Can You Really Make Money in Network Marketing?
Yes — But “Can” Is Not the Same as “Will,” and Gross Commissions Are Not the Same as Profit
WEALTHNETWORK MARKETINGINCOMEMONEYFINANCES
Coach Marcus Jones
9/12/202621 min read
Can You Really Make Money in Network Marketing?
Yes — But “Can” Is Not the Same as “Will,” and Gross Commissions Are Not the Same as Profit
By Coach Marcus Jones
This may be the question people care about more than almost anything else:
“CAN YOU REALLY MAKE MONEY IN NETWORK MARKETING?”
The answer is:
YES.
People do make money in network marketing.
Some make:
A little.
Some create meaningful supplemental income.
Some build substantial businesses.
A relatively small number become:
VERY HIGH EARNERS.
But that is only half the answer.
Because the next question should be:
“HOW LIKELY IS THE TYPICAL PERSON TO MAKE MEANINGFUL PROFIT?”
That changes the conversation.
FTC staff reviewed income disclosure statements from 70 MLM companies and found that many participants received no payments at all, while the vast majority received $1,000 or less per year from the MLMs represented in those disclosures — less than $84 per month on average — and those figures often did not account for participant expenses.
That does not mean:
Nobody succeeds.
It does not mean:
Every company produces identical results.
And it does not mean:
You personally cannot earn more.
It means you need to understand the difference between:
WHAT IS POSSIBLE
and:
WHAT IS TYPICAL.
Today we’re going to talk about both.
IN THIS ARTICLE
Can people really make money in network marketing?
What FTC data tells us about typical results
Why income disclosure statements matter
Why top earners can distort expectations
Why gross commissions are not profit
How retail commissions work
How repeat customers can create recurring income potential
How team sales can create leverage
Why recruiting alone is not a business
Why customer acquisition matters
Why retention matters
Why skill matters
Why consistency matters
Why expenses matter
Why time matters
Why some people earn little or nothing
Why some people earn significantly more
Why rank does not equal profitability
How to set realistic income goals
How to evaluate your own results
QUICK ANSWER: CAN YOU REALLY MAKE MONEY IN NETWORK MARKETING?
YES.
Network marketing can produce income.
Depending on the company and compensation plan, participants may potentially earn from:
Retail sales.
Customer commissions.
Repeat customer orders.
Team sales volume.
Bonuses.
Leadership incentives.
And other qualifying compensation.
But:
INCOME IS NOT GUARANTEED.
FTC consumer guidance says that most people who join legitimate MLMs make little or no money, and some lose money.
So the responsible answer is:
YES, YOU CAN MAKE MONEY.
But you should never assume:
YOU WILL.
And you should never evaluate the opportunity based solely on:
WHAT THE TOP EARNERS MAKE.
START WITH THE SIMPLEST WAY TO MAKE MONEY
Forget:
Ranks.
Team bonuses.
Matrices.
Binaries.
Unilevels.
Leadership pools.
Start with:
A CUSTOMER.
You have a product.
A customer wants it.
They buy.
You earn a commission or retail margin.
That is the simplest business transaction.
RETAIL COMMISSIONS ARE REAL BUSINESS INCOME
Suppose a customer spends:
$100.
Your compensation is:
30%.
You earn:
$30.
Do that with:
10 customers...
and your gross commission could be:
$300.
Do it with:
50 customers...
and that could be:
$1,500.
Simple concept.
But remember:
GROSS COMMISSION IS NOT NET PROFIT.
We'll get to that.
CUSTOMER SALES GIVE YOU SOMETHING IMPORTANT
They prove:
SOMEONE OTHER THAN YOU VALUES THE PRODUCT ENOUGH TO PAY FOR IT.
That matters.
Especially in network marketing.
Because a business built primarily on:
Participants buying.
Participants recruiting.
Participants buying more.
Is very different from:
GENUINE CUSTOMER DEMAND.
CUSTOMER DEMAND IS WHERE I WOULD START
Before thinking about:
Residual income.
Leadership bonuses.
Rank advancement.
Ask:
“CAN I ACTUALLY FIND PEOPLE WHO WANT THIS PRODUCT?”
Because if you cannot create:
Customers...
building a large team may simply create:
MORE PEOPLE WHO ALSO CAN’T CREATE CUSTOMERS.
CUSTOMER ACQUISITION IS A SKILL
Some people join network marketing thinking:
“I know 500 people.”
That doesn't mean:
You have 500 customers.
You still need to learn:
How to communicate.
How to ask questions.
How to listen.
How to identify needs.
How to explain value.
How to follow up.
How to handle objections.
How to close a sale.
How to retain customers.
That's:
SALES.
YES, SALES SKILLS MATTER
People sometimes try to soften network marketing so much that they say:
“YOU DON'T HAVE TO SELL.”
But if compensation depends on:
Products or services being purchased...
someone is making:
A SALE.
You don't need to become:
Aggressive.
Pushy.
Manipulative.
But you should become better at:
HELPING PEOPLE MAKE BUYING DECISIONS.
THEN COME REPEAT CUSTOMERS
Suppose your customer likes:
The coffee.
The skincare.
The household product.
The wellness product.
And reorders.
Now you may earn:
Another commission.
Without needing to find:
A brand-new customer for every transaction.
That creates:
RECURRING CUSTOMER VALUE.
Remember Day 42.
The strongest recurring revenue comes from:
RECURRING VALUE.
RETENTION CAN CHANGE THE ECONOMICS
Compare two people.
PERSON A
Creates:
20 customers.
Loses:
Needs:
18 new customers next month.
PERSON B
Creates:
20 customers.
Keeps:
Now those customers may:
Reorder.
Refer.
Build trust.
Person B has started creating:
A CUSTOMER BASE.
That's much stronger than constantly:
STARTING OVER.
REPEAT ORDERS CAN CREATE RESIDUAL-STYLE INCOME POTENTIAL
Suppose:
100 customers
continue ordering.
The company pays you qualifying commissions on those orders.
Now some income may continue from:
WORK DONE EARLIER.
That's part of the attraction of network marketing.
But be careful with the word:
RESIDUAL.
Customers can stop ordering.
The company can change products.
Compensation rules can change.
You may lose qualification.
Team activity can decline.
So don't promise:
“GET PAID FOREVER.”
Residual-style income must be:
MAINTAINED BY CONTINUING VALUE AND QUALIFYING ACTIVITY.
THE NEXT LAYER IS TEAM SALES
Now suppose you teach:
5 people
how to build:
Customers.
Each person creates:
20 customers.
The organization now potentially serves:
100 CUSTOMERS.
You didn't personally make every sale.
That's:
LEVERAGE.
Depending on the compensation plan, qualifying team sales may produce:
Team commissions.
Matching bonuses.
Matrix pay.
Binary pay.
Unilevel commissions.
Leadership bonuses.
Or other compensation.
That's how network marketing can move beyond:
PERSONAL SALES.
TEAM COMMISSIONS ARE WHERE THE MODEL BECOMES MORE SCALABLE
Remember Day 44.
If every dollar you earn requires:
Your personal transaction...
you remain limited by:
Your time.
But if you help others:
Build customers.
Serve customers.
Train others.
Create real sales.
Now your impact can expand beyond:
YOUR PERSONAL HOURS.
That's network leverage.
BUT TEAM INCOME IS NOT FREE MONEY
Someone else creating sales does not mean:
You sit around doing nothing.
Strong organizations still need:
Training.
Leadership.
Communication.
Support.
Systems.
Recognition.
Problem solving.
Development.
Team leverage may reduce your dependence on personally making every transaction.
It does not automatically eliminate:
WORK.
WHY DO SOME PEOPLE EARN A LOT MORE THAN OTHERS?
There is no single reason.
High earners may have:
Strong sales ability.
Years of experience.
Large networks.
Excellent leadership.
Strong work habits.
Significant time invested.
Advanced marketing skills.
Large customer bases.
Large sales organizations.
Early positioning.
Strong retention.
A powerful personal brand.
Industry relationships.
Existing audiences.
Or combinations of those things.
That's why comparing:
A NEW PART-TIME PARTICIPANT
to:
A 15-YEAR TOP EARNER
may be completely unrealistic.
STARTING POINTS ARE DIFFERENT
Imagine two people join the same company.
Person A has:
100,000 social-media followers.
Ten years of sales experience.
A large email list.
A leadership team from a previous business.
Person B has:
No following.
No sales experience.
No business experience.
Thirty minutes a day.
Same company.
Same compensation plan.
Completely different:
STARTING POINT.
That's why:
“Anyone can do this”
does not mean:
“Everyone begins equally.”
EXPERIENCE MATTERS
Someone who has spent:
20 years
learning:
Sales.
Leadership.
Marketing.
Communication.
Follow-up.
Relationship building.
May enter a new company and move:
VERY FAST.
That doesn't prove the typical beginner should expect:
The same timeline.
Skill compounds.
AUDIENCE MATTERS TOO
If someone already has:
50,000 followers...
they have:
Distribution.
Remember Day 40.
A person with:
No audience.
No email list.
No social reach.
No large network.
may need to build distribution:
FROM SCRATCH.
That's not impossible.
But the timeline may be different.
TIME MATTERS
Someone working:
20 focused hours per week
may produce different results from someone working:
90 minutes per week.
But I want to be careful here.
More time does not automatically guarantee:
MORE MONEY.
Someone can spend:
30 hours
doing:
Low-value activity.
Scrolling.
Watching training.
Designing graphics.
Talking only to existing teammates.
And generate:
No sales.
Another person may spend:
5 focused hours
on:
Customer conversations.
Follow-up.
Presentations.
Referrals.
And produce:
Better results.
So:
ACTIVITY QUALITY MATTERS TOO.
PRODUCTIVE ACTIVITY IS WHAT COUNTS
Ask:
How much time are you spending on:
Creating customers?
Following up?
Creating conversations?
Presenting?
Serving customers?
Generating referrals?
Developing leaders?
Versus:
Watching motivational videos?
Rearranging your website?
Creating another logo?
Scrolling your team chat?
Busy and productive are:
NOT THE SAME THING.
CONSISTENCY MATTERS
This is huge.
Someone gets excited.
They contact:
50 people
in two days.
Then hear:
No.
No.
No.
No.
And disappear for:
Three weeks.
Then they say:
“NETWORK MARKETING DOESN'T WORK.”
That's not enough information to draw:
A serious business conclusion.
Businesses usually require:
CONSISTENT ACTION OVER TIME.
BUT CONSISTENCY ALONE DOESN’T GUARANTEE SUCCESS EITHER
This is another important distinction.
People sometimes say:
“IF YOU DON'T QUIT, YOU CAN'T FAIL.”
That sounds motivational.
But financially?
It's not necessarily true.
You can continue:
Doing the wrong activity.
Selling something with weak demand.
Overspending.
Using ineffective methods.
Operating in a poor market.
And still lose money.
Consistency matters.
But so do:
STRATEGY AND ECONOMICS.
SKILL + ACTIVITY + MARKET + TIME
I like to think of results as being influenced by several things:
SKILL
Can you communicate and sell?
ACTIVITY
Are you consistently doing productive work?
MARKET
Do people actually want what you're offering?
SYSTEM
Do you have a process you can repeat?
TIME
Have you given the business enough time to produce meaningful data?
EXPENSES
Are you controlling costs?
RETENTION
Do customers and productive team members stay?
LEADERSHIP
Can you help other people become productive?
Together, those factors matter far more than:
EXCITEMENT.
NOW LET'S LOOK AT THE FTC DATA
This is where expectations need to become realistic.
In 2024, FTC staff reviewed:
70 MLM INCOME DISCLOSURE STATEMENTS.
The report found that many participants received:
NO PAYMENTS.
And the vast majority received:
$1,000 OR LESS PER YEAR
from the MLMs represented in those disclosures — less than:
$84 PER MONTH ON AVERAGE.
The FTC also found that participant expenses were often not included in the income figures being highlighted.
That's important information.
THAT DATA NEEDS CONTEXT TOO
Do not misuse the FTC report.
It does not prove:
Every participant worked seriously.
Every company performed identically.
Every participant was actively trying to build.
Every person incurred the same expenses.
Every compensation plan worked the same way.
The report examined:
THE DISCLOSURES OF 70 MLMs.
But the findings still give prospective participants an important reality check about:
TYPICAL EARNINGS REPRESENTATIONS.
IN AT LEAST 17 OF THE REVIEWED MLMS, MOST PARTICIPANTS MADE NOTHING
FTC staff reported that in at least:
17 MLMs,
most participants received no payments from the company.
Think about that before showing someone:
THE TOP EARNER.
The top earner may be real.
But the typical experience may look:
VERY DIFFERENT.
THE FTC ALSO FOUND DISCLOSURES COULD BE CONFUSING
According to the FTC report, many income disclosures:
Highlighted high earners.
Excluded or downplayed people with little or no income.
Did not clearly account for expenses.
And sometimes presented earnings data in confusing ways.
So when reviewing an income disclosure:
READ THE FINE PRINT.
Don't stop at:
The biggest number.
AVERAGES CAN BE MISLEADING
Suppose:
9 people make:
$0.
And one person makes:
$100,000.
Average:
$10,000.
Does the typical participant make:
$10,000?
No.
The median may tell a very different story.
That's why you should ask:
How many participants earned nothing?
What did the median person earn?
How many were active?
What percentage reached each level?
How long had they been building?
Were expenses included?
Those questions matter.
TOP EARNER INCOME IS NOT YOUR FORECAST
If someone tells you:
“Our top earner makes $2 million a year!”
Okay.
Interesting.
But you're not:
THE TOP EARNER.
At least not today.
Ask:
What does:
The typical participant earn?
The typical active participant?
The typical person at my experience level?
And what do they spend?
That's much more useful.
THE FTC EXPECTS EARNINGS CLAIMS TO REFLECT TYPICAL RESULTS
FTC business guidance says earnings claims should reflect what the typical person targeted by the representation is likely to achieve and should take into account participant expenses.
That means:
POSSIBILITY ALONE IS NOT ENOUGH.
A rare outcome can be true...
and still create a misleading impression if presented as:
A NORMAL EXPECTATION.
PERSONAL TESTIMONIALS ARE NOT A SUBSTITUTE FOR DATA
You may honestly say:
“I made $10,000 last month.”
But if almost everyone else makes:
Very little...
your story needs:
CONTEXT.
The FTC says a reasonable basis for earnings claims requires reliable evidence, not simply subjective beliefs or personal anecdotes.
Your success is:
Your success.
It is not automatically:
THE PROSPECT'S LIKELY RESULT.
NOW LET'S TALK ABOUT EXPENSES
This is one of the biggest places where people fool themselves.
Suppose your company paid you:
$1,200 THIS MONTH.
Great.
But you spent:
$300 on products.
$200 traveling to an event.
$100 on samples.
$75 on software.
$100 on advertising.
$75 on tools and subscriptions.
Total expenses:
$850.
Your remaining amount before taxes and other considerations is:
$350.
That's a very different picture than:
“I MADE $1,200.”
FTC GUIDANCE SPECIFICALLY SAYS EXPENSES MATTER
The FTC says that earnings representations should take into account both what participants earn and what they spend, including expenses such as product purchases, travel, tools, services, and training.
Remember Day 43:
REVENUE IS NOT PROFIT.
And:
COMMISSIONS ARE NOT AUTOMATICALLY PROFIT.
KNOW YOUR NET PROFIT
At the end of the month, ask:
How much commission did I receive?
Minus:
Product expenses.
Marketing.
Travel.
Events.
Software.
Samples.
Tools.
Other legitimate business costs.
Now:
WHAT DID I ACTUALLY KEEP?
That's the number I care about.
THE $500-INCOME GOAL
Let's make this practical.
Suppose your first goal is:
$500 PER MONTH IN NET BUSINESS PROFIT.
That's:
$6,000 per year.
For a lot of households, that could help with:
Groceries.
Utilities.
Debt.
Savings.
Travel.
Insurance.
Retirement contributions.
A car payment.
That's:
REAL MONEY.
You don't need to begin with:
“I'M GOING TO MAKE A MILLION DOLLARS.”
Start with:
A REALISTIC WIN.
THE FIRST $100 MATTERS
Your first:
$100
may be more important psychologically than someone else's:
$100,000.
Why?
Because you now proved to yourself:
Someone bought.
The system paid.
You can create:
A BUSINESS TRANSACTION.
That's evidence.
Then ask:
Can I repeat it?
THEN ASK WHETHER THE RESULT IS DUPLICATABLE
You made:
$500.
Great.
Can another person:
Follow your process?
Create customers?
Earn their first:
$100?
That's where network marketing starts becoming:
LEVERAGED.
If only the charismatic top leader can succeed:
The system isn't very duplicatable.
NETWORK MARKETING REWARDS DIFFERENT SKILLS AT DIFFERENT STAGES
Early stage:
Selling.
Customer acquisition.
Follow-up.
Later stage:
Training.
Leadership.
Duplication.
Retention.
Culture.
You may be great at:
Finding customers
but weak at:
Leadership.
Or great at:
Recruiting
but weak at:
Customer retention.
Your income may eventually reflect:
THE SKILLS YOU HAVE — AND THE SKILLS YOU LACK.
SALES SKILL CAN CREATE PERSONAL INCOME
A strong seller may build:
Hundreds of customers.
They could earn meaningful income without:
A massive team.
That's important.
Network marketing does not have to mean:
EVERYBODY MUST BUILD A HUGE ORGANIZATION.
Someone may choose:
Retail-focused income.
LEADERSHIP SKILL CAN CREATE LEVERAGED INCOME
A different person may be excellent at:
Training.
Developing leaders.
Building systems.
Helping others sell.
That can create:
ORGANIZATIONAL LEVERAGE.
But team-based income should ultimately connect back to:
REAL SALES ACTIVITY.
CUSTOMER RETENTION MAY MATTER MORE THAN RECRUITING SPEED
Imagine:
Person A recruits:
20 distributors every month.
Most disappear.
Person B recruits:
But develops:
2 productive leaders.
Who wins long-term?
Possibly:
PERSON B.
This is why:
DEPTH OF DEVELOPMENT
often matters more than:
SPEED OF ENROLLMENT.
YOU DON'T NEED EVERYONE TO BUILD
Some people simply want:
Products.
Fine.
Some want:
A few hundred dollars monthly.
Fine.
Some want:
A large business.
Fine.
A healthy organization can contain:
Different goals.
The mistake is assuming:
EVERYBODY SHOULD WANT WHAT YOU WANT.
YOUR INCOME GOAL SHOULD DETERMINE YOUR ACTIVITY
If you want:
$300 monthly...
your plan may look different from someone pursuing:
$10,000 monthly.
Larger goals may require:
More customers.
More volume.
More team production.
More leaders.
More skill.
More time.
More systems.
Don't set:
EXECUTIVE-LEVEL INCOME GOALS
with:
HOBBY-LEVEL ACTIVITY.
BUT DON'T ASSUME MORE ACTIVITY ALWAYS SOLVES THE PROBLEM
If you're consistently talking to people and nobody buys:
Look at:
The product.
The price.
The audience.
The message.
The offer.
The follow-up.
The positioning.
Don't simply say:
“TALK TO MORE PEOPLE.”
Sometimes:
THE PROCESS NEEDS IMPROVEMENT.
TRACK YOUR CONVERSION NUMBERS
This is where business becomes measurable.
Suppose:
You talk to:
100 people.
30 are interested.
20 view information.
10 follow up.
5 become customers.
That's:
DATA.
Now you can improve.
Maybe your initial conversation is strong.
But follow-up is weak.
Maybe people love the presentation.
But price is an issue.
Without tracking:
You don't know.
NUMBERS REMOVE SOME OF THE EMOTION
Someone tells you:
No.
It feels personal.
But if your data shows:
1 out of 10 conversations becomes a customer...
then:
Nine no's
may simply be part of:
THE PROCESS.
That's why numbers can help you:
Stay grounded.
DON'T TURN NUMBERS INTO PRESSURE
At the same time:
People are not:
Statistics.
If someone says:
No...
respect it.
Don't think:
“I need seven no's before my next yes.”
Think:
“THIS PERSON MADE THEIR DECISION.”
Move on professionally.
Numbers are for:
MANAGING YOUR BUSINESS.
Not:
MANIPULATING PEOPLE.
RELATIONSHIP SKILLS MATTER
Network marketing is:
People.
People buy from:
People they trust.
People join:
People they trust.
People stay around:
Leaders they trust.
That's why:
Character.
Listening.
Follow-up.
Service.
Reliability.
Matter.
TRUST CAN TAKE YEARS TO BUILD AND ONE POST TO DAMAGE
Make:
A crazy income claim.
A fake product claim.
A manipulative post.
People remember.
Build your business like:
YOUR REPUTATION IS AN ASSET.
Because it is.
YOUR PERSONAL BRAND CAN CREATE DISTRIBUTION
If people know you for:
Helping.
Teaching.
Consistency.
Integrity.
Useful information.
Then when you introduce:
A product.
A service.
An opportunity.
You already have:
ATTENTION + TRUST.
That's leverage.
But don't destroy that trust by turning:
Every post
into:
A PITCH.
YOU DON'T HAVE TO LOOK AT EVERYONE AS A PROSPECT
This is important.
Your neighbor.
Coworker.
Church member.
Cousin.
Facebook friend.
Gym partner.
They don't automatically become:
YOUR NEXT RECRUIT.
Build relationships.
Live your life.
Share what you do.
Create curiosity.
Let conversations develop naturally.
That's sustainable.
WHY DO MANY PEOPLE MAKE LITTLE OR NOTHING?
There can be many reasons.
Some people:
Join for a discount.
Never intend to build.
Do very little activity.
Quit quickly.
Never develop customers.
Avoid sales.
Don't follow up.
Have unrealistic expectations.
Overspend.
Never develop skills.
Choose a poor-fit product or company.
Have limited time.
Or face tough market conditions.
There is rarely:
ONE EXPLANATION.
DON'T AUTOMATICALLY BLAME THE PERSON
This is something the industry needs to improve.
Someone doesn't succeed.
People immediately say:
“THEY DIDN'T WORK.”
Maybe.
But maybe:
The training was weak.
The product-market fit was poor.
The compensation plan was difficult.
The person's expenses were too high.
The opportunity wasn't a good fit.
The market changed.
Business results are:
MULTIFACTORIAL.
Good leaders look at:
THE WHOLE PICTURE.
DON'T AUTOMATICALLY BLAME THE COMPANY EITHER
The reverse also happens.
Someone talks to:
Three people.
Gets:
Three no's.
Quits.
Then says:
“THE COMPANY DOESN'T WORK.”
That's not enough evidence either.
Be fair.
Analyze:
The activity.
The skill.
The system.
The economics.
BUSINESS OWNERS TAKE RESPONSIBILITY FOR DATA
Instead of asking:
“Who's to blame?”
Ask:
“WHAT DO THE NUMBERS TELL US?”
Customers acquired.
Customers retained.
Average order.
Commission.
Expense.
Profit.
Conversion.
Activity.
That's useful.
WHAT ABOUT PEOPLE WHO MAKE SIX OR SEVEN FIGURES?
Yes.
Those people exist in some companies.
But usually they represent:
A SMALL PERCENTAGE OF PARTICIPANTS.
Do not dismiss their success.
And do not pretend it is:
TYPICAL.
Both can be true:
Someone built an extraordinary business.
And:
Most participants did not.
Maturity means holding:
BOTH FACTS
at the same time.
STUDY TOP EARNERS FOR SKILLS — NOT INCOME EXPECTATIONS
Instead of saying:
“They make $1 million, so I can too.”
Ask:
What do they do well?
Do they:
Follow up?
Communicate?
Create content?
Lead?
Develop people?
Track numbers?
Stay consistent?
Understand sales?
Those skills may be:
LEARNABLE.
Their income level is not:
PROMISED.
YOUR FIRST TARGET MAY BE TO BREAK EVEN
Suppose you're spending:
$200 per month.
Your first financial milestone might be:
EARN $200.
Now your business supports:
Its own expenses.
Next:
$500.
Then:
$1,000.
Now you're building:
EVIDENCE-BASED GOALS.
DON'T SPEND LIKE A TOP EARNER BEFORE YOU EARN LIKE ONE
This is a big mistake.
New person joins.
Immediately buys:
Every tool.
Every training.
Every event.
Every product.
Paid ads.
A new laptop.
Business cards.
Merchandise.
Now they've spent:
$3,000
before earning:
$30.
Slow down.
Spend where:
THE BUSINESS CASE MAKES SENSE.
LOW STARTUP COST CAN BE AN ADVANTAGE
One attractive feature of many network marketing companies is:
Lower startup cost
relative to building certain traditional businesses.
But FTC consumer guidance warns that ongoing expenses such as training, travel, websites, promotional materials and products can add up.
A low entry cost does not protect you from:
BAD SPENDING HABITS.
USE A BUSINESS BUDGET
Determine what you are willing to invest:
Monthly.
Then track:
Revenue.
Commissions.
Expenses.
Profit.
Don't use:
UNLIMITED CREDIT CARD DEBT
to chase:
A RANK.
Your business should ultimately:
Serve your finances.
Not destroy them.
NEVER BORROW JUST TO LOOK SUCCESSFUL
Luxury branding.
Events.
Trips.
Clothing.
Social-media appearances.
None of that matters if:
THE BUSINESS IS LOSING MONEY.
Don't build:
An image.
Build:
PROFIT.
INCOME CLAIMS SHOULD NEVER PRESSURE SOMEONE
Don't tell:
A struggling parent:
“This will solve all your money problems.”
Don't tell someone:
“You'd be crazy not to do this.”
Don't imply:
Guaranteed income.
The FTC warns consumers that extravagant earnings promises and pressure-based recruiting are warning signs.
Give people:
Information.
Let them decide.
THE PERSON WHO SAYS NO IS NOT YOUR ENEMY
Maybe:
Wrong timing.
Wrong product.
Wrong business.
Wrong person.
That's okay.
Professional sales includes:
NO.
Protect the relationship.
A GOOD BUSINESS SHOULD NOT REQUIRE YOU TO BURN YOUR RELATIONSHIPS
If your method requires:
Constant pressure.
Manipulation.
Guilt.
Fake urgency.
Then:
CHANGE THE METHOD.
There are billions of people in the world.
You do not need to:
Harass your cousin.
SOCIAL MEDIA CAN EXPAND YOUR MARKET
You are no longer limited to:
A handwritten names list.
You can create:
Content.
Education.
Stories.
Videos.
Blogs.
Live streams.
Email.
Communities.
Now people can discover:
YOU.
That creates:
Inbound interest.
CONTENT CREATES LEVERAGE
One useful post may be seen by:
100 people.
1,000.
10,000.
That's distribution leverage.
But content should:
Educate.
Entertain.
Encourage.
Demonstrate.
Not simply:
“JOIN MY TEAM.”
Build an audience before asking the audience to:
BUY.
YOUR BUSINESS SHOULD CREATE VALUE EVEN BEFORE THE SALE
Teach something useful.
Share an experience.
Answer a question.
Solve a problem.
That's how trust develops.
Then:
The product or business may become:
A NATURAL NEXT STEP.
SET THREE TYPES OF GOALS
I would separate:
ACTIVITY GOALS
How many conversations?
How many follow-ups?
CUSTOMER GOALS
How many new customers?
How many repeat customers?
INCOME GOALS
How much:
Gross commission?
Net profit?
That keeps you focused on:
WHAT YOU CAN CONTROL.
DON'T ONLY SET RANK GOALS
Rank is:
A result.
Activity and customer goals give you:
SOMETHING TO DO TODAY.
That's much more useful.
INCOME SHOULD BE MEASURED AFTER EXPENSES
At minimum, track:
GROSS COMMISSIONS
Minus:
BUSINESS EXPENSES
Equals:
NET BUSINESS PROFIT
before applicable tax considerations.
That is a much more honest measurement.
DON'T FORGET TAXES
Business income may create:
Tax obligations.
Depending on circumstances, that may include:
Federal income tax.
Self-employment tax.
State taxes.
Estimated taxes.
Talk to a qualified tax professional about:
Your situation.
Don't spend:
EVERY COMMISSION CHECK
as though all of it belongs to:
Your personal checking account.
KEEP RECORDS
Track:
Income.
Expenses.
Mileage.
Receipts.
Business tools.
Customer sales.
Your accountant will appreciate:
ORGANIZATION.
So will you.
WHEN SHOULD YOU REEVALUATE?
Suppose you've worked consistently for:
Several months.
You're tracking:
Activity.
Customers.
Sales.
Expenses.
Profit.
And the numbers are:
Not improving.
Don't keep saying:
“I JUST NEED TO BELIEVE HARDER.”
Evaluate.
Is:
The product right?
The audience right?
The message right?
The company right?
The compensation right?
The system right?
Is your skill improving?
That is:
ENTREPRENEURSHIP.
KNOW WHEN TO ADJUST
Maybe the answer is:
Improve your follow-up.
Change your customer strategy.
Reduce expenses.
Get better training.
Focus more on retail.
Develop leadership skills.
Or sometimes:
STOP.
Entrepreneurship includes:
Decision-making.
Not blind persistence.
MONEY ISN'T THE ONLY RETURN
Some participants also gain:
Sales skills.
Leadership.
Confidence.
Relationships.
Communication ability.
Business education.
Those can be valuable.
But do not use:
“personal development”
to avoid asking:
WHETHER THE BUSINESS IS FINANCIALLY WORKING.
If income is the objective:
Measure:
INCOME AND PROFIT.
NETWORK MARKETING SHOULD BE TREATED LIKE A BUSINESS
That means:
Customers.
Revenue.
Expenses.
Profit.
Sales.
Marketing.
Retention.
Training.
Leadership.
Systems.
Metrics.
Not simply:
MOTIVATION.
A SIMPLE INCOME PROGRESSION
Instead of:
“I want financial freedom!”
Try:
LEVEL 1 — FIRST CUSTOMER
Prove you can sell.
LEVEL 2 — FIRST $100
Prove the system can pay you.
LEVEL 3 — BREAK EVEN
Cover business expenses.
LEVEL 4 — $500 MONTHLY PROFIT
Create meaningful supplemental income.
LEVEL 5 — $1,000+ MONTHLY PROFIT
Build consistent second-stream income.
LEVEL 6 — LEVERAGED TEAM INCOME
Develop customers and leaders beyond yourself.
Now your goals become:
MEASURABLE.
THERE IS NOTHING “SMALL” ABOUT $500 A MONTH
$500 per month is:
$6,000 PER YEAR.
That could:
Fund vacations.
Reduce debt.
Build savings.
Increase retirement investing.
Cover insurance.
Handle emergencies.
Don't let social media convince you:
ONLY SIX-FIGURE RESULTS COUNT.
Meaningful supplemental income can:
MATTER.
AND $1,000 PER MONTH IS $12,000 PER YEAR
Again:
Not guaranteed.
But conceptually, that could materially improve a household's financial flexibility.
That's why I like asking people:
“WHAT WOULD AN ADDITIONAL STREAM OF INCOME IDEALLY DO FOR YOU?”
Not:
“DO YOU WANT TO GET RICH?”
Different conversation.
YOUR WHY SHOULD BE SPECIFIC
Maybe your goal is:
Pay off:
A credit card.
Create:
Emergency savings.
Travel.
Help your children.
Supplement retirement.
Replace overtime.
Your income goal needs:
A JOB.
That keeps it real.
MYTHS VS. FACTS
Myth: Nobody makes money in network marketing.
Fact: Some participants do earn money, including some who build substantial businesses. The question is not simply whether income is possible but what results are typical.
Myth: Anyone who works hard will become successful.
Fact: Effort matters, but results can also depend on customer demand, skills, expenses, market conditions, business model, leadership, retention, time and other factors.
Myth: A large commission check equals profit.
Fact: Business expenses must be considered. FTC guidance says earnings claims should take participant expenses into account.
Myth: Top-earner income shows what a new participant can expect.
Fact: Exceptional outcomes do not establish typical results. FTC staff's review of 70 MLM disclosures found that the vast majority of participants in those disclosures received $1,000 or less annually.
Myth: You need a huge team to earn anything.
Fact: Many compensation plans provide ways to earn from retail or customer sales, though the details differ by company.
Myth: Network marketing is passive income.
Fact: Customer acquisition, follow-up, sales, retention, training, leadership and qualification generally require ongoing activity.
Myth: If you're not making money, you just need to recruit more people.
Fact: Poor customer demand, weak retention, high expenses, inadequate skills or inefficient systems cannot necessarily be solved by simply adding more distributors.
COACH MARCUS TAKEAWAYS
Here's what I want you to remember.
1. Yes, people can make money in network marketing.
That's true.
2. Many participants make little or nothing.
That is also true.
3. Possible and typical are different.
Don't confuse:
THE EXCEPTION
with:
THE EXPECTATION.
4. Start with customers.
Real customers create:
Real sales.
5. Retail commissions can create your first income.
Learn how to:
SELL VALUE.
6. Repeat customers can improve the economics.
Retention matters.
7. Team sales can create leverage.
But only when the team creates:
REAL PRODUCT ACTIVITY.
8. Gross commissions aren't net profit.
Track:
Expenses.
9. Skills and consistent productive activity matter.
Business is:
Learnable.
10. Your first goal doesn't need to be millions.
Start with:
YOUR FIRST CUSTOMER.
Then:
YOUR FIRST PROFIT.
MY FINAL THOUGHT
So:
CAN YOU REALLY MAKE MONEY IN NETWORK MARKETING?
Yes.
Absolutely:
POSSIBLE.
But I think the industry gets into trouble when we stop there.
Because:
POSSIBLE
is one of the easiest words to sell.
Possible:
Sounds exciting.
Possible:
Creates dreams.
Possible:
Fills meeting rooms.
But if we're going to help people make responsible decisions, we also need to talk about:
PROBABILITY.
What do typical participants earn?
How much do they spend?
How long do they stay?
How many customers do they build?
How much time do they work?
How many people actually become profitable?
Those questions matter.
FTC staff's review of 70 MLM income disclosure statements found that many participants received no payments and that the vast majority received $1,000 or less annually from the MLMs studied — often before accounting for expenses.
We shouldn't:
HIDE THAT.
We should:
LEARN FROM IT.
It tells me that if you're going to build network marketing professionally, you should not base your business around:
Hype.
Lottery-ticket thinking.
Top-earner fantasies.
Or constant recruiting.
Build around:
CUSTOMERS.
SKILLS.
FOLLOW-UP.
CONSISTENCY.
RETENTION.
DUPLICATION.
LEADERSHIP.
PROFIT.
And realistic expectations.
If your first goal is:
$500 per month...
I respect that.
If it's:
$1,000...
Great.
If you eventually want:
$10,000...
Fine.
But don't start with:
THE NUMBER.
Start with:
THE PROCESS REQUIRED TO CREATE THE NUMBER.
How many customers?
How much retail profit?
How many repeat orders?
How much team volume?
How many leaders?
What expenses?
What conversion rates?
Now you're thinking like:
A BUSINESS OWNER.
Network marketing is not:
A lottery ticket.
It's not:
Magic.
And it's definitely not:
Guaranteed wealth.
It is:
A BUSINESS MODEL.
And like every business model, results depend on:
What you sell.
Who wants it.
How well you communicate.
What it costs.
How consistently you execute.
How well customers stay.
How well you develop people.
And whether:
THE ECONOMICS MAKE SENSE.
My goal isn't to tell you:
“EVERYBODY CAN GET RICH.”
My goal is to help you become good enough at business that you can:
CREATE REAL VALUE.
Then let:
THE RESULTS
tell the story.
Tomorrow we're going to move to another practical question:
“HOW MUCH DOES IT COST TO START A NETWORK MARKETING BUSINESS?”
And this one matters because people often focus only on:
THE JOINING FEE.
But startup cost is only:
PART OF THE EQUATION.
We're going to talk about:
Enrollment fees.
Starter kits.
Products.
Autoship.
Websites.
Tools.
Events.
Travel.
Samples.
Advertising.
Training.
Opportunity cost.
And why one of network marketing's greatest potential advantages — a relatively low barrier to entry — can be destroyed if you:
OVERSPEND TRYING TO LOOK LIKE A BUSINESS BEFORE YOU'VE BUILT ONE.
Getting older is automatic.
Understanding business requires intention.
DON'T JUST GET OLDER. GET BETTER AT IT.
Faith. Health. Wealth. Build All Three.
— Coach Marcus Jones
BUSINESS, FINANCIAL & INCOME DISCLAIMER
This article is for general educational and informational purposes only and is not individualized financial, tax, legal, accounting, investment, business, or income advice. Network marketing and commission-based business results vary widely, and income, profitability, rank advancement, residual income, customer growth, team growth, or any other result is not guaranteed. Results may depend on legitimate customer demand, product pricing and quality, individual effort, skill, experience, expenses, market conditions, compensation-plan requirements, customer retention, team activity, leadership, company policies, and other factors. Gross commissions are not the same as net profit. Anyone evaluating an MLM opportunity should review the company's official compensation plan, income disclosure statement, policies, expenses, refund terms, and qualification requirements before making a decision.
SOURCE ANNOTATIONS & FURTHER READING
[Source 1] Federal Trade Commission — MLM Income Disclosure Statements Staff Report
FTC staff reviewed 70 publicly available MLM income disclosure statements and found that many participants received no payments and the vast majority received $1,000 or less annually from the MLMs represented in those disclosures. The report also found that participant expenses were often omitted or insufficiently explained.
[Source 2] Federal Trade Commission Consumer Advice — Multi-Level Marketing Businesses and Pyramid Schemes
FTC consumer guidance states that most people who join legitimate MLMs make little or no money and some lose money. It also advises prospective participants to consider startup costs, ongoing expenses, time requirements and the realities of selling.
[Source 3] Federal Trade Commission — Business Guidance Concerning Multi-Level Marketing
FTC business guidance says earnings claims should reflect what the typical person is likely to achieve and should account for both participant earnings and expenses. It also states that companies and participants need reliable evidence supporting income representations.
[Source 4] Federal Trade Commission — Staff Analysis of MLM Income Disclosures
The FTC's summary of its staff review notes that many disclosures emphasized a small group of high earners, downplayed participants who earned little or nothing, used potentially confusing presentation methods, and frequently failed to adequately reflect participant expenses.
PHASE 2 — WEEK 7: NETWORK MARKETING FUNDAMENTALS
Day 45: What Is Network Marketing?
Day 46: How Does Network Marketing Work?
Day 47: Is Network Marketing the Same as a Pyramid Scheme?
Day 48: Is Network Marketing Legal?
Day 49: Can You Really Make Money in Network Marketing? — Current Article
Day 50: How Much Does It Cost to Start a Network Marketing Business?
Day 51: What Should You Look for Before Joining a Network Marketing Company?
NEXT: DAY 50
How Much Does It Cost to Start a Network Marketing Business?
Tomorrow we'll look beyond:
“HOW MUCH DOES IT COST TO JOIN?”
Because joining cost and:
BUSINESS COST
are not always the same.
We'll break down:
Enrollment fees.
Starter kits.
Product purchases.
Monthly requirements.
Auto-delivery.
Technology fees.
Samples.
Advertising.
Events.
Travel.
Training.
Subscriptions.
And hidden opportunity costs.
We'll also compare network marketing startup costs with:
Traditional small businesses.
Franchises.
And other side-income models.
Most importantly, we'll discuss why:
LOW STARTUP COST CAN BE A REAL ADVANTAGE...
but only if you don't destroy that advantage through: