I remember one time, talking to one of my mentors on stage at an event.
We’d been building the dream together for years.
He looked me in the eyes, and said…
“Paul, I finally had to come to the conclusion that I’m really not a fan of traditional network marketing.”
After being in the Home Business profession for 9 years…
I’d have to say…
“I agree with him.”
I know this may hurt, for someone who’s reading, or thinking about this for the first time.
And it only hurts because we tend to lump all the things we love under one roof, together with some of the things we don’t.
Just like my mentor and I did.
We’d walk around saying,
“I Love network marketing”, when the truth is —–> We didn’t love network marketing,
…we loved some of the ideas inside of network marketing.
For example…
- I love the concept of Pipeline Money. Residual income. Having your time and money too.
- I love the idea of working from home so I can be with my family more.
- I love the idea of personal growth & getting paid while helping others do the same.
- I love the idea of working smart now so I can get have a financially secure future.
- I love the spirit of freedom & entrepreneurship.
These are the things I LOVE about network marketing.
Problem is, these things tend to be mixed with a bunch of other things that might not be so great.
Here are the top 3.
Times Change And Trends Change Right Along With Em’
J Paul Getty said..
The severest test of a businessman’s acumen and ability sometimes lies in the speed and manner with which he recognizes and grasps the opportunities presented by the vagaries of fate.”
A few decades ago, I imagine, you could call your friend & tell em’ about a new business opportunity.
…odds are they’d never even heard of network marketing, let alone the company you were calling to show them.
In 2015, it’s a very different picture.
Not only have every single one of your friends & family members likely already been pitched on some kind of network marketing project,
…odds are most of them have a bad taste in their mouth at best, others are disgusted at worst.
Back in the day, I imagine, it was EASY to fill a room full of ignorance on fire.
4 decades later, network marketing has burned through every town, city and villa at least once (maybe more),
and the reception (sadly) is a little bit different than it was.
Add to this, the fact that anyone & everyone can pull out their smart phone and pop on the internet to get fire hosed with a sea of random opinions, some informed… some not…
& at the same time get pitched on a million different other wiz bang cookie cutter biz opps… (all howling about best product, best comp plan & best corporate team)
…you’ll quickly begin to see how the times & trends have not been good to traditional network marketing.
Where Have All The Leaders Gone?
One of the TRUE Litmus tests of the viability of the traditional network marketing model is to simply ask yourself,
Who do I know who’s developed a stream of pipeline, walk away beach money?
Who do I know who’s retired off into the beaches of residual income heaven on network marketing income alone.
Personally -> I don’t know very many.
But hey, that’s just my little network of 9 years in the trenches.
I’ve asked several ‘big hitter‘ friends of mine this same question and each of them has told me the numbers they see are shockingly small as well.
Someone once said to me, if you wanna see who you’re gonna be married to a few years down the road, take a look at your mother in law.
When you apply this advice to network marketing – unfortunately, you see far too many ‘lifetime MLMer’s’ jumping from company to company to company.
And we’re not just talking about newbies here…
We’re talking about people who’ve been in MLM their whole lives.
Oh and let’s not forget the one’s who we praise as big time MLM Leaders who now make the vast majority of their income (not from their organization)
…but from selling training to the network marketing industry.
(not knocking em’, just stating a fact)
Doesn’t paint a very pretty picture for the viability of traditional network marketing to produce a lifetime, sustainable walkaway retirement income,
..does it?
The Smelly Cousin That No One Wants To Admit Is There
The 3rd reason, I believe traditional network marketing is broken, is one that all the leaders KNOW is there, but few ever want to talk about.
Retention.
Having people continue to pay for a monthly product or service, long enough for it to actually be considered ‘residual’ income,
…let’s just say,
is a bit of a challenge.
Some of the best retention rates in the industry boast a 40% annual fallout.
Add to this sore spot, new blistering levels of competition,
…your phone ringing off the hook with yet another new deal,
competitors advertising & cross recruiting your teams right inside your team Facebook group… (laughable, sad & true all at the same time)…
You quickly realize that building a life long sustainable organization in traditional network marketing might just be a feat
…reserved for Dexter Yager, Bat Man & The MLM Super Hero Alone.
Put the gun down, there’s hope…
Remember, it wasn’t network marketing we fell in love with…
It was the dream of pipeline money, working from home, personal growth, getting paid to help others, time AND money, along with entrepreneurship…
These are the things we love and FORTUNATELY… It’s still possible to get all of that with none of the brain damage…
————>The new kid on the block.
I believe…
What network marketing was to the 70’s….
Internet Marketing is for us today.
Here’s the new Pipeline Money Model for 2014…
Residual, organic Traffic ——–> Website ————-> Selling both continuity products and high value, high commission products ——> Money invested in passive income investments.
This is a model that seems real to me in 2015,
…one that I can get excited about pursuing myself & sharing with a few select like-minded entrepreneurs.
You can keep your 50,000 person down-line.
Gimme my Laptop, an internet connection & a burning desire to preach an authentic message.
I’ll take care of the rest. 😉
Agree or disagree? Leave you thoughts down below.
Paul, Thank you for writing Top 3 Reasons Traditional Network Marketing Is Broken. There is much TRUTH in your words of wisdom.
Like you said, “preaching the authentic message” is CLEARLY the best way to affect retention. There will always be quitters.
But there will NOT always be leaders like yourself.
There’s value in all rarity and I appreciate you.
Thanks again for this powerful post.
Mr. Kevin Sousa,
You are VERY welcome and Thank YOU for stopping by to read & say hello.
And on the “rarity in leaders” all I have to say to that is… thank you sincerely AND….
———–> It takes one to know one. 🙂
Love ya brotha & can’t wait to see you in Vegas.
Thank you Mr. Hutchings… I sincerely needed that insight after being burned far too many times from allowing my zeal for wanting to “simply help others” become a tug-of-war with the actual business system… As I take more of a professional approach to thoroughly researching an opportunity, I will refer back to why I continue to appreciate your candid nature & consistency- thanks again 🙂
Hey Phillip,
Great to hear from you man!
Much love my friend and being burned, unfortunately, has been the name of the game for many of us. You are not alone. 🙂
There are solutions and always hope.
Thanks again for stopping by.
Paul
What a great post Paul and one most of us in this profession can relate to. It’s unfortunate that so many “leaders” aren’t being the best examples for their team members especially when they’re jumping from thing to thing but fortunately we are involved with some of the best who are leading the way to victory. Leaders like yourself! Love what you said… “You can keep your 50,000 person down-line.
Gimme my Laptop, an internet connection & a burning desire to preach an authentic message.” Haha! YESS! This is what it’s about for us too! People will believe in your vision before they believe even in the products, comp plan, or anything else. Also, love what you said on the call this morning. Quitters never win and winners never quit. We are definitely winners and it’s those who stick around long term who see the benefits and truly succeed in the end. Doesn’t matter how slow or fast you move as long as you stay in the game and always do your best. Thank you for being you and for this informative, truthful post to help and encourage others. Letting them know… there is a better way. Appreciate you! 🙂
Hey Felicia (brian),
IT’s been so much fun working with you and Brian over the last few years.
Thanks for the kind words and Like Ghandi said.. “We must be the change we wish to see in the world” right? 😉
Your’e absolutely right. IT’s about progress not perfection.
Keep on keeping on!
See ya in Vegas. 🙂
Great post Paul. Thanks
My pleasure Brendan. Thanks for stopping by & appreciate the nice comment. 🙂
Paul, this post was absolutely amazing. It is one of the most real and authentic posts about markwting I have ever read. It is not only quite accurate in my humble opinion, but quite encouraging as well. At the same time, it actually teaches some very useful skill that I can apply to remain successful. Thank you.
Hakeem,
Man I really appreciate the great feedback.
This post came from the heart for sure…
Glad you got some encouragement from it as well my friend.
Look forward to connecting more down the road.
Paul
Great post Paul. Lots of truth right here. There is a very interesting mix between traditional strategies and online. The online branding allows a person to build rapport and build somewhat of a trust relationship with their prospect without actually talking to them. YES.
Here is what’s interesting though. At some point to take it to the next level of forging the relationship, a phone call, Skype call, hangout or face to face is what does that. This is especially important on higher ticket sales.
The online approach in my opinion provides the most freedom and lifestyle of what network marketing once was using traditional strategies. But there is a learning curve that a person needs to overcome to have success online.
Traditional networking as a leader, 3 way phone calls can take over your life and honestly it was my breaking point that sent me online looking for a better way. Being non-technical, my learning curve may have been bigger than most and may times I wanted to smash my computer against the wall.
The good news is I got past it and have found my groove between to the two realities as I see you have as well.
Keep up the great work! You’re awesome. I appreciate you.
Hey Darren,
Thanks for sharing your words of wisdom my friend. Seriously appreciate them and YOU!
Definitely… Online Marketing for me does not mean —–> no relationships…
I truly value relationships with the right people…. Just like you said, relationships can help take it to the next level..
The transition can be difficult.. It has been for me, not so much from a technical standpoint, but from letting go of long held pounded in beliefs…
I’m making progress too just like you!