The MYTH - Building Several MLM Companies at once
I have recently see a lot of network marketers making a big mistake.
They are trying to build multiple streams of income in multiple companies.
Usually the person making this mistake is a novice. That’s why they try multiple companies. They aren’t making enough money so they keep trying something new. Or perhaps they are making a little bit of money in one company so they thing they can go out and start something new.
It’s ok to be a novice and be looking around trying to find what’s right. I understand it. I did it a bit myself.
However let’s look at it from the point of view of someone who has had a little success and has started to build a successful business.
Let’s say you’ve sponsored 10-20 people. You’ve started to build a small group. Maybe you have 100 people in your organization. You probably got one or two promotions in your company already. You’re probably earning more money. You’re probably making higher commissions and bonuses now because of your promotions.
So now you hear about something like Wowzza. You decide that it’s something you can do in conjunction with your current company. It’s not a direct competitor so you think that you could offer this to your downline and get 10 or 20 or more to join you in this new deal. Plus if it works like you hope you can get some new leads, right?
Well let’s look at it from a different point of view.
Let’s say you put 20 extra hours into your current company. You’ve already gotten a couple of promotions so you’re getting paid more on each hour of effort. Anyone you sponsor is going to pay you better and you just might find that next leader that takes you from 100 people to 1000 people in your organization.
On the other hand let’s say you spend 20 hours promoting Wowzza. In addition you share it with your team and 20 of them spend 5 hours promoting Wowzza.
That’s 120 hours of time wasted on Wowzza. 20 of your time and 5 * 20 for your downline that follows you to Wowzza.
PLUS since you’re just starting out with Wowzza you have no promotions or anything so you’re making the minimum amount of money.
Meanwhile if you had that 120 hours back and you and your team put that effort and energy into your main company… you’ve already gotten a promotion so you’re making more money…PLUS your group is growing. Wowzza isn’t growing it’s just you telling your existing group about it and them all joining the new “deal” with you. You aren’t neccessarily growing your business. Eventually it will grow but you gotta start everything with this new business… put out new ads… develop new lead generation… etc. That takes time.
Do you see how dangerous the attitude of dabbling in multiple programs can be?
Imagine if you’re like me and you have a downline of thousands… If you dabble in another program it isn’t just 120 hours wasted… Its multipled by the hundreds of people in my organization that would put energy into Wowzza that could be spent growing our main business. It’s a horrible drain on your business and people who do this over and over and just forcing their business to be stuck and aren’t really able to experience the exponential growth that can occur by focusing on one thing at a time.
What do you think? Am I crazy? Does the math make sense? Sound off and let me know how you feel!
- Ben Fitts
PS. Do you know ANYONE who makes $10,000 a month in TWO or more companies? I do NOT. I have yet to find anyone making that kind of money in more than one company at a time.
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Ben, I do SO hate to be a pain in your… anything, but, what about Send Out Cards? I am NOT in SOC… DO have many friends who are… and, it’s one of the few completely compatables I’ve seen in 20 years.
Admitedly, peddling Limu and ACN and Pampered Chef is a black hole, but…
Sorry if this poops on your porch. I know you swore off mentioning the card deal, and as said, but…
Hi John,
I haven’t seen it work out yet. Have you?
What tends to happen is someone who tries two things at once invariably ends up favoring one over the other.
I’ve never seen anyone make $10,000 a month in more than one company.
A couple of our mutual friends were making $10,000 a month when they started with cards but ended up basically giving up on one and favoring the other. Usually they start to sit back and collect a check in one business and focus on the other.
If anyone thinks that can refute this simply point out an example of someone who is making $10,000 a month or more in 2 companies at the same time.
I’ll be happy to eat my words if you can point to one individual that makes that kind of money in two companies.
I’m with you Benjamin. Anything that takes the main focus off of building your primary business, is an unnecessary distraction.
Which is the case with a lot of people. Your focal point can’t be equal shared in two places at the same time.
There’s a difference Between using Send Out Cards, Wowzza and other such programs in a way to Help you build your primary business …and using these kind of business as a primary business.
Most people are doing the later. And both businesses suffer. Some people can mulit-task well, but most don’t do it very well.
In business that means splitting your time, money and effort in several places…and that can end up financially draining you.
I could go on, but I won’t;-)
Corrisa
I do so agree with John Fogg on this, Ben. Initially, when I started reading your post I thought, “oh no, what about a company or product that is totally not competing, but rather compliments what you are already doing?” And then I read John’s post.
I feel much better now. Thank you!
I agree with you Ben on joining multiple businesses at once and jumping from one business to the next. This kind of activity hurts one’s business building process; especially those who are new to building a business. The reason is that people who are new to starting a business have little to no skills in building a business and when one jumps from one business to the next or is trying to build multiple businesses at once, the learning and growing process, which is so very necessary, either comes very slowly or never comes at all.
New business owners need to focus first on developing their business skills, such as, marketing, selling and effective communications. Once you have these skills in place, then it won’t matter which business you join or what kind of business you start, you should do well because you have become a skilled business owner.
Thank you for letting me share….
When one is new to the biz of NWM, they need to learn all they can, focus on it, and make it the only thing they eat, think or breathe. This is what gets businesses off the ground, and makes the rep become successful. There are other businesses that they can run and manage that supplement their primary business, such as Leaders Club, which is another good ’side’ business, and can actually be offered to the downline. Good post.
Ben I agree with you wholeheartedly. I’ve been with my main company for a few years and recently joined another, nPro Systems, and I just don’t have the time to spend advertising it and it just costs you more and more money. You’re right, the extra time you try building the other company could be used for your main company. However, jumping from one company to another will not change a person’s situation. No matter where you go, there you are. People have to continously work on themselves. The only reason to switch companies is if it goes out of business or is unethical. So thanks for this info Ben. I’ve decided to pour more time into my main company. You just saved me money I can use for my main business.
Thank you!
I’m new to this “work from home” business and still learning everyday. Thanks for the info. Visit my lens at: http://www.squidoo.com/myworkathomedaddy or
http://www.myworkathomedaddy.com
Well that answers my question, I was curious if it would be counter productive to be in more than one Network Marketing company. I work with a new wireless Direct Sale company and while I was doing research, I found some other Direct Sale companies. Im glad I’ve only stuck with one.
Derek
http://www.residualwireless.com