No You Didn’t Lose a Dime

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Hey guys! SID here, and today I wanted to talk about MLM rejects. Sounds harsh I know but that’s what they are. Are you or do you know someone who is a MLM reject? Here’s how you know.

MLM rejects make interesting complaints as they try to convince themselves and others for why they weren’t successful. As if that wasn’t bad enough they spend a lot of their time trying to convince others to stay away from the industry.

“I tried it once but I lost x dollars”. MLM rejects love to tell people how much they lost/wasted on “one of those things”. This is used to validate their argument that MLMs are scams. My question is how do you lose money in MLM? There’s only a few things you spend money on.

  • Products – If you’re in a company that sells physical products, you might be encouraged to purchase your own products. “Be a product of the product”, as they say.
  • Services – Same situation as above. If you sell services it’s good to use them.
  • Training Events – Typically companies or experienced upline will host trainings anywhere from a couple times a year to a couple times a week.

Remember MLM is a business!

As a business, the 3 things mentioned above are called business expenses. As “expenses” by definition, they would be losses, however, these “losses” generate  certain returns.

If you promote a product or service and you spend money to use said product or service, that’s an exchange. Did you not get something in return for your money? Exactly! Saying that you lost money buying your product/service is like going grocery shopping and saying you lost money.

It’s a sales accelerator

If you never been in sales, let me tell you a secret. It’s easier to sell something that you have personal experience with. If you know the ins and outs, then you know why (or why not) your “thing” is a good fit for your client. Plus when you are an actual satisfied customer of your thing, you will naturally tell people about it. For instance, I’m a long time VW driver, and because of this I’m always telling friends and family why they should get one. In fact over the years I’ve helped 8 people see the light. Now if only I could get Volkswagen to cut me a check!

The only time you lose money on a product/service is when you’re purchasing something you won’t use. Some people like to buy a lot of their product and stock up to qualify for certain things. This is called “front loading” and highly frowned upon.

If you have product stocking up in your garage or a room somewhere then yea, you’re losing money. Just sell it already! Another thing people do is pay for services they aren’t using. In the non-MLM world, that’s called a gym membership. In the MLM world, it’s called being stupid. If you pay for a service just to be eligible to make money, then STAHP!!! You’re being taken advantage of. Especially if you aren’t making money.

You’ll Learn New Skills

Any decent company or organization is going to teach you a lot! This is one of the reasons why a person with no experience can come in and kill it! If you’re spending on training, it’s for your own benefit. Plus the great thing about sales training is it has multiple applications in everyday life. In my short time in MLM, I’ve learned public speaking skills, leadership skills, negotiation skills, and marketing skills. All at a fraction of what it would cost me in the real world.

These skills that I learned and developed through “one of those things” have lead to positive outcomes outside of MLM. In most recent years, I’ve been promoted to a leadership role in the  last 3 jobs I’ve had, all less than a year of employment. I’ve trained and spoken in front of groups as large as 35 people. Presented metrics in meetings with the top people in my building. Sold stuff to people online without ever meeting them. And the list goes on… All because of MLM.

You get to see new locations

Have you ever wanted to travel? MLM gives you good reason to get outside of your bubble. Often MLM companies will host one or two conferences a year. It seems like they are always in cities or states other than your own. For some, this is a problem, but I always looked at it as an excuse to explore. Because of MLM, I’ve been to places like Orlando FL, Salt Lake City UT, Phoenix AZ, just to name a few. And as my great friend Julian always says, “Travelling is the only thing we spend money on that makes us richer”. I’ve met people from halfway across the world because of MLM.

It’s a financial benefit too!

I’m not just talking about if you manage to make money either. Oh no I’m talking about taxes! Did you know as an independent business owner you get tax benefits? If you make enough money or spend enough money on your product/service then you’ll get a tax form called 1099. I’m no tax professional so I’m not going to get into all of that. But I’ll say this, with a 1099 you can write off business expenses and lower your taxable income. And guess what, plane tickets, dinners, products, services, trainings, gas mileage, etc can all be expenses.  At the very least if nothing else is a benefit to you, you have this. So next time you hear uncle Jim saying he lost so much money in MLM, tell him to “cut the shit!” Because the only way that’s true is if he paid for a product/service he didn’t actually use or he didn’t use his tax benefits, and that’s his fault!

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