Have you ever wondered how wealth is created in network marketing? Perhaps you’re still wondering if it’s a “real” business, as there are no “bricks and mortar” involved.
First of all, what is wealth?…
When most people think about wealth, they think about “money getting”, or making more money. But Robert Kiyosaki has a very simple definition for creating wealth – it’s not about how much you make, it’s how much you keep!
Joe Sugarman has a very profound view on this as well. He says, whatever you focus on expands. If you focus on your health, then your health expands. If you focus on your business, your business expands. But if you focus on money, you will always chase money because money is NOT REAL.
Money is NOT REAL!
There’s never been a time when this has been more true. Every currency in the world is fiat. There’s nothing of intrinsic value such as gold or silver backing our money at all – just hot air and faith.
Money is only a representation of value. It’s a very efficient means of value exchange. It’s so efficient that major corporations, banks and governments have figured out how to “extract” tremendous wealth from the general public through fees, taxes and currency manipulation.
Every fiat currency in the entire history of money has eventually gone to its true value: ZERO. It’s a pattern that repeats over and over again, and if history is anything to go by, it’s going to happen again soon.
What the Rich Do that Others Don’t…
People who are rich are smart enough to know. The rich don’t keep their wealth in money. Nor do they chase money.
Instead, the rich build and accumulate ASSETS. They accumulate assets which grow in intrinsic value and throw off extra value in in the form cash flow into their pockets, which is why the rich get richer and richer.
Network marketing is no different. Creating wealth in MLM is also about building assets that grow and cash flow.
The asset that’s built in network marketing is not tangible like real estate, stocks or a brick and mortar business.
The real asset in network marketing is not the company, the products, it’s not your list (…SHOCK!…), it’s not even your ability to promote the opportunity, although these are very important assets.
The REAL asset built in MLM
The real network marketing asset is completely intangible, but in my opinion, the most powerful asset of all: RELATIONSHIPS. They are the fundamental building blocks of a network marketing business.
You can accomplish ANYTHING if you have the right relationships with the right people. This is as true as the sun will shine tomorrow. On the other hand, your life will suck if you have the wrong relationships.
Relationships guarantee security against adversities that may affect any business. Companies can collapse, products may go out of style, but if the relationships between distributors stay strong, then there really is no concern.
Build People, They will Build the Business
If you commit to building people through education, coaching and mentoring, you will build much wealth in network marketing.
I never treat this business as numbers game, because people are people – not numbers.
And just as Kiyosaki explains about money, it’s not how many people you can recruit that matters, it’s how many you keep.
The people aspect of this business will never become obsolete. Study and understand people, learn how to build strong relationships and you’ll never have to worry about money again.
To your MLM success,
Wayne Wu
P.S. I would love your input! If you have an opinion that would contribute to this discussion, please leave me a comment below.
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{ 25 comments… read them below or add one }
Spot on post Wayne.
The pure wealth is creating a relationship with your list of people. And, building a long lasting relationship can create clients (not customers) for the years to come.
This is how to separate yourself from everyone else.
Have a great day,
Jerome Ratliff
Jerome Ratliff´s last [type] ..What’s the One Thing You Can Do to Move Your Network Marketing Business Forward
Hey Jerome,
And that’s true in any business.
I think you have hit the nail on the head. So many people miss the point when pushing massive list building (though we need to have people), ways to get hundreds of leads a week (how many join you?) A solid relationship with a small number of people cements friends and business partners for life.
Recently Tom ‘Big Al’ Schreiter told me that less than 10 really good front line, solid business partners would bring true financial freedom. That’s a thought!
Charlie Holles´s last [type] ..Team MLM – is it so important?
Hey Charlie,
That’s the case with every top leader in this industry. Most of their money only comes from a handful of people who are just as hungry as they are.
Hey Wayne,
SO true! Relationships are the key! Building great relationships with your team is powerful! I have seen this first hand. As a former mlm director…when I choose to move on to COA with my husband…I have team members (friends) from my previous business very interested in what’s going on at COA.
Care about people…pour your heart and soul into them. After all, it’s better to give than to receive.
Have a successful week,
Tragena
Hey Tragena,
Welcome to my blog! Chris has done an amazing job with COA. And this is exactly what I’m talking about, because when you have these relationships, you have a team of people who can help you take things to the next level.
Very true! What a great post! Relationships are definitely the real asset! If you change your company or even your entire direction in your business the people that you have built relationships will follow where you go and be your real support and help! People want to invest in people, not a product!
Stacy´s last [type] ..You MUST do This to be Successful!
Hey Stacy,
You got it, my friend. You’ve got to invest in people. This will secure your future in any business.
Hi Wayne,
This is an awesome article, man!
This just illustrates some fundamental beliefs I have…
You have to build your list, build your relationship with your list, and you have built enough trust and goodwill where they’re willing to buy stuff from you.
Derek Alvarez´s last [type] ..Monique Alvarez Interviewed by Sta.rtup.biz
Hey Derek,
Trust is such an important factor in business, isn’t it? Giving value is how you build that trust.
Hi Wayne,
You nailed it! The value of a relationship built and nurtured over a lifetime is worth much more than a quick sale. If you have people who know, like and trust you, how much will they buy from you over a lifetime? How many people will they refer to you? It’s priceless! Treat people well and they will return the favor.
Be blessed,
Ilka Flood
The EnlightenedNetworker
Ilka Flood´s last [type] ..Not Ready to Step Out of Your Comfort Zone?
Hey Ilka,
You said it: “the value of a relationship built and nurtured over a lifetime is worth much more than a quick sale”, but you see so many people who can’t delay their gratification and just want that quick sale. Build KNOW, LIKE and TRUST, you can’t go wrong.
Hi Wayne,
Awesome post on money.
Relationships are one of the powerful intangible forces in the world. As you mentioned businesses come and go but if you have built strong relationships your business will never suffer. This is why people like Donald Trump come back so quickly after being bankrupt. He has friends in high places – powerful relationships built over time – who are happy to lend him capital because they trust him and believe that he will prosper them as well as himself. It all started with relationships.
Thanks for sharing,
Ryan
Hey Ryan,
Welcome to my blog, man! Thanks for visiting and sharing that story on Donald Trump, one of my many inspirations. That’s a perfect illustration of just how powerful relationships can be. As I progress, one of my goals is to befriend more and more people in high places, because you really can accomplish ANYTHING if you have the right relationships.
Hey Wayne,
You are right on with this post. The money is definitely in building a list and developing a relationship with that list. If you develop a list of rabid followers, you can build wealth with just about anything.
Eric McMillan
Hey Eric,
Yeah. But I’d like to add to that the more personal the relationship, the more power you’ll have. So it’s important to get phone numbers and call those people too, if you can.
Hey Wayne,
What a great job with this! It’s all about building the relationship. No relationship – no business.
Business revolves itself all around relationships. This is where most screw it up. That is why everyone needs to read this.
Chat with you later…
Josh
Josh Garcia´s last [type] ..How To Setup a Blog For Your Business to Flourish
Hey Josh,
Thanks buddy. You see, big corporations don’t get this either. When they’re laying off people in a recession they tell them not to cry, it’s not personal, it’s just business. Well of course it’s personal. Business IS personal.
If you don’t treat everyone as an asset, well, it’s like trying to fill a leaking bucket…
Mi amigo, this has been another great week of knowledge for me, I’m living at last what I always heard that you become like the people you hang aroud with… in a marvelous positive way. This article is revealing, just great.
When thinking about our personal goals, it’s tricky not to get focused on money. The trap here is that It’s the same thing as focusing on the lack of it. A healthy person would not focus on medicines because there’s no need at all. Wealthy people focus on the lifestyle, not on money as the final goal. Now I think about the things I enjoy that excite me and building relationships is a process that brings out the best of me. Excellent post my friend
Hey mi amigo!
I’m glad you got some great insights. It’s very easy to focus on the money because that’s what we’re conditioned to do. Some very clever, elite people have made our entire reality revolve around money.
I love what you said about a healthy person not focusing on medicines, because medicines are not the cure, they can only provide temporary relief. The cure comes from within, focusing on things conducive to good health.
It’s the same with money. Only temporary relief. Real wealth has to be cultivated from within.
Hey Wayne,
Great post my friend.
In today’s trend of building businesses online, some poeple tend to forget that it’s not the numbers that count, but the relationships with the lists that we build online.
Building your business offline gives the perfect example of how important the relationship with your prospects is. Because in the offline world, noone cares about you or your business until they know how much you care.
This is how someone with a small list of prospects can be prosperous whereas someone with a large list may not succeed.
You always hear of people preaching that the money is in the list. You put it correctly my friend…….the relationship with the list is the asset! The long-term success of any business depends on this relationship.
Thanks for the enlightening post.
Michael
Michael T. Makahamadze´s last [type] ..Are You A Struggling Home Business Owner……Here’s How To Guarantee Your Network Marketing Success
Hey Michael,
Great insight. A lot of internet network marketers are missing that important relationship building part that would be a lot more prevalent in offline network marketing.
People will only join people who they KNOW, LIKE and TRUST. You have to get to know people on a personal level to build these things.
Hey Wayne,
Seems like you put a lot of thought into this one. I agree, and I have a pet peeve that fits this too. It’s not just the relationship that you build before the sale. It’s the relationship you build after the sale that really shows what kind of business person you are.
When I first came into this industry, I went straight into top tier direct sales (still my favorite). I spent thousands getting started, and during the process my sponsor was great. He set up appointments to talk, and kept them. Then once the money was all invested and there were no up sales left, he quit answering emails, and never scheduled another appointment with me.
I was under the impression that we were building a friendship, and it all turned out to be a front. So now, Eric and I decided that we would set up a system of our own to try our best to guarantee our downline’s success. You can’t make people succeed, but if they are willing to do the work, we give them all the steps in order, and answer every single email that comes in.
That is the way that business should be done. Thanks for a great post Wayne.
Chris Owen´s last [type] ..The Google Switch…Jim Yaghi and David Schwind Break New Ground
Hey Chris,
That’s absolutely shocking! But I have heard this is common in these top tier businesses. As soon as the upline gets your two sales, he’s gone, ‘cos as far as he’s concerned, he’s made all the big money of you and it’s on to the next guy.
I’m glad you and Eric are seeing this massive flaw and doing the right thing by giving your downline the support that it needs. Thanks for sharing that.
A great title I would like to say, ‘How Wealth is Created in Network Marketing’… My answer to that Q – Enrolling & Duplication. Your network = Your networth.
Elur´s last [type] ..Duplication thru Elur MLM Opportunity Webinar
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