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Is It REALLY Possible To Grow A Seven Figure Residual Income In Network Marketing Using NOTHING But The Internet? (Not Really)

The advent of the internet has brought to the marketplace an entirely new breed of entrepreneurs… and with the new breed, while we are certainly still in the infancy of a new dawn of economics, has brought with it it’s own unique set of problems, as well as a whole new range of opportunity for the savvy business builder.  However, I would like to address a SPECIFIC debate within the realm of the aspiring Network Marketer, and it’s that of the question:

Is it even POSSIBLE to create an ACTUAL seven figure residual income entirely online in the MLM industry?

I might surprise a bunch of you who are regular readers of my blog… but here goes:

The answer is… NO.  It’s not.

“What???” Now before you high-tail it out of here, or contact the FTC and file a complaint that I’m telling you to go build a business by attacking your broke friends and warm market with the prospecting spear head, hear me out.

It’s important to understand what we’re doing, and not doing when we’re building a business online, and it’s also important that if we have a long term goal of passive wealth, that we not ignore the facts and the reality of both what exists and what doesn’t in our industry.

What DOES exist in our industry, and has existed for more than sixty years are thousands of people earning seven figure incomes who built their incomes almost entirely through business networking and warm market prospecting.  What DOESN’T exist is ANYBODY who has created the same brand loyalty, RESIDUAL wealth, and leverage through ONLY the internet, or ONLY through any other kind of advertising.

In fact, most of the people I know online who make a lot of money make massive amounts of cash selling affiliate products, coaching programs, websites, and systems, but their ACTUAL residual income from a legitimate Network Marketing company is less than $10,000 per month.  In fact, MOST of them have a residual income of less than $1,500 per month.  (These are the top dogs, people)

Well, that’s cool, because they can still make fat amounts of cash selling their programs.  In fact, the other day I saw a promising program online for sale called:

“How To Make Butt-Loads Of Cash Selling ‘How-To’ Courses To Network Marketers Without Ever Actually Being Successful In Network Marketing Yourself…”  (I’m kidding, of course… sort of)

So where’s the disconnect?  Why is it that people like Randy Gage are creating residual incomes of a couple of hundred thousand a month while the top dogs online jump ship from deal to deal looking for the magic bullet? (a whole new blog post is coming on that one…)

The answer is probably more simple than you would think, and it’s something that we need to address…  Think about it like this:

Normally, for the last 60-70 years when you would get started in a Network Marketing company, your upline would give you some kind of advice like this:

“Talk to EVERYONE, your neighbors, your cat, the grocer, the local police department, illegal aliens, etc…. your goal is to SPONSOR no matter what, just get out there and TALK to people”

So when you get started, that’s exactly what you do…  Now, this might not make you rich (really it depends how influential your sphere of influence is and how good you are at positioning yourself) but what it DOES do is get you sponsoring in your first week.

Compare that with what happens online.  You get started and your sponsor tells you:

“Ok, you need to learn how to market yourself before you’re ever going to be successful…  so set up your blog, set up your autoresponders, create a capture page, hire an article writer, learn how to be a guru, spend 4 hours a day chit-chatting on facebook, set up 14,000 affiliate accounts, and then FINALLY you’re ready to START….”

The problem is, that stuff takes so long and is so complicated, that MOST people will NEVER start.  They’ll quit before they do anything.  (Where in the traditional methods, the quitters still quit, but before they do they sponsor 5-10 people).  What online marketers also tend to be quiet about is the fact that to be successful in online marketing, you CAN’T copy someone else, you have to learn how to be ENTIRELY unique.  It will take most people six months to learn how to do if they are extremely aggressive.

As a result of this disconnect, distributors who build their businesses completely online have GIGANTIC frontlines and almost zero duplication in their teams, and they have the highest attrition rate of any business building method that exists.  So what do they do?  They assume that MLM is dead, duplication can’t happen, and so they jump to a program that doesn’t require anyone but themselves to be successful, hence the advent of ‘Top Tier’ programs.

“Your Downline Is Dead”
Make $90 Zillion A Year Ripping Off Strangers
Because They Won’t Succeed Anyway, Click Here.
www.FrontEndLoadingRocks.com

The flawed philosophy of doing that is that people in traditional Network Marketing have incomes that completely trump top tier programs, and a way better quality of life.  For example, in my last company, there are about 10 distributors with six figure monthly residuals, and about a thousand with healthy six figure annual residuals.  Most of those people could drop dead and still make seven figures a year.  Can you do that in a top tier program?  No.  You have to keep producing and selling $20k packages like a dog for the rest of your life.

So what’s the solution? It seems as if I’m harping on internet marketing as a way to build your business.  I’m not.  I just want ALL of us to realize that IN ADDITION to learning how to build our business online, let’s START sponsoring and building a team before we’re gurus, and get our teams doing the same thing.

Don’t ignore what’s worked for 70 years to try and build something that can’t be built.  I think that if Network Marketing is going to have a future, we need to have a war cry, that we learn to EMBRACE traditional methods and get people STARTED doing something simple that they can IMMEDIATELY do, and then they can learn whatever marketing method they want as they go along.

I think a good war cry would be to simply talk to five people a day about your opportunity, no matter what.

Now, if you’ve learned how to generate leads and you want to talk to five people a day from your leads, cool.  If you haven’t, prospect every day while you’re learning to market online.  Who should you talk to?  Anyone that you can practice with.  You could meet people through business networking, social clubs, you could talk with people and build relationships on facebook, pick up a newspaper and look for social gatherings and just get out there and network, learn how to meet people in coffee shops… anywhere.

Mike Dillard’s famous book ‘Magnetic Sponsoring’ got us all focusing on learning the ‘Marketing’ of Network Marketing, but what about putting the ‘NETWORKING’ back in network marketing?

Why not market your business online at a coffee shop, and then just build relationships with other people that hang out?  My first successful organization I built almost entirely through people I met in coffee shops (before the online days).  I wasn’t pushy, and I didn’t go to the coffee shop dressed like an Amway distributor.  I just made a lot of friends and as a result, I sponsored a lot of people.

Do I want you to abandon building your business online?  No.  There are things you can do through marketing that there is no possible way you can do in any other way.  You can sponsor 40-50 people a month into any company like clockwork by learning some clever advertising.  But do you want people in your team to HAVE to learn to be a marketing guru to be successful at all?  I’m just telling you that if you want long term residuals, don’t ignore the traditional methods in your pursuit for online Guru-Hood.

Did you get burned out trying traditional methods?  Maybe you were acting like an idiot to your friends, or maybe you never learned how to do it in a way that works.  Maybe instead of bashing the methods that have created REAL residual income, you could just learn the skills that can enable you to add the most powerful leverage building technique in existence to your business.

I might lose some of my following for saying some of the things I said in this post, and if that’s the case, so be it, but I want you to know the truth.  It’s time for the online community to wake up.  If you’re not going to embrace reality, maybe it’s time to join a top-tier program and rip off strangers for the rest of your life.

I’m holding a new war-cry all of you.  Talk to five people a day.  If you have leads, great, but if you don’t, learn to prospect until you do.  Learn to reach out, connect with people, and build relationships with people you haven’t met.

Don’t be an idiot and hang out in an elevator in the local shopping mall with a huge grin on your face and corny business cards, learn how to NETWORK.  Isn’t what we’re doing to build relationships?  I want you all to know the REAL marketing skills that will let you sponsor 40-50 people a month, but BEFORE you have them, you can build relationships right now.  There’s a world of people who are hurting for change, who are trapped in a race of 9-5 slavery.  Let’s go out and teach them the truth of economic freedom, and be a Hit-Man to the machine.

I appreciate all of you, and I encourage all of you to enter into a new era of Network Marketing with me, let us go out and set the world on fire.

Your Friend In Prosperity,

-David Wood

P.S. Be sure to leave your comments on this one.  I’d like to hear how many of you think I’m full of it, right on, etc.

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125 comments
legacy
legacy

David, I have tried working with several other EN workers and non  of them made me believe in myself the way you can strike it at the heart.  I used to be in networking in MLM's and I was not successful but I did talk to people daily and most would not understand what it was that they needed to change their lives.  Maybe that made me a bad marketer but I would hand out a card and give them a short spiel and ask for a contact info and get back them if I could.  The pay plans always stunk and I could not make enough money to survive.  I gave up on them all because the company makes all the money and maybe a few at the top who knows all the big gurus. Recently I have been asked to join a precious medals (binary program) and it would be a fair price for the medals but the plan again makes most of the money for the business owners. Also a video program has the binary program.  I still have not joined that.  I might reconsider working with you because you have the blogging answers that I need. I worked for a while with Carol Douthitt and I didn't like her approach. I also teamed up with the Chris's and they were not  there for their people. They each wanted to build a big secondary business.  Tony Rush approached me too. I know he took your 5000 package and is doing well but his approach was just do it.  No real training. All boasting. I don't like that.

 

I thought I would learn alot of strategies with a membership club because I need to learn how to make my own WP from start to finish.  That is where all the blogging begins.  If you provide what I am looking for I want to be part of your team.  I  want to be successful and I know you  have all the in and outs and the guts to tell it the way it is.  I do like your style and by the way I am a neighbor of yours over in Panama but I do not own a 4500 sq foot home on the beach.  Rather, a small B&B and we operate a restaurant that has been losing alot of money. My hope is to move away from that and make it big on the internet and also follow the creator.

thanks Ruthie

skype : doulin2399

 

 

 

 

 

James Umber
James Umber

Dave, that's exactly the conclusion that I also came up with. I agree 100%! I guess great minds think alike.

Felecia Lynn
Felecia Lynn

Good advice David. I'm just happy that this company converts well and trains well. Empower will give people an edge although work is still needed. It's a process like anything worth having in life. If you really want financial freedom you WILL make it a reality.. no excuses.

Pongrat Ioan
Pongrat Ioan

Romania - safe for me everything is new. important all translate Dear Mr. David Wood I do not know, anyway many thanks.

Nicky Price
Nicky Price

Whoooaaa! Guys I would like EVERYONE in my team to read this. It's SO important - read and let me know what you think. I am surprised at some of the stats he mentions, but in prinicple I agree with Dave - Business is about meeting and cultivating RELATIONSHIPS, either online or offline. Ultimately no matter what we think, it IS a numbers game in Network Marketing and consistent and persistent daily action to nurture those relationships as we go about our daily business is what will make you stand out. Great post Dave.

Jamie
Jamie

This is a great blog and great advice although in some ways I disagree. Because of my past relationships and mantel heath problems I have been avoiding people most of my life (scenes I was 6 years old) I'm now 31 and I have spend most of my life online and I have gained friends & "family" online that I would die for. I just never have been able to get along with people offline in my area. I agree about the "family like relationships" you get with people offline and it helping people stick together although people online can have the same relationship just as you said above "the internet has brought to the marketplace an entirely new breed of entrepreneurs." will that new breed of entrepreneurs need to step up to the plate and use the full potential of the internet and advanced technology of modern times to make the most of it to better the MLM industry not live in the past. Just because someone who has never created the same brand loyalty, residual wealth, and leverage through ONLY the internet doesn't means it is imposable to do that. In the 1960s the internet did not exist in the IT industry but that did not mean that it was imposable to have the internet the inverters of ARPANET proved that.

Amy Drinnon
Amy Drinnon

Great post - Duplication is the key and an organization with real residual income has a product that can stand alone. I just recently had the revelation you just wrote about after I was crushed in an MLM that I thought was a the best thing since sliced bread. Duplication and relationships build my business and I always have prospects. Now what I do with them, that is up to me.

David Domm
David Domm

Undoubtedly the most profound thing I have heard from you. I have been studying the "online lead gen" and "attraction marketing" models as I have been generating leads and I can say that most people are not going to have what it takes, mor the time to do even what I have done online. But they can learn how to talk to a real warm market, not just friends and family. Mark Yarnell puts it simple here "Create expansive warm markets for novices" There are 80 million baby boomers out there right now that need to make money in network marketing. If they try to master Guru status and Internet Marketing, it could take them YEARS and if they focus on some Core principles, they could be making six figures in a year.... Just sayin. Thanks for this Dave. Very cool.

Teddy Lim
Teddy Lim

You Rock David! I'm going in to that New Era with ya mate! Cheers! ~ Teddy

Glenn Watson
Glenn Watson

Hey David, awesome post brother. I also believe that you need to market off-line as well as on-line. The great thing about off-line strategies are that they are easy to duplicate and they can be implemented immediately. Start off-line while you are building on-line it makes sense. One more thing, for those people who are reading this and think they will get their downline to use off-line strategies when they themselves are not implementing them, you need to get serious.....lead by example because your team is going to do exactly what you do. Don't expect your team to do what you are not prepared to do yourself!

Juan Manuel Guevara
Juan Manuel Guevara

Hi Dave, Thanks for setting the world on fire with this one. But I tell you David, some interesting stuff is happening down here in Latin America. You should check out what Erick Gamio is talking about in the previous comment. We're making our own way and It has worked nicely! "Offline Attraction Marketing" as Erick said. I'm sure you will like it. Chao, que estés bien! Juan Manuel Guevara Caracas - Venezuela

Erick Gamio
Erick Gamio

Dave, Thank GOD you came out with this. Any REAL Networker would get this. Down here in Latin America, the highest selling course of MLM is "Offline Attraction Marketing". We had to go back to basics but with a few tweeks here and there... I´m going to send you an e-mail, because I know this course will add a lot of value to you and your team, as you have added value to mine. I created the course :-) Pura Vida!, Erick Gamio Lima - Perú

Kimberley Tilley
Kimberley Tilley

Fanatastic post David.....I agree with you completely! This is definitely a people buiness and I think that is one of the reasons I love it...there is so much value in the mentorship and creating relationships with people that teach you new things everyday. Thanks for keeping it REAL!

Emma Ballard
Emma Ballard

I agree networking and face to face contact even cold calling all these things are old fashioned and they work!

Nicole S. Cooper
Nicole S. Cooper

WoW David Wood, Ced and I just had this conversation and then you write this article.......... 10 thumbs up for writing this. I've been preaching this message for the past 9 months, and instead of listening, people go run and join another sponsor that continues to feed them BS... Finally, we hear it from a "guru", who's telling us EXACTLY what most people are avoiding to hear.... Woooo.... I think we all need to do a "Paid Webinar Training" on this, and then maybe people will begin listening;)... Go DW!

Octavio Ochoa
Octavio Ochoa

David you are 100% right, it's impossible to achieve the freedom network marketing offers trying to build a business 100% online, I've learned from my mentor Mark Yarnell, that the fundamentals of this business are built on talking to people 2 hrs a day about our business opportunity and products, he says "if you don't talk to humans beings during 2 hrs a day you can't build a successful business long term ". I think the internet is a great tool to build relationships, pre-qualify good prospects and build our list, then we need to contact those prospects and learn about they need, what they want or not want and based on that help them with the solution that we can offer through our legitimate products and opportunity. Thank you so much David for your excellent work.

Manuel Torres
Manuel Torres

Hey Dave thanks for this really great article on getting us back to the reality of out business!

Ernest myles
Ernest myles

Thanks David, I like your post because I believe that true relationships are one to one but we cant always embrace people face to face because of limitations on their distance and location that's why online marketing should be embraced as a back up tool to enhance off line marketing.

Dave Englert
Dave Englert

Right on Dave! You've got to develop some offline skills before you can be successful online. I love your honesty and appreciate you buddy!

Chandeira Morgan
Chandeira Morgan

right on David... fantastic post. you hit some really strong points here. keep rocking it hon!

David Emil Lombard
David Emil Lombard

Yes! We were training the other day on teaching our teams networking and the art of learning speaking to people with a large sphere of influence. If people can just learn a couple key things like getting people of influence talking about their passions to open them up, honestly give a hoot about what they're saying, and then offer a solution to their problems or desires...the energy and posture (fearlessness) just comes with practice, ya know? What I got from this blog is what I see a lot; some folks just don't want to pay their '$10 at the door' to learn this. Thanks for tellin' it like it is, D. I'm committed to assisting as many as I can to care, connect, and create. Cheers, Dave

Pam Robinson
Pam Robinson

Great article! Wonderful eye-opener and a severe reality check! Thanks David!

Sherman Smith
Sherman Smith

Hey David, You made some valid points here. As a matter of fact I was more successful at marketing offline meeting people in different areas, despite the fact I looked like I was preying on people lol. But we can never forget the old school way of doing network marketing. Like you said it has worked for 70 years, its just that the internet made it more convenient for us to talk to different people. It's the icing on the cake.

Tamara Jones-Bernal
Tamara Jones-Bernal

Great post David! Thanks for keeping it real! It is easy to get so focused on all of the set up and promotion in the online world that we forget to walk away from the computer go talk to human beings! Thanks David! I really enjoy your teaching approach and information! God bless!

Shawn Mackey
Shawn Mackey

David, I just finished your 8 day video training and I keep going back to the videos. Your training was the best I have had yet. I really thought that marketing online would be the way to go and people would flock to join my business, but the reality is, while we may generate leads online, we still need to contact them, build a relationship, and let the chips fall where the may. I firmly believe in Mike Dillard's Magnetic Sponsoring and attraction marketing, but that will just get me leads. If we do not talk to people or offer our help and guidance, we will never build a business, period. Oh, and I am an Amway IBO. LOL

Roy Harris
Roy Harris

Excellent post, you are right on. This has definitely been my experience. Building only online does not build the relationship needed with a down line to get them through the hard times. They will be in search of the next best thing in a heartbeat, if they don’t have that feeling of family that has kept Network Marketing teams together for years. Keep up the good work David. I’ll see you next weekend. I hope we can meet at No Excuses.

Keith Murfet
Keith Murfet

Now this is refreshing. Thank you David.

Susan Putman
Susan Putman

Thanks so much for a nice handle on networking for a newbie like me.

Abdull Hamid
Abdull Hamid

Hi David.. I M NEW , JUST START TO LEARN ALL THIS 'ONLINE' STUFFS. BACK HOME IN MALAYSIA..SOME LIKE PATRIC CHAN AND ZAMRI NANYAN LOOKS LIKE A GURU IN THIS FIELD.. I FOLOWW YOURS AND THEIRS FOR NEW FOUND KNOWLEDGE!

John A White
John A White

Good point there david. I am new to network marketing and also don't have a product to sell yet but i have been keeping track of certain ones. Having both online and offline tactics at your disposal will definitely add to your income stream. I was on Mr Chandlers webinar tonight and he brought up a good marketing tactic for offline marketing. Signs and a 1-800 number Lol. I'm actually gonna try that because he gets like 20 leads per day from it! He also mentioned coffee shop meetings and whatnot. Awesome post, you are one of main people i look to for guidance because i'm basically starting out in almost same situation as you did.

Guy Macino
Guy Macino

That article was right on. I am on my way to the local coffee shop right now. Thank you

Saqib Khan
Saqib Khan

Hi David how are you? I been following your videos and posts for about 2 weeks now and you seriously rock dude! Thanks for ALL your wisdom, tips and everything in between! I will continue to check your things out and will continue learning! :-) I wish you all the best in what you do! Kind regards Saqib Khan P.S This blog post rocks more than you lol just kidding ;-)

James Patrick Allaire
James Patrick Allaire

Finally David, someone that has the "Cahonies", "Bollocks" to tell the truth about Online Marketing, like you say David, it's not Impossible to grow your business Online, but there is alot of work, learning and mastering before you can have the "Edge" that makes you different. Hopefully, many of you will stop wearing off the tips of your fingers and start wearing off some of your shoes, look at it this way, you will be exercising both your body and your mind. Love you David !!! James

Derek Sasser
Derek Sasser

Man! That was a great post. I've always felt the same way. Use the internet stuff as another tool. You HAVE to do both online and offline to create real success in Network Marketing. You know I just feel much better prospecting offline and sending them to MY blog and MY capture page rather than a replicated website. It gives you more posture...but anyway this post was right on the money.

Ana Carter
Ana Carter

Hey David, Excellent post. I really agree with you. Thanks for all the value you pass on to us. keep up the good work! Ana Carter

Sue Price
Sue Price

Hey David Your CommentLuv seems to be picking up your posts not your readers. Sue

Sue Price
Sue Price

David this is music to my ears. I came online last January. I was pretty much technophobic and so had a huge learning curve. My MLM did not grow at all and I am blessed it stayed about the same. I would hate people I sponsor to take a year to get started. Great balanced advice, thanks. Sue

Larry Flagg
Larry Flagg

David Glad to see you covering BOTH ends. Your online teaching is awsome and greatly appreciated but the basics are called that for a reason. Just as "old wives tales" are 90% truth, 70 years of history proves the basics of network marketing. Thanks for all the value you pass on!

Tracy
Tracy

Another great post David! It is harder for me to do the in the belly-to-belly, but I am getting better everyday!

Akua Hinds
Akua Hinds

See you at the next Womentum! I'll be at the Mississauga event this Tuesday & I'll be the presenter at the Brampton Womentum on August 30th. I'm looking forward to seeing all of the wonderful Womentum members, including you :)

Kimberley Tilley
Kimberley Tilley

So happy that you are enjoying the shakes......see you at the next womentum :)

Akua Hinds
Akua Hinds

Thanks for linking this article, Kimberley! I just "liked" it on FB myself and the advice was really sound. Thanks again for recommending the Qivana Metaboliq chocolate shakes. They're REALLY delicious.

Tamara Jones-Bernal
Tamara Jones-Bernal

Not sure who the guy in th thumbnail is but the article is by David Wood and is very good.

Derrik Oppermann
Derrik Oppermann

Robert McNulty We are focusing mainly on helping kids starving. Good luck with what you do. If there are houses missing, people can live in tents. Starving kids are my priority.

Robert McNulty
Robert McNulty

@ Derrik Oppermann, We are feeding the homeless here in the US with my primary company ForeverGreen. Its great when networking companies get the bigger picture helping less fortunate people than just filling our own wallets. Good luck in your adventure Derrik!

Derrik Oppermann
Derrik Oppermann

Susan, I know MLM is genuine and works. It is a marketing principle now taught in universities and a lot of senior business leaders swear by it. I am working on something myself which is also helping feed starving children in Africa. I am not selling on Facebook though, but I will mention it shortly if people are interested.

Kim Willis
Kim Willis

That's a nice twist Derek. Prospect offline, then send your prospects to your online credibility builders - blog and unique capture page. Makes sense. I agree that replicated sites suck. We have to instill confidence in others, about us. We do it via our blogs and unique pages, for sure. But overwhelmingly we do it by becoming the best we can be at 'connecting' with people over the phone and in person. Get that mastered, and the rest is easy. I still use online methods, but my objective is to always get a relationship happening as quickly as possible, which is always about using the phone and face to face methods. Anyone who thinks they can build something of lasting value via the internet alone is delusional. Hiding behind the computer is NOT where the money is.

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