An Entrepreneur NEVER Asks How Much Money You Make

I was at a networking event last evening and was chatting with someone and after some small talk, the topic turned to what I have been working on.    I mentioned one of my ventures to be my Market America business, which I started around nine years ago.   As in any business, I have had my challenges and successes and have valued what I have learned over the years understanding what works and doesn't work.    Eventually, my colleague asked me about my MA business and that dreaded question - "How Much Money Do You Make with Market America?"

Arrrrrrgggg!

My first impression of this person is that they do not understand business ownership, and the art of risk taking.   Typically, if you have a job, you are paid hourly or a salary for your time working at your employer.   You may get that 2% raise every once and a while for the overtime that you work.  Even though the question "How Much Money You Make" has a straight answer at your corporate job, it is still a ballsy question to ask someone.

The difference between a corporate job and owning your own business is how much you control your financial flexibility. 

You see if you and I owned the same business, selling the same products and service while participating in the same compensation plan,  it is very likely we would not be making the same amount of money.   Just because I make six-figures in my business, does not mean that you will make six-figures in yours.    That is the beauty of owning your own business.  You can dictate how much you earn, by how hard you work, how great you are leveraging your time and how self-sufficient you are leading the pack and building your own empire.  The ones that take action, simply succeed.

Now, there is a little more to being successful in your own business than working hard.   You would also need the ability to be a risk taker as mentioned earlier.  Corporate Employees are not risk takers.  They like comfort.   Entrepreneurs/Business Owners win the battle all the time since they are self aware and acknowledge what is happening in today's world and are fully aware there is more to life than a salary and performance raises.  Entrepreneurs set the bar in terms of how much money they make and also understand it is unfair to ask other entrepreneurs what they make.   They are risk takers that know social media is important, that age is not a factor in success and taking action is the most important road to success.

Finally, in summary, understand that in business, there is no cap on what you can accomplish whether it is financial or personal goals. 

Don't get defensive if someone asks you how much money you make with your business.  Instead educate that person that is depends on how much risk, how hard you work, how you leverage your time working your business and your willingness and patience to answer questions like the dreaded money question.

Why a Network Marketing Business is the Best Side Gig.

You may have been approached by them at a networking events, the supermarket, in the coffee line or even at work.   They use the buzzwords such as "I got a ground floor opportunity" or "We are expanding in this area and looking for some ambitious entrepreneurs" or "Do you want to retire on a beach with a martini by next week?"  etc etc.

To be honest, these folks are onto something, but as always, it is all about their approach and team building concepts that tend to scare people away.  More on that later.

We are in a different economy today.   Long ago, you can get by and have a great living off one income, including buying a nice house and even a vacation home, a nice car, and then look forward to a great retirement on a golf course in Florida.

Enter today's world, the one-income diligent professional works hard, does more than they're than they're paid for and hope that the boss will notice.  Then maybe, just maybe, they'll be given a bonus at the end of the year to acknowledge their work.

Some would say this behavior is admirable and shows industry and initiative.   Unfortunately, it is tragic.   To work so hard for someone else in the hope of being tossed a bonus feels like a real waster of a person's time and talents.

I say, if a person is willing to work SO hard and performs at such a level that someone else feels they deserve more, why don’t they put that effort where it can do them some real good?

So what are the options?

First, you would want your side gig to be a case of money working for you and not you working for money.  So that would mean, that second job and freelancing are out.   It is good side money, but you are still trading your time for money.  Note the left side of the infographic below.

You can start your own business or get into franchising, but it takes a huge monetary and time investment to get started and you can go years without breaking even and starting to make money.  Also remember, we are talking about a side gig here, so you cannot work full-time and own a successful business that you would have to dedicate over 50 hours a week to.   You are still trading time for money.

That leaves investing in real estate, investing in general and of course network marketing.

Investing in general whether it is in stocks or real estate is a great side gig, since money is working for you and you are starting to experience residual income (a.k.a make money when you sleep).   For example, let's say you bought an apartment building and have a number of units paying you rent every month.  After all operating expenses are taken out, you are still building a passive residual income.    Not a bad feeling when you wake up and made a few thousand dollars while counting sheep.

The big drawback with investments and real estate is that you would have to have the knowledge and connections to assure that you are going to have a positive flow of income.    It takes time to learn the ropes and not everyone makes money on investing and in real estate.   Think of the big Florida Real Estate bust in 2008.

Network Marketing is the defacto best side gig you can do today to build a residual income, hands down.  There I said it.

The challenge with network marketing is that it has a perception to be a scam.  Typical responses are the organization looks like a pyramid or I need to force my family and friends to join my club, or the best one, I don't have time for network marketing since I have HBO shows to watch at night.

The lure of Network Marketing is that you invest very little with the potential to make a lot of money.  The goal as always to be financially independent where you dictate what you want to make depending on how hard you work.   You can't get that with a job.  The environment is positive and team-oriented, you are learning new concepts, and the products and/or services are top notch.

With most network marketing compensation plans, you can build that residual income where you can be doing other things and become financially independent.

There are some amazing network marketing companies out there, so how can you decide which one is right for you.   I will leave you with these ten tips for evaluating a network marketing business and you can decide if it is right for you.

1)  Make sure the company has been around for at least five years and has had a consistent executive team.    This show commitment and reduces the chance of the company going out of business.

2)  Check with the Better Business Bureau to review the rating and what complains were filed against the company.  Also check if the company have won any awards.  The last thing you want is to invest time and money in a company that has more complaints than the IRS.

3)  Review the company's financials and Annual Report.   You would want a company that is consistently growing quarter to quarter even through recessions.     A company that has gained every quarter is even better!

4)  Select a company with more that one product or service or better yet provides more than at least three divisions/ product lines.  Not only you would have more to offer your customers, but it will also make it easier to build your organization.   Not everyone wants to sell makeup, where that wrap around their waist or drink that passion juice that takes off five pounds.

5) Review the compensation plan closely more than once.  If bonuses and/or monetary rewards are given for recruiting people, run away as fast as you can.   The network marketing company should build its compensation on retail sales volume and be customer focused.  This is a big one.   Some times there are hidden rules that you need to maintain a lot of products and the sales cycle is very short and you lose hard earned volume monthly.

6)  If a company's promotions focus on that you can work from a beach, drive a Ferrari and tell your boss to take a hike, they are playing with your emotions to join their "business".  Stay away from gimmicks and start a business simply on emotion.   A lot of companies post on social media how their product changed their life, and you would be crazy not to join them.   If you need hard sales techniques and to convince, then maybe your company is not ideal.  Start a business to learn, grow and be financially independent first and leave the gimmicks aside.

7)  If you think that you don't have time to start a network marketing business, think about how you spend your time.  There are 168 hours in a week, you work 45 hours on average, sleep for 50 hours, drive/eat/do chores for up to 40 hours a week.   That still leaves around 30 hours a week for that side gig.   Turn off that TV and leverage your time to learn and build a great business.

8) Be open minded if someone approaches you about a network marketing business, and don't be afraid to ask questions.   It allows you to evaluate your potential future business partner and the company you are building your business with.    Simply listen and don't be closed minded.

9)  Try out the product or service of the company first and evaluate and build a passion.   Once you find yourself referring the product/service to others, why not make money doing the same.  No brainer!

10) Finally, review how you spend your money today on day-to-day items, will the network marketing company provide a way to build a residual income on what you are already spending money on?  The whole idea is to have money work for you and not you work for money!

I hope this blog helps and if you need any help evaluating a business, please contact me!

Why Does Network Marketing Get Such A Bad Rap?

Why does network marketing get such a bad rap?

Here is the definition of network marketing from wikipedia.org

Multi-level marketing (MLM), also called pyramid selling,network marketing, and referral marketing, is a controversial, pyramid-shaped marketing strategy where profit is theoretically derived from two revenue streams: from direct sales to customers and from commission based on the sales of recruited team members, also known as down line distributors. MLM salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing. They are also incentivized to recruit others to join the company as distributors.

Hmm.... if you were an aspiring entrepreneur and saw this definition, wouldn't you run as far away as possible from this business idea?

Unfortunately that is the perception today with network marketing, internet marketing or whatever you want to call it.

But is it really that bad?   Let's evaluate our options.

Everyone is looking for something today.   Let's be serious, it is the world we are in.

So here are our options.

Corporate America is not trusted and there is no loyality anymore.  Would you be loyal to company giving you a 2% percent raise every year just for busting your butt every day while the executives get all the bonuses?   Probably not.    There is not a corporation in America that shares every profit with every employee today.   If there was one, let me know.  For this reason, everyone is dreaming of that side business to take them away from the rigors of Corporate America.

Starting a Franchise is expensive... very expensive, with little return.  An average McDonalds franchise caps you at $100k earnings per store per year, even after a $1.5 million dollar investment for one franchise store.  And that is on top of the fees and royalties you would have to pay.  Sounds like a great deal, huh?   Not.

How about starting your own business?   Maybe a consulting business, a restaurant, a salon, or a gym?   Like Franchises, you would have to invest a significant amount of money and build a supporting network or organization such as accountants, lawyers, operation manager, marketing, technology, distribution, and maybe a coach to help you put it all together.  And like franchises, for little return.   You want a life?  Forget about it!

How about getting another job?   Didn't you always want to be a bartender at the local bar after a long day at the Corporate office?   Hmm..  let's waste more time for money and little return except dragging out of bed the next morning.  Rock on!

What is left?

You got it.... Network Marketing.

What really is network marketing?
This is my own definition.

Network Marketing a method for marketing a product or service with your network of like-minded professionals.  Network Marketing encourages a team concept where all participating professionals work toward a common goal of financial independence and life satisfaction.

There are thousands of network marketing companies out there.  But which one is best for you.

The first question is what is your passion?   It is health & wellness? technology? energy? travel?

Once you have found your passion, do a simple google search using "network marketing <your passion>" and see what companies appear.

The next task is go to the Better Business Bureau to see how ethical they are.   Do not do a google search about the company, since you may come across disgruntled people that had a bad experience probably since they didn't work the business and thought the business did not work.

After that, search the company on You Tube to get a feel what the company is all about.

At this point, find a contact and then set up a meeting to learn more about the network marketing business with a network marketing professional.   The approach to the business is key to success.

You will find the investment is minimal for the potential that you can achieve with a little hard work.   At the same time, you will be learning on how to run a business, how to interact with people and make a sale and be making money doing it.

A positive mindset and thick skin is important.   You will run into the negative people that have all the answers and call your business a scam.    If the business was scam, it would not in business, right?   Gee, how about companies like Wells Fargo, any insurance company, any company that pushes products that people don't need while executives get all the bonuses?   Now that is a SCAM!

The fear of someone else being successful is one of the reasons why network marketing gets such a bad rap?  Your typical Corporate Joe with his 2% raise is the one telling you your business is a scam.  Obviously, the ones that succeed are the ones that blocks out the negative and focuses on the positive and surrounds themselves with the right people.

So what is your next step?
Evaluate your dreams, your goals, and your future.   Determine your why?  And then how you get there, do your homework,  then get started.   Life is too short to wait!