The Truth About MLM And Network Marketing - Boss In The Bentley
Are you interested in a side hustle or making some extra income? Or trying out some supplements or skincare products that you can’t buy at the store?
If your answer is Yes to either question, then you might have thought about getting involved in network marketing or multilevel marketing (MLM). Many people have asked me what’s my take on it and whether I recommend it. It’s an interesting industry but the truth about it is not that simple.
Reasons For Joining
I’ve belonged to couple network marketing companies where I’m just a consumer because I like their supplements. Some companies do produce phenomenal products. So one benefit is getting products that you can’t get anywhere else. That’s the good reason to get involved.
But most people get into network marketing for the wrong reasons. They think it’s the magic pill to financial freedom, that by joining the company they’ll have opportunities. The reality is, the company is just a vehicle.
To use an analogy, it doesn’t matter what car you drive, if you don’t know how, you’re going to crash the car. So it doesn’t have to do with the opportunity. Your success has to do with you as an entrepreneur and most people get into network marketing because they’re lousy entrepreneurs.
Good entrepreneurs are artists in commerce. They create by putting a team together and turning their vision into reality. Network marketing attracts people who want shortcuts, a proven system they can follow to get rich quick. That’s the opposite of entrepreneurship.
I have friends who are very successful at network marketing, but they are either phenomenal speakers, salespeople, or very good at what they do. They’re great leaders. For these people, it doesn’t matter if they’re in network marketing, real estate, insurance, or whatever, they will still be successful.
It’s because of the structure of network marketing, the compensation plan, and the leverage of the team that they make a lot of money.
Challenges With MLM And Network Marketing
In the network marketing industry, people pitch about the great opportunity, saying the company is growing and it’s got a track record. The problem is, you’re a commodity. That means you’re the same as everybody else. Anyone who’s your downline can sign up under you, and they all get the welcoming package and become part of the same system. No one is unique.
It makes it very difficult to build a business when you all have the same products to sell at the same prices. Sometimes the timing matters. Bigger companies like Herbalife, Amway, and Nu Skin are too over saturated with people who are distributors or consumers of the products.
Another problem with MLM is many people have a negative association or experience with it. So it becomes very difficult to sell to make money with it. And if you study the statistics, most people make little to no money.
Only the people at the top make money because they got in at the right time when the company opened in a new territory or country. They’ve been around in the company a long time.
How To Succeed At MLM
If you want to succeed in MLM or network marketing, you’ll need to treat it like a business you’ll be doing for the next two to ten years and it will be your career. You need to understand that you’re going to get thousands of rejections from people who don’t want to buy, and you’ll be babysitting people who aren’t entrepreneurial.
If you want to increase your chances of succeeding at MLM, then work on your high-income skill first to make a six figure income before you leverage that to start a network marketing business on the side. That’s why true entrepreneurs don’t join network marketing.
True entrepreneurs, I believe, don’t buy franchises. They sell franchises. They start a network marketing company, they don’t join a network marketing company. The majority who join these companies only make a little money.
That’s my take on MLM and network marketing. They are neither good nor bad, but they attract a certain type of entrepreneur, and people have negative associations with it. However, there are companies that sell good products that you can’t find elsewhere. The final opinion about MLM and network marketing is up to you to decide.
Dan Lok: Welcome to another episode of Dan Lok show. Today we are in actually New York City, and I’m with John Henry. Now John not only is an entrepreneur, but also a real estate investor as well as owns a venture capital company.
John Henry: That’s right.
Dan Lok: Now before we even talk about John’s story, I want to talk a little bit about this space.
John Henry: Let’s talk about it.
Dan Lok: Let’s talk about this space. Like what makes this space, co-working space, so special?
John Henry: First things first, thank you for having me on.
Dan Lok: Welcome man, welcome.
John Henry: Appreciate you. And look, what makes this space special is this is the proof right here. Like you’re on a one day trip, you came, you interviewed with Faiza, this content, that content lined up. We connected and it’s central in the city, a lotta energy here, there’s six floors.
Dan Lok: You can feel the entrepreneurial spirit.
John Henry: That’s right.
Dan Lok: The minute you walk in you can feel the hustling.