Over the years, there have been many tidbits of advice, both small and large, that I have learned from others and have incorporated into my MLM success plan. But one of the most important came during my research into the MLM industry in general as a viable income opportunity. During this time, I learned to use numbers, or statistics, to my advantage.

I absolutely love statistics. The reason I love statistics is that they are just numbers that represent data that’s been collected; and once the data has been collected, their meaning can be interpreted in a number of ways. The same statistics can be used to both prove and disprove a point, depending on the author of the report and the audience being targeted. Let me show you what I mean…

Statistic: Over $100 million U. S. was lost during the Stock Market Crash of 1929

Now, there are several ways you could use this statistic, depending upon how you want to sway or validate the opinions of the reader. You could focus on the losses, and use the data to promote a bias against the stock market. Or, you could look deeper at this statement and focus on the gains. Money is NEVER lost; it merely changes hands. $100 million didn’t just disappear into thin air. Although many Americans lost their fortunes during this event, quite a few Americans (and some foreigners as well) got RICH during this time. Can you see how the same statistic can be interpreted in two different ways?

Now, let’s get back to our MLM success stats. Here’s a great one:

MLM Success Stat #1: 97% of all new MLM distributors fails to produce a profit.

If you are biased against the MLM industry, you could use this statistic to “prove” that MLM is not a viable income opportunity. You could further suggest that people should steer clear of anything remotely related to MLM. But the statistic says 97% of new reps. What about the other 3%? If MLM is not a viable opportunity, then how do you explain the other 3% who ARE making money? What are THEY doing that makes their results so atypical, and can it be duplicated? Maybe if more reps had the “Yes, I can” attitude, maybe the number of successful MLMers would be higher. Just a thought.

Here’s another one I like:

MLM Success Stat #2: The average rep will only sponsor 3-4 down line distributors before they give up.

This statistic is significant because many compensation plans require a minimum of 20 front line reps in order to ascend to a rank high enough to draw a decent monthly income. (When I use the term “decent,” I mean a replace-my-current-income type of compensation.) Many MLM nay-sayers use this statistic to suggest that the compensation plan is designed for failure. But again, where they see doom and gloom, I see opportunity. Because of this stat, I approached my MLM opportunity more cautiously. Rather than run out and try to sponsor every person I ever said hello to, I developed a target market, and then qualified my prospects BEFORE making the pitch, and I encourage my distributors to do the same. Where it typically requires 20 sponsored reps to get to level 5 in my company, my distributors get there with just 3 to 4. Again, this is just one more example of how a statistic that was designed to dissuade me actually served me.

This last statistic is my absolute favorite:

MLM Success Stat #3: 97% of all MLM recruits quit within their first 90 days of signing up

Those who are biased against MLM use this statistic most often to argue for staying away from MLM. After all, any sane person might turn away if they knew that, even if they sponsored 100 people in their first month, 97 of them wouldn’t be around at their 3-month anniversary. But I took this statistic and used it to my advantage. I created a fast-track plan designed to get new recruits to a level 5 distributor within their first 90 days of signing up. I take advantage of the emotional momentum to get new reps excited about our products and our income opportunity, and I help the reps back up their claims with tangible results.

The bottom line is this: MLM success begins with the decision to be successful. But once you’ve made that commitment, it helps to understand that MLM is a numbers game, and if you know the numbers, you can use them to suit the purpose you lay out for yourself and your down line reps. And, as usual, don’t just take my word for it…take it for checking!

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Howdy do, all! It’s great to be back in Internet Land after a short sabbatical into the realm of Face-to-Face recruiting. And with all the great people I’ve met and all the fantastic conversations I’ve had with folks lately, I’ve got fresh article material for the next six months, easily!

One of the more heated debates I’ve had was over the classification of network marketing as “the perfect business.” My people, I hate to burst your bubble, but you all that have been reading my articles for a while should be used to this by now, so here goes…

MLM is absolutely NOT a business!

Now, before all of you start abandoning my downline, let me explain what I mean. I am a huge fan of Robert Kiyosaki, a fellow Phoenician, and the author of the New York Times Bestseller, Rich Dad, Poor Dad. In one of his other books, The Cashflow Quadrant, he talks about the four ways that people generate money: as employees, self-employed specialists, business owners, and investors. Kiyosaki cautions the reader to make a distinction between self-employed specialists and business owners, and he says that many self-employed people believe they are business owners, when they are not. According to Kiyosaki, if your business REQUIRES your presence in order to continue to run effectively, you are self-employed; but if your endeavor will go on even when you are not there, then you’ve got a business. Here’s a simple way to look at it: The late Henry Ford owned his own business. The late Jack Kevorkian owned his own job.

Now, back to the MLM connection. The average MLMer does not own their own business — they own their own job. Due to the incredibly high attrition rate that is inherent to the industry, an MLMer that wants to experience full-time success MUST continue to prospect and sponsor. Even if it’s just one distributor every quarter, or one distributor for every one that quits, if you don’t continue to add new blood to the organization, it doesn’t matter how large it is, it will implode!

MLM is probably closer to being categorized as an investment than anything else. And what do we do with investments? We buy low, hold for a time, and sell high when the market shows signs of change. We mine the gold out of the opportunity. We flip this house! We have a great time sharing wonderful products and services with friends, family, neighbors, acquaintances, and others, and our MLM companies pay us for spreading the word. Then we take that money and move it to another vehicle that moves faster and more steadily with less potential of internal spontaneous combustion.

But understand this. I LOVE network marketing, and I am extremely proud to be a positive part of so many financial and spiritual lives that have changed for the better. But rest assured. I have no illusions about what type of financial vehicle my MLM endeavor happens to be. I’m not one of those people riding around in a Chrysler 300 pretending that it’s a Bentley. I know what kind of car I’m driving, I know what it’s designed to do, and I respect its capabilities wholeheartedly. I know that I have to invest time and energy into it in order for it to perform.

So why am I sharing all this with you good people. Here’s the reason: I’m hoping that this revelation is not an epiphany for you. I’m hoping that you are like me, and you have come to this MLM opportunity with a full understanding of what it is, how it really works, and what it can do for your financial life. However, if you have been shocked by what I’ve shared here, and now you “see the light,” at least you can proceed forward with a newfound sense of understanding and acceptance.

The bottom line is this: Stop treating your MLM opportunity like it’s a business. It’s not, and if you insist on doing so, I guarantee you a world of disappointment. Respect your MLM business for what it truly is: an opportunity to leverage your talents and relationships to create an incredible income stream that can be used to uplift and expand your financial well-being, and the well-being of your downline. And, as usual, don’t just take my word for it…take it for checking!

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