It might seem obvious, but upon closer inspection maybe it’s not so clear after all.

One would think that because network marketing is a proven business model, that most participants would be making money with it. Unfortunately that’s not so.

Let’s look at some industry statistics first. Then I’ll give you some key ideas to ensure you are one of those who always profits.

A Revealing Peak Behind The Scenes

As of 2020 there were just shy of 65 million people around the globe who were participating in one network marketing company or another.

According to an AARP survey, only 27% of them broke even or did better.
The rest lost money.

Out of that 27% about 14% earns under $5,000 per year. 6% earn between $5,000 and $9,999. 3% make between $10,000 and $24,000. Another 3% earn $25,000 or above. And only one half of 1% (0.05%) make $100,000 or more.

With numbers like that it’s a bit shocking that there are 65 million people around the world doing network marketing.

What Accounts For The Difference?

Why is it that some people can go from extremely humble beginnings to achieving tremendous financial success while the majority seems to flounder around in mediocrity and failure?

When you examine the life stories of those tens of thousands of people who achieved fame and fortune through network marketing over the decades, you’ll see that hardly any of them had some kind of special advantage.  Many of them started out broke, depressed, and desperate.

Of course, when looking at any large group of people, one must remember the “Pareto Principle”, which is often called the 80/20 rule. That rule postulates that 80% of the people (or any given action) produce just 20% of the result while 20% of the people (or any given action) produces 80% of the result.

That rule seems to hold true in nearly all cases where large groups of people are compared.

It also holds true for the ACTIONS which one takes… 20% of your actions will produce 80% of your results.

Maximizing Your Effectiveness

There are many things which can take up your time during the day. Life is full of an overwhelming number of distractions.

However, in order to make money with your network marketing business, you must focus on REVENUE GENERATING ACTIVITIES, or RGA for short.

Take an honest look at what you spend your time doing during the day.  Stop and ask yourself… does what you’re doing at that moment stand the chance of helping you to generate an income? Yes or No?

If your goal is to make money, then you must put aside whatever tasks are eating up your time in non-income-producing ways. You must focus yourself on Revenue Generating Activities.

RGA: What’s Most Important?

In network marketing you get paid for selling products and services, whether it’s to someone who is only a retail customer or to someone who is also a rep.

That means, if you want to make money, you must do everything in your power to sell more products and services.

Some of the most obvious Revenue Generating Activities are

  • prospecting for customers/distributors
  • making product presentations
  • showing the compensation plan to prospective distributors
  • doing follow up contacts with those you’ve already made presentations to
  • working with your newest recruits to help them sell products or services.

Following the 80/20 rule, you’ll discover that most network marketers spend the majority of their time searching for interested people.  They spend 80% of their time prospecting.

Applying the Pareto Principle, it means that the largest percentage of their time spent prospecting is generating only about 20% of the result they desire (finding interested people to present).  Not a great ratio.

Suppose for a moment there was a way to spend the majority of your time making presentations on your products and your opportunity, rather than wasting time searching for interested prospects.  Can you see where changing that one ratio would have an overwhelmingly positive effect on your profitability?

You can virtually eliminate the drudgery of prospecting when you work some sort of “Lead Program”. That way, the majority of your time is spent making presentations which will lead to more sales.

Working A System

One of the things that every network marketing top earner does is to work a system.  In other words, they are not haphazard about how they go about building their business. They have a plan that they diligently carry out each month.

In order for any business building system to succeed in network marketing, it must be duplicatable.  That means it must be a series of actions that can be taught to new reps and replicated by them.  In other words, you are multiplying the power of your efforts with other people. That’s also called leverage.

Understanding Leverage

Let’s say you have a system for connecting with interested prospects and you’re able to consistently make 3 presentations a day to different people.  If you’re working a 5 day week, that’s 15 people a week you’re “pitching”.

Further suppose you are able to close 1 out 3 presentations. That would mean you’re closing 5 sales a week or 20 sales in a month.

Now let’s apply leverage.

If you work with each of the 20 people you sold, and taught them to do what you’re doing, then each of them would be making 15 presentations a week and closing 5 sales a week.  During the course of the following month that works out to 1200 presentations and 400 sales being made. (20 people X 15 presentations X 4 weeks)

Of course we’re just playing with arithmetic here. Those numbers are just to help you visualize the potential power of leverage.

In Summary

I’ve done what I can to give you a fair look at some of the realities facing the modern network marketer.  But clearly this is a big topic.  In order to provide you the maximum assistance, I’ve created a number of detailed, easy-to-read training guides that I believe you’ll find to be very beneficial.

Even better, they are yours for the asking. My gift to you. No charge.


I hope you accept my gift and apply the ideas contained in those guides so that you too can build a successful, profitable business and enjoy the lifestyle of your dreams.