If you came here looking for a list of the best network marketing companies, you may be disappointed.

In writing this post, my intention is to give you the knowledge and tools you’ll need to pick out the best network marketing companies on your own, and avoid the bad ones.

However, if you’re in a hurry and don’t want to be bothered with learning how to think for yourself, you’ll want to check out my post on the top MLM companies, ranked according to their Alexa.com rankings.

But for those of you who are willing to do a little due diligence and don’t require knowledge to be spoon fed to you, you’re going to get a lot out of this post. Many years of wasting time building downlines in network marketing companies that failed has taught me one vital thing I believe every network marketer should know…

That is, knowing how to spot the best network marketing companies and choosing among them is a prerequisite to success in this industry. So, let’s examine several of the factors that will allow you to spot which are the best network marketing companies.

Characteristics of the Best Network Marketing Companies

The essential characteristics of the best network marketing companies are:

1. A Good Compensation Plan – There should be money at both the bottom and the top of the pay plan. The company should offer bonus pools, fast start bonuses, and good sales commissions on retail sales to help new distributors make money. And, there should be BIG money at the top of the pay plan. Check the company’s annual distributor earnings report. If the top earners are making less than $250,000 a year, something is missing from that pay plan – find another company.
2. Longevity – 9 out of 10 new network marketing companies fail within the first two years. I’ve wasted plenty of time and effort with companies that later went out of business. Avoid new companies like the plague, and avoid people and promotions that use phrases like, “Get in on the ground floor,” “Get in at launch,” “Brand new launch,” “The next big thing,” etc. Instead, look for companies that have been in business longer than five years. See my post on The New MLM Company Lottery for more on this.
3. Reputation – If you go with a company that has a lousy reputation, you will be fighting an uphill battle with your recruiting and sponsoring efforts. Some companies have developed a reputation for having a cult-like corporate culture, or for encouraging their distributors to use unethical recruiting methods (see #4), or for treating their top earners poorly (see #5). No matter how good it looks, avoid such companies like the plague.
4. Integrity – If the company promotes standard operating procedures that are deceptive, run. If the company has a ton of lawsuits against it from disgruntled former distributors, run. If the company changes their policies and procedures, or has recently changed their pay plan in their own favor, run.
5. No Drama – See #4. Every company will have grumblers and complainers. However, if you hear a lot of stories of how top earners got kicked out of a company for trumped up reasons, consider that there may actually be some truth to those accusations. Also, if the company has recently had a major shake-up in their top management, find another company. And, if the company founders have resumés that read like a who’s who of failed network marketing companies, I strongly suggest that you pass on that company.

Consider the above five characteristics of the best network marketing companies and size up any company you are considering by those five factors… BEFORE you join.

The idea is to find the BEST network marketing company – one that you can build a lifelong income with, and then focus just on building your paychecks with that company.

This will also keep you from getting S.O.S. (“Shiny Object Syndrome”) and becoming an opportunity hopper. I played that game too, and it is the absolute worst way to build a residual income. Find a company that you don’t just like, but love, and stick with it for the long haul.

Additional Factors You May Want To Strongly Consider

When searching out the best network marketing companies, there are other factors you may want to consider. While these are not necessarily essential, they can be pivotal to how you build your business. In addition, they can also help you narrow down your list to one or two top choices.

• Does the company sell a consumable product? If the company’s pay plan relies on selling products or services that are not consumable, you are going to be in a cycle of constantly hunting your next paycheck. This is not conducive to building a long-term residual paycheck. Search for companies that sell products that people will have to reorder each and every month.
• Would you buy it if you didn’t sell it? This is important. Ask yourself, “Would I buy this product or service if I wasn’t selling it?” If the answer is “no” then find another company.
• Does the company rely on “gimmicks” to sell their products? Gimmicks never last. Products with “legs” (that walk off the shelves) are those that actually have substance and depth. Avoid gimmicky products and companies.
• How good are the company’s support, training, and marketing materials? I’ve seen some great companies with fantastic products that had lousy marketing and support materials. In my experience, if a company won’t invest in their training, support, packaging, promotional materials, and marketing, they will never grow into a large successful company.

Remember, the best network marketing companies will meet all the five characteristics I mentioned at the beginning of the article, and they will also meet these criteria.

Now that you know how to identify and choose from among the best network marketing companies, if you’re searching for a company you can believe in I encourage you to consider my favorite network marketing company as well.

“Ninety-seven percent of people fail in network marketing!”

You hear that statistic a lot with regards to the rate of success in multi level marketing.

People say it like it actually means something, when for all intents and purposes, it has no direct meaning to you or me whatsoever.

I firmly believe that what someone else does has zero impact on your success in multi level marketing.

Here’s why… I’ve been doing small business start-up coaching for well over a decade now (has it been that long?) for traditional, bricks and mortar businesses.

And, in that time what I’ve witnessed (and also verified from SBA statistical reports) is that the failure rate in traditional businesses, when extrapolated over the first ten years of a business, is almost the same as in network marketing.

What does this tell you?

Why People Really Fail in Network and Multi Level Marketing

I know for a fact what it tells me… it simply acts to confirm in hard numbers my observations on success in multi level marketing over the last decade or so.

These observations are simply that:

1. Starting a business – ANY business – is hard work…
2. Most people underestimate the amount of work and time involved to get a business – ANY business – off the ground takes…
3. And because of that, most people quit before their business becomes profitable.

That’s right – I’m attributing the lack of success in multi level marketing mostly to a lack of hard work and patience. Ask anyone who has started and run a successful business in ANY industry, and they’ll tell you wholeheartedly – it takes work, and it takes time. The weak-kneed and lazy need not apply.

Those are the facts. And, quite frankly most people who have not met with success in multi level marketing are simply unwilling to do what it takes to succeed.

Others simply didn’t stick it out long enough. And, because it is in our nature to shunt the blame for our failures, many people unfairly blame their lack of success in multi level marketing on the industry.

I’m sure you’ve heard the excuses:

• “It’s a scam.”
• “Only the people at the top make any money.”
• “It’s a pyramid scheme.”

And on and on.

What They Don’t Tell You About Success in Multi Level Marketing

What they don’t tell you is that, statistically, most people who stick around in this industry earn a few hundred dollars a month in extra income. I consider that success in multi level marketing – maybe not massive success, but it’s success nonetheless. (Note: Read my articles on debt-free network marketing here and here, and you’ll know how to make sure that this is profit and not eaten up by needless expenses.)

I honestly believe that, with the right company and products, most people could earn more than that – much more. However, to be honest the majority of people are just fine with making a small amount of extra income from their businesses. And that’s okay… there’s absolutely nothing wrong with that.

But, that’s also why they stay at the low end of the earning spectrum. It’s not because the business model doesn’t work – it’s been proven time and again – it’s because they are comfortable where they are.

Risk vs. Reward – There is No Comparable Business Model

However, let’s flip this around for a second and look at the possibilities and not the probabilities. To my knowledge, there aren’t very many businesses left that can be started for so little and yet that offer such great potential for financial reward. I meet several new people every year who are making six figure incomes from direct selling and network marketing.

Are they the exception to the rule? Yes, of course they are. However, the reason they are the exception is because they chose to be! They chose to sacrifice and work extremely hard with an intense focus for two, three, four, or more years to build an income that is the envy of their friends, family, and former co-workers.

Let me restate that so it’s absolutely crystal clear – they are the exception because they chose to do more than the other 97% of people who “fail” in network marketing. They chose to ignore the statistics, because the truth is that statistics only apply to people who choose to live their lives according to averages.

“…statistics only apply to people who choose to live their lives according to averages.”

Beating the Odds to Find Success in Multi Level Marketing

Look, I’ve beaten in the odds in many ways in my life. I have a chronic illness that statistics say should have me crippled and on disability by now. Yet, I live an active life, working out and teaching fitness classes several times a week.

I came from a broken home, and statistics say I should be divorced by now. Yet, I have a great marriage and a wife I love dearly, going on 14 years now.

I grew up in an abusive household, and statistics say that I should be on drugs, in prison, etc. Nope, I’m happy and mostly well-adjusted in my personal and professional life.

I dropped out of high school and statistics say that I should be a complete financial failure and utterly without prospects for a higher education. Yet, I’ve started several successful businesses and have a college degree from a well-respected private university.

And yes, I currently make more than the average person in multi level marketing, and that income is growing all the time. The statistics say I should be a failure, because “97 percent of people fail in network marketing.” Well guess what? I failed at first, a lot! But I persevered and now I’m starting to reap the rewards of my hard work.

The bottom line is that I’ve chosen to rise above my circumstances and live the life that God has called me to live, not the life that the world has tried to give me. And I thank God I’ve been given the courage to rise above what life has dealt to me (and I give God the glory for everything I have and am today).

Let’s Keep This All in Perspective

But, the point of all this is not to provide you with another “poor me, I rose from poverty, yadda, yadda, yadda” story (it seems every big name recruiter has to have one, these days). No – it’s to demonstrate that you are not required to live your life according to some supposed predetermined statistical outcome.

Your life and the outcomes you achieve in your business are based on what you choose, moment to moment, day to day, and being consistent in those choices over time. So, I challenge you to ignore the naysayers and choose to meet with success in multi level marketing.

The fact is, no one is born for greatness. Those who become great and who live extraordinary lives choose greatness, and pay the price to do so.

Choose to be a 3%-er – choose success in multi level marketing.

MLM lead generation gives most people who are new in this business a bad case of the shakes.

And why is that? Well, it’s because the first thing you’re told when you join an MLM is to make a list of all your friends and family, and start calling them.

“Well, shoot,” you’re thinking. “I already did that with the last ‘thing’ I introduced to my friends and family.”

Guess what? You’re not the only one who has burned through their circle of friends and family, and who has a list as long as their arm of people who want nothing to do with any more of your cockamamie schemes. And that sort of makes MLM lead generation difficult, doesn’t it?

(And if you think about it, warm market prospecting is a very limited network marketing system. If it’s all you’ve got in your MLM lead generation arsenal, you’re not going to get very far in this business.)

Yes, I know that it’s not your fault that last start-up you went with went under (which is why I steer well clear of start-ups these days, and why you should too from now on – read this post for more on that topic). And, I understand that the people you know just don’t understand where you’re coming from – I mean, you only want to share something great with them, right?

What You Need to Know About People Who Say “No”

Well, here’s something you should know about people who say “no” to you in your warm market. And that is, they’ll start saying “yes” when you start bringing in big fat checks.

See, success carries its own credibility with it. All you have to do is plant a seed, sift through those “no’s” and then be ready when they come back asking how you can afford to buy a new car or go on vacation in this economy.

But, what do you do for MLM lead generation in the time between burning through your warm market, and when those big fat checks start to roll in? Speaking of which, how do you get those big fat checks when you don’t have any leads?

That’s what I’m about to show you – and that’s how to make MLM lead generation a simple process, even after you’ve burned through your warm market.

MLM Lead Generation for Dummies

Now, there are three basic ways to get leads:

1. To go out and find them (active prospecting)
2. To buy them (paid prospecting)
3. Or, to attract them (passive prospecting)

Now, of those three techniques, which do you think is the most enjoyable? If you said passive prospecting, also known as “attraction marketing”, you’re right on the money.

Yet, with all the talk and hype about “attraction marketing”, why is it that so many people struggle with MLM lead generation? Could it be because they don’t understand attraction marketing as it applies to MLM lead generation?

In fact, that’s precisely why you’re struggling to get MLM leads for your network marketing business. So, here’s attraction marketing in a nutshell:

“Find a market with an urgent need, provide them with a solution that fills their urgent need, and a certain percentage of those people will approach you about joining your business.”

See, people who don’t know what to do want to follow someone who knows what they’re doing. That’s attraction marketing and MLM lead generation, simplified.

Find the One Thing That Makes You Unique

Now, does that mean you need to know everything about this business?

No, not at all. However, you do need to have at least one thing that you’re very good at or very knowledgeable about in order to be perceived as a leader. That thing could be as simple as being a good blogger, or being good at parties, or at retailing, or SEO, or forum marketing, or pay-per-click marketing, or social media marketing, or cold calling, or never cold calling, or direct mail…

Or, it could just be that you have a tremendous story to share based on your experience with your product line. For example, if you lost 100 pounds by taking your company’s products, that qualifies you as an expert on weight loss. People who are looking for a solution to that problem (their urgent need) will see your success and recognize you as an expert with a solution to their need.

All you need to do is figure out what you’re “expert” at, and then get out there in front of people who also want to be good at that, too. That’s called “positioning”, and it’s the first step to MLM lead generation by attracting prospects to you, instead of chasing prospects.

Where to Go For More Information on MLM Lead Generation

Now, I could easily write a 2,000 word post and still not get far enough into the strategies you can use to do this. However, if you want to learn how to use attraction marketing for online MLM lead generation, I suggest you check out my friend Dawn’s online marketing course.

And of course, I also highly recommend you read Mike Dillard’s Magnetic Sponsoring course. In my opinion, it’s absolutely the best introduction to attraction marketing as it relates to MLM lead generation, and should be required reading for struggling network marketers.

Feel free to post your comment and questions below. I hope this helps you simplify your MLM lead generation!

If you’re looking for network marketing books, you can hardly throw a stone these days without hitting one. Now, if you’re like me you read everything you can get your hands on, which means having so many network marketing books available is a mixed blessing.

Yes, it’s great to have so much information about starting and growing a network marketing business. However, it’s really frustrating when you purchase a book, read it, and then realize you just lost several hours of your life, wasted on useless knowledge and information.

You see, just because someone can write a book about a topic, it doesn’t mean it will be of any use to you. Thus, the huge number of generally worthless network marketing books on my shelf (*sigh*).

But hopefully, this article will help you avoid wasting time and money on the useless network marketing books out there, and steer you toward the really good ones I’ve discovered. So here goes…

Top Network Marketing Books #5

My first pick on this list is Magnetic Sponsoring by Mike Dillard. I know, I know – everyone talks up Mike Dillard. However, this book is one that should be on every network marketer’s short reading list, because it contains information that’s crucial to making a pivotal mindset shift in your business.

People who succeed in this business are those who are able to turn that corner and change their way of thinking about sponsoring others into their business. And this book is, in my mind, the best book on the topic of mindset as it relates to network marketing recruiting.

Top Network Marketing Book #4

Guerrilla Multilevel Marketing by Jay Conrad Levinson, James Dillehay, and Marcella Vonn Harding – In my opinion, this book is invaluable to the new network marketer because it outlines and describes an entire array of ways to market your business. The authors certainly know of what they write, and draw on the knowledge and experience of countless successful network marketers throughout the book.

The best part about this book is, no matter your personality or skill set, you will find an approach and method for promoting and exposing your business that suits you in this book.

Top Network Marketing Book #3

The 45 Second Presentation That Will Change Your Life by Don Failla – This is a classic network marketing book that is an excellent tool for both recruiting and training. You can hand it to a promising prospect whose interest is peaked and say, “Here, read the the first four chapters of this book and then get it back to me.”

And, you can hand it to a new recruit to help them understand how to explain the business (however, it’s much easier to just loan a copy out to prospects).

Top Network Marketing Book #2

If My Product’s So Great How Come I Can’t Sell It? by Kim Klaver – Sometimes also called the 3 Scripts book, this is a great book for you if you want to move product without annoying people. Now, the conventional wisdom is that it’s better to recruit than to sell…

Well, you need to read this book (and listen to the audios if you can) to learn what Kim has to say about recruiting in this day and age. It will open your eyes to a new way of thinking about network marketing recruiting and retailing.

Top Network Marketing Book #1

Dani Johnson‘s Home Business Prospecting Scripts and Training Audios – Okay, so it’s not just a book since there are some audios that go with it… but I have to tell you these are the best scripts I’ve seen for flat out recruiting. She covers cold market, warm market, following up, you name it.

And, she also gets into the psychology of how to approach prospects, what to say and not to say, and how to be a fearless recruiter. Very cool stuff.

So, I hope this helps you pick out some network marketing books that will actually help you in your business. Pick one out based on what your current training needs are, and get to reading.

Just remember that reading network marketing books won’t do you any good if you don’t use that new knowledge, so resolve to put it to work immediately in your business!

Admit it, you secretly wish some network marketing guru would show up and reveal all the network marketing secrets that have made them a success in this business.

And, I don’t believe you’re alone at all in that regard. In fact, I believe that many of us secretly believe that such network marketing secrets exist, and that in fact the “gurus” have been hiding such secrets in order to keep the average Jane or Joe from robbing their honey pot.

The Secret About Network Marketing Secrets…

Well, I hate to burst your bubble, but as I’ve found with anything I’ve set out to do that was worth doing, there really are no network marketing secrets, save one… hard work.

I know, it’s not glamorous, and saying that may in fact cause more than a few people to click off my site. But, it’s the truth. I’ve had the opportunity to work closely with several highly successful six-figure earners in network marketing, and I’ve spoken with seven-figure earners in multiple companies.

The REAL Network Marketing Secrets

One common thread that connects the stories I heard and advice I received from all of them could be boiled down to three simple guiding principles:

1. Don’t quit.
2. Stay focused.
3. Spend time every single day exposing people to your products and company.

Again, not the most glamorous and sexy answer. And it won’t get a ton of people signing up for my upcoming webinar on network marketing secrets of the fabulously wealthy (insert eye roll here), but it’s the truth about what I’ve really learned from the highly successful people I’ve worked with in this industry.

The Real Gurus Usually Don’t Bill Themselves As Such…

There’s a funny thing about the network marketing secrets being touted by the plethora of self-appointed gurus in our industry. And that is, the people who really are experts at this thing called network marketing don’t tout themselves as experts.

Here’s something else – they’ll be the first ones to tell you there are no secrets. And, after you hear such a thing from multiple sources, over and over again, after a while it starts to sink in.

The really caring people (the real experts) in this business won’t blow a bunch of sunshine up your backside. Uh-uh. Instead, they’ll tell you things like:

• “There are no shortcuts.”
• “You are going to have to work this thing.”
• “It’s going to be hard.”
• “It will take time.”
• “It takes sacrifice.”

Yet, in nearly every single instance, they’ll follow that up with:

• “But, the rewards are worth it.”

My Advice On Network Marketing Secrets

So, my advice for you if you’re searching for some hidden network marketing secrets that will propel you to success is to read this article again, because everything of worth that I’ve learned from real-life MLM gurus is summed up in the previous 450 words.

See there? I just saved you $1,295.00 in seminar fees and who knows how much time “snipe hunting” for network marketing secrets that don’t exist.

Now, here’s another “network marketing secret” for you, and it’s that reading network marketing blogs won’t grow your business. So, get out there and expose your business to someone right now.

Enough with the network marketing secrets – see you at the top!

Watch the video, then click this link….

If you’ve been in a network marketing program before, you understand how easy it is to get side-tracked in this industry.

Online marketers and network marketers alike (often one and the same) are notorious for falling victim to “shiny object syndrome”.

And yes, I am just as guilty of this as the next marketer. I can tell you from experience, distraction divides your focus, and without a focus like a laser beam, you will never get anywhere in the network marketing industry.

Not only that, but your downline will do exactly what you do. You, as their upline leader, set the example for their behavior. If they see you with your hands in 19 different programs and businesses at once, they’re going to do the same…

Needless to say, this will dilute your downline, your effectiveness, and your earnings in any network marketing program.

Legitimate Reasons for Switching to Another Network Marketing Program

But, it’s not just “Entrepreneur’s ADD” that causes network marketers to switch network marketing programs. Many experienced and well-established network marketers switch companies in order to build multiple streams of income. Often, they have been “burned” by a network marketing program in the past, and are hesitant to put all their eggs in one network marketing program basket.

Maybe their old company changed the comp plan without notice and they lost thousands in monthly income overnight, or maybe they even lost their downline after being falsely accused of violating company policies. (Yes, this happens – rarely, but often enough to make it a concern for many veterans in the industry).

So, some veteran networkers will build a downline in a company, then move on to another company to do the same (over and over again), all in hopes of creating multiple checks. That way, if one company doesn’t work out, they have “insurance.”

I completely understand why this is done…

Why I’m Sticking With One Company

Look, I know how attractive gimmicks can be. But, here’s the thing – I’ve never seen anyone build a solid, long-term residual income jumping from company to company.

And, for the last few months I’ve been getting steady checks from one company that I have grown to like more and more. I do very little to promote this company, other than posting links and promoting a few simple websites online. That’s it. Yet, my organization has been growing steadily and I am getting paid each week on that minimal effort.

The fact is, I am getting much better results from the minimal effort I put into this company than I have from other network marketing programs that I’ve been investing more time in. So, I am sticking with this company and focusing my efforts on it to see what I can accomplish over the next two years working this network marketing program.

If you’d like to see what I believe will be your last network marketing program, then…

Click the link below to find out more:

http://mavericknetworker.com/mlmonturbo

In part 1, I provided three reasons why people rack up debt starting their network marketing businesses, and how to avoid it. In part 2, I examine ways to get your business in profit and how to keep it there.

Network Marketing = Marketing = Sales

This is an elementary element of business that in my experience the majority of people starting businesses – any business, in fact – fail to recognize. Think about it… you are entering the network MARKETING industry. The purpose of marketing is generally to sell something.

So, you should expect to learn to market and learn to sell.

Not only that, but you need to expect to fail at first (which is why you need to focus on low-cost and no-cost marketing). Yes, I really did say that – expect to fail! Everyone does, in every business no matter what it is, traditional, online, MLM, whatever. Failures are how we learn.

Note that I only use the term “failure” because it’s the common term. However, I prefer to reframe “failure” into “learning experience.” And believe me, I failed (er, “learned”) my fair share in the traditional business world, the only difference being that the stakes were a lot higher there!

Sell Your Products, Make Profits

Retail sales are the simplest way to increase your cash flow in your business. If you can’t sell your products, you need to ask yourself the following questions:

1. Is it me? Do I lack the skills necessary to sell effectively? If so, this is a challenge that is easy to fix; go get Kim Klaver‘s “Three Scripts” and “If My Product’s So Great” course and books. They offer a simple solution to the cash flow issue most networkers run into, and they will help you get over your inability to retail your products.
2. Is it the products? Would I buy this product even if I wasn’t selling it? Personally, I can’t sell something I don’t use or don’t believe in, and if you don’t believe in your products you won’t either. The products I sell actually help me feel better and I use them, every single day. If you can’t say the same, you need to find another product and company you can believe in.

Sales = Profits, it’s as simple as that. Plus, retail customers don’t opportunity-hop, either. Stabilize your business by building your retail sales, and you’ll find it easy to stay debt-free when starting your network marketing business.

Build Your List

Having been a successful online marketer for some time now, I have learned that it really is true that the money is in the list. I built a very small (for most full-time marketers) list of 2,000 names in an obscure niche, and it has sustained much of my business sales and income for quite a while now.

The reason it is so profitable to build a list is that:

• It allows you to build a relationship with your list members by building trust with them over time -
• You can market to your list over and over again -
• It’s free (except for the cost of your autoresponder system)

Besides all that, your email list IS your lead list, which you should be building anyway. Automating it by inserting a lead capture form on your site just makes good sense. If you haven’t done this yet, start now by setting up your blog online and installing a form to capture leads on it immediately.

Fund Your Proposal

“Funded proposal” is fancy marketing speak for getting paid to collect free leads. I don’t know who came up with the idea initially, but I’ve heard it from several different sources and read variations on the theme in a half dozen network marketing courses.

Here’s how it works:

1. You set up a website to capture leads…
2. That website offers some sort of free giveaway to entice people to visit and fill out your form…
3. The free offer includes a backend sales offer for a product that you either own outright or that you get a commission from…
4. A percentage of your leads will end up purchasing that product, thus funding things like your monthly cost of purchasing products from your company, your web hosting, and so forth.

It’s a really simple, yet brilliant and powerful concept. Only three caveats though:

1. Make sure your giveaway and backend product really has value. I suggest that whatever product you promote, that you choose something that has actually helped you in your own business.
2. Don’t oversell it. Talk to your prospects like you would talk to a friend. Trust is a fragile thing – abuse it and you’ll lose it forever.
3. Don’t get so tied up in affiliate marketing that you forget to grow your business… you know, that network marketing thing that got you into this stuff in the first place? That’s your REAL backend product, and don’t you forget it. If you’ve chosen the right company, it will be there for you long after the sizzle from your front end funded proposal fades away.

Wrapping It Up

Let’s recap:

Strategy #1 – Learn both marketing and sales skills.

Strategy #2 – Retail your products and build a strong customer base.

Strategy #3 – Build your list using an autoresponder to capture leads.

Strategy #4 – Use a funded proposal to pay for your remaining business costs.

The above four strategies and concepts will transform you from a hobbyist into a respectable business owner who turns a real profit in your business. Implement these strategies and you can quickly and reliably create an additional income stream. Believe me, this is a much more powerful business model than the traditional network marketing approach that causes so many new networkers to fail.

As a long-time small business owner and small business start-up coach, it worries me that so many people get themselves into debt starting their network marketing businesses.

The whole point of starting a home business is to have low start-up costs, low overhead, and high profit margins. So why is it then that so many new distributors spend so much money (often on credit cards) in order to get their business launched?

Three Reasons Why People Rack Up Debt In Network Marketing, and How To Avoid Them

Reason #1 – Upline Pressure

One of the principles of Maverick Networking is to do things the right way, with integrity, and to always act in the interests of your customers and downline. If your upline is pressuring you to front-load (buying more product than you can sell or personally consume yourself up front to artificially boost your volume), you should find another team. Front-loading is never a good idea, and in fact it’s illegal to pressure your downline to do it in some jurisdictions. Don’t do it.

Additionally, if your upline leaders pressure you into purchasing expensive marketing or education tools, or to make expensive trips to attend regional or national conferences or trainings, you should find another team to work with. You should never spend more than your business is profiting on your business. Period.

I know this flies in the face of what 99% of network marketing coaches and leaders tell people to do, but it is based on solid business principles that have worked for me over nearly two decades of business ownership. Debt does not build businesses; cash flow does.

So, build your cash flow first, then you can spend money on more costly marketing methods, tools, and trips… if and only if you think they will increase your income and grow your business.

Reason #2 – Impatience

I know it’s enticing to think about the prospect of getting rich quick. However, they call them “get rich quick schemes” for a reason. Sure, your sponsor or someone in your company might have built a huge business quickly by spending “X” amount of dollars a month on pay-per-click ads, banner ads, solo ads, display ads, direct mailings, and any of the numerous other costly methods for advertising a network marketing business.

However, what you may not realize is that the person who built a large business using those methods may not have started off that way. In fact, they might have started using cheap and free marketing methods, then reinvested their profits back into their business in the form of paid advertisements. Additionally, they may have a background in marketing, advertising, and promotions that you don’t have, allowing them to maximize their return on investment for using those paid advertising methods.

Moreover, in this day and age you simply do not need to spend any significant amounts of money to advertise your business. There are so many cheap and and free marketing methods and tools available today, it makes spending money to advertise almost an afterthought. Sure, those cheap and free marketing methods might take a little more time to implement, but they certainly won’t cause you to rack up a bunch of debt on credit cards, either. That’s exactly the way I am using to build my home business, and you should consider doing the same.

Reason #3 – Laziness

But, the downside to the cheap and free marketing methods available today is that:

1. As I mentioned above, they require time to implement them effectively…
2. And, they require work to use (there’s that four-letter word network marketers seem to dislike so much).

The truth is, many of the people who are attracted to network marketing end up in the business because they don’t want to work and they want to get rich overnight.

Well, guess what? That ain’t going to happen. I’ve met and studied many a successful business owners in the network marketing industry, and in almost every single case they worked extremely hard for several years to achieve a six-figure or seven-figure income in the business.

What’s The Takeaway?

The bottom line is that you need to approach the network marketing business like a business. Control costs. Increase profits. Work hard. Have a long-term strategy.

By doing so, you will not only ensure that you avoid racking up a ton of debt to start your business, but you will also have created a hedge against your own failure in the business. Simply by taking an honest and realistic approach to your business, you will ensure both your financial stability, as well as your likelihood of success.

(You can read Part II of this article series here.)

Hmmmm…

Here’s my take after being a member of both lead generation and recruiting systems.

CCPro – Carbon Copy Pro Review

CCPro is a good system, but I found it to be a bit glitchy, difficult to set up, and with an unresponsive support system. Of course, this was a few years ago, so they may have improved the system by now.

Also, the higher price tag on Carbon Copy Pro and the high-cost backend (and the fact that it was designed to ultimately promote one opportunity) make it a harder sell. In addition, I found the marketing training to be overwhelming – it was just all over the place. Combine that with the fact that I was told I had to be spending $2K a month on PPC to promote the system (and WMI) and I was quickly convinced this was not something that could easily be duplicated by the average person.

MLSP – My Lead System PRO Review

My Lead System Pro is a much better system, in my personal experience and opinion. I was able to set it up in a matter of a few hours, and it integrated flawlessly with my own autoresponder and domain (this was super simple to set up – the videos explain 99% of what you need to know to do this). The fact that it can be used to promote virtually any business or company makes it greatly appealing as well.

And, the lower monthly price tag puts it within reach of most beginning network marketers. Almost anyone can fork over that initial $29 to get started, and if they hustle they can work the simple marketing steps in the training area, and get their membership paid for in the first month. Anything after that is icing on the cake, since you’re basically getting paid to get free leads.

In addition, the training mainly focuses on free methods. I like the fact that Norbert and Brian say over and over again to stick with the bare minimum as far as your expenses go, until your system and efforts are paying your costs. The system allows you to ramp things up gradually – this is exactly how I would train a new distributor to start marketing their business.

My Lead System PRO versus Carbon Copy Pro?

I’d have to say that I’m an MLSP fan, 100%.

In Closing…

This is just my own experience, so you should try it yourself if you want to be absolutely certain you are choosing the right system for your team. Ultimately, I believe that Jay and the guys behind CCPro and Norbert, Brian, and the folks behind MLSP are both just trying to help people in the industry, and that’s to be commended no matter my personal opinions or preferences.

I certainly didn’t have tools or training like this when I was first starting out… and it just floors me that a total beginner like David Wood can take a system like MLSP, and build a huge business in just 10 months.

I have to hand it to these guys who put their necks on the line to provide these sorts of tools and training. Yes, they are making good money selling shovels… but honestly, the shovels are more like backhoes these days, and you have to give them credit for providing a lot of value at a very low price point.