If You Want To Gamble, Then Go Buy A Lottery Ticket At The Supermarket. By Paul Morris

If you want to gamble, then go buy a lottery ticket at the supermarket. By Paul Morris

“Network marketing is not a gamble if you have joined a solid growing company that has been in business for ten years or greater. There are strategies and business building techniques that can pretty much assure your success IF you are teachable and are willing to be coached and follow proven guidelines.”

The reason I suggest a company that is ten years old or greater is that this past year four companies that were five years old went out of business and last month a ten-year-old MLM company closed it doors.

I believe we all have a little bit of gambling instinct in us. It is also called risk taking. Some of us are willing to take bigger risks than others, and some desire to take no risk at all. We gamble that the stock we purchased goes up in value. We gamble that the home we purchased will go up in value, yet those purchasing home in 2007 saw the value drop by a third to almost in half the following year.  We take a risk that the airplane we fly in will take off and land safely.  We take a risk that the vehicle on the other side of the road coming at us a 60 miles per hour will stay on their side of the double yellow line.

So, if we all take risks, then what risks are we willing to take? 

I believe that deep down inside we actually take calculated risks where we believe the odds are in our favor.  The odds are the plane will take off and land safely. The odds are that the other vehicle will stay on their side of the road. The odds are that the food being served in our local restaurant will not poison us.

But what are the odds of success in Network Marketing?

The answer to that depends on a variety of factors. The experience of the management team, the capitalization of the company, the legality of the compensation plan, the efficacy of the product;

  • does the product do what they say it does?

  • Is the product reasonable priced?

  • Is the identical or very similar product available on Amazon or eBay for half the price?

  • With growing trends for organic products with no synthetic ingredients or harsh chemicals is the product a product that the discerning public would purchase?

  • Is the company already established in many other counties, or are they already in a few other countries and are rapidly expanding into other countries as we speak?

  • Is the product line expanding each year with consumable products that customers will consume and soon need more of and then repurchase?

  • Are their distributors already earning substantial money from the compensation plan?

  • Are their earnings from promotional volume or consumption volume?

  • Promotional volume being purchases much greater than one can consume often in the form of large enrollment packs with duplicates of the same product.

So, what is the significance of the above criteria?

Simple; you want to minimize your risk of the company going out of business after you have invested hours and hours of your life over a period of several months or years only to have the company close it’s doors and go out of business leaving you with nothing but broken promises and all your dreams going up in smoke.

Let’s look at the odds of success in the Network Marketing industry. It has been determined based on track record and historical data by several suppliers to the Network Marketing industry that approximately 76 to 78% of all new MLM start-ups are out of business in one year, and 90% or more are gone the second year.  Although several companies may still be in business in 5 years, only one or perhaps two will be growing doing significant volume of a million or more a month in sales volume. In ten years, the odds are that only one will still be business doing millions of dollars a month in sales volume.

With these odds of success in our industry, which by the way, run a similar parallel in the traditional world as well, we may look at joining start-up MLM’s as a form of gambling.  The challenge is that the odds really are not that great.

“The problem in our industry today is that the average person joining MLM is coming in with a lottery ticket mentality.”

This “lottery ticket mentality”, was fostered by binary compensation plans and 2×10 matrix plans where it only required enrolling two good networkers to earn some decent money. The distributor with that type of mentality joins with the hope to sponsor a heavy hitter on the left and another heavy hitter on the right and then retire.  And while there are a few isolated examples of this happening in real life, the odds of the average person joining MLM of having that occur are not promising at all.

The stand-alone Binary type compensation plans is what created this lottery ticket mentality in the first place and has done a disservice to our industry. Most compensation plans today are hybrid plans that are a combination of several types of compensation plans and still require the enrolling of many customers and distributors to develop true consumption volume that will produce strong earnings that have the potential of becoming long range residual earning.

The distributor with the lottery ticket mentality will join a company when it is a few days old, ignoring the odds of failure, and call all their heavy hitter friends as fast as they can before someone else calls them hoping that IF the company stay in business, and IF their friends decide to build it, they will become wealthy from that first few days of effort. If by chance their heavy hitter friends have already joined, then they are off looking for the next deal where they can be the first one to call their friends.

“We have got to stop this madness of jumping from one program to another with this lottery ticket mentality”

Getting sucked in to this trap can become addictive and one can find themselves on the merry-go-round of always looking for the next quick hit instead of finding a home with a solid company that is built to last.

I have been contemplating starting a group for Network Marketing Junkies that are addicted to joining the next new ‘ground floor’ MLM company. But I realized I would have to close the doors and start a new one every six months in order to attract them to join.  LOL

“We must stop gambling with our money by joining all these start-up companies in hopes that it will be the one out a hundred that will still be in business and still growing in 5 years.”

The more serious downside of gambling with start-up MLM’s is not just the money lost, but the TIME WASTED!  It has been said that ‘time is money’, but it is so much more than that… time is life, YOUR LIFE!

“You can lose money and simply earn it back, but you cannot reclaim wasted months or years lost on a program that went out of business.”

Worse than wasting our own time and money, we involve our friends and relatives who also lose their hard-earned money and waste their time. Sometimes the greatest loss is their friendship when they get mad at you for enticing them to join the program.  They trusted you to have made sure it was a solid program and when the company fails, they blame you. At least if you gambled by purchasing a lottery ticket, then you were the only one to lose and it did not cost you a lot of time, other than the time that it took you to earn the money to buy the ticket.

So, if you want to gamble, buy a lottery ticket.  If you desire to have a solid business with the potential of creating strong residual earnings to pass on to your children and grandchildren or to your favorite foundation or charity, then join a legitimate solid Network Marketing Company that will be here for years to come.

Paul Morris

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“So if I asked someone to give me a dollar and I would give them $900 in return, how fast would they do that and try out our offer?”


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