LIFE: Downside Risk & Upside Reward
Posted by Orrin Woodward on November 21, 2011
When I worked at Delphi division of GM, I completed half the classes for a Master’s degree in Business Administration from the University of Michigan. Although I received good grades and enjoyed the classes, I stopped pursuing my MBA in order to build my own business.
Many thought I was crazy to quit my MBA, but I just had a feeling that it was time for me to build my own business rather than continue to learn about business. In truth, I was ready to implement some of the principles that I had learned along with continuing my education in “the school of hard knocks”. 🙂
One of the best principles that I learned through my MBA program was to examine any business by asking two crucial questions:
1. What is the downside risk?
2. What is the upside reward?
Simply put, if the downside risk was too great, then don’t do it, because it could capsize the entire ship. However, if the a person could handle the worst case downside risk, and the upside reward was big enough, then perhaps it was a business venture worth committing to.
It was these two questions asked and answered that led me out of school and into my own business venture. What is ironic today, as I look back on Laurie and my business ventures is the level of risk taken in our former business model compared to the risk today for someone joining LIFE Leadership. Remember, Laurie and I were dead broke even as an engineer and an accountant. In fact, we were beyond broke, having consumer debt amounting to over $30,000 when we started our networking careers!
With monthly expenditures to buy 100 points of volume in my old networking company requiring Laurie and I to spend $300 dollars or more, we barely endured. This was quite a blow to an already stretched budget. Along with the product purchases, the investment in CDs, books, and seminars (all of which I loved) totaled another $200 plus dollars per month. In other words, on top of a stretched budget, Laurie and I had to budget for another $500 dollars per month minimum! The downside investment nearly killed us for the first several years. Thankfully, Laurie and I are both long-term thinkers and kept the vision in front of us. However, many of the people we started with us did not have the same endurance, dropping out along the journey to success.
What kept Laurie and I focused was the upside reward, we figured we could make an extra $25,000 after expenses in a couple of years. It’s laughable now how much work we did in a model whose highest rewards topped out at 25% volume discount on total group volumes of $20-30k per month. I know, I know, this is sounding like one of those stories: we walked uphill both ways to school through heavy snow. 🙂 Even so, these are the facts we were dealing with.
I am not knocking networking. In fact, I am thankful that someone had created any opportunity for us to apply our sweat equity towards freedom. We had to make many changes, both personally and professionally to get the business rolling, but eventually, we made it happen. To this day, many people around the world utilize the LIFE Training system of building, called team approach to grow their businesses. I take this as a compliment for our years of effort in improving the upside reward compared to the downside risk for our entire industry.
Today with the LIFE Leadership business, the downside risk versus the upside reward is nothing short of revolutionary. A person can sign up for the LIFE and LLR subscriptions, and generate 100 points for $100. This, in my opinion, is much better than some networking companies, where you buy commodity products at inflated prices, especially if a person can buy comparable products at Walmart and Target for significantly less. Networking should be world class, unique products, at a super value! Many networks provide this, but many others just markup commoditized products. When products are overpriced, it hurts our whole profession. In LIFE Leadership, a person can purchase the lowest cost leadership materials on the market.
How can we offer our material at the best price and yet have a compensation plan that pays 50% on just the first type of bonus? The simple answer is the founders desire to influence the world is greater than the desire to pad their pocketbooks. Imagine if we took world-class leadership materials and provided it at the lowest prices. Then, imagine taking 70% of all the revenue points generated and flowing it back to the people who helped LIFE Leadership launch the leadership revolution. Remember, in LIFE Leadership, your pay raise becomes effective as soon as you do. 🙂
So what is the downside risk in this model? Hmm, let me think. . . The downside risk is that you might not enjoy the leadership training from two best selling leadership authors and business partners. If at any time you do not see the value in the leadership materials, you have a 30 day “no questions asked” return policy. Certainly within 30 days, you could discover whether the leadership materials is helping you or not, right?
The downside risk is negligible. But what about the upside reward? With a compensation plan that pays out 70% revenue points to anyone who achieves a minimum of 150 points of business, the networking game is changed forever. For example, Laurie and I personally started a new leg on November 4th. It has already achieved the 20% bracket and is easily going to hit the 25% bracket later this week. It took me two years to hit the 25% bracket in my first company!
Why the huge difference? Because we have a digital age business, a compensation plan that rewards people at the low end, and founders who desire the wealth to flow to people who build the network, not found the company. Another factor is the demand for quality leadership materials at an affordable price point. LIFE Leadership has already signed up hundreds of customers doing tens of thousands of points, making volume accumulation easier than ever before in my networking experience.
I have taken my share of criticism for not going along with the herd in networking. I have refused repeatedly to sell out my character for conveniences. This has cost me money, time, and relationships over the years, since, in my opinion, some of my former heroes chose to sell out rather than fight for what is right. Anytime someone desires to change the rules of the future, he will be attacked by the protectors of the past. I have received, and will continue receiving personal attacks for changing the rules. However, although they can attack my reputation, they cannot touch my character. Better they criticize me than I be them. The only people calling LIFE Leadership a scam are fearful competitors or woefully ignorant individuals. 🙂 Make no mistake, I will never surrender my principles for peace. I believe that it’s more noble to create the new, rather than criticize the old, so LIFE Leadership is our opportunity to do so.
If you have ever tried networking and didn’t make it work, then welcome to the club. Millions of Americans and Canadians have tried networking and failed in their attempt. This doesn’t make you a failure unless you blamed someone else. LIFE Leadership has changed the risk versus reward ratio to such an extent that many are achieving success who previously only struggled.
For example, my yacht captain, Bill Howard, is already at the 40% bracket and just a sliver away from the 45% bracket (Update: Captain hit 45% the same day I posted this!). We were quickly calculating his bonus for this month at around $800. Remember, Captain Bill has been in networking since 2005 and has averaged $50 or less per month with his highest one month check around $250! Like I said, LIFE Leadership is a game-changer.
Alright, it’s time for me to get back to work. I have promises to keep. It’s time to reach one million people with leadership truth in the 8F’s of LIFE. A rising tide lifts all the ships on the water. Don’t you think it’s time to get your ship on the water? Sincerely, Orrin Woodward
22 Responses to “LIFE: Downside Risk & Upside Reward”
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Kyle VanDoorn said
Orrin, we’ve been with the Team for over 5 years. I caught the vision of 1 million people in the beginning and that has kept us going even through the sudden turns in the road. I always knew it would happen, just didn’t know when or how or by which vehicle. Now, with the combination of two powerhouse’s, MV and LIFE the vision I caught is becoming ever so clear. Whatever roll we play, or level we achieve. What matters most is that we played in the game.
God Bless.
Vanessa Boudreau said
Hi Orrin,
I just want to say thank you. Your first couple of paragraphs really gave me hope. I’ve been feeling the pinch with stretching an already tight budget. But I know in a couple years time this will no longer be an issue for us. The Life material has really made an impact in my life in the last year, and the more I plug into it the stronger I get! I am so thankful that you and Laurie have dedicated your lives in helping others. You both inspire me to do the same.
Thank you and God bless,
Vanessa Boudreau
Team Kaizen
Dean Clouse said
Way to go Orrin! In my restaurant background, we made the decisions the same way–downside risk, upside reward. I remember negotiating for a dishwasher that would pay for itself with cost savings (soap, water, electricity and labor) in three years and we didn’t really even have to debate it. We were in. Here, start up cost of less than $150 and at the max end of $125 a month of continuing education (LLR, LIFE and AGO), with the upside rewards that you spoke of here is a no brainer. My student loans were more than that and I never even finished the degree! And, the most shocking part, you didn’t even talk about the big money! You just wrote of a couple examples of fresh starts! Amazing. Simply amazing.
Tom Hoppe said
Orrin-I appreciate the hits you have taken in leading team. You and the rest of the PC are geniune leaders. I have been around team and on the training sysytem for awhile. I can honestly say it has been life changing for me. My faith, leadership in my family,and my marriage has improved. When you guys launched LIFE a prayer was answered! We now have a personal developement business with a first class compensation plan. So thank you for your challenges you have over came and for your leadership in this new LIFE adventure.
Thanks
Tom Hoppe-Team Victory
Kristen Seidl said
Orrin, thank you for being so transparent. From the beginning I committed to following you in whatever path you lead us to. Never once have I questioned your motives. I am so grateful for men like you who stand on their principles and do not waiver their character for reputation; I can’t imagine the beating you have taken because of it (so we could have this opportunity). For that God is blessing you with a large community of men and women who strive to emulate your walk and who have sold out to your cause of 1 million people. LIFE is the answer for today’s hurting society. Your legacy is being created and I feel so blessed to be a part of it.
Victor Enriquez said
Orrin,
I can not thank you enough for the posture and determination you have maintained in your journey. Your struggle has not only shaped your life and those around you, but thousands around the world. In fact I sometimes joke that Chris Brady saved my life and I’ve never even seen him. The principles and ideas I have gained from your program have amounted to so much personal success that I would gladly walk away from this without a penny as long as we could affect more lives; how mind boggling is it that LIFE will in fact pay me for doing something that I would gladly do for free! Thanks again to you and all the PC leaders for your struggles and victories that have created dreams in the hearts and minds of those who need them most.
Leadership and LIFE said
Orrin, it is a true honor to be partnered with you in this journey! Thank you for being an authentic leader willing to take action on what you teach! God bless.
Maribel Damphousse said
Thank you Orrin for this post. It is so re-assuring to know that we are on the right path, with the right leadership and the right purpose of helping people improve their lives. What attracts me the most is the integrity and character that is lived and not just rhetoric by you and Laurie, the PC and RT members who are also growing in integrity and character and modeling it in their daily lives. You all inspire us to do the same. I shall continue to grow and change and dig into the system of reading and listening to positive and life-changing information so that in my own sphere of influence I can radiate integrity and character to the people around me esp. in my family and community. God bless!
Maribel
Tim McNeil said
Orrin,
I began in networking in 1970 when I started with a firm called Holiday Magic. As a Junior in High School, I was excited to make my “millions” as a distributor of fine cosmetics and laundry products. Shortly thereafter, I learned that the company’s founder, William Penn Patrick was in some serious legal trouble. At that point I had sold very little product and thankfully, had recruited no one. Holiday Magic has been referred to as the biggest pyramid scheme of all time. In the years since then, I have tried a number of distributorships in other firms and have never been all that sucessful. When our teenaged daughter approached us about Team, we resisted for several weeks of even listening to her on the subject. Finally, in order to get her to stop, we attended an open meeting. That was about one year ago, and we couldn’t be happier about our decision to join! Thank you Orrin, not just for this amazing opportunity, but what it will mean to our Country!
Tim & Tammy McNeil
Team Action
Mary Hermsen said
Wow, how do I add anything to what has already been said? Orrin, we appreciate all you’ve done to bring this opportunity to the masses. We are very excited to be part of the revolution. When I hear people talk about the news, I always feel that LIFE Team has the answer, and it’s only a matter of time before they know that. God Bless all of us on this jouney through LIFE!!
Mary and Pat Hermsen
Lisa Mangold, LIFE Member said
I have never been more excited about helping people make money because for once I believe that I can do that! I can already see who may be receiving bonuses come the end of November and know it is all possible because of your wisdom and sacrifice. Thanks again Orrin and the policy Council!
Blessings,
Lisa Mangold
Catherine said
I’ve been exposed to the network marketing industry my entire life, and it never interested me until I saw what you are the rest of the PC leaders were doing, Orrin. The LIFE business is a game changer. We’re creating a whole new industry and changing the world!
Eric Blomdahl said
Great article, Orrin! Thanks for the principles that we can implement into our lives. God bless!
Curtis and Olivia Shaw said
Awesome post! You covered exactly what my wife and I were just talking about the other day, on how in just the year and half that we have been with Team (and networking) how much it has improved. The LIFE business truly gives anybody that wants to change their results the greatest upside vs. downside ratio out there! The cost, the reward, the changed lives is just unbelievable. Thanks for all you do! God Bless
Jamie Shaw said
First off I would like to say thank you for your
Unbreakable courage and character. Life is and will be the business in the 21st Century. Second, I would like to say thank you for keeping a spine and moving forward when others quit climbing. Third, I would like to say thank you for keeping what our founding fathers intended this great country to be by providing the tools and resources to get this message out to the masses. If I never make another dime again, what I’ve learned and whom I’ve become is priceless, just ask my wife. Once again thank you. We are forever greatfull.
Gladiator……Freedom!!!!
Heidi Jury said
Thank you so much….as you point out….if you have ever failed at networking you recognize this as a HUGE opportunity…..thanks for allowing me the opportunity to create success out of failure – an amazing transformation.
Heidi Jury
Team Kaizen
Halifax, NS
http://spiritsingingsoul.blogspot.com
livinglifeintentionally said
Thank you for the post describing your story in networking. Pauline and I had never been involved in networking before Team, but over the years we have certainly run into people who have had negative experiences with a variety of networking companies. Sometimes the problem lay with the leadership of the company, sometimes the product, and honestly sometimes people were not ready to change and/or work. However, no company had true Team Approach and no company had a real system to develop the skills necessary in business (any business) and life. Now with LIFE we have a product tied to our growth, tied to our compensation, and best of all tied to our purpose. Thank you to all the LIFE founders! God Bless!
Pauline and Sheldon Bouchard
St. Jean Baptiste, MB
Jason Dames said
Thank you Orrin for never surrendering to the critics so that I could have the chance to win!!! God bless u!!!
Orrin Woodward said
Never, never, never, ever, give in. – Winston Churchill
Rob Crichlow said
LIFE is revolutionary and has created more money for my team than any networking model I have been in before.
Network marketing, like the early franchising businesses started with a good idea, but never attempted to change the game for better, since it would require both risk and loss of money for the content company. They aren’t scams, but since they do not provide a real chance for the average person getting in, they provide opportunity for the critics to call them scams. TEAM has always been willing to change for the better, making sure the model is good for the average person getting started. Better than it was last year, last month, even last week.
LIFE is a game changer in that it was created with the community (field) in mind, not the the content provider (just like Ray Kroc did with McDonald’s). With this focus, LIFE will bring Network Marketing to the main stream … where anyone getting in can win if they are willing to work, learn, be coached, and operate with character.
Thanks Orrin for making all of this possible.
Carlyle Sholter said
Thanks, Orrin. You are right in saying that LIFE has changed everything. Others have taken Team Approach and applied it in other ways. When the truth is known and people want to know the truth we know the PC, Team and LIFE will lead them. Fired up in Saskatchewan.
Wildtarg said
This is deplorably tardy, but I would just like to ditto all the thanks. I will pass up this opportunity to tell my story with the intention of telling it from stage.
“And God bless us, every one!”
-Final spoken line of A Christmas Carol.
Keep going, we’re with you…