion left.

Let me explain.

When most people first get involved in this industry, they usually do it out of desperation,
excitement, or hope.

It’s an emotional decision.

Unfortunately, this is an industry of business ownership pursued by people who have never
been business owners.

For the most part, the disciplines and skills necessary for success in network marketing are
completely foreign to them.

So here they go…

Spending money, investing time, and pushing outside their comfort-zone for the very first time
out of a very strong and emotional desire to achieve, coupled with an equally strong fear of
failure.

They feel like they’ve been dropped into a fishbowl and have to sink or swim.

Each lead called is the call of a lifetime. Each warm market prospect holds the key to their
futures. Each meeting attended contains the secret to success. Each follow-up call answered by a
machine is a shot to the gut. Every dollar spent on leads is a gamble. Each call to the upline that’s
never returned is personal. The sky starts falling to the ground with every ‘no.’ Every new sign-up
is cause for a night on the town.

There is no abundance mentality present.

It’s all run on emotion because of that.

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 And this is why they quit.

This is how I felt my first four years in this industry. It was a complete roller coaster, which
always ended in a frustrated, exhausted, and saddened rider.

And I see it every day with new team members.

Honestly, nothing scares me more than the complete jubilation and level 10 enthusiasm of a
new rep who can’t wait to share our product with anything with a pulse.

“Mike, are you freaking crazy? ! I’d love to sponsor someone like that!”

Well, that’s quite possible ;)

But here’s the reason for my fear:

Everything that goes up must come down, and when it comes to emotions surrounding a
business, it’s a recipe for disaster.

Emotions in this industry are typically generated due to a fear-of-loss or poverty mindset.

Building a business from the ground up for the very first time is hard. You will experience
failure (learning) daily.

And if you are emotionally involved with these learning experiences, it will cause you pain and
you will stop doing the things which cause that pain, (calling people). And bam... You’re done
unless your “reason why” is big enough and strong enough to push you onward through the pain.

True professionals feel no differently about success and failure. They are just part of everyday
business and treated as such because they live in a mind-state of abundance.

Today, everyday is just another day at the office. It’s fun. I love what I do, but the emotional
highs and lows are gone.

In short, I’ve grown up and into a professional.

I actually lost my No. 1 producer a few months ago. She brought in over half my organization
during the first months in my business.

What may surprise you is that I didn’t lose a wink. I didn’t waste a second wondering why. I
didn’t whine or complain, and I didn’t chase after her.

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 It just didn’t matter because I know where I’m going, and that I will get there no matter who
comes or goes. There are an endless number of people out there just like her that I’ll meet. (This is
an abundance mentality). The decision was made, so the emotional rollercoaster came to an end.

Now it was time to just go to work every day, and treat the good and the bad for what they
really are… Just a part of doing business.

The irate calls from customers who forgot they were on auto ship? Just another day at the
office. The no-shows for follow-ups? Just another day at the office. The new guy who talks big and
then never does jack? Just another day at the office. The new distributor joining with 100 reps
from his old company? Just another day at the office.

Keep your emotions out of your day-to-day building. There will be highs and lows daily. Don’t
let them affect you.

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I’ve been involved in the home business industry for about ten years at this point. I started in
college with Alpine selling air purifiers, and then joined no less than 12 more opportunities over
the following years.

That scenario will sound familiar to most people in this industry. When you don’t find what you
seek, you look elsewhere. The only problem is that what you seek won’t be found in a product,
company, or comp plan.

So what was the problem? Why did I feel compelled to change from one to another? What was
I searching for?

Well in all honesty, there is no one right or wrong answer. There are many.

The two primary problems were:

1. Me – I take full responsibility for my past/current shortcomings and failures. Every

Alpha leader does. Make sure you do as well.

2. My lack of marketing knowledge.

Because this is an industry of entrepreneurship, pursued by people who have no prior business
ownership experience, there is a steep learning curve one must go through, not only in business
terms, but in self-image, confidence, belief, and mental maturity.

Entrepreneurs are a different breed of people. And frankly, I had to become the person I
needed to be in order to be successful…. (an Alpha leader). I had a long way to go, so it took a few
years, and because I didn’t have the hindsight I have today, I switched from company to company,
thinking a product or comp plan was the reason for my failure.

Please, don’t take that statement the wrong way. If you are stuck in a second-rate business,
then by all means choose a better one, but do it for business reasons, not personal or emotional
ones. You want to participate in the best opportunity you can.

If you’re going to chop down a tree, you want to swing with the sharpest axe you can find.

Changes came very quickly when two things happened:

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 1: I gained enough life experience through my corporate jobs to finally have the belief that I
already had everything I needed to be successful in networking. This is when I went through my
“Pre-Alpha” phase.

The new personal beliefs I adopted were shown through a new sense of confidence, posture,
and willingness to take a leadership role, even before I had a downline.

And guess what?

That belief manifested the results I sought. You must believe you already have what you want,
before it will happen. And because I did, so it came, leading to my evolution as an Alpha leader in
my own right.

2: I was introduced to REAL marketing, copywriting, and direct response techniques through
the Internet marketing industry.

They helped me see the final missing piece of the puzzle, which resulted in the realization that
this is an industry of marketing, and promotion pursued by people who have no idea how to
market, or promote.

“Marketing? I don’t need marketing, Mike. My product is so good it sells itself!” (Or so they tell
me!)

Products don’t build downlines, they sustain downlines. Here’s proof:

Order $10,000 of your product tomorrow. Have it delivered to your home, and then pull up a
lawn chair, (and a Windy Unit air conditioner attached to a long orange extension cord if you’re in
Texas like me), and just sit and watch it. Stare at it for a few hours, and then go check your bank
account.

No change?

Exactly.

Leadership and marketing sell products and build downlines. Nothing else.

You, my friend, have never been introduced to real marketing in MLM until today, and what
I’m about to share with you will change the way you approach this industry forever.

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The Marketing Secrets of Magnetic Sponsoring:
The entire point of building a network marketing business is to create well-educated
distributors who can market and acquire a large base of happy product customers who have
nothing to do with the business. They just love and use the product, which creates a monthly
residual income for you and your family.

The biggest problem I have seen develop over the last few years, (primarily due to the
Internet,) is that this industry has focused entirely on building systems which cater to weakness.

It makes perfect sense why that’s happened from a “marketing standpoint,” and you will learn
why in the upcoming chapters, but when it comes to building a network and developing leaders,
catering to weakness is lethal.

I’ll be honest… Magnetic Sponsoring will not determine your success. Thinking that anything
outside yourself will determine the end result in your business and your life, is ignorance and
something only a Beta would think.

What Magnetic Sponsoring will do, is empower a skilled business owner and let him or her
achieve massive success faster and easier than ever, through the application of correct strategies
and tactics.

Most networkers are like home builders, except when they fail to build their house, they go
back to the tool store and try a new hammer. When that doesn’t work, they go do it again, and
again, and again. (Like trying dozens of opportunities and lead companies).

If they would only realize it’s the skill and knowledge of the person swinging the hammer that
mattered, and not the company or the comp plan.

Every three months or so, “the next big thing” launches and I get a flood of emails and phones
calls from the poor folks who just don't get it yet, and who sincerely wonder why in the world I
won't jump in on the ground floor with them.

The only way you'll make it in this industry is to become a leader with a following, and signing
an application three days after a company opens its doors does not qualify you as one.

Ok, let me get off my soap box and tell you about a conversation I had yesterday...

I was talking with a pastor who wanted to start a home business. He had looked at my
company, but his wife decided she liked another product better.

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 “Ok great”, I said. “I’m glad to hear that you found something John, but let me ask you a quick
question… How are you going to build your business?”

John: “What do you mean?”

“Well, your product, company, and comp plan are meaningless until you find a way to acquire
your customers and business builders, right? The money is not in the product. It is in your ability to
MOVE (market) that product. How are you going to do that?”

John: “Ummmm, not sure.”

Exactly.

Understand that this business is all about the marketing!

 When you do this business right, you don’t have to “sell.”

 When you do this business right, you don’t have to ask people to join your business…
They ask you!

 When you do this business right, you don’t have to post “work at home” flyers on car
windows.

 When you do this business right, people PAY YOU to prospect them.

 When you do this business right, anyone can duplicate your success just by plugging into
the system.

 When you do this business right, you and your team members make cash quickly, even
from the people who DON’T join your organization.

 When you do this business right, anyone can plug into the system and make money their
very first day.

The problem is that 99% of network marketers don’t do it right, because they don’t know how
to market.

Making huge lists and cold calling? No thanks. I’d rather be fishing, so I became a voracious
student of marketing because I’d rather have my system selling my product, filling my list, and
bringing people to me 24/7, all on my prospect’s dime.

Sound good to you? Thought so!

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Stop Buying Bad Leads And Pitching Your Business to “Uncle Bob”…
In the past, this is the answer you would get from most of your potential sponsors in any
company when you ask them how you’re going to build your business.

First, they will give you a “memory jogger” and tell you to make your list of 100 contacts -
everyone from your financial advisor to your mailman, to your school teacher.

(This works great for acquiring customers if you have a hot product, approach them the right
way, have some credibility with a few people, and actually do it!)

Next, they’ll tell you to spend $300-$1,000+ each month on Internet leads.

The problem is that it’s going to take the average Beta or Pre-Alpha person a minimum of four
months to a few years before they become an Alpha Networker, and learn how to recruit well
enough to build an organization large enough to break even on their expenses.

It will work, but it’s just not efficient. It’s not smart business - all brawn and no brains… A
mediocre approach born from a lack of better-known options.

This business is ultimately about networking: Getting on the phone, meeting people, building
relationships, and spreading the goodness. This process if fueled on the front end by effective
marketing and lead generation.

If you EVER think you can build a long-term, successful network marketing business without
spending the majority of your time interacting with people personally each day, you are mistaken.
We may use the internet as an advertising medium, but this industry is always about people and
personal relationships in the end.

With Magnetic Sponsoring, we’re going to attract people to you, instead of chasing after
them, and have them pay you to do that.

Personally, I have come to believe in working smart, as well as hard. I have always been looking
and searching for a way to bring people to me - to be the hunted instead of the hunter.

Here’s how that’s done…

The key to effective marketing (and Magnetic Sponsoring) is to promote and sell a generic
solution and system, instead of your business opportunity on the front end.

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 You see, most people would rather learn how to do something, than actually do it.

For example, which ad would you respond to?

“Join my company XYZ and make six figures in three months!”

Or:

“Revealed: How I built a million dollar business from my home on a shoe-string budget. Step-
by-Step Instructions.”

If you’re like most people, you would choose ad No. 2. It holds a higher perceived value and it’s
generic.

This is not a real ad, but the point is that it doesn’t exclude anyone. It’s helpful and hopeful, so
it will get a much higher response. Not to mention that you already went down road No. 1. It
sucked. You lost money. You lost credibility. It was painful, and you are looking for a way to reach
the prize without any pain.

By providing your prospects with valuable knowledge that can help them get what they want
and make their life easier, instead of pitching them some opportunity, you instantly set yourself
apart from the masses, and you begin to attract them to you “magnetically”.

You position yourself as an Alpha leader who has power and value to offer others who
associate themselves with you.

So what is the best way to successfully build a network marketing business?

What are the secrets that allowed me to achieve financial independence with my opportunity
in just months that was missing from my business during the last five years?

Well, there are six things listed below, but as far as recruiting goes, it would be reason No. 3.

DRUM ROLL PLEASE…

1: I started treating it like a real business instead of a hobby. I got committed, and my business
was at all times, my #1 priority in life.

2: I increased my value to others by purchasing training courses on marketing and personal

development.

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 3: Instead of selling my opportunity, I started selling myself and the other Alpha leaders on my
team, which generated attraction, and then I marketed and sold our team’s system to our
prospects.

4: I led with a funded proposal or “self-liquidating offer” in the cold market which targeted
other network marketers. This allowed me to generate endless new leads for free.

5: I started promoting my product in my warm market and built a sizable customer base.

6: I developed an awareness for finding other leaders in my downline’s warm market.

REMEMBER THIS: The fastest way to get rich in life is to solve other people’s problems.

So, I don’t place the initial emphasis on my MLM company. That’s just selling people another
problem.

I market a solution to other networkers. I fix their problems, and therefore, become a valuable
resource to them.

This brings us to our next important lesson... Getting the right marketing message in front of
the right people.

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Effective marketing is really about two basic things:

1: Marketing a product to people who already have a true desire or need to purchase it.

2: Positioning yourself as an Alpha leader and a solution provider.

Position yourself not as a sales person, but as an expert who provides solutions to those who
are actively looking for what you have: Your target market.

After all, you can’t give away, let alone sell, a steak to a vegetarian.

So who should you market your retail product or service to?

Simple: Those who have purchased a similar product or service before, or people who are
actively searching out your product or service today. That’s it.

Stray from this rule and your success is now up to lady luck. Go to Vegas. You’ll probably lose
less money and at least have more fun doing it!

In our case, the only people who are in our primary target market are those who have been in
network marketing before, who are in it today, or who are actively buying information about it –
not just requesting it.

(There are actually 6 target markets, which I talk about in detail in the pages of MLM Traffic
Formula, but we’re going to stick with the basics here).

In short, we want to market to people who have already purchased a home based business at
one time or another – other networkers.

Why?

 Network marketers already believe in the business model.

 Network marketers have already spent money on the industry.

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  Network marketers want to succeed.

 Network marketers are willing and eager to use/purchase anything that will help them
succeed.

The difference is like placing ads in every major newspaper looking for people “who would like
to play professional baseball,” and interviewing them, or going directly to people who already play
professional baseball and recruiting them.

When it comes to recruiting new distributors, only invest in ads that target network marketers.
Yes, you can go after talented and successful people in your warm market, and I suggest you do,
but that should happen as an “add on.” In other words, go after your warm market contacts when
the opportunity arises, but do not make them your sole focus.

Opportunity leads are simply “opportunity seekers.” Network marketers are “opportunity
buyers,” and we sell a business opportunity!

I sell to people who already buy what I have to offer! I only enroll people who want to be
enrolled! (Crazy, aren’t I!?)

Sending a CD or your web address to Uncle Bob the plumber and your softball buddy Tim is a
little like this: Let’s say you’re an award-winning chef who’s come up with a steak dish that is
considered pure perfection – the cow raised on the purest feed in the world and prepared by your
skilled hands… Flavor worthy of a $100 price tag for just 8 heavenly ounces.

But, it just so happens that you work at a vegetarian restaurant. As you might guess, despite all
of its merits and applause, you couldn’t give that perfect dish away for free to the diners at a
vegetarian restaurant.

They’re not in your target market.

On the other hand, you could walk next door to The Steak Baron’s Inn, and within 10 minutes
the dish would be sold out. They might even dedicate a full page of the menu just to your example
of beef perfection - and you’d make some serious cash!

If you want to make your life easy, make a lot of cash, and have a lot of fun doing it, stay within
your target market: network marketers, and those looking to buy into network marketing!

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Where to Find Contact Information For Network Marketers:
Up until a year ago, the most common answer was to use genealogy lists. Genealogies are a
heavy hitter’s downline report who have left the industry or the distributor database from a
company who has gone out of business.

The problem with genealogies is that an average of 40% of the information is outdated and
incorrect. The list might have been released yesterday, but some of the reps on it may have joined
the company 10 years ago!

This renders a list like this useless for any kind of direct mail campaign. The only method
available is cold calling the list, which is extremely inefficient.

So, the best way to get in touch with other networkers is to:

Advertise.

Placing ads in industry journals, work at home magazines, and on Google works great IF you
have an effective ad and practice Magnetic Sponsoring by promoting a generic “solution.” Simply
advertising and soliciting for leads for your opportunity will suck your bank account dry because
other networkers don’t care about your business, as they probably have one already.

Advertise your MLM and you will lose money! No one cares about your MLM! They are already
in one!

“So what the heck do I advertise Mike?”

Why would I advertise for other networkers if they won’t join me anyway?

Ahhhhh… Great question!

You’re going to advertise two things remember:

1: Your “Alpha” self because people don’t join business opportunities, they join other people.
(Alpha leaders specifically).

2: Your marketing system. Just like Ray Kroc, you’re going to sell a marketing system to
distributors. That system should sell your company’s products.

What does every single networker need help doing?

Recruiting customers and business builders, right? Right.

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 So I market a complete solution to that problem in the form of a complete franchised system.

This is how recruiting goes from something you “do,” to something that just “happens”
because people want a piece of your solution!

Lastly, I bring my opportunity into focus as a solution to other problems faced in this industry.
After I market the “How,” I market the “Who, What, When, Where, Why” of my company.

This marketing order is the exact opposite of the average networker who leads with the Who,
What, When, Where, and Why of his company.

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Here’s the deal…

McDonald’s is a billion-dollar franchise run by high school kids. This is possible because they
have a unified, duplicatable system in place.

The only three jobs their employees have are the following:

1: Provide customer service.

2: Take the order.

3: Train the new employees to provide customer service and take the orders.

That’s it.

The system does the rest. The employees push the buttons that turn on the fryers,
microwaves, and cash registers.

They simply push the “go buttons,” and that is why McDonald’s has succeeded. This level of
duplication created a completely predictable experience for the customers, which is McDonald’s
real product. It’s not their food. It’s the predictable nature of their food, service, and atmosphere.

We go to McDonald’s because we know exactly what to expect.

Your network marketing business should be no different. The only thing that’s usually missing
is a real/complete system.

The Cash Flow Model:

Understand that network marketing is a business model designed to accrue value and net
worth over time.

“But, Mike, my upline is making six figures, and he’s only been in our business less than nine
months!”

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 Some can. Some do. But very few will accomplish such a feat, and when it happens, it is
because they have already earned the ability through past experiences, contacts, skills, and know-
how.

Their “overnight” success story is only the visible piece standing atop what is usually 3-10 years
of failure and money spent that you don’t know about and usually don’t hear about.

They paid their dues and became an Alpha Networker just like you’re going to have to do if
you want the same kind of power.

The industry needs to stop twisting the truth about how this business model works, and the
average Joe needs to stop looking at the MLM business plan as a quick fix for his/her financial
situation and start looking at it for what it is: A financial asset like a CD or mutual fund that grows
exponentially and pays out over time.

Ok, back to the business model...

Your home business needs to consist of three overlapping parts where the network itself
comes last instead of first. This entire process can be summed up as this, “expose, involve,
upgrade”.

Each part will expose the reader to more information about the product, service, or company.
It will involve them at greater levels as they become a customer, and each product will then sell
the next product or stage in the process.

Part A: You need a low-cost, (under $50), high volume retail product that funds your
advertising, erases your expenses, and produces a never-ending source of leads for your business.
This is also referred to as an “SLO”, or “self-liquidating-offer”.

Your retail product back-ends (sells) Part B and/or C.

Part B: This is a medium to high cost ($75-$1,500) backend product that puts real cash in your
pocket. (This may also be a “Fast Start Bonus” that is usually paid out by a company for new
customers/reps). This is your monthly bread-and-butter cash profit that you can use to pay the
bills, invest, etc.

Part B sells Part C.

Part C: Is a network marketing opportunity that creates long term, leveraged residual income
through the monthly small recurring purchases made by a substantial distribution channel. (Your
downline organization).

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 95% of the people in this industry start with Part C, which is why they end up spending
themselves out of the business. The average person can’t create cash fast enough to pay for their
expenses or learning curve, let alone create a full-time income!

Retailing an SLO is the critical and often missing link in network marketing today. It’s where
your seed money is generated that funds your business growth until the backend residual from
your business starts to payoff.

“But, Mike, I don’t know enough people to sell five bottles of vitamins a day to!”

Good. I don’t either.

I’ll go into greater detail in another chapter, but rest assured, the last thing you want to do is
try and retail the actual product of your business in a major way unless it is a weight loss product.
Why? Because you can’t market 90% of MLM health products through direct response/direct mail.
If you could, your company wouldn’t need you!

This “Part A,B,C” model is used everywhere in the “real world.”

Just take a look at the car business. Think the dealers and manufacturers make all their money
with the cars they sell? Nope!

The car is just an excuse and one small cog in the system which then sells you financing, floor
mats, insurance, and extended warranty, etc.

Think McDonald’s is in the hamburger business? They’re not.

There is no profit there. The $1 burgers are there to get you in the door (the magnet), so they
can charge you 50 cents for a slice of cheese and sell you cola and fries, which have massive profit
margins. (Expose, involve, upgrade).

McDonald’s is not in the hamburger business. They’re in the carbonated sugar water business.

You think Subway is in the sandwich business? Not anymore. They are in the weight loss
business. Just ask Jared.

They front-end you on a low-fat sandwich (magnet), and then back-end you on the high profit
beverage and chips.

Think Las Vegas is in the gambling business?

Wrong again. They are in the entertainment business.

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 Just look at their latest ads: “What happens in Vegas, stays in Vegas.”

They advertise everything BUT the gambling! It’s all about the “wild girl’s night out on the
town.” The five star restaurants. The lights. The shows. The themed hotels. The experience.

They don’t sell you on gambling. They sell you on FUN and memories because that is what
people really want… A good time! The casinos are the back-end product of Vegas! (Which is always
where the REAL money is made!)

All the incentives, comps, lights, and entertainment are the “magnets” used to get people on a
plane and through the front door where the REAL selling begins.

Trying to sell your home business opportunity up front as your only product is like a Subway
without sandwiches or a Las Vegas with nothing but slot machines along the street – Not a very
appealing offer!

You still think you’re in the “vitamin” business? Do you really???

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The Five Cash Flow Components:
There are five components/machines needed to build to a complete business model:

During this whole process, your personal job is to drive traffic into the machine, and build a
relationship with your prospects and retail customers! The system does all of the selling and telling
for you.

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Ok, now that you understand the 5 components of your business, let’s dive into the psychology
behind the Magnetic Sponsoring marketing tactics, that will essentially have your prospects selling
themselves on your products and services.

We’re talking about “persuasion”, and it’s the job of our marketing pieces at each stage in the
process, to persuade our prospects to continue to the next step.

Amateurs sell products and push them upon people. Professionals market solutions and
expertise, which attract people towards them.

Ultimately, this is a people business, and the more you learn about people, the more
successful you will be.

To use Magnetic Sponsoring strategies and tactics, you have to understand how people
think, know what they want, and how they react.

Here are a few basic rules to keep in mind, especially when it comes to marketing and
communicating an offer in any form or medium...

1. Most people are lazy. They want better, faster, cheaper, easier. Heck, wealthy people
are usually the laziest of all! It is my laziness and dislike of work that has driven me to
strive insatiably for faster, easier, and more efficient ways to create wealth! Ha! What
irony!

2. Every single action and decision in your life is based on attaining pleasure or avoiding
pain. Even with something as trivial as opening and reading an email or deciding to
delete it.

3. The desire to avoid pain is greater than the desire to attain pleasure. This is why most
people give into their fears and never do what it takes to make it big. The perceived
pain of leaving their comfort zone is greater than the pleasure of being wealthy.
Excuses are then produced and the mind will find a way to justify them with logic: “I
can’t call Johnny Prospect. He lives on the East Coast and it’s 9:45 p.m. there.”

4. People will do almost anything to cure/avoid pain. If you expose it and then offer a
solution, they are genetically coded to attain that solution. It’s a survival instinct.

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 5. People would rather learn how to do something than actually do it. (Purchasing hope
vs. doing the work.)

6. People want what they don’t/can’t have. They are fascinated by and gravitate towards
those who do have it. (People they consider experts/leaders/ Alphas).

People are so hungry for leadership they will literally give their lives to quench their thirst.
Christ, Hitler, and cult leaders would be some dramatic examples from opposite sides of the
spectrum.

When you become an Alpha Networker, you will effortlessly attract new distributors. To
become an Alpha, you must increase your value to the world ,which will help you change your
beliefs about yourself.

Magnetic Sponsoring is the promotion of Alpha leadership, expertise, and a solution, instead
of a business opportunity.

You ever see an expert/leader in their field having to advertise? Nope. Because their
reputation as an expert/leader pulls people to them. Typically, they have to turn away business.

The principles above are the rules to base your advertisements on, your marketing, your
conversations, your emails, your websites, etc. They are the physiological triggers that magnetize
you and your offer.

The discovery of this quote was how the idea and concept of Magnetic Sponsoring was
born…

“Nobody who bought a drill actually wanted a drill. They wanted a hole. Therefore, if you want
to sell drills, you should advertise information about making holes – NOT information about drills!”
- Perry Marshall

Have you ever noticed that the top income earners in the network marketing industry like
Randy Gage, Gerry Carson, Todd Falcone, Dale Calvert, Big Al, John Fogg, Robert Blackman, Joe
Schroeder, Jay Kubassek, Mark Weiser, Tracy Biller, Brian Tracy, Robert Allen, and Dexter Yeager –
do three things?

1: Sell generic “how to” information,

2: Advertise those products instead of their business,

3: Hold generic training sessions.

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 Why?

Because you can attract your competition/future business partners to you without offense or
being perceived as a “competitor.” You are just here to help anyone and everyone who asks for it.

Alphas serve other people without want.

Read this again real quick: “Nobody who bought a drill actually wanted a drill. They wanted a
hole. Therefore, if you want to sell drills, you should advertise information about making holes –
NOT information about drills!” - Perry Marshall

Here is what a marketing expert would say to you: I don’t want to sell you an expensive drill. I
want to sell you inexpensive instructions on how to make a hole, which will lead you to sell
yourself on buying my drill through ‘sellacation’. (That’s my personal term for describing the
process of selling through education.)

This sums up the entire marketing problem of the home business industry today. Ninety-nine
percent of the reps out there are trying to sell their drill, which is their business or product when
people don’t want a business or product. They don’t like being sold (they like to buy!). And unless
you’ve made a profession out of selling, you can’t sell!

So here is an entire industry of people who can’t sell, who are being told to go out and sell the
wrong product to people who hate being sold in the first place.

It’s just sheer madness, but no one questions it because they don’t know any better. They just
figure they need to work harder, spend more money on leads, and become better sales people.
And that is exactly what happens.

The only people who make money today are the tenacious, competitive work-a-holics who will
go out and spend years and years learning how to become bulldog recruiters, OR, those who
practice the strategies and tactics of Magnetic Sponsoring.

There is nothing wrong with that at all, but if “working hard” were a true determinant of
wealth, the world would be full of construction workers driving brand new Porsches. It’s the
people who work SMART that make the money!

Applied education is the difference!

So let’s set up the ground rules and figure out what we need to do:

First: No one likes to be sold. It’s true. You, I, and the rest of the world out there hate to be
sold anything unless it is our idea to buy.

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 Second: Unless you make a living at it, you can’t sell.

Third: The product and service you are trying to sell are not what your prospects really want.

So what in the world are you supposed to do?

Well the answer is in the quote by Perry Marshall:

“Nobody who bought a drill actually wanted a drill. They wanted a hole. Therefore, if you want
to sell drills, you should advertise information about making holes – NOT information about drills!”

So if we want to sell a drill, which is our business or product, what should we do? Go out and
spend hundreds of dollars on advertising, shouting out to the world that our company is on the
ground floor? That our product is better and cheaper, that our compensation plan pays out 60%?

No! Because your prospects don’t give a darn about your company or product. Do you think
they have been waiting their entire life to be an Herbalife or Shaklee rep? Of course not. They
want to make money. They want financial freedom. Your company is a tool. A means to an end,
and nothing more.

So if you want to build a massive downline and make real money in a home business, the first
thing you need to do is stop spending your cash trying to sell your business in an up-front pitch.

Ninety-five percent of the people who fail, do so because they run out of money advertising
their opportunity, or products, instead of an SLO that produces upfront cash flow.

Look, before anyone gets the wrong idea, the real long-term, walk-away money is not in
selling tools.

It is in developing leaders and a customer base in your business. That is where 100% of your
focus should be. That is what you want to master.

Marketing an self-liquidating retail product should be an automated process no different than

placing ads for leads, except this time, people are paying you to become a lead.

The product should be in harmony with your opportunity. The content should serve your
ultimate purpose, which is to build your primary business, develop leaders, and acquire warm
market customers.

Ok, back to the quote again. What do people really want? A hole (solution). Your expensive
drill (opportunity) can definitely let them make that hole, but people don’t want to buy your drill
because they hate to be sold, and besides, they don’t know if your drill will really work or not,

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because they’ve never used one successfully before. So if you can’t sell your expensive drill, which
is how you make your money, what do you sell?

How about inexpensive information on how to successfully make a hole?

If you really want to make a hole, you’d probably be more than willing to spend just a few
dollars to figure out how to create one quickly and easily right?

So you put together a little book on how to quickly and easily make a hole. Now what if hidden
inside that inexpensive book, it recommends using your drill as the best way to make a hole?

AH HA!

You see, now you are out of the picture. It’s just the prospect and their instruction guide,
which recommends your drill as the best solution to make a hole.

So what does he do? He says to himself “I need to go buy a drill, and you know what, I think
Mike sells them, doesn’t he? I’ll give him a call and buy it from him.”

What we are doing here is allowing our prospects to sell themselves... To think it was their
idea.

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So let’s continue the process…

We’ve seen the 5 components of your business. We’ve discovered the difference between
selling products, and selling solutions.

Now we need to figure out the best way to take that psychology into the market place, and in
front of our prospects.

Because once you get the guy to call you first - instead of hunting him down - suddenly you're
in charge. You've positioned yourself as an expert resource instead of a peddler, and that is the
MASSIVE determining factor between success and failure.

You can position yourself as an expert or leader in two ways:

1: Market solutions through a product or newsletter.

2: Be an Alpha leader who trains and instructs others.

People will join you in business for two reasons, and two reasons only: They believe you are an
Alpha leader who can help them get what they want, and/or, you have a system in place they feel
they can benefit from. That is it. Period. End of story.

If you are struggling with sponsoring people, it is primarily because they do not perceive you as
a leader. I have written a section on posture which is included in the bonus chapters of the course,
so I’ll keep this section brief and focus on the use of a Magnetic Sponsoring Newsletter –
possibly the best way to position yourself as a leader.

In my opinion, companies and replicated website owners are dropping the ball big time on this
one because they are not selling what people really want, which is a “workable system.”

Selling people “How” will always be more effective than selling them “who, what, when, and
where”.

When a lead opts-in to your replicated opportunity site right now, they will probably start
getting follow-up emails every few days which contain boring, pointless content.

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 They are full of the same over-used, mind-numbing facts and features like…

 When the company was founded.

 That they are “debt free”.
 They did X amount of sales last year and grew by X% this year.
 Tons of product features.
 The “best comp plan in the industry”.
 Get your business started! Join now!

“Hey John, did you have a chance to watch our presentation?”

“Hey John, I haven’t heard from you yet. Our business is exploding! Call me!”

YAAAAWN….

People don’t respond to or care about your company or comp plan.

They join (1) because they see you as a leader, and (2) that you have a system in place that they
feel they can be successful with! The “How” of your business.

When people request information about my products or opportunity, they get emails with two
things:

1: Written and audio testimonials that position me as a leader who can help them.

2: Truly useful information that educates them on how to be a successful home business
owner.

I Teach. I educate. I give. I position myself as an Alpha leader and an expert!

You want people salivating over your next email, instead of hitting the unsubscribe and delete
buttons, so they stay in your marketing pipeline for years!

The only way to do that is to stop trying to sell them your business on the first meeting. Sell
them you first and the value that you can offer them. Start giving your knowledge away freely.

Here is what a Magnetic follow-up email series might look like for opportunity seekers.

Of course I loathe recruiting opportunity seekers, but I will use them in this example because
that is what everyone reading this book will be able to relate to.

This is in no particular order. I just wanted to give you an idea of some headlines/subjects.

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  The secret to selecting a product that sells faster than a turkey on Thanksgiving.

 The top 5 traits every small business owner must have to succeed.

 The top 5 mistakes that will cost you thousands.

 Why the IRS paid me $1789.00 this year just to take my vitamins.

 How to effectively market a product without bugging your friends and family members.

 How to “recruit” new business partners even if you hate to sell.

 Why our turn-key franchise system makes building a home business easier than baking
a cake.

 Upline leaders finally share their secret tricks of the trade.

 How to make $500/mo within 60 days, even if you’re a complete moron.

 From waiting tables to $100,000 in 14 months – How she did it!

 How you train your organization.

 The best and worst traits of five compensation plans revealed.

You get the idea. This is useful and valuable information that someone would truly like to
receive.

Here is a big tip! These emails and articles don’t have to be long, they just need to give hot
content and benefits. I like to put them in the form of a story or interview because that brings in
the two elements you need:

1: Value - Content that educates so they will read it and includes benefits so they will want it.

2: Do it through a personal story which brings emotion into the message. People don’t
remember facts and figures, they remember stories! They make decisions based on emotion, and
then justify those decisions with logic! So give them both!

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How to start a Magnetic Newsletter for Network Marketers:
To start a Magnetic Sponsoring Newsletter, you need four things:

 A website where prospects can opt-in or request your newsletter.

 An advertising campaign to promote your website.

 A newsletter that offers truly valuable information.

 An autoresponder service that will deliver your newsletter.

I’m not going to cover the website portion because creating a compelling and persuasive site is
an entire course in itself, but if you want to start down that road, go to
www.MLMTrafficFormula.com.

The key here is to provide your prospects with high quality information that will help them get
what they want, without directly pitching them on your opportunity. They must learn to like you
and trust you before they will follow you.

Don’t just throw some crappy newsletter together in two days. Spend as much time as it takes
to “wow” them. Over-deliver. The quality of your information will have a direct impact on the
effectiveness of your overall strategy. Providing poor information will repel more people than it
will attract.

You might be saying, “Well, Mike, that sounds great and all, but I wouldn’t know what to write!
I’ve yet to succeed myself, so how can I teach someone on how to do it better!?”

Well, I’m happy to tell you don’t have to! (You just have to know someone who can!)

A tactic used by both experts and non-experts is the interview.

You can be completely clueless on a topic, but accomplish your goal by interviewing an expert.
Just transcribe that interview, and send it out as one of your newsletters!

Top Internet marketers make millions of dollars selling products they never produced
themselves. They simply interview an expert in their field who reveals their methods and secrets,
package it, and then sell it!

You can do the same thing too…

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  Who in your upline is the top recruiter? Go interview him/her.

 Who in your upline is the top trainer? Go interview him/her.

 Who specializes in home business tax strategies?

 Who knows how to write persuasive emails and sales pieces?

 Who is a lead generation expert?

 Who is off to a huge start in your company? How did they do it?

 Who is your favorite MLM guru and why? Etc.

Now put these interviews in your newsletter. (Make sure you do not take credit for this
information!)

Start with about 12 letters, and send them out once per week.

Drip, drip, drip… Your newsletter arrives in their mailbox like a gift of knowledge from you. As
the weeks and months go by, they also see consistency. Unlike the other people who pitch them
on a deal every six weeks, they see that you are committed to your company and your product.
They see you are committed to helping your team and that you are the real deal.

Before you know it, the recipients of your newsletter will start calling you with questions, or
asking for your advice. This is your chance to start building a relationship with them. They will
come to like you, trust you, and join you, because you are the only person who has been truly
helping them each week without trying to cram an opportunity down their throat!

Just sign each of your newsletters with your name, number and website address. (Preferably
the address to your business building system site). Networkers respond to systems more than they
will to a company or product. Yes, you guessed it, because a system is a solution!

The simple fact that you’re writing and sending a newsletter means that you’re Alpha, because
they are following you, by simply “following” your newsletter.

Because they see you as an Alpha, they will naturally be attracted to you. (Attraction is NOT a
choice, it’s a response).

In addition, creating a set of newsletters can provide you with a second retail income source
within months. Simply take the series of newsletters you’ve compiled and turn them into a book
you can market as a funded proposal.

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 Next, fast forward about two to three years into the future, and let’s say that you have about
20,000 people in your newsletter. What if an opportunity comes by that you just can’t pass up?

What if you sent an announcement out to your list, simply stating that you were moving to
company XYZ?

Your phone would be ringing off the hook, and you would start your new venture with dozens
of reps from day one.

What if you wanted to promote an affiliate offer like the MLM Traffic Formula course that
pays a $200+ commission?

If only 1% of your list purchased the course, you’d make a nice $40,000 in a single day, just for
sending an email out. What if you sent that email four times per year?

By the way, this is the exact same process that is covered in incredible, step-by-step detail in
the actual MLM Traffic Formula Course if you want to learn more about it, but for now, let’s talk
a little bit more about the whole funded proposal process.

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As we’ve already discovered, a funded proposal or SLO, is the process of selling an inexpensive,
but useful product on the front end to cover your advertising expenses, and then back-ending the
real product or “opportunity”.

This strategy is CRITICAL to your success, because it will allow you to stay in the game
financially long enough and generate enough activity to see the fruits of your labors.

5 Benefits of a Funded Proposal, Or Self-Liquidating-Offer System:

1. The high sales rate of an information product funds your advertising and increases your cash
flow instantly. You reduce your expenses to $0 or even make a profit by retailing an
inexpensive SLO product on the front end to your leads. This is CRITICAL when you consider
that 95%+ will NEVER join your primary opportunity.

That means you’re leaving 95% of your potential income on the table if you’re not promoting
affiliate products or services to them!

2. Sponsoring an existing customer is much easier than trying to sponsor a stranger. You don’t try
and sell your prospects on your business opportunity the first time you meet. You sell them an
inexpensive information product that will help them.

You befriend them and build trust. You show them how to really make money in this industry
with true marketing – not fliers and meetings.

3. You position yourself as an expert instead of a peddler like everyone else. You build respect
and trust with your prospects because you offer them more then just another opportunity. You
offer a solution, a system, and your help, positioning you as an Alpha because that’s what
Alphas do.

4. You get a chance to pre-train and educate your prospects who just might be your future
business partners, instead of just trying to sell them on hype which is extremely short sighted.
Why not sell them a retail training course that will turn them into a better business owner right
from the start?

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5. It gets your newest reps into positive cash flow immediately. Marketing a low-priced, fast-
selling retail product first, funds their adverting campaigns, which gets your new reps into cash
flow as soon as possible, creating momentum in your team and decreasing attrition.

This is the smart way to do business. This is how the masters of this industry make it happen.
Do you think they do home meetings or make cold calls? No. They market information, which pays
for their advertising, which serves as a never-ending source of free leads for their home business.

Once again, the fastest and most profitable method for building a home business is “retailing
to networkers now, to recruit later.”

 The big boys are retailing books, tapes, leads, websites, and training, all day long.

 They are collecting cash from CDs, brochures, website subscriptions…

 They are selling their opportunity on the back-end because they know it takes time
to grow a downline.

You use a funded proposal system as a way to make immediate profits, which means you can
afford endless advertising, which means you can generate endless leads, which means you can
sponsor more distributors.

The big earners are selling and promoting everything but their primary opportunity.

Why?

It’s fast cash that they can plow back into their businesses, and simultaneously helps them
build HUGE lists of people in their target marke: other networkers.

Look…

It’s much easier to make $500/mo retailing through direct response/direct mail than it is to
build a $500 residual income through a downline.

We also realize that it is much easier to turn those retail customers into reps because a
relationship is now in place.

 Stop trying to pitch your opportunity on the front end because other networkers are
rarely interested in hearing about that. (They are already in one and probably
struggling).

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  Lead with an inexpensive “how to” product that provides a solution to their pain or a
benefit that gives pleasure.

 Position your opportunity inside that product as a solution, or simply use the product to
begin building a relationship with that person.

Even if they don’t join your program, you make money every day as you provide them
information that is informative, beneficial, and useful. (Try it with a lazy, weak product, and it
won’t work!)

Everybody wins!

It’s like a perpetual marketing machine that just keeps feeding off of itself.

It’s direct sales, which means it is automatic money, automatic sales, and automatic leads!

So yes, you can do traditional/referral network marketing. I do, to get my product customers
and find a few key leaders in someone’s warm market, but that’s not the only approach I rely on.

I also use my fully automated SLO system to:

1: Find my prospects with our ads, and convert them into leads with our capture pages.

2: Position myself as an expert and leader with my Community Profile page.

3: Generate fast cash flow through the retail sale of our generic information products.

I can do 100 presentations a day.

Cancel that. I CANNOT. My automated Magnetic Sponsoring System can.

How much does it cost me? How much did it cost me to send you this book? How much did it
cost the person who introduced you to Magnetic Sponsoring?

Nada. Zip. Zero. $0.00!

How many presentations do you do each day? 1? 3? 5?

How much did that cost you? $3-5 for each lead, plus your time?

Maybe you spend $5,000 to pitch your biz in a full-page magazine ad. How much of that do you
make back before someone actually joins your business?

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$0.00 right?

So remember the formula…

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 As you already know, Magnetic Sponsoring is not only a course, it’s the most successful,
advanced, and longest-running, funded-proposal marketing system in the world for our industry.

I created the Magnetic Sponsoring System from the ground up for my personal downline
because they needed a way to generate more leads, and make more money fast.

Founded on the timeless principles of attraction psychology, and billion dollar direct response
marketing strategies that have been absent in this industry for years, it became an industry-wide
sensation within months.

After endless requests from other downline leaders, I finally decided to make it available to
anyone, in any company – for FREE.

Today, I’m proud to say that Magnetic Sponsoring is the most popular generic lead
generation and affiliate system available because it solves your biggest problems better, and I’d
like to show you how it works now for two reasons…

First, studying this system will provide you with a living example of what you’ve just learned in
this book today, so you can see how the entire process works in real life.

Second, this system has been designed to help YOU build your downline, generate more leads,
and make more money. As a customer, the incredible power of the Magnetic Sponsoring System
is now available for your personal use, and I need to show you how it works.

If you haven’t done so yet, I invite you to set up your free account right now at
www.GetMagneticSponsoring.com,

Or, log in to your existing account at www.MagneticSponsoringOnline.com

Once you log into your back office, you’ll find a step-by-step guide and video tour on how to
best use the system to generate more leads and more money for your business.

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How To Get Paid To Prospect…
Alright, what I’m about to show you is the “Magnetic Sponsoring System”.

To put it mildly, the MS System is on the cutting edge of online marketing. In fact, we have
spent well over $250,000 developing proprietary technology over the past few years that allows us
to do things no one else in this industry can do… Technology that’s only used by Fortune 500
companies like Amazon.com and Zappos.com.

All of this is available to you for free, as a MS System user. Basically, we paid the bill, and you
get to use this platform and benefit from it. You’re welcome ;)

For the most-part, the “magic” happens behind the scenes. From the users view point, it’s a
very simple, basic system.

But behind the pretty graphics lays a work-of-art when it comes to split-testing, tracking,
customer offers, and experience management.

This technology allows us to produce higher conversion rates, sales rates, and commission
rates for you, than anyone else out there. Period.

Anyway, you’ll learn more about the system’s unique abilities as we go through it, so let’s get
started…

Your goal is to generate leads for your business, and turn those leads into cash using a funded
proposal, or “SLO” strategy. This is what the Magnetic Sponsoring System allows you to do.

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The Entire Process Starts With Your Capture Page:

These are very simple websites designed to capture your prospect’s contact information in
exchange for something of value, such as an audio, video, or report.

Your MS System comes with a growing number of very special capture pages you’ll use to
generate your leads with.

As you send traffic to your capture pages, some of that traffic will opt in to your capture form,
and become a lead. (We use our proprietary technology to split-test our capture pages daily,
which ensures the highest conversion rates in the industry).

This person has now entered the Magnetic Sponsoring System Funnel, and where we take over
the marketing and monetization process for you.

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 All you need to do is call them and introduce yourself. Remember, this is the relationship
component you’re responsible for.

Step 2: The Marketing Pipeline: This is where the magic happens…

Your leads will start to receive a carefully prepared series of emails over the coming months
promoting our SLO offers.

Remember, these are our front-end retail products, or self-liquidating-offers. The sale of these
products is designed to do two things:

1: Turn a prospect into a customer.

2: Help you reduce the total costs of your advertising, or erase it completely… NOT to make a
profit, even though many people do.

The big money is never on the front-end. it’s always on the back end.

At the time of this writing, we have two SLO’s: The “Magnetic Sponsoring Course”, and the
“Building On A Budget Course”.

These two products sell for $20 to $40 each, depending on the price points we’re testing.
When a prospect buys a copy of either course, you make a $20 commission no matter what.

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 During the checkout process, customers are given two incredible opportunities which
represent “back-end” offers. This portion of the process can produce BIG PROFIT for you.

(As a customer, you have gone through this process first-hand).

First, they’re offered a free issue of my monthly, “Inner Circle Newsletter”. This is essential,
on-going education that’s critical to your success if you’re really serious about building your
business.

Google changes their rules all the time when it comes to pay-
per-click, and SEO marketing. New tools and resources launch
weekly. Financial turmoil and opportunities spring-up daily.

The business world changes at the speed of light now, which

is why we created the Inner Circle. It allows us to deliver the
latest and greatest directly to your door each and every month
for about $1.00 per day. On-going education isn’t a luxury, it’s
now a requirement.

Not only will you benefit from the information personally

each month, but as the Magnetic Sponsoring System continues to
create new customers for you, so will your wallet.

40% (roughly $12.00), of the $29.95/Mo price tag for Inner

Circle Membership is paid to you each month, producing a
second residual income stream for you in the process.

Next, they’re giving the opportunity to save some BIG money on our other products.

This is my way of saying “thank you” to new customers, for having the foresight to invest in
themselves, and increase their value to the world. Because I respect people who understand the
importance of acquiring these skill sets, I want to give them every opportunity to do so.

At this time, your customers are given a special one-time-offer on our other courses, with
prices that are discounted up to 65%. It’s an incredible opportunity for them to save a lot of
money, and get their hands on the life-changing information found in “MLM Traffic Formula,
“Black Belt Recruiting”, and the “Copywiter’s Guild”.

You would make an additional 40% commission on these purchases.

If they decline these offers, they can still acquire the products later at full retail price, and yes…
You still make a 40% commission on these sales as well.

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 So what can a system like this mean to the bottom line… And ultimately the SUCCESS of your
business?

Well here’s a few quick numbers that can demonstrate the power of an SLO system like
Magnetic Sponsoring. (These numbers are similar to the real-world numbers achieved by affiliates,
but this example is for illustrative purposes only. Results are not guaranteed or implied).

You make a 40% commission on all back-end products. This number has been rounded to the
nearest dollar for this example.

Alright…

So Let’s say that you do some advertising and drive traffic to your Magnetic Sponsoring
Capture Pages, adding 200 leads to you system at an average cost of $5.00 per lead.

That means it cost you $1,000 to produce 200 leads.

We’ll say 5% of your leads buy the “Magnetic Sponsoring” SLO, and 5% buy the “Building On A
Budget” SLO, giving you a total of 20 front-end sales.

20 sales x $20 commission = $400 front-end commissions.

Of your 20 customers, 12 sign up for the Inner Circle Newsletter, giving you a $144/Mo
residual income.

4 customers buy a copy of “Black Belt Recruiting” for $97. Your commission = $160

3 customers buy a copy of “MLM Traffic Formula” for $397. Your commission = $480

3 customers buy a copy of “Copywriter’s Guild” for $97. Your commission is $120

That brings our commission total to $1,160 + a $144/Mo residual income.

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 Each successive month, your residual income would increase as new members subscribe to the
Inner Circle. This money represents 100% pure profit to your business.

Not only did you completely cover the $1,000 cost of your leads, but you made an additional
$160+!

Remember the growth equation… The sale of a self-liquidating-offer = Free advertising = Free
leads = Endless free business growth.

I’ll let you play with the numbers, but what you need to know is that this is essentially “free”
money that you’re losing out on every single month right now, and the best part is that no extra
effort was required on your part.

You drive the traffic, and we do all of the marketing for you, which means you can stay 100%
focused on building your primary opportunity.

As I mentioned before, I didn’t share this example with you just to “sell” the Magnetic
Sponsoring System. I needed to show you how it worked in the real world, (or you just would have
asked me for an example via email later).

By all means, go out and build your own SLO system. You do not have to use Magnetic
Sponsoring.

But… You might want to consider it, and here’s why…

A Profitable Partnership:
As a networker, you need to make more money to support your business, but you simply don’t
have the time to learn and execute everything needed to do so in an effective manner.

Specialization and focus is required. You can’t be a jack-of-all-trades in five different areas, and
still compete against five people who specialize in just one.

Your focus should be on building your list, and building your downline because only you can do
those tasks, and they require your full-time attention.

As important as it is in today’s market, trying to monetize your prospects with alternative

affiliate offers or SLO’s yourself will only bring you 10% of your potential results because you don’t
specialize in that process, and you don’t have the time needed to do it effectively.

At Magnetic Sponsoring, we do.

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 In fact, that’s all we do, and we’re the best in the industry at it. Turning your leads into
commission checks for you is our specialty.

We have five full-time staff members who do nothing but handle customer service, split-test
capture pages and sales letters, advertise, create products, and promote helpful, generic courses
to your contacts for you, so you can focus on building your team.

Over the past few years, we’ve invested over $250,000 to develop a custom shopping cart and
affiliate system, giving us new marketing abilities that no one else can compete with.

And the best part?

You get all of this for free. You don’t even have to pay for it. You actually get to “hire” myself,
our system, and our entire staff for free.

All you need to do is share your affiliate link with your prospects.

That’s it.

We take over the entire process from there so you can focus on building your organization, yet
still make the greatest profits from your list possible without ANY additional work, cost, or effort.

Never before, in the history of this industry, has such a system and a partnership like this
been produced or implemented.

Sure… Other affiliate programs are available, but they offer one-time hits on products that
aren’t specifically targeted to networkers. This reduces their value and conversion rates.

A handful of funded proposal systems like Magnetic exist, but they payout two levels in
compensation instead of one. This means you’re promoting a second multi-level company, which
is against the Policies and Procedures of almost all network marketing companies. Simply put,
these programs could cost you your distributorship if you use and promote them.

Magnetic Sponsoring pays out one-level so it can be used by anyone in any company without
risk. Neither you, nor your downline have any kind of incentive to go recruit other people into
Magnetic Sponsoring, and we don’t want you to.

It might not be as sexy or appealing at first glance, but it supports our ultimate goal which is to
provide home business owners in every company with a safe, effective system they can use to
enhance their business over the long-term.

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 Never before has an entire company and corporate staff been created to provide you with this
kind of system or service for the long-term… At no charge.

This isn’t a part-time endeavor. This isn’t a hobby run by one person from their home, selling
ebooks, or 3rd-party affiliate products.

It is without doubt, the most sophisticated, profitable, and effective lead generation and
affiliate system ever created, with a growing library of exclusive, wholly owned products that are
under the supervision and management of the company to ensure quality, and long-term
availability.

In the past, these kinds of systems have come and gone.

There’s been very little stability, limited vision, and a lack of innovation because one person
can’t handle the amount of work required.

So what does the future look like in 2009 and beyond?

It’s built around a long-term, dedicated, trusted partnership with a growing, specialized
corporation like Magnetic Sponsoring, and you.

You…

 Give out your affiliate link.

 Contact your prosects.
 Build your downline.

Our full-time staff of marketers…

 Help you generate traffic.

 Create high-converting capture pages for you.
 Split-test them in real time for you.
 Provide proven, tested banner, PPC, and text ads.
 Keep you up to date on the latest online marketing trends.
 Give you detailed statistic and traffic reports.
 Give you the ability to track multiple marketing campaigns.
 Provide you with a contact manager and event calendar.
 Produce high-quality, generic training products.
 Write and split-test the sales letters.

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  Coordinate and hold sophist acted product launches that put BIG commissions into
your pocket.
 Write two years worth of auto-responders that sell the products for you.
 Produce marketing videos for you.
 Pay for the bandwidth.
 Test new advertising sources for you.
 Handle fulfillment and customer service for you.
 Send you a check every two weeks.

…And we do all of this for you at no charge. All we ask in return is that you pick up a copy
of the Magnetic Sponsoring Course for about $40, which will educate you in the methods and
systems that are most effective in today’s market.

Final Thoughts…
These strategies and tactics are what turned my career around in this industry, and I truly hope
that you memorize and apply them for yourself. In less than a year, I went from waiting tables,
hoping and searching for a way to build a large network marketing organization, to tripling my
corporate income and living a life of complete freedom.

This should mean one thing to you: That no matter where you are in your life, how far down
you’ve been beaten, or how happy/un-happy you are with your life’s circumstances, you can
absolutely achieve your goals and your dreams – and do it faster than you can imagine.

But one thing is certain. You will have to work your tail off to get it. The biggest rewards
demand the highest prices. The world will gladly pay you what you expect it to pay you, and never
a dime more.

You only get one shot at this thing called life... Go for it.

Sincerely,

Mike Dillard
CEO Magnetic Sponsoring, LLC
www.MagneticSponsoring.com

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 DISCLAIMER AND TERMS OF USE AGREEMENT

The author and publisher of this Magnetic Sponsoring and the accompanying materials have
used their best efforts in preparing Magnetic Sponsoring. The author and publisher make no
representation or warranties with respect to the accuracy, applicability, fitness, or completeness
of the contents of this Magnetic Sponsoring. The information contained in this Magnetic
Sponsoring is strictly for educational purposes. Therefore, if you wish to apply ideas contained in
this Magnetic Sponsoring, you are taking full responsibility for your actions.

EVERY EFFORT HAS BEEN MADE TO ACCURATELY REPRESENT THIS PRODUCT AND ITS
POTENTIAL. EVEN THOUGH THIS INDUSTRY IS ONE OF THE FEW WHERE ONE CAN WRITE THEIR
OWN CHECK IN TERMS OF EARNINGS, THERE IS NO GUARANTEE THAT YOU WILL EARN ANY
MONEY USING THE TECHNIQUES AND IDEAS IN THESE MATERIALS. EXAMPLES IN THESE
MATERIALS ARE NOT TO BE INTERPRETED AS A PROMISE OR GUARANTEE OF EARNINGS. EARNING
POTENTIAL IS ENTIRELY DEPENDENT ON THE PERSON USING OUR PRODUCT, IDEAS AND
TECHNIQUES. WE DO NOT PURPORT THIS AS A “GET RICH SCHEME.”

ANY CLAIMS MADE OF ACTUAL EARNINGS OR EXAMPLES OF ACTUAL RESULTS CAN BE VERIFIED
UPON REQUEST. YOUR LEVEL OF SUCCESS IN ATTAINING THE RESULTS CLAIMED IN OUR
MATERIALS DEPENDS ON THE TIME YOU DEVOTE TO THE PROGRAM, IDEAS AND TECHNIQUES
MENTIONED, YOUR FINANCES, KNOWLEDGE AND VARIOUS SKILLS. SINCE THESE FACTORS DIFFER
ACCORDING TO INDIVIDUALS, WE CANNOT GUARANTEE YOUR SUCCESS OR INCOME LEVEL. NOR
ARE WE RESPONSIBLE FOR ANY OF YOUR ACTIONS.

MATERIALS IN OUR PRODUCT AND OUR WEBSITE MAY CONTAIN INFORMATION THAT INCLUDES
OR IS BASED UPON FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE SECURITIES
LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS GIVE OUR EXPECTATIONS
OR FORECASTS OF FUTURE EVENTS. YOU CAN IDENTIFY THESE STATEMENTS BY THE FACT THAT
THEY DO NOT RELATE STRICTLY TO HISTORICAL OR CURRENT FACTS. THEY USE WORDS SUCH AS
“ANTICIPATE,” “ESTIMATE,” “EXPECT,” “PROJECT,” “INTEND,” “PLAN,” “BELIEVE,” AND OTHER
WORDS AND TERMS OF SIMILAR MEANING IN CONNECTION WITH A DESCRIPTION OF POTENTIAL
EARNINGS OR FINANCIAL PERFORMANCE.

ANY AND ALL FORWARD LOOKING STATEMENTS HERE OR ON ANY OF OUR SALES MATERIALS ARE
INTENDED TO EXPRESS OUR OPINION OF EARNINGS POTENTIAL. MANY FACTORS WILL BE
IMPORTANT IN DETERMINING YOUR ACTUAL RESULTS AND NO GUARANTEES ARE MADE THAT
YOU WILL ACHIEVE RESULTS SIMILAR TO OURS OR ANYBODY ELSE'S, IN FACT NO GUARANTEES
ARE MADE THAT YOU WILL ACHIEVE ANY RESULTS FROM OUR IDEAS AND TECHNIQUES IN OUR
MATERIAL.

Created For doug thompson

Copyright 2007 All Rights Reserved – Magnetic Sponsoring, LLC
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The author and publisher disclaim any warranties (express or implied), merchantability, or fitness
for any particular purpose. The author and publisher shall in no event be held liable to any party
for any direct, indirect, punitive, special, incidental or other consequential damages arising directly
or indirectly from any use of this material, which is provided “as is”, and without warranties.

As always, the advice of a competent legal, tax, accounting or other professional should be sought.

The author and publisher do not warrant the performance, effectiveness or applicability of any
sites listed or linked to in this Magnetic Sponsoring.

All links are for information purposes only and are not warranted for content, accuracy or any
other implied or explicit purpose.

This Magnetic Sponsoring Book and all related materials

are © copyrighted by Magnetic Sponsoring LLC. No part
of this may be copied, or changed in any format, sold, or
used in any way other than what is outlined within this
Magnetic Sponsoring book under any circumstances.

Created For doug thompson

Copyright 2007 All Rights Reserved – Magnetic Sponsoring, LLC
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