Is Network Marketing Really a Better Way?

When I heard first Eric Worre’s say that network marketing is a better way, it really resonated with me.

I couldn’t have said it better myself.
That’s probably why he’s Eric Worre and I’m not.

Regardless, it really is a better way and today I’m going to explore some of the reasons why network marketing is better….

… better than a traditional business.
… better than a job.
… better than the normal route to retirement.
… and much, much more.

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1) Low Start-Up Cost

Unlike traditional business or a even a franchise, network marketing requires very little startup capital.

Basically, you need the money for an initial order and a small sign up fee (in some companies).

Since the world as become smaller, systematized, and technology driven, you no longer need enough product for your customers.

Everything can be drop shipped directly to them and your commissions can be automatically updated and paid out.

So you never need to have a garage full of merchandise that you can’t move. Which, by the way, is one reason this industry had a bad name to begin with.

2) Low Overhead Costs

Product Orders

Let’s move past your first month in network marketing. Typically, to qualify to get paid, you need to be on some sort of autoship.

Again, this is very minimal and it can be just enough for personal use for you and your family.

At the end of the day, if you find products you like and that you would use as a customer anyway, the business is almost a bonus.

You can be a distributor in order to get a discount and you can build the business to offset your cost of the product.

Regardless, the monthly autoship cost if very low.

Our autoship requirement is less than $200, but that wouldn’t even give us enough of all the products we want to consume each month.

So it’s very easy to stay qualified.

No Monthly Brick and Mortar Upkeep

In a traditional business, to stay in business you’re going to need a location (at the very minimum).

Even if you find a place with cheap rent, you still have electric, water, phones, furniture, and general maintenance. There is none of this in a home based business.

You already pay for your phone, your house, your electric, and your utilities.

In network marketing, there’s no need to incur any additional monthly payments since you’re working from home.

Business Building, Advertising, and Marketing Tools

If you’re building this as a real business, you will typically want to invest in some tools to help you build your organization faster and to become more profitable.

Some of the tools we use that have monthly fees are:

  • WordPress site and hosting (it costs a little to keep this site up)
  • Advertising and marketing
  • My Lead System Pro (MLSP- in order to increase profitability)
  • Clickfunnels (not using yet, but will be setting up soon)

But all these tools are optional. You can start where you are and scale up as you become more and more profitable.

Even with investing in tools and marketing, it’s still much cheaper than traditional business.

Think of somebody opening a franchise or traditional brick and mortar business. You’ll have to invest thousands in overhead each month before you even get to marketing and advertising.

I have a buddy with a carpet cleaning company and he complains to me sometimes about the cost of advertising platforms such as YELP and other similar companies.

He spends more just for advertising every month, than I spend to run my entire business!

Ridiculous!…. but true.

That’s not even counting employees, supplies and chemicals, office rent and upkeep (as mentioned earlier), etc.

Network Marketing is one of the cheapest businesses on the planet to run AND the model is structured for growth. So as your organization grows, you’re expenses do NOT!

Network Marketing is the cheapest business on the planet to run AND the model is structured for growth. As your organization and profits grow, you're expenses do NOT! Click To Tweet

That’s one of the best benefits but it’s also one of the biggest problems.

Why is it a problem?

Because often times people run their mlm business like a hobby.

They don’t have a big enough vision of what it can do for them and consequently, they never realize it’s true potential.

3) Quality Products

I absolutely love this part of the business. If you join a reputable company, they are going to be putting high quality products into the marketplace.

I’m a firm believer that you get what you pay for. I’m not talking just about network marketing here, I’m talking about life in general.

There’s a reason why some products are high end, top shelf products.
Yes, branding plays a part in it, but it’s not just branding.

Branding may further inflate the price of quality products, but typically, more expensive products are better products. That’s why they can command a higher price point.

The incredible thing about network marketing is that by ordering your favorite products, a portion of what you’re spending is being siphoned off for research and development so your parent company can roll out other products.

It’s a fantastic thing. No additional out of pocket expense to you, but new products are released and old products are improved.

Then, to top it off, your mlm company handles storing, shipping, branding, packaging, compliance, and etc… the list goes on.

That’s why it’s so important to be part of a company you trust, with leadership you can rely on.

4) A Systematic Path to Success

The power of the multilevel marketing (mlm) business model is that it’s leveraged for growth.

If you get started with a company or team who has a proven system in place then all you have to do is follow the system.

This will increase your chance of success.

Notice I said, increase your chance of success.
I didn’t say guarantee success.

Nothing is guaranteed in this world and (newsflash) you are not entitled to anything. But a good system to follow can dramatically increase your chances of scaling to the level you want to get to.

One word of warning here.
“Talk to more people” is not a system.

I’ve heard that spouted so many times from leaders with large organizations.

Is it good advice?…
Absolutely.

Is it a system?…
Absolutely not.

A good system strives to make the individual person obsolete so that everyone gets the same result.

For example, at McDonald’s, if you order a frappe, you will get a consistent product regardless of which McDonald’s you ordered it from.

That’s not because all the employees are so well trained.

It’s because McDonald’s has systematized everything to the point that you’d almost have to work harder to mess it up than to get it right.

Put the cup under the machine.
Push a button & a consistent product comes out.
That’s a system.

Years ago, the closest anybody could get to a perfect system was a consistent flip chart or video people could use. But that still leaves lots of gaps.

With today’s technology, I truly believe we can create systems that if tweaked, tested, and fine tuned, will be able to increase the number of people who have success in this industry.

It will never be perfect, but if you’d like to see what we’re doing to solve this problem, feel free to check it out.

5) Incredible Compensation Through Leverage

If you read books on building wealth, network marketing never makes the cut.

It’s a durn shame too.

The books and gurus teach you to use debt as leverage – bad idea!

Proverbs 22:7- The rich rule over the poor, and the borrower is slave to the lender. Click To Tweet

Sure, debt is a great strategy if nothing goes wrong.
But hey, this is life and guess what?
Stuff WILL go wrong.

My experience has been that cash is king.

The people with the most money usually borrow the least.
That’s one reason they have the most money.

Now, there are some who use borrowed money for real estate investments and seem to live a pretty good life.

But, time and again, those people are screwed when the economy comes crashing down… which it will always eventually do.

There is an ebb and flow to economics.

There is an ebb and flow to economics. What goes up will always come down. How are you preparing for the downturn? Click To Tweet

Why not leverage your time and sweat equity?

That’s what the network marketing profession is all about.

Use your own money (low startup and low overhead) and leverage your time, some sweat equity, and a business model that is constructed from the beginning with leverage in mind.

Think about it.

Regardless of the type of compensation plan a multi-level marketing company employs (we happen to love binaries), they all have one thing in common… they were created with leverage in mind.

So rather than go in debt or borrow massive amounts of money or mortgage your house… network marketing allows anybody to run and scale a business for a fraction of the price of a regular entrepreneurial endeavor.

This why your income can scale to such massive amounts, because it’s built on a foundation of leverage.

The reason network marketing income can scale to massive proportions is because the business model is built on a foundation of leverage. Click To Tweet

6) Positive People and Incredible Relationships

When you go to work, you’re probably around some negative Nancy’s.

I know because I used to not just be around them, I was Nancy.

I was a pessimistic and negative person by nature (at least that’s the story I used to tell myself).

Then I got involved in this industry and I learned that you can change.

I started to meet positive, high caliber people.
I met people who were playing at a higher level.
I met people who had completely transformed all areas of their life.
I met people who weren’t sitting on the sidelines watching life pass by, but were actually on the field making plays!

Last but not least, I made friends.

Not just acquaintances, but people who I got to know on a deep and personal level.

I am amazed at the depth of relationship you can build with somebody when you’re both striving toward a common goal.

But it has to be a real goal.
One you are both passionate about.
The goal can’t be just make it to Friday so you can get paid.

Having a strong common goal strengthens your bond.

It also helps you push each other to become better people, better leaders, better fathers and mothers, better everything.

7) Pay for Performance

This phrase scares people sometimes and can actually turn people away.

However, that’s because they don’t understand the power of pay for performance or they have a fear of not performing (in which case there is no pay- ouch).

Those that understand this concept though and are willing to take on the challenge, eventually get to the point where they wouldn’t have it any other way.

Consider this:

If you have a job with a set rate of pay (it can be full time, salary, hourly, etc.), you will get paid the same amount regardless of your performance.

Of course, if you perform well or above average, you have a shot at an increase in wages, but it’s not guaranteed.

The opposite is true of network marketing.

Please note, I’m not guaranteeing any income here or making any income claims.

What I am saying is that if you study any compensation plan (not income disclosure) from a network marketing company and understand it, you can know exactly what kind of income you will earn if you perform to a certain level.

The key here is performance and execution. You have to perform and execute or you don’t earn.

In a typical job that has no commission bonuses, even if you out perform and outshine all your coworkers, there’s no guarantee you’ll be paid any extra or get any type of promotion.

All you have is hope and hope is not a strategy.

Heck, there are so many movies and television shows highlighting this very thing.

What’s a typical law show about?

It’s usually about a few associates trying to outsmart and outwork each other so they can qualify for a partnership they may never get.

If you’re rainmaker- the right network marketing company will pay you a ridiculous amount of income for your skills.

8) Speed (Even When it’s Slow… It’s Fast)

Okay, so what do I mean by this?

Well, the typical plan is to work 30-40 years in a job or industry and then (hopefully) retire and not have to work anymore.

That’s a looonnng time my friend.

It’s a long road to financial freedom and even then, you may not be financially free. You might be just free enough to survive.

In addition, what happens if you run out of money?

Maybe your “nest egg” doesn’t last as long as you thought it would. Which, by the way, is increasingly becoming a problem because people are living much longer than they used to.

The problem with traditional network marketers is that they over-promise and under-deliver instead of the other way around.

Instead of telling people “it’s easy” (it’s not) and pointing to the outliers who build massive teams in 3-6 months, we should be highlighting stories that are more reasonable.

Stories such as those like Jordan Adler, who didn’t start seeing success until 10 years in the industry. But after ten years, he figured it out and went on to earn over 20 million dollars in the industry.

Now, will everyone have the kind of success he had? No.

But it’s possible and even a fraction of that success would change the lives of most people.

Ten years is a long time… but 40 years is longer.

I’ll quote Eric Worre again- “The truth is good enough.”

9) So Is Network Marketing a Better Way… For Everyone?

I see both sides of this argument but I do think it’s a better way for everyone who is entrepreneurial.

It’s the lowest cost, lowest overhead business with the greatest upside potential for time and financial freedom that exists today.

Now, that doesn’t mean everyone will build an empire to the size they want it to be. In fact, most won’t.

But that’s not uncommon to other industries. It’s quite normal.

On top of that, success in any endeavor (especially network marketing) is a moving target.

You think you just need to make a few thousand a week, but then when you get there… your vision and belief expands. You think “well, if I can make this much, I wonder how far I could really go”.

And so the journey continues.

BUT, I have never seen anybody go after it in the mlm industry, (like really go after it and actually try to build a business)… who didn’t grow as a person and leader in the process.

It’s just not possible to chase after success and not grow inside of this industry.

If if you want it, you’ll have to face hard truths about yourself in order to overcome them and go to the next level.

That’s why it’s such an incredible industry.

If you really want success, you’ll have to become somebody that others will follow. Then, to go to the next level, you have to become somebody who can lead others to success.

That’s the real reason it changes lives.

Yes, people make buckets full of money.
I think it’s Jackie Ulmer that refers to it as “gansta’ income”.
I like that analogy and it’s very spot on.
But, it’s not the most powerful part of the business.

The most powerful part of network marketing is the personal growth and relationships that are created when someone gets a vision for their life and then truly works to bring that vision into reality.

That’s where the power is.

When you get to the point that you know if you lost everything you could get it all back… That is true security.

Conclusion- Network Marketing is Definitely a Better Way

At the end of the day, network marketing holds up to even the closest scrutiny if it’s approached with an open mind.

If you’re currently building a team, we wish you the best.
Continue to check back here for network marketing and mlm strategies, tactics, and hacks.

If you’re looking for a team to partner up with we encourage you to browse the site and see if we might be a fit for you.

Always remember, if nothing changes… nothing changes.

Live Boldly.

God Bless.

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