Top 10 MLM Insights Every Serious Network Marketer Should Know About

Today, I’m going to share some of my best MLM insights.

Bookmark this page and share it with your serious team members.

I’m not going to hold back in this post.

I want to share my top MLM insights that every serious network marketing rep should know about.

I’m going to say some controversial things.

I don’t expect you to agree with me on everything.

This is just based upon my own experience in our industry.

All I ask is that you keep an open mind and simply hear me out.

By all means we can agree to disagree.

# 10 Attrition is The # 1 Enemy In Our Industry

It’s taboo to talk about this subject in a public setting, because if your upline told you the truth it would scare the crap out of you.

Attrition is your number one enemy in this industry.

Your yearly attrition will be at least fifty percent of your team and probably much closer to 80 percent.

People quit the business for many different reasons and it normally has very little to do with you or your company.

Most people quit everything they do.

dealing with attrition in mlmEven if you have a great system and work closely with each new rep, most will still quit.

Expect to lose 50% of all new reps in 90 days or less.

Expect to lose 80% of your team each year.

It’s a reality, even though most people refuse to talk about it.

We even have one company in our industry who says they have a 95% monthly reorder rate.

If you do that math that breaks down to a 50% yearly attrition rate.

I understand that all businesses lose some customers.

I don’t think this attrition rate should even scare you off, but it sure does help to know it upfront so you can expect it and not be devastated when it happens.

Just look in your back office and verify this.

What percentage of your total team is even ordering each month?

What percentage renews their account each year?

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# 9 Starter Kits Are Good

I have recently just changed my mind on this subject.

It took me several years to come to this conclusion.

For the past couple years I thought that encouraging people to buy a $500 to $1000 starter kit when they first joined the company was a bad thing.

I don’t really feel that way anymore.

I believe you need a way to get upfront commissions, in addition to your back-end, residual commissions.

It takes time, money and energy to find and recruit people into your business and you deserve to be compensated fairly for it, TODAY.

Since most people you sponsor are going to quit in 90 days or less, you won’t earn a residual income from them anyway.

At least the starter kit gives you a way to make some “TODAY” money and keep you in business, while you build up your residual.

It doesn’t have to be a $2k kit, but even offering a $300 to $500 kit would enable most reps to make a couple hundred dollars for each new person who joins their team, and buys the kit.

duplication book# 8 Duplication is a Lie

Everyone in our industry talks about duplication, like it is the norm.

It’s not.

I believe it’s the most abused word in our industry.

Ask any successful rep how many people honestly duplicated what they’ve done and the answer is less than three percent, maybe less, regardless of what system they use or what company they are in.

Of all the people you’ve sponsored, how many of them each sponsored 50 to 100 people?

How many of them made it to your rank or higher?

Not many.

I’ve sponsored about 90 people in two years and only one of those folks has sponsored 20+ people.

Here’s what you need to know.

Your best people won’t want or use your system because they are a LEADER and a doer.

They’ll figure out a way to do it on their own.

They’ll leverage their own talents and abilities.

Study any top earner and you will quickly discover that in most cases they (1) didn’t follow their upline’s system and (2) their best people didn’t follow their system.

I am a fan of Mark Yarnell and his belief is that INNOVATION is better than duplication.

I couldn’t agree more.

Why would you try to make 100 different people all build the business the exact same way?

It just doesn’t make any sense to me.

The bottom line is you will have to work through the numbers and sponsor A LOT of people to find a few key leaders who go on and build it big using their own methods.

# 7 Your Company’s System is NOT The Only Way

Evaluate your company’s system.

How many people actually follow it?

How many folks are reaching the top levels in the company following that system?

Be honest with your answer.

Truth be told, there are MANY ways to build a successful MLM Business.

I believe there is a value to having a system for new people, but don’t be blind and think it’s the ONLY way to build the business.

What you really need to do is leverage your own talents and abilities to make it to the top.

As a sponsor, you need to help each person you sign up come up with a strategy that works for them.

Most of the people who made it to the top ranks in your company all did it differently from each other anyway.

In most cases, they didn’t even use the same system that they teach their team to follow.

Trust me, listen to your gut.

You DO have talents and abilities that would allow you to build a big network marketing business.

Use your God given gifts.

Leverage your talents.

Don’t try to be someone you aren’t.

game plan for your mlm business# 6 For Part-Timers This is Not a Two to Five Year Plan, But More Like a Five to Ten Year Plan

Lots of folks preach that our industry is a two to five year plan for financial independence.

I agree IF you are building the business full-time or close to full-time right from day one.

However, as a part-timer working your business just five to twenty hours per week, it’s probably going to take you at least twice that long, and probably longer to make it big.

Most people building part time will take MINIMUM five to ten years to make it to the top.

Just be honest with yourself.

How many people do you know who have honestly built their business 10 hours per week and made it to the top in two to five years?

I don’t know any of these folks.

A lot of people say they work their business 10 hours a week, but if you looked at their schedule you would see they probably work closer to 30 or 40 hours per week in their business.

There might be a few people who build a big business working 10 hours per week for a few years, but it definitely isn’t the norm.

That being said, I still think it’s a great deal if you can create financial independence in five to ten years working part-time.

Not many other industries even offer that possibility.

# 5 If Your Company’s Products Are on Amazon or eBay You are Screwed

Here’s another issue that no one wants to talk about.

You can probably go on Amazon or eBay right now and find your company’s products at a cheaper price than you can buy them for yourself as a distributor.

This makes retailing and recruiting a bitch.

Customers and reps will buy from you one or two times UNTIL they find out that they can get the same item on one of these two websites for half the cost.

I highly recommend you look for a company that DOESN’T have items for sale on either of these two websites.

Of course, I’m not knocking eBay or Amazon.

I sell and shop on both of these websites myself, but I realize they make it difficult for the average distributor to find customers and distributors.

To clarify, I do not sell my MLM products on these sites.  I sell books and antiques on these sites.

recruit more mlm reps# 4 You’ll Need to Sponsor MINIMUM 100-200 People

Study the top earners in our industry and the one thing that 95% of them have in common is that they personally sponsored MINIMUM 100-200 people, if not more than that.

Yes, there are a few rare exceptions, but they are rare.

Most people you sponsor will quit in 90 days or less.

The ones who stick around will typically just be wholesale customers and not sponsor more than one or two people.

About 1 in 30 people you sponsor will be serious about the business.

Even if you’ve sponsored hundreds of people, most of your income will come from just one to three of those serious people.

the numbers in mlm# 3 This is a Numbers Game, PERIOD

Some people talk about finding three who find three who find three.

Folks, it NEVER works out that way.

That’s why I believe duplication is a lie.

You have to throw a lot of mud against the wall to see what sticks.

Most of it will not stick.

Time spent with weak or non-serious people is typically time wasted.

You can’t drag someone across the finish line or make them successful.

You have to find people who want success as badly as you do.

This is no more than five percent of the people you sponsor.

From my personal experience, I’ve found that just about anyone can sponsor 1 out of every 20 people they talk to about the business.

Typically, about one in five people you sponsor will do ANYTHING at all.

About 1 in 30 will be really serious and build a nice business of their own, and about 1 in 100 people will be a super star.

mlm insightsThe sooner you accept that this is a numbers game and work the numbers the better off you will be.

You will NEVER turn a donkey into a stallion.

Look for stallions.

Here’s the reality folks.  You need three ROCK stars to build a big income in our industry.

To find three rock stars you’ll probably need to sponsor about 100 people.

To sponsor 100 people you’ll need to talk to about 1k to 2k people.

If you talked to just five people a day, you could make this happen in about 13 months!

Chew on that!

# 2 You Need Minimum 10-20 Customers

So many companies (and distributors) in our industry ignore the retailing aspect of our business.

get more retail customersI think that’s one of the reasons our industry has a black eye with the FTC and the general public.

Here’s a life changing tip.

A business is not a business if it doesn’t have customers.

As a distributor you should have minimum 10-20 customers BEFORE you try to recruit distributors.

This gives legitimacy to your business.

After all, how can you share a money making idea with others if you aren’t making money yourself?

If you find 10-20 customers you will make money!

For every distributor in the company there should be at least five customers, and preferably ten.

If the only people using the products are people doing the business, I doubt your company will be around very long.

# 1 You Need Multiple Streams of Income

This is one of my best MLM insights.

To me, the riskiest thing you can do is just have one income stream, and it doesn’t matter WHAT that income stream is.

I am not recommending you build multiple MLM Companies at once.

multiple streams of income in mlmDon’t do that.

However, be smart with your money.

Keep your day job until your MLM Income is at least three times your job income AND you have substantial savings.

Invest your network marketing income into other assets that produce positive cash flow.

By all means, focus on your MLM Company, but be smart with your bonus check.

Invest it into a portfolio of assets.

Also, don’t bet your entire future stake on one company, even a MLM Company.

Have a diversified business that is sound and provides multiple streams of income.

Build a You, Inc. business.

To me, that is the smartest thing you can do.

I know I’ll probably get beat up for saying this, but oh well. I believe you deserve to know.

Final Thoughts

That’s it folks.

These are 10 MLM insights I believe that every serious MLM Rep should know about.

I would love to hear what you think about this subject.

Leave a comment below to let me know what you think.

As a quickly disclaimer, this is just my opinion.

Individual results will vary.

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Chuck Holmes


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SKYPE: mrchuckholmes

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2 thoughts on “Top 10 MLM Insights Every Serious Network Marketer Should Know About

  1. John

    Hello Chuck , you are absolutely right on this .
    This is a great back up way to do business
    The main conclusion is that you are stable
    on your own feet , being really independent marketer .
    However most people goes the easy way
    just to fail and then abandon the ship
    Marketing needs applied knowledge that costs
    years of effort to just upgrade a level
    it is a constant fight against ignorance & ego .


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