I don't know if you knew this, but...the data on Network Marketing has changed.
But people who are still giving you the same old objections from years ago are
not up-to-date.
Much has been revealed about the industry in the last 3 years, and so today I'm covering the modern/updated stats on network marketing.
What's really changed over the last, say two and a half to three years? It is that I have revealed so much. Now the person that is potentially being talked to and saying, “No I'm not interested,” still does not know the facts, the truth about it. Therefore, they're not looking at current reality.
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Let me give you an example here. 2 years ago, people could say, “In network marketing, few make money.” They could say that back then and get away with it. And a lot of people did, and there are still old videos telling this old reality: “Most fail, and people at the top make all the money.” This old reality has been PROVEN utterly false, A HUGE LIE!!!
Using these proofs, and differentiation, I was able to accomplish a different reality.
Differentiation
Let me just explain something about differentiation here.
I want you to get a big picture. If I were to pick up two quarters and I were to show them to you, I could say accurately that they're similar. They have the same value and they're similar in appearance. One may be a little bit older. One may be shinier. That's the reason that I say similar, but not the same.
We're always trying to get at accuracy in differentiation.
When somebody cannot differentiate, then they require the opinion of others.
Normally when somebody is very precise and exact, they're looking at the main data points: those points that show it.
That's what I'm going to very rapidly run through on each one of these.
This particular one has to do with similarities. What's similar about every product-based business? Well, every single one of them has raw resources. For example, somebody with big earth-moving equipment went and got sand. Other examples of raw resources include soil, oil, gold, diamonds, trees, animals and water.
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Then they moved it into a manufacturing plant where they produced something out of it. It could have been glass, vegetables, milk, cream, meat, yarn, or anything.
They went from there over into branding. That's where they put it in a box, bottle, or jar. They put a legal label on it if they had to, got licensed, designed the packaging, opened countries, and translated to other languages.
Then it moved from there over into the warehouse: pick, pack, and ship to different countries.
Then it's going to go to get distributed, and here is where we get differences. It's going to a brick-and mortar, an online store, or a sales rep in various countries.
So now we're are dividing up a little bit and, but they all have to do this in some sort of a fashion. All of them have to do it, but these are the differences.
The reason that I chose network marketing is that the highest margin in any of these categories is the person who owns the customer. It also has the most security, because any boss, if things are bad, the last person they're going to let go is the sales rep. That's the only person who's exchanging the cash or the credit card between his company and the purchaser. The sales rep is the one that's making that happen.
There's one other category called customer service, which is returns, complaints, restocking, and so forth.
If I acquire the customer and I serve the customer, then I now own that customer. That's what I want. That's what network marketing has, completely. Across all of the platforms, e-commerce storefronts, network marketing, affiliate marketing, Amazon sellers, Shopify, Etsy, any of them, they all had to go through this in some sort of a fashion. In network marketing we partner with all of the other parts of a product-based company, and we are just going to acquire the customer.
The Pipeline
Every single business on the planet has to generate a lead, contact the lead, show them a presentation (sometimes a doctor's office, a legal office, or anything like that the customer is going to have to set an appointment or maybe call the maitre d’ or host in a restaurant), and then they're going to follow up, get a customer, serve the customer, and make money. Do you get the picture?
I talk about this quite a bit in all of my other Blog Posts, so I'm just going to move along. By the way, this isn't just in business, this is everything in life. If a church wants people in the congregation, they've got do this. This is the way that this lovely girl became my wife. Every person who has ever gotten married had to do the pipeline.
The secret, by the way, is know what you're looking for: people who want it like you do.
Do the pipeline in quantity as we teach, so that you're not hungry, pushy or trying to convince someone to join.
Comparing Network Marketing to Other Businesses
Let's compare it to real estate. If you were to, let's say, Google the average income of a real estate agent in 2019, then they're going to pop out and tell you a number. It's something like $48,000 on average. But they omitted 93% of the math – everything real estate agents had to do up to passing the licensing exam. That is the reason that no one knew the true data.
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Before that test, they had to do a course, and not everybody passed that course.
If you compare the same starting number (710,000 because that's how we got our starting math), you're going to see that 25,000 people in real estate will make that average of $50,000, but in network marketing, 53,000 people will make that amount of $50,000 a year. Two times more people in network marketing will make $50,000 a year than in real estate.
You can no longer say that most people in network marketing fail…unless you say, “But it's twice better than in real estate.”
In terms of other categories of income, you can look at them if you want to: 9,000 people in real estate make $75,000 a year, while 25,000 people in network marketing make that much. 11 times more people in network marketing make $100,000 a year than those in real estate.
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Now why in the world would network marketers have 11 times more people earning a $100,00 a year than real estate? I questioned that myself. Here it is.
I want you to focus on something. This is going to be very valuable for you.
What differentiates four income levels? 50,000 people pass the real estate licensing exam. From 50,000 to 37,500 people, we lost 12,500 people in real estate. Why did we lose them? Well, they didn't sell at least one home. Why didn't they sell one home? I mean, they had all this training.
Why didn't they sell one home? I'll get to that.
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Then you cut it down to 25,000 people made the average income of $50,000 a year, and then you cut it down even more. Less than half of that made $75,000. What is the difference between the person who can make $48,000, but can't make $75,000? What's the difference between the person who can make $75,000, but can't figure out how to make $110,000?
I'm going to show you that.
The average home in 2019 was $225,000. The commission on that is about $5,000. If I sell one home, I'm going to make about $5,000. To sell one home, what do I do?
Here is the pipeline. I'm going to get a lead. That may be that I have an open house or I put a sign in the yard or something.
I'm going to have to generate a lead, contact them, set an appointment to show the house. That's all that you would have to do. That's the thing you would have to do is to show the house. It could be shown on the internet. You can do all sorts of walkthroughs and in different camera angles, all these kinds of things represent presentation.
And then you go follow up with them and then you're going to get them as a customer, and you serve them. That is the only way that you can transition from someone who passed the exam to someone who has sold a house. Why didn't 12,500 people achieve that?
You can stare at that. You can say, “Oh, well, he didn't want it bad enough,” or other gibberish. But the actual fact is he did not put enough leads in front of the house. That's it.
Evidently, this training didn't take him to that level or he or she didn't apply it. That's it.
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What does it typically take? I just threw out a ballpark number.
The TRUTH is I'm in Real Estate as an Entrepreneur NOT a Realtor AND I'm in Network Marketing as a North American Launch Team Leader who has a long track record of training lots of Full Time 6-Figure Earners, but I throw out a ballpark and I bet you it's pretty close. $5,000 times 10. If I sold 10 homes, then I'd make $50,000 a year.
How many leads is that going to take? I ballparked it and said, “I'm going to have to show that house to 10 people in order to get one to say yes. So that would be a hundred leads in order to get 10 across. For $75,000, I'd have to push 150 leads across. To make $100,000, I have to move 200 leads across pipeline, ballpark.” I’m throwing a dart with my eyes closed, on these numbers. Somebody in real estate as a Realtor can correct me if I'm wrong.
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I asked a data scientist and several others to acquire all this data and to break this down. I have to tell you when I was first shown these I said, “I don't get it, man. I'm having a hard time understanding why network marketers make 11 times more in the $100,00 category.”
I just couldn't make sense of it all. Do we have better people? No. That's not the case. Do we have this? Do we have that?
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It finally hit me. Finally, I got it. I thought, “Oh my gosh, the real estate broker makes more money. Why? Because he's got agents doing the pipeline.”
Most brokers don't have the number of agents that network marketers have. Effective Network marketers following Our Proven System, are going to have ton's of teammates, reps, distributors, whatever you want to call them! We've MASTERED Teaching lots of ordinary people how to have a whole lot more people doing the pipeline.
That is the reason why no one can now say that few make money. Not only in network marketing versus real estate, but also YouTube. 145 times more people will make $50,000 in network marketing than in YouTube.
In the actors, entertainers and musicians category, 19 times more network marketers will make $50,000 than entertainers. 14 times more will make $100,000.
2.8 more network marketers will make $50,000 than Amazon sellers, and two times more will make $100,000. But the business model is different. You don't own the customer. That is very important to me.
By the way, on real estate, one of the other factors is that in real estate, if you had to move 200 across the pipeline this year, you're going to have to move 200 across the pipeline next year. Or if you're in a much higher category, if you're making a million bucks, you've got a lot of leads going across the pipeline. You have to do it every year.
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Yes. You can get higher and higher. The better you get, you have a reputation, and you get referrals, all that stuff. I know. But what I'm talking about is that you're going to have to keep upping your game and you're going to have to do it every single year. In network marketing, if we have a consumable product and the reps stay and keep on building and working, like we teach, then we don't have to repeat it every single year. It's residual.
I had 12 years of six to seven-figure income while I was completely retired. Well, I worked for five years of it, but the rest of them, I didn't.
It's a different business model in Amazon. Amazon is doing the sales and customer service part, and you are doing the manufacturing and the branding.
You don't own your customer in Amazon. That's the biggest thing. That's the reason it's in red. It's a big, big deal because you have no stability. Amazon does. They own the customer. That's the reason that Jeff Bezos is targeted to become the first trillionaire by 2026.
Pyramid Scheme?
The next category is pyramid scheme. Now, even though this gentleman changed his video (I think it had to do with me), but he says, “If it's shaped like a pyramid, it is a pyramid.”
I said, “No, no, that's not true at all. Because in Navy SEAL Team lingo, it's called “decentralized command.” The whole basis of it is that you are never able to control more than four people. By control, I mean stay in communication with them. Can you imagine all of these shooters down here, feeding information back up to the platoon leader? It'd be utter chaos.
Imagine some guy in Washington, DC, having all the SEAL platoons, all the shooters, feeding them information. You couldn't handle it.
So they break those things down into four. Four is typically in a wartime situation. You can sometimes stretch it out to having six people. But if you'll look at it, these are the squad leaders. And each of the squad leaders have four fire team leaders and each fire team leader has four shooters.
It's obvious that that's the shape of a pyramid and the gentleman who said that is utterly a buffoon, and he should get off television until he knows what he's talking about. You can see that is the area where most people get confused: they have a comedian who's trying to put out information who doesn't know what he's talking about.
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“The people at the top make all the money” or “the people who get in first are the people who get in early.” I’ve heard all of that stuff. For those of you that don't know, the first time that I was in network marketing, I worked there for five years. I got to $80,000 a month in income. I think I came into the company around the seventh or eighth year.
The next time I built, I was the first person to join the company. Let me just walk you through the scenarios here.
People at the top – the top of what? I joined, and I'm brand spanking new.
I'm the first guy in the company. What am I on top of? I really need you to think that through. Until you ponder that, you cannot hit any sort of an understanding.
Every business owner in any business starts most of the time from this stand, unless you come in and buy an already existing company, but the person standing there is saying, “What do we make around here? What do we do around here?” He’s saying, “I need help. I'm going to run out of time or talent. One of those is going to happen and I'm going to have to hire employees, or I'm going to bring them in and give them stock in exchange, or I'm going to bring them in and give them a commission.”
Those are the only three ways you typically compensate somebody. So I'm bringing other people in AND VERY FAST the way WE TEACH. Are they in my downline, even if it's not a network marketing company?
Yeah. They are.
I'm sitting on top of them, I built them. I got them. I'm paying them a portion of what’s earned. It’s the same scenario. Everybody starts at the top of nothing.
The Way Network Marketing Works
There are two people here, and let's say that off of this, I make $50,000 and the payout is going to pay one, two levels. I make $50,000 based upon the volume. This other person is you here. If you build 1, 2, 3, 4 lines, and it has more volume, then you make more money than me, even though you're in my organization.
So people who say, “People at the top, or people who get in at the beginning make most of the money,” what are they looking at? These people who are “at the top” of what they built, what they're looking at that point in time, when they shoot a video.
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And they say the people at the top making most of the money, all they're really saying is a very obvious fact that these people haven't built anything under them. Come back 10 years later, talk to them, where are they? Well, they quit. They quit.
Does it ever happen in business? Yeah. Everybody. Find the person who's been around and say, “How did you do it?”
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You can't stop something in time and say, “The people at the bottom aren't making anything,” because you have these mid-levels that are working and have been working.
I always find it interesting just to show this one. Nobody thinks that this is a pyramid, even though each level of a corporation earns less money.
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That's really why the managers can tell the employees what to do. It's why the vice presidents can tell the managers what to do. It's just a hierarchy, and pay is the difference. Each level earns less and they have a different compensation. Each one has a different compensation package.
In network marketing, all of us have the same compensation. So how could it not be fair? Traditional doesn't mean more fair.
Those of you who have followed me for a while, have you recognized that things really have changed? Because I remember when I first started, back in 1996, and I would get these things that people would say, and I didn't know how to handle them.
Then I did all of the research and hired the data scientist and all these people in order to crunch all these numbers comparing the different industries. People can't say that stuff anymore. A lot of times your prospect still has that old idea. So educate them, the way we teach. That's the secret to it.
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