How You Earn Money in MLM

Many people are misinformed about how you earn money in MLM.  Study our industry for any period of time and you will quickly see that most distributors don’t earn anything at all. The idea of building a large residual income is exciting and appealing, but when the rubber meets the road, few people will ever do it.

You see, if you ask any 100 distributors if they are working their business consistently each week, most of them will answer YES.  But if you dig a little deeper you will quickly see that most of these folks are not doing the “money producing” activities.  Yes, they might be “working” in their business, but they’re not focusing on the right activities.  Rather than focusing on the right activities (sponsoring, prospecting, showing the plan, getting customers and training their team) they’re doing NON-INCOME PRODUCING ACTIVITIES.

Here’s how most distributors spend their time each week with their MLM Business.

  • They think about achieving success 24/7
  • They spend an hour or two each week in the back office of their company website
  • They read company literature for 30 minutes
  • They try out a few products
  • They watch a few YouTube videos, participate in a webinar, or read some articles about the industry
  • They clean their office
  • They work on their lead list
  • They look at their day planner
  • They update their spreasheets

I could go on an one here, but I hope a light bulb is starting to go off in your head.

As  I  learned from Tom “Big Al” Schreiter, “you are only paid for the production of your downline.”  You are paid to get customers who order the product each month and sponsor other distributors who consume the product, find customers, and sponsor other distributors.  You are paid to create a team that uses and sells the product and teaches others how to do the same thing.   If you don’t do that, you won’t earn ANYTHING in MLM.  Therefore, your primary focus should be on building a team of customers and distributors who use the product each month.  That should always be your # 1 priority.

Doing all of the things I mentioned a moment ago (cleaning the office, organizing paperwork, thinking about the business, etc.) will not earn you ONE PENNY in network marketing.  Some of the activities are somewhat important, but none of them are income producing activities.

Most distributors already know this.  But even though they know this, they still don’t do what they should be doing: prospecting, showing the plan, closing prospects, getting customers and training their team so they can increase the production of their team.  As a result, they fail.

The bottom line is to never forget HOW you earn money in MLM.  Never forget that you get paid to create sales volume by building a team of customers and distributors who order the products month in and month out.  Make sure that you spend at least 90% of your “working hours” on tasks that will help you accomplish that goal.  Otherwise, you are just fooling yourself.

What are your thoughts about how you earn money in MLM?  Leave a comment and let us know.

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2 thoughts on “How You Earn Money in MLM

  1. Greg Boudonck

    So true my friend. Procrastination is one of the larger problems in today’s world. I have also noticed that many people somehow think that success will just “fall in their laps.”

    Success takes work and wisdom. If a person will get serious and follow the program, success should follow.

    As an author, if I just look at my Word program, or look at the sales I received last month, or clean my computer and never write, I will never get anything published.

    The system you speak of is a disease effecting the whole world. Instead of spending that time when you need to be getting people to sponsor, or selling products, many people are playing on Facebook, Tweeting or playing on cellphones.

    Diligence is the key. Willpower to keep on the right path will bring success.

    Great post; we all need to hear it regularly to keep us on track!

    Reply

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