Blog Post #8 - Overcoming Objections (Part 2)

Objection #2: You can't make money in network marketing.

This objection is actually my personal favorite. I love it because it makes me smile every time I hear it. Not in an arrogant way but because I too used to believe that same thing. However, after working as a corporate employee for 2 different network marketing companies over the past 6 years, I realized that I couldn't have been more wrong.

Let me illustrate how silly this objection is by sharing some industry statistics. Some of the latest statistics show that the network marketing industry is worth around $180 billion dollars. Yes, you read that right, $180 billion dollars. That's about the same as the music and movie industry combined...and then doubled. Now, remember that network marketing companies, on average, take about 40% of their revenues and use that to pay commissions to their distributors. So lets do the math: 40% of $180 billion = $72 billion dollars. $72 BILLION DOLLARS is being paid out to independent distributors on a yearly basis. That's approximately $6 billion dollars a month, $1.4 billion dollars a week, and $200 million dollars a day. If you can't make money in network marketing then I would like to know where that $72 billion dollars a year is going...

Bottom line is this: People make money in network marketing....if they are willing to make an effort. Some people make part time money, some people make full-time money, and some people make big time money. I've seen the checks with my own eyes. Sure, there are a number of factors that play into how much money a person makes (timing, compensation plan, building strategy, etc.) but do you know which factor makes by far the biggest difference? How hard a person works. Nothing trumps working hard. Ever. As mentioned in previous posts, however, most people want a get rich quick scenario and for some reason think that network marketing shouldn't have to be treated like a business yet it should pay like a business. Makes no sense....I'll leave it at that before I go off on a tangent...

Objection #3: I'm not a salesman/saleswoman

I HATE when people say this to me. I understand why they say it but it just reminds me how little people understand about network marketing. (I remember I was the same way). Most people think they understand it but then when you explain it to them (if they let you get that far) a little light bulb turns on in their head and they become much more open to it.

Network marketing is not sales. Network marketing is education. Education on products/services and business opportunities. If you educate people and as a result they become interested in the company, then you encourage them to sign up as a wholesale member in order to get the products at a cheaper price. If they do this then the company is grateful to you for bringing them more business. They then pay you a commission for that. Now, keep in mind that everyone already does this type of thing ALL THE TIME but isn't paid for it. For example, lets say you try out a new Mexican restaurant and you love it. It's the best food you've ever tasted! What do you do? You tell your friends about it. You post it on Facebook. You go back a few days later and take some people with you so they can try it out too. And now your friends start telling their friends, and those friends start telling their friends, and so on. You just got that Mexican restaurant a whole bunch of business and made them a ton of money! They'll pay you for that, right? I mean, you did a whole bunch of advertising for them so you'll be compensated, correct? Nope! I'm sure that restaurant is grateful for the new business but you can bet that you won't get a dime from them. Well that kind of sucks, doesn't it? That's the beauty of network marketing. Good network marketing companies innovate and create unique, valuable products that make a difference in people's lives. So if you try their products, have a good experience, and then tell your friends about them, they'll compensate you! That's not sales! There's no quota you're trying to hit! That's educating people on something that you like and because you care about them you're telling them about it! Let me emphasize this point by pointing out that studies have shown that the people that are the most successful in network marketing were not salesmen in their previous careers. They were teachers. Teachers educate. That's not a coincidence. You're already educating people all the time about things that you like so why not get paid to do it?

Side Note: I won't spend too much time on this but a common misconception is that network marketing is the same thing as direct sales. (You know direct sales people, they're the ones that are always saying things like "I just need to sell 4 more of X in order to get my next promotion!") It's not the same. There are some similarities but usually, direct sales is much more focused on the act of selling products and collecting the retail profits as opposed to the network marketing model where you focus on signing up people as wholesale members on your team and building an organization. Network marketing is preferred in my opinion for a few reasons:
1. It's usually cheaper to invest in ($40 at my company).
2. Doesn't require monthly quotas of sold products.
3. Its much easier to do part time.
4. It allows you to leverage the efforts of other people, not just yourself.
Direct selling people are recognized for the amount of product they personally sell and is great for short term money, but network marketing is where people turn when they are looking to build a residual, long term income. 

Comments on my blog are always welcome. However, if you'd like to reach out to me privately my email address is kalfreedomgroup@gmail.com. Thanks for stopping by!