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Ask Dave

Is Multi-Level About Money?

Mary doesn't know if she wants to stay in the multi-level marketing business.

QUESTION: Mary in California has a multi-level business, and she isn't making much money. She isn't sure she wants to stick with it. Dave tells her the keys to succeeding in that business and asks her if she wants to stick with it.

Dave's ANSWER: The only people you are being told about are the ones who are making money. There are a lot of people who aren't making money. The really good ones are good salespeople and good recruiters. There is money to be made in multi-level.

But like a lot of business, it's a small percentage of the people who get into it that do it. A lot of people don't have that particular skill set. The thing you realize already is that selling what you are selling is not where the money is. The money is in recruiting. You need to ask yourself if recruiting and building a high-turnover, large-sales organization is what you want to do for a living.

You need to look into the future and ask if you see yourself with 50 or 100 or 300 people in your hierarchy, knowing that 20% of them are going to turn over every 90 days or whatever the number is. If you've been in it for 6 months, you've already seen a bunch of people leave. They didn't make it a month.

A lot of people don't want to do the hard work and make the contacts and talk to people about joining the organization. You have to say that you want to be a recruiter and trainer and grow other recruiters and trainers of salespeople. If that's what you want to do, multi-level marketing is a good thing for you. Stick with it and build your hierarchy up.

But if you just want to make a little money by doing something on the side, you probably need to be doing something else.