How to Create True Wealth in Network Marketing

by Dorina Lanza

in Wealth

You first need to realize that true wealth in Network Marketing can be created only when a very specific set of factors are in place. You have to join the right company at the right time. And, it’s critical that you’re in place and building when the exponential growth, or momentum, hits. Very tricky.  All opportunities are NOT created equal and you need to know how to pick the right one.  You need to be able to recognize this “Holy Grail” when you see it and I am going to help you do that.

Now, of course, everyone thinks that their company is the “Holy Grail” and is about to hit the magic of momentum. But if we look closely, you will see that that this is not the case. In fact, such a “Holy Grail”  opportunity comes around only every 15 or so years in this country.

Now, network marketing companies can be put into 5 categories.  But only one gives you the opportunity to create true wealth – assuming you hit it at the right time.  If you are in a company in one of the other four categories, know that you are not in the right place if your goal is to build wealth.

Let’s have a look.

The first category we can call the “Bottle Rockets”. These aren’t real network marketing companies. They are illegal and they hurt people. Yes, they grow real fast but then crash and burn even more quickly – usually because they get shut down by the authorities. Stay away – far away.

Then we’ve got the “Old Guard”. These are the multi-billion dollar plus companies you have all heard of.  The people you hear about with the rock star incomes generally made their money in these years ago when they were in the right place at the right time and took action.  They drove the momentum growth of these companies and continue to be handsomely rewarded for their efforts.  But, these deals are done.  If rock star income is your goal, these companies are not the place to be. You can, however make a very good living with them even if you join them when they are already large.

Then come the “Flat-liners”.  I am sure you can think of a few of these.  They have been around for ages but have never hit that exponential growth curve.  They never will.  The only growth they have, if any, is incremental. This is usually because either their products are not viable, or their compensation plan doesn’t promote the correct behavior, or they have inexperienced or poor management. No wealth here.

The fourth category are the “Peddlers”. You will recognize these – they include the many party plan  companies, service companies, legal plans, insurance, and other plans that are geared toward salespeople.  These are the companies confuse people into thinking that network marketing is all about sales. It isn’t.  That’s the fatal flaw in these companies – their approach is geared to the 10% who are sales types – not the 90% of us who aren’t.  They don’t understand the distinction between the small business model (primarily retailing products) and the big business model (developing duplication and creating a large team of distributors that produces large group volumes).   They, therefore, completely miss out on the formula for creating wealth in Network Marketing. Unless you are a driving sales type you won’t even be able to get to a good income with these – nevermind wealth.

Finally, we get to the “Holy Grail”.  This is where you need to be – it’s where the “Old Guard” companies were before they went from small to big and, in the process, generated incredible wealth for those that drove the growth.  This is where the legacy incomes and substantial wealth you hear about are created.  This is where you need to be if that legacy passive income is your goal.

So, what is a “Holy Grail” company?  A “Holy Grail” company is a company that has all the traits that it takes to hit and sustain momentum and become the next multi-billion dollar success story.

Now of course, as I mentioned, every new company says that they are the next “chosen one.” And the distributors that prospect you aren’t intentionally lying to you when they tell you this. They honestly believe what they’re saying. Unfortunately most do not have enough experience, knowledge and perspective to really understand what’s required for a company to go into momentum and grow to the magic billion dollar mark and beyond.

To see what we need for that to happen, you can look at the companies that have reached and sustained momentum in the past, going from small to big and look for the commonalities.  You will find that they all had:

  • A Sizzle Product Line in tune with the market
  • Corporate Leadership and Management Depth
  • Proper Capitalization
  • A Compensation Plan that Promotes the Correct Behavior
  • Field Leadership and great systems
  • And, of course, perfect timing.

How does you company stack up?

Well, stay tuned because we will be looking at each of these factors in more detail in subsequent posts. You will then be better positioned to evaluate where your company lies. And, if you have yet to select a company, you will know what criteria to use in your evaluation.

In the mean time, go and have a look at one of the systems I use to build. You will find it here. And, of course, remember to sign up to my list at the top of this page so you will know when the new posts are ready.

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