Today I’m going to dive into why multi-level marketing works.

The very first thing we’ll cover is “why do people say it doesn’t work.” Next, I’m going to share the biggest key to making money in multi-level marketing. Lastly, I’m going to share exactly what I did to make money in network marketing……to the tune of millions of dollars.

Why do people say network marking doesn’t work? 

Why do people say it doesn’t work? Why is there such a proliferation of anti-MLM people? People who say it doesn’t work, it’s a scheme and it preys on others and things like that. I believe the number one reason is that there’s not a lot of comparison out there. If you hear of an industry where a lot of people either pay money or time to start and don’t hit significant goals and you don’t have anything to compare it to….then it does sound a little shady. Right?

Well, what if you do compare it? What if you compare it to podcasters? Do you know how many podcasters buy a lot of equipment, spend a lot of time working on their podcast and never make their money back for the purchase of their equipment. What about YouTubers or Little Leaguers, or actors and actresses, right? If you look at how many people pay for acting classes that end up as a known celebrity or even in a movie that you’ve ever heard of, it’s ridiculously low.

Let’s use one more comparison and that’s realtors. I find that realtors are an extremely congruent comparison, because of the reasoning for the percentage of realtors that make money and the percentage of network marketers that make money. On average each year 700,000 people pay for the exam materials to become a realtor in the United States. You have to pay for that exam material. By the way….I don’t think these are people that just want to learn real estate because there’s a lot of better books out there…. You could study Gary Keller or Robert Allen.

There are a lot of great gurus for real estate… ..if I’m trying to learn real estate, I would study them, not buy the realtor exam material which is mainly around law, right? Contract law and what you can legally do or not do, who can you discriminate against….which is nobody, right? It’s actually weird information. Doesn’t teach you a lot about real estate but about the rules you have to follow as a realtor. Based on that information, I’m going to guess that most people buy the exam materials because they want to become a realtor.

Why do they want to become a realtor? To make money in real estate. There is no product, right? There’s no, I’m going to become a realtor and really enjoy some kind of product or service. It’s them (typically) wanting to make money in real estate. Now 700,000 roughly on average each year buy the exam materials to become a realtor, 113,000 on average take the exam, 50,000 actually pass. Of 50,000, 37,000 make any money at all with an average commission of 5,000 dollars.  Why is no one saying 662,000 people that try to become a realtor don’t make any money and they lose money…...because there’s just no comparison and people generally agree that money can be made in real estate.

Same thing applies to network marketing. Why didn’t the people that paid money for the exam materials (let’s take the 113,000 that also paid to take the exam) why didn’t they make any money? Because they didn’t do the work. They didn’t do the work of getting the license, prospecting people, listing homes, showing homes and holding open houses.

What’s the biggest key to making money in network marketing? 

Why do people not make money in network marketing? Why do people say that it doesn’t work?  Because they too didn’t do the work. The only difference is you don’t have to sit through a very tough exam. The real estate exam requires a lot of study, not intuitive. I know a lot of people that failed the real estate exam. Unlike being a realtor, you can plop down (usually) a couple hundred dollars and voila, you have a network marketing business.

Now because it’s so low risk, low barrier to entry, does that increase the chances that someone’s going to be really serious about it or does it decrease it? It actually decreases it. The easier something is to get into, the less serious people will take it.

By the way, with network marketing, you do have a product. Maybe you did it to get a discount on a product or a service or you use the product at a discount… right? You have that kind of going for you….but percentage-wise, I would say it’s very, very little difference between those who start the journey of wanting to make money in real estate versus those who start the journey of wanting to make money in network marketing.

It comes down to some very basic principles of even the realtor that does get their license, if they don’t talk to anybody, if they don’t follow up with anyone, if they don’t do any open houses or show any houses or have any listings, then they’re not going to make money. It’s not magic or mystic for either scenario or any of these scenarios. It’s “did you do the work?” period.

This is something that people don’t understand so in the absence of understanding, there’s criticism there’s skepticism etc. I wanted to clear up the question of why some people say that a lot of people don’t make money in network marketing.

What I did to make money in network marking. 

What did I do to make it work for me? I started from a terrible position and had just lost it all in the real estate market. By the way I’m not anti-real estate…we did really well in real estate last year and we love real estate, but I’m giving you that comparison. When I started network marketing, I was dead broke, personal foreclosure over a million dollars in debt and not the ideal situation you know mindset-wise for sure…..but there were three things that I did to earn my first million dollars in network marketing.

What were the the three things that I did? 

First thing I did was to go for 20 no’s a day. Which may sound kind of strange, right? Don’t you want yes’s, Ray? I learned of this concept from a book called Go for No, (which I’m good friends with the authors now Richard and Andrea and we’ve actually co-written a book called Go for No for network marketing). In this book they teach you how to get over your resistance to rejection and your hesitancy to rejection and to realize it’s not that big of a deal. You’re not going to die if someone tells you no and so I really grabbed on to that… in numbers, law of averages kind of way of thinking and went for 20 no’s a day.

The second thing I did was a video everyday. I wanted to attract more people to me.

The third thing I did was some form of self-development everyday. In the beginning when I was dead broke, it was YouTube videos, it was rereading Think and Grow Rich. It was whatever I could get my hands on for cheap or free because I didn’t have resources. Since then I invest very heavily in my education. 2013 or 2012 was the last time I didn’t invest at least a hundred thousand dollars in my own education on an annual basis. I take it very seriously.

Those three things are what helped me hit my first ten thousand dollar month, forty thousand dollar a month, fifty thousand dollar month and become the number one income earner of that company and go on to make millions of dollars with that company. Those are some of the principles of how to actually make it work for you.

Before we get to my last point, I would love to hear from you. What is an objection about the industry that you hear or that you struggle with or maybe even you believe because I have lot of anti-MLM people that comment on my stuff. What’s the big thing that you believe and you’re like “no, Ray, you’re wrong bro and this is why….” Tell me what thing that you believe or you’ve heard about the network marketing industry that I can help out with, that I can respond to and even if you hate my blogs (because how dare I edify something like network marketing), I would love to hear from you anyway….so drop me a comment.

What is the biggest key to to making multi-level marketing work?

It’s a really simple concept. The same concept you would use if you were selling cars or real estate…if you’re doing anything performance based and that is your pipeline. Your pipeline is a list of people that you are reaching out to, following up with, setting an appointment with, sending information to, getting on a presentation etc. Your pipeline is the work.

If your goal is to make money in network marketing and you’re wondering what’s the work? The pipeline is the work. You reaching out to individuals and seeing if they’re open to your product, service or opportunity. You following up with those individuals, setting appointments with them, sending videos, more information etc. and so forth. If I ask you how many people do you need to follow up with next week and you say nobody then your pipeline is zero and that’s why you’re not making any money.

You have to understand that the pipeline is the prerequisite to the money. Money is a result, a result of doing certain things and those certain things are found in your pipeline. Reaching out to more people, doing more videos (so you can hopefully get people reaching out to you), following up with people, setting appointments, etc. you get the gist. Your pipeline is the dictator and by the way it’s also the dictator of who succeeds and who doesn’t. The person without a pipeline that just has wishes and dreams and believes that the industry is magical or mystical but they have no pipeline, they’re not going to make any money. Your wish is not going to compensate for a lack of a pipeline. Do the work, keep improving your skills which we help you here on this blog and you’ll be making money in network marketing.

Let’s get you rocking and rolling. We have a free five-day prospecting power-up that teaches you how to find people to reach out to and even what to say to them. We share scripts, follow-up ideas and where to locate people to talk to about your product, service or opportunity. Here is the link…….

….just click that to register for it. It’s a free five-day prospecting power-up to get you rocking and rolling.

Ray Higdon

Play Bigger. Make An Impact.

Considering Coaching? Check out my Work with Me tab and Survey where we Help People Everyday