First I must confess that people well into the 21st century are still ignorant thinking any network marketing anything is a pyramid. Obviously they aren’t sharp enough to have learned what either one is. They are trying to lump something quite illegal, (a pyramid) into something that is highly successful, legitimate, and even owns professional sports teams in the U.S.A.

I clearly remember 1979 the government was taken to task to determine this new strange method of doing business. The FTC or, Federal Trade Commission litigated with a soap company in Michigan who after four years basically paid for the industry to be what it is to this day. Just to make sure we are on the same page, the industry is at $200 billion in sales annually and rising significantly. That is no joke.

Due to getting type one diabetes (insulin dependent) as a teenager my mom got me to sign on with Amway so I could obtain a good life insurance policy. Why that appealed to me is funny looking back. The network side of this plan was never shown to me at that time. My old 3rd grade teacher was my sponsor and she simply wanted me to sell a certain amount monthly to maintain a volume level. I more than did that.

How sales had come so easy to me was a mystery. No one taught me anything. Being at the top of 8 kids and raising most of my moms kids inherently taught me to give people two choices and yes or no are not either of them. Parenting taught me that the two options are always bad or worse. Which do you want? I laugh as telling my son one day to clean his room and he actually talked back to me and refused. He instantly learned that his toys were a problem and dad would remove his problems immediately and he now needed to clean the whole house and start with the toilets. Suddenly cleaning his room was a blessing.

My first experience selling soap was simple. A list was made with 300 people whose phone numbers I knew off the top of my head that were all my parents friends. The phone call was simple. Mrs. whomever, this is Mike calling to let you know I have all these products that due to the concentration level and cost per use is cheaper and a better product than the store can offer so I knew you wanted to save money and have a better product, how much do you want? Apparently this method ended up breaking the companies retail sales record. I was taken up to Spokane to meet Ron Puryear when he was a brand new “pearl” distributor.

Network or more specifically multi-level marketing from a sharp pencil standpoint is fraught with limitations. The pose of suggesting anyone can find two, who find two, who find two, and one day be rich with never ending passive income is myth. The MLM industry has an average sales result of people quitting after making 2.2 sales. This attrition rate means you must put in so many for some people to stick. Why? No one makes enough money from one sale. When you play with dollars that is all you make. Cheap, easy, free, low start up, any of these are limited by its very nature. Here comes a secret ladies and gentlemen.

You work just as hard to make a $100 sale, as you do a $1,000 sale. Guess what, that means you work equally as hard to make a $10,000 sale too. Have you swallowed hard yet? In my experience it is actually easier to make a $10,000 sale than a $100 sale. No wants to fork off a hundred bucks. Even wealthy people do not. Most people assume a ten grand product has value inherently. Of course it needs to justify itself but that said, if I were to sell a car for $100,000 you know it is not a bug, a Datsun, or anything from Korea. This realization may be the foundation you need to start making real money?

A customer of mine in the late eighties taught me a lesson that changed my life forever. He gave me the “formula” for becoming rich. Not sure what rich means to you? What I mean is I was able to make over a million dollars a year. Quite a bit. For years. His formula was simple. He told me if I played with dollars I would only make dollars. If I played with thousands I would make thousands. You already guessed he said when I played with millions I would make millions. My mind was doing back hand springs. This was a formula. Eureka! It felt like I had millionaire mentality but I didn’t even have close to a thousand dollars of anything. Humbling. What I was doing wasn’t working.

When I found a business that was in direct sales 8 years later instantly my prayers were answered and I started this without any money needed to succeed immediately which is not realistic. When it meant my wife and kids that pressure was enough for me to perform. That is a huge secret when you get it. Attaching what is truly important to you to making money is the “secret”. Not the law of attraction crap. We combined making a sale that paid us $1,000 a sale and had a network training/qualification stage to it to combine team building with direct sales.This meant my production was doubled through team building. I went from a broke bartender to a self-made millionaire in two years. The second time it was multi-millions.

In MLM it is not a “level playing field”. You must get in first and be at the top. That is not the case in what I described in direct sales. That said, direct sales means one product sold, one commission paid. This means passive income is not coming into play. By its very nature neither is it in MLM unless you are there at the beginning. Of course there are exceptions to that statement.

We only covered the surface of the industry. Should anyone wish to have advice on anything if I can assist you please do not hesitate to get your questions answered. There are so many good things about many MLM companies with their desirable consumables. I will sign up in one or two MLM companies simply for their wonderful products. Investing my time marketing won’t give me the bang for my buck of time I demand. Last secret. If you want to make a $1,000 an hour, you must treat your time like it is worth it. It will show up when you do. That is an internal decision you must learn to make. Hope I can show you someday how simple it is.

Hope this article answered some questions about the network marketing industry you had or perhaps hadn’t thought of yet. Take care, Dr. Mike

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