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Categorizing Today’s Network Marketing Opportunities

With all the different companies to choose from today, I thought it might be the perfect opportunity to revisit the different types of opportunities. Where does your company fit in? Comment below and i’ll give you my opinion!!


Category 1 – “The Bottle Rockets”

Now these opportunities actually often do experience the exponential growth curve. But of course their downward trajectory is even more dramatic, once they experience the regulator scrutiny that is inevitable for schemes like these.

It’s important to understand that the opportunities in this category are NOT Network Marketing programs, even though they often claim otherwise. These would include chain letters, recipe clubs, the airplane game, the magic gas pill, and other schemes that are just excuses for people to move money to the top of the structure. They are illegal and they hurt people.


Category 2 –  “The Old Guard”

Now these are the companies that hit and actually sustained momentum for a significant period of time. They are now billion-dollar-plus companies and have already created legacy incomes for people who got in early and became a reason for their growth. These are fine companies offering stability and the chance for a steady income.

But most industry experts would agree with Randy that your chances of creating significant wealth with them have expired. They have reached a level of maturity that prevents someone from starting with them today and creating large bonus checks or exponential growth.


Category 3 – “The Flat-liners”

These companies are the bridesmaids that never got to be the bride. They have been around for a long period of time, but never hit that exponential growth curve. The only growth they have, if any, is incremental growth, usually coming from opening new markets. In the markets they have been operating in for long times, these companies have failed to capture the imagination of the public.

There are many reasons these companies did not reach momentum. Often it is because their products are not viable, their compensation plan does not promote the correct behavior, or inexperienced or poor management.

Of course these companies often tout their longevity and suggest that momentum is imminent. But history has shown that the companies that reach momentum today do so in the early years. It’s virtually impossible to create substantial wealth with a flat-line company, unless you are willing to hang around for decades.


Category 4 – “The Peddlers”

These programs probably create more misunderstanding and broken dreams in the business than any other. Because most people are not aware of the distinction between the small business model (primarily retailing products) and the big business model (developing duplication and creating a large team of distributors that produces large group volumes).

These programs include the numerous party plan companies, phone and utility services, legal plans, discount cards, air and water purifiers, insurance, and other plans that are geared for salespeople. The big problem with these scenarios is that they completely miss the formula for creating wealth in Network Marketing:

“Get a large group of people – to do a few simple actions– over a consistent period of time.”

The reality is about 10 percent of any population could be classified as sales types. They have developed selling skills, have no fear of rejection, and they are constantly on the lookout for new prospects. They drive around in their car all day listening to motivational recordings and say things like, “I LOVE to hear a ‘no,’ because I know after another eight ‘no’s’ I’m going to get to a ‘yes!’”

That means 90 percent of any population would have to be classified as non-sales types. They don’t know how to sell, they hate the very idea of it, and they’re deathly afraid of rejection. They don’t want to wear buttons with corny slogans on their clothes, make cold calls, and chase after strangers at the shopping mall. They will use the products themselves and they feel comfortable referring them to a select group of friends. But they don’t feel at ease in a sales role or “playing store.”

As a result of this, these 90 percent do not do well in the peddler companies. They may join initially after a good product experience, but they soon are out of their comfort zone and usually drop out, or remain customers but do not actively build the business.

Naturally if we want to follow the first part of the formula – get a large group of people to do a few simple actions – it makes sense that we would tailor our approach to the 90 percent, not the 10 percent. That is the fatal flaw in the peddler companies, in that their approach is geared to the ten percent of sales types.

A strong salesperson can produce a large income in one of these situations. But it will be dependent on constant activity to replace the “churn”–the large number of people that drop out each month. Of course this means that they don’t have any true passive income, making them destined to be grinders for as long as they work the program.


Category 5 – The “Holy Grail”

Our final category is where true wealth is created in Network Marketing. This is an emerging company that possesses what it takes to hit and sustain momentum, and become the next billion-dollar success story. This is where legacy incomes and substantial wealth are created.

Now of course every new company believes they are the next “chosen one.” And the distributors that prospect you aren’t intentionally telling you an untruth. They honestly believe what they’re saying. Unfortunately most do not have enough experience, knowledge and perspective to really understand what’s required for a company to go into momentum.

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