Select Page

Welcome to another blog post here in, another unsolicited advice for network marketers!

Previously, I blogged about my observation in today’s MLM companies. In the back office of most modern MLM companies, you can hardly find training for beginners teaching entrepreneurship. Most companies jump right away to pushing their new distributors to make sales. There are no links to learning entrepreneurship.

In my blog post, I shared my hopes and wishes, about things I wanna see appear in companies’ member dashboard. I wanna see a mention of entrepreneurship. You know, something like being a business owner and not just sales agents for the company’s products and services.

In this follow-up blog post, I wanna emphasize the need for training. New distributors need to be trained first just like soldiers before they are sent to the fields. Without proper training, they are doomed to fail.

#1 Reason Why People Fail in MLM Business

MLM or Multi-Level Marketing is attracting hordes of extra-income seekers. I have interviewed people when I was a trainer in an MLM company and the top reason why people join is the opportunity to earn extra income. The income they receive from jobs is not enough to live upon.

So, money is the #1 reason why people join MLM.


The problem is, it seems like it is also the reason why a lot of people fail. They join the business looking for a way to make quick bucks and when they don’t see money in days or weeks, they quit. Quick money can be made in MLM business if you have the sales skills, but unfortunately, most people don’t have.

Instead of getting trained first, new distributors make the mistake of prematurely promoting the business. Trying to make a sale without knowing the right sales process can lead to being turned down or rejected. And when people experience rejection, they quit.

So, if money is the #1 reason why people join MLM, it is also the #1 reason why they fail.

Different Worlds, Different Core Values

If you have read the book CashFlow Quadrant by Robert Kiyosaki, he explained that the mindset of employees is different from the mindset of entrepreneurs particularly big businessmen.

Cashflow Quadrant

To an employee, they’re more interested in guaranteed income, the reason they work for a salary. When you work for a company, you are guaranteed to receive regular income through your paycheck. There’s no such guarantee in entrepreneurship.

As business builders, sometimes we don’t get paid for years, and other times we never get paid. We understand that in business, we get paid only when the business becomes successful.

To an employee who never been into any business ownership, that’s hard to understand. They join the business expecting to make quick money as they receive in the employment world, and if they fail to see money in a short span of time, they either quit or go looking for a new company that promises quick money.

To succeed in MLM or any other business, one has to develop the core values of an entrepreneur. Also, he has to learn the technique of “delayed gratification” where you don’t get paid for months or years hoping someday your business will become profitable.

Develop Your Entrepreneurial Mindset First

In one interview, Robert Kiyosaki was asked what he thinks are the reasons why people fail in MLM or network marketing business.

He said, “People come to it for the reason of wanting to increase their income, rather than changing quadrants (developing the core values of a successful business owner). If that person works in the business and the income has not increased after a few years, he’ll quit or go looking for a faster way to earn income. Sadly, most have not realized that the main factor to one’s success or failure is whether they’re dedicated to changing quadrants (developing business owners’ core values).

What’s “changing quadrants”?

It is an emotional education. It is not how much money you’re making. The money will come in time once your business becomes profitable. It is about focusing on business education like personal development, networking, relational leadership, and organizational development.

Is your MLM company focused on giving you this kind of training?

Are you focused on getting immediate income (getting rich quick) or are you focused on developing your entrepreneurial mindset first?

The Good Old MLM Business

I understand that in old but highly established MLM companies, their reason for not putting a link or a video in their members’ dashboards is because they’re hosting meetings or training offline.

If you happen to be a member of one of the companies whose activities are mostly offline, you will see training hosted in their offices. Most offline MLM companies have training rooms and in their training rooms, the subject of entrepreneurship is frequently tackled.

MLM Training Room

But for newer companies who operate mostly online, I hope they realize that the only way their marketers connect with them is through their websites, and sometimes, through online short seminars called webinars.

Unfortunately, in most webinars that I’ve attended, yes they talk about freedom of having your own business but their focus is usually on pushing their members to peddle the products to prospects.

That kind of approach is not really entrepreneurship as you are mainly a peddler of the company’s products.

So, how does a marketer move from being a peddler to a real business owner?

You Don’t Have Real Assets in MLM

Uplines usually argue that downlines are our own assets in an MLM business. Once you have motivated them and owned their loyalty, they will be yours for a long time. They will work under you making you money like you have an employee.

In my observation, that may be true 10 or 20 years ago when there were only a few MLM companies and competition isn’t that tough. But with today’s game where new MLM companies popping up almost every day, I think that doesn’t apply anymore.

The truth is, in an MLM business your downlines’ minds are your asset. And in today’s information age, those minds can change in a split-second, and so their loyalty—they can shift loyalty quickly. If you think your downlines won’t be swayed away from you, think again.

One of the reasons I stopped doing network marketing is, I don’t like working and investing in downlines for months or years only to be left alone by your beloved downlines. You worked hard in getting those downlines, you have invested a lot in training them, only to see them pirated by a competitor.

Build Assets That You Can Call Your Own

In my current business which is an affiliate marketing business, I discovered I have real assets that I can call my own.

The websites that I own and the list of email addresses that I have (my email list), they are tangible assets. I own them, and I can even sell them if I want.

Of course, a downline team can also be sold or transferred to another person, but it is still volatile. What if the company decides to terminate your membership, can you take away those assets with you?

I know someone who used to be earning $6,000 a month and he lost it all when the company he’s working with got a tip that he’s signed a contract with another company. His income together with his downline team, all were taken away from him.

If only he has built a website or blog, or has built his own email list, he would have not been left empty-handed. An email list can’t be taken away from you! It’s yours to keep. The MLM company can take away your income, they can take away your downline team, but not with your email list.

If you have an email list, you can find a new company and blast them an update that you’re joining a newer, better company. And in no time, you’re on top again!

Become An Entrepreneur With Real Assets

Here’s my recommendation, how do you become an entrepreneur with a tangible asset:

Start a website or blog that’s hosted in your own domain name, write short articles called “blog posts” for your followers, and as your followers base grow, start building an email list—a list of subscribers to your email newsletter.

Of course, there’s another way to do this:

If you’re more of an offline person, register your new business with your town or city government, rent a business space where you will display your products—much better if you can display products from multiple companies.

Whether you’re building an online business or an offline business, the principle is the same. You should be building a business that’s independent of any MLM company. If one company decides to terminate your membership with them, you still have other companies as your sources of income.

Did you notice something in this approach?

You are becoming an entrepreneur with tangible assets. It can be a website, an email list, fixtures and equipment, and you’re becoming a real entrepreneur. From being trained with the right entrepreneurial mindset, to owning tangible assets, you’re becoming a real entrepreneur!

Pin It on Pinterest

Share This