Let me just say this before I get going, I love Network Marketing. It’s just a great way for normal people to escape the rat race and create a life that they love. That’s why I have to say this: Network marketing is not a fucking business. At least not in the sense that the industry would like you to believe… For starters:
You Have a Little Control!
Sure you can create time and Financial Freedom through network marketing, but that’s it. The real person in control is the CEO of your company. Ask anyone who has been terminated if they chose that option. You can literally have your income shut off for any arbitrary reason. Don’t believe me? I’ve had friends lose their position because there were rumors that they were planning to leave.
Ever met a big time leader in the process of changing companies? It’s like they’re in the witness protection program as they dodge photographs, use aliases, and go out of there way to meet with company heads in secrecy.
Say the CEO decides to merge with another company, go public, or make changes to the compensation plan. Guess what? You have no say! Some CEOs won’t even allow you to participate in another company so long as you’re active in your current company. It’s crazy.
It’s NOT a true system
The beauty of a system is that once put into place, you can take yourself out of the equation and continue to earn. Think about your local Mcdonald’s franchise. Have you ever seen the owner of that Franchise? Probably not. Why? Because he set up a system. He has a team of people which he employs to handle virtually all aspects of his business. With a good enough team, he could run his business from another country if he wanted to.
Technically, you CAN do this in network marketing, but very very few are able to. For one, it takes thousands and thousands of people to sustain a business that you can completely walk away from. That’s why they tell you to stay in phase one. It’s like balancing spinning plates. If you stop spinning, eventually the plates lose momentum and fall down.
This is why some network marketers do it forever. Oh you thought it was because they love what they do? Not likely, more realistically it’s because they’ve gotten really good at building and have become accustomed to the income. They know that if they take their foot off the gas, eventually the business will fall apart and they’ll have to rebuild.
Even the people who supposedly retire don’t do it long term. I’ve met many network marketers that have “come out of retirement” over the years and every time, I’ve thought to myself, if the goal is to retire, why come back? And if they’re retired and are still earning passively, why is it they never come back to the company that’s supposed to be paying them? Maybe I’m reaching but I’d like to think that’s another indication that you can’ build a true system in network marketing.
At best you’re a distributor of products and services, at worse you’re a commission based salesman. Either way it’s okay, you’re still a 1099, so you technically work for yourself. You get benefits like tax write offs and can work virtually anywhere and choose the people you want to work with. It’s definitely much better than a job in most cases.
There are entrepreneurs who are also network marketers. The biggest difference in the two is mindset. Both are hard to do so when things get really tough, both react differently. Network marketers go back to their jobs, entrepreneurs look for another way to make money.
True entrepreneurs just think differently. The leaders that take their success and turn it into books, speaking gigs, consulting, etc are entrepreneurs. They understand how to capitalize on their own abilities. Network marketers call these people unfocused. Truth is you should try to transcend network marketing.
It’s not a Forever Gig
3-5 years is the amount of focused years that you need to achieve financial freedom. At least that’s what they say. I believe if you’re smart, you can achieve this goal by managing your income wisely. Typically, network marketers are bad with money, which is another reason they can’t walk away. Even when they achieve incomes of 6 or 7 figures.
You actually don’t need to make a ton of money to become financially free. Let’s say you’re pretty good at building and achieve a monthly income of $5k per month. That’s $60k per year. If you manage your “business” well, I would imagine you can keep about 10% of that in a year, after expenses/write offs. That’s $6k in your pocket.
I know it doesn’t sound like much but that’s just 1 year out of the 5. Let’s assume you’re able to achieve the same results for 2 more years. Now you’re at $18k. It it were me, I would take that money and invest in real estate. Depending on the location that would be a nice down payment on a small single family or multifamily property. Over the next two years, I would slowly build my real estate portfolio and transition out of network marketing.
But that’s me…
Your situation may be different than what I described. Still, if you’re an entrepreneur, you can build a business around your network marketing “business”. You could learn online marketing to truly automate your business with funnels, videos, and paid ads. Or maybe you could start your own network marketing company. That’s what one of my good friends did! My point is that real entrepreneurs don’t stick to one thing forever. They branch out, grow, and adapt to their environment. If you don’t get that, then you’re probably a network marketer which is okay. Just please stop telling people you’re an entrepreneur because you’re not…
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