Monday, October 3, 2011

When to quit your MLM Business?

I just got a phone call from a friend of mine who is trying to recruit me into his MLM business. He's been working it for more than a few years and hasn't even made enough to cover his light bill. This is typical of most network marketers (90%). They never make any money and they stay for whatever reason, maybe it's the culture, the products, they don't want to miss their Thursday Night Amway meeting, because truthfully those business partners have become really good friends. But why stay in a business if you're not making any money? I mean you wouldn't stay at a job for a year and go to work everyday or even once a week if you weren't making any money. I'll never forget meeting a guy at an Amway meeting. He was so excited (he'd been in Amway for 5 years). I said, so you must be making a ton of money. His reply was not really. I then pried him to find out how much he was making after 5 years and he confessed his monthly check was just shy of $1000. Not bad I guess, if he was only putting in a few hours a week, but after 5 years with the same company, I would want to be making a lot more than $1000, especially if I was as fired up as this guy was.

So my question is when do you quit your business? This is not easy to answer, but truthfully at some point you have to be getting paid for your time. You can't go on forever without earning any money and unfortunately many people in this industry do. They don't treat it like a business, they treat it like a hobby or a social club. And that's fine, but I don't see network marketing like riding a motorcycle, a surfboard, playing a guitar, or taking piano. To me this is all business, and I just am not going to hang out in a company if I'm not getting paid for my time or being able to see results. Your results must be measurable and you should see a minimum of 20% growth every month in your sales organization, if you're ever going to make it big.

If you're not making money in your current company and you have been at it for more than 6 months. You're probably playing network marketing, or your company may not be the right company for you. Yes, network marketing typically takes a few years for the average person to make money in, but you need to see some movement from the fruits of your labor and yes it is a business. You are an independent contractor representing your company's products/services, technically you are a straight commission salesperson. So unless your organization is making sales, than you are not making $$$$$.