Network Marketing is About Leverage, Not Personal Sales

Today, I want to talk about WHY network marketers should NOT just focus on personal selling.

Before we dive into the subject, you should know that I believe EVERY network marketer should have two to five personal retail customers. 

Having a few personal customers will give you an immediate retail profit and help offset the cost of your own purchases, and other business expenses.  It will also set a good example for your team members to follow.

After all, if you don’t know how to find customers you won’t be able to help your team members do it!

Every business needs customers…

However, if you treat network marketing like traditional sales, and just focus on personal selling, at some point in time you will either max out or burn out. You will limit yourself, because you only have so many prospects and so much time in a day!

You will not create a substantial residual income if you just retail products, nor will you have any leverage doing so.

Network marketing and direct sales are very different from each other, even though many people interchange the words as if they mean the same thing.

Network Marketing is about a lot of people each doing a little bit each month, not one person doing everything themselves.

It’s about having hundreds, even thousands of distributors in your team who use the products, have a few retail customers, and sponsor a few distributors.

It’s about leverage.  It’s about DUPLCIATING yourself.

Direct Sales is about one person selling everything themselves.  Direct selling is when 100% of your income is based off what you do.  When it comes to direct selling, I like to think of examples like the Avon lady, someone just focused on retailing.

Once again, retailing is an important part of network marketing.  Everyone needs a FEW customers. 

But network marketing is about building a network of distributors or affiliates who each make a few sales each month.

Rather than trying to find hundreds of customers and sponsor hundreds of affiliates/distributors yourself, you go out and sponsor a few distributors, find a few customers and then help your team members do the same thing.  You keep repeating this process over and over and over in depth until you have a big team.

With direct sales, you have no residual income (not typically anyway).  All of your income is based on what you do.  You have no leverage.  Yes, you can earn a GREAT income if you know how to sell, but wouldn’t it be better to have a leveraged income?

It amazes me how many people enter our industry and treat it like sales.

Some of the best advice I ever learned in this industry was from Jordan Adler’s book “Beach Money.”  He talked about the advice he learned from his mentor who built an organization of over TWO MILLION distributors and customers.

His advice was this:

  1. Use the products
  2. Find a few customers
  3. Find a few distributors
  4. Help your new team members get started
  5. Repeat

That is how network marketing works.

leverage vs. personal salesIf you just want to go out and sell stuff, go find a company with a HUGE wholesale retail markup, so you can get paid well for your time. Heck, if you just want to sell stuff, why not be a realtor or insurance agent where you can make a large commission per transaction?

But don’t forget that you will have very little leverage if you choose those options.

The real beauty of network marketing is that you can earn a small commission from hundreds, even thousands of people’s efforts, not just your own effort.

J. Paul Getty said it best when said, “I’d rather have 1% of the effort of 100 men than 100% of my own effort.”

To me, that is the real definition of network marketing: LEVERAGED INCOME.

What are your thoughts?  Leave a comment below to let me know what you think.  I look forward to hearing from you.

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