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.
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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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Wow! You tell the truth, brother. I love your perfect mix of approach. Keep the great info coming.
Thank you David, Very informative – a good reality check.
Hi David I must say I have enjoyed listing to all of your training well done excellent info.I am one of those people that built a MLM business the old way, after 12 years I had 24 6 figure and 1 7 figure income earners I had over 75,000 distributors in 10 countries I also built a training company.I have ventured down the internet path for generating leads,I believe we need to have a balance and after 23 years in the MLM industry one does develop a lot of knowledge.The one skill that stands out in the industry is learning how to build relationships and I believe it can’t be done with a computer and anyone that wants to use only the internet will have limited success.
People have emotions and an important part of that part of the human being is touch and I have found after 23 years of building leaders we are building an extended family.You imagine having children and not being able to connect with them on an emotional level from the first few years.So we would all like to find leaders who have experience in MLM but I prefer to build new leaders as they prove to be more loyal.Keep up the great work maybe we can meet one day I live on the Gold Coast of Australia.
Hi Bryce…that is probably the wisest comment I have heard in recent times regarding network marketing. Thank you for coming out & saying it & saying it so well. There are so many now saying things like “the old fashioned & traditional methods are dead, they don’t work any more” or similar. I think this is simply displaying their lack of skills, lack of knowledge of their business & total lack of leadership as they mostly are really just repeating what some other dummy has told them.
Having said that I think the internet can be excellent for generating leads…but you still must build real & proper relationships & that can’t be done from behind a computer…although it can help. So I think you’re right Bryce…balance is the key.
The fact is that it is the relationship aspect that builds a stable biz. No relationship = no commitment & in this age “opportunities” come & go all the time on internet & people will quit one today for what they think is a better one tomorrow. If you’ve built relationships & your people know, like & trust you and you’ve helped so many of them move toward their dreams, they’ll be far less likely to leave you when something else comes along. If you’ve built it on the internet, multitudes will leave you so fast when something better comes along you’ll wonder what happened. It is the relationships that will bring stability & longevity.
In the network marketing biz I am involved in (which I might add is a true residual income biz & truly is genuinely recession proof…many make those claims today…few really are)to the best of my knowledge every one of the very successful big producers that I have met or know anything about have built their biz primarily without the internet & using mostly traditional methods…& many have built them fast. So to say that doesn’t work is just plain stupid.
So well said Bryce, I appreciate your honesty.
And I am always on the lookout for experienced professionals or otherwise who want to build an awesome business & future for themselves and their loved ones. Message me
I’m from the Sunshine Coast Bryce, so not at all very far from you
.-= Phil´s last blog ..They Called Me An ‘Evil Genius’… =-.
Great post, I have been thinking about this a lot lately. The truth is that the internet is a tool. It doesn’t matter if the relationship in online or belly to belly it is still a relationship.
The best thing about online recruiting is the efficiency provided by the internet. Rather than driving all over the place doing home meetings to groups that may or MAY NOT be receptive or even polite, I can hold a webinar with 5 times the attendees and only be exposed to the folks that get it. Rather than being distracted by the guy in the back with his arms folded, frowning, like he didn’t know he was going to a business presentation.
The internet is only a tool, you still have to make the connection. IMHO it is a lot more efficient.
Hope this adds to the discussion.
–Jeremy Reece
.-= Jeremy Reece´s last blog ..Turning the Wheel =-.
This is making me to rethink the way to make business.
Great Stuff David, Right on Money with that interview you did with Mark Yarnell some time back. I am very new to online marketing, but I do know the best way to develop your people skills is to go out there and just meet some people, make new friends, and have some fun. Just image how many people we pass by everyday, who are just waiting for someone to share an oppty with them that could change their life.
Hi David,
Good advice and I very much agree that the “relationship” is so important. I built an organization of 20,000 distributors in the 90′s. I first build a local group and then to make them “stick”, one thing I did that was very effective was to hold parties at my house where it was actually “forbidden” to talk about the business at the party!! That was pretty radical, but the best way I found to bring people “closer” is to have fun together in a social atmosphere literally becoming friends. It unified the group together and created loyalty to the small group within the much larger (company) group. They never thought of shifting companies because of the “value” of the network itself. I think it is tribal and it goes to all our roots to be part of groups. Some people literally drove hundreds of miles just to hang out with the guys and gals. Later, I held huge parties with rock bands, catering, etc. at various spots around the country as my group expanded.
It was a lot of fun, created incredible loyalty and it drove tons of product volume and distributor growth.
When I go to the airport I always see those guys with there handouts and cards and dvds. There in a tie and try really hard to play it cool. But at the first hint of an objection you can see in their face that their falling apart inside. One can master this skill and become very successful, don’t get me wrong. But when most people are starting out, all they think about is getting their first few sales. Making money. Firing their boss. All the things they used to sell themselves into their business in the first place. So it makes it really hard for most people to not look desperate. Your prospects will pick up on this in seconds if you don’t have the confidence in yourself and the detachment from your prospects. Learning how to do this when you are distracted by true feelings of pressure and desperation isn’t as easy as hanging out in a coffee shop. The second you start pitching, people are smart enough to know you are just there to get leads. Then you look like the guy chasing down people with a dvd. We retreat from that which chases us. Animal instinct. I know there are plenty of high paid networkers that have built their business completely offline. But there is a reason. They mastered that skill, they sharpened that tool until it was so razor sharp it can cut anything. I would say some people are born with this tool already sharp. And it doesn’t take much for them to master it. But for others they are not born so lucky. They just have a longer learning curve.
Great post David. When I first learned about internet marketing I was drawn to it because people are now coming to you. The reality is that attraction marketing is more of a principle and a mindset regardless of the method. When I first learned about it of course I was drawn to it. I thought, cool people will come and join my business on auto-pilot. The truth is while some may do that, not everyone will. Weather online or offline I have learned that the basics are still a fundamental part of your business. However now your posture and your position is more attractive and therefore the possibility of better results.
Scott´s last [type] ..Ooops! Not Done Yet
What I’m reading is that you have to have a way to teach your team how to recruit in such a way that they can teach their team, etc. Because it’s so difficult to get people to recruit in the traditional fashion, i.e. offline, why can’t MLSP be used for that purpose? When you identify the people who want to build a business, you still end up building a relationship with them, don’t you? Can’t that be taught?
Thanks,
Well said Joe, I agree.
hom´s last [type] ..How to increase your current leads for free through social media…
Yes, I think you can certainly build relationships online. Everyone is just different I think. I would much rather learn to gain people skills and begin building an empire online. Then, automatically, confidence is gained. I would be much more ready for “networking” outside once I’m comfortable. But that’s just me.
You still need human interaction to make a 7 figure income. The internet is only one of many tools, you still have to talk to people and tell the truth. If you lie, you will be found out and with the internet, your name will be mud very quickly. Attraction Marketing is a great way to build relationships and build your business.
Hey David, excellent post. Whether people agree with you or not the main thing you did was get the discussion started! So many great responses from people who are extremely successful to those just starting out. I learned just as much from the comments as I did from your article.
Thanks David, I have to agree with that. It does sound a little contradictory though when you have all these online gurus saying the reason they switched to online in the first place was because they sucked out in the real world…lol, so you are saying for them to go back and do what didn’t work for them in the first place. But I agree with you when you say they need to learn how to NETWORK this is the key, learning the right things to say and how to say it, have posture. I’ve been listening to Mike Dillard/Mark Weiser ‘Blackbelt Recruiting’ CD’s and I think there is some awesome info in there of what and how to say things to people and these guys seem to really know what they are doing. I’m still going to try and focus of setting up the online stuff but at the same time try and get those phone calls going like Mark Yarnell suggested and try to do a bit of both. My only problem is time, time time. When you work full time I don’t really see how I can make it big with limited time, unless I don’t sleep!!!…lol Thanks for the great advice once again David
David,
This is a great post I think people wish they could ditch the old school methods because it is uncomfortable but it does work and has worked. I think your right that we shouldn’t work on being a online guru until we have at least done it offline. I think old MLM tactics are still alive but you can use them online. I do my business over the phone still and connect with people who came across my advertisements online. Unlike what the online gurus say I do pitch my business upfront and it has worked, but I do it in a way where they contact me for information. It’s just finding something that works for you. There are lots of great training out there for using old school mlm tactics. I personally like using sizzle cards they work great!
Another great post David! It is harder for me to do the in the belly-to-belly, but I am getting better everyday!
Tracy´s last [type] ..Facebook Marketing – 5 Reps a Week
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!
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
Sue Price´s last [type] ..MLM Sponsoring Secrets – How I Recruit Six And Seven Figure Income Earners…
Hey David
Your CommentLuv seems to be picking up your posts not your readers.
Sue
Sue Price´s last [type] ..MLM Sponsoring Secrets – How I Recruit Six And Seven Figure Income Earners…
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
Ana Carter´s last [type] ..New To MLM Business – Is It A Culture Chock
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.
Derek Sasser´s last [type] ..Just Do It!
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.
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
James Patrick Allaire´s last [type] ..Finding Your Inner Joy
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
Saqib Khan´s last [type] ..Why Internet Attraction Marketing IS The Biggest Thing Right Now And Will Continue To Be!
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.
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!
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
Shawn Mackey´s last [type] ..The ONLY Reason You are Struggling with Your MLM Business
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.
Sherman Smith´s last [type] ..Are You Blaming Others For Being Unsuccessful
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
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!
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.
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.
I agree networking and face to face contact even cold calling all these things are old fashioned and they work!
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
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
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.
David Domm´s last [type] ..Top 3 Ways To Buy A Vacation Home
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.
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