Facts & Myths of Multilevel Marketing






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Now more than ever, we are mostly just recruiting each other. Eventually we have to stop and learn how to create leads and bring those that have never been in the industry in.

Several months ago I received a call from one of my downline distributors inquiring about a good MLM list. Bob then asked specifically if a list of heavy hitters existed and how I might approach them. My response was something to the effect of, “Bob, why would you want a list of people who are the least likely to want to join your opportunity?” After all, heavy hitters are people who are making huge monthly incomes (that’s why hey call them heavy hitters, right?).

I’d assume they like making huge monthly incomes and probably would not be too interested in walking away from it and starting over from scratch.

“But Len, think about it,” Bob persisted, “Just imagine if I could have recruited . . .” Bob then reeled off the names of three major heavy hitters, all well known throughout the industry (for privacy sake, we’ll just call them Mark, Jan, Dale, Dexter and Ken).

Bob began to fantasize about the great wealth to be had by recruiting the likes of even one of the three mega-earners he listed.

Well, I happen to know Mark, Jan, Dale, Dexter and Ken personally, to varying degrees, and I know their stories. Ironically, three of them claim to have once had a strong skepticism towards network marketing and at one time felt it was something they would never consider being involved in.

Yet today, they are some of the richest, most successful network marketers in the country – as are their uplines!

“Exactly!” Bob exclaimed. “So how do we sign up people like that?” These “heavy hitter” were not, at one time, network marketers. Obviously. The lucky folks who personally sponsored these leaders did not do so by scrolling though an existing heavy hitter lists. They worked hard on opening the minds of people who they thought had a lot of potential, got them to consider network marketing, and today they are set for life.

You see, there are about five million people involved in MLM in this country today. There are about 285 million who are not.

This means there are literally thousands, perhaps tens of thousands, of Marks, Jans, Dales, Dexters and Kens roaming around this country who, right now, are very skeptical of network marketing and who are thinking they’ll never be involved in it – who’ll someday make somebody a million dollar income!

Thousands of them!

Personally, I think the very best network marketers are not involved in network marketing yet. Mark, Jan, Dale, Deter, and Ken are only the best out of the five million who are involved. The odds are there are many people among the 285 million who are not involved, who may be far better network marketers then even these 5 MLM Legends!

Today, there is a constant ebb and flow of distributors from company to company. Those who migrate like gypsies from program to program always looking for the better deal. And this segment of the MLM population is huge.

The result is that many companies increase in sales volume and distributor count each month. But it’s usually to the detriment of another MLM program.

There are a number of examples of companies that experienced growth in 1995 that came primarily from the fallout of another MLM company.

The People’s Network grows…Quorum shrinks. VitaTonics and Nu visions grow . . . Matol shrinks. USANA grows…VAXA shrinks. Natural World is growing much at the expense of Melaleuca. Likewise with Life Plus’s growth in 1994, which came at the expense of Kaire. Gold Unlimited goes away, a dozen other gold and silver programs get a jump start.

The examples are endless.

(NOTE FROM DALE: Remember, this article was written nearly 15 years ago but this has gone on and since the time it was written. Basically all network marketing companies that make it have an influx of a lot of distributors who are leaving another company as we explain in detail in my book MLM Insights)

Really, no company has experienced legitimate momentum in the last two years. Not like Herbalife in 1983, or NSA in 1987-88, or Nu Skin in 1991. Or, to a lesser extent, Quorum and Melaleuca in ’92 or ’93.

The point here is that these companies created this momentum by bringing in massive amounts of new distributors from outside the industry. And as a result, the industry grew as well.

But not today, at least not like in the eighties and very early nineties. Today, everybody seems to be into retreading existing distributors over and over and dreaming about landing the big heavy hitter. The industry has become sluggish, lazy, and one filled with a lot of spoiled opportunists looking for something for as close to nothing as possible.

(Update from Dale 10/10/2013) As the years go by I appreciate this article more and more. Today the industry is actually full of gurus teaching people, not to develop leaders, but how to Attract a Following as we discuss in great detail in my book.


7 Lies Book

… And the opportunities available to them have exploited and perpetuated this to no end.

Where there was once an industry made up of merit-based opportunities that rewarded those who worked hard, retailed, and actually trained and supported their downlines, there is now an industry full of fluff programs with token products that will basically sell you the farm for a small monthly personally purchase.

Again, the point being that recruiting outer circle people (those not involved in MLM) is hard work, and so few MLMers today are into working hard. Why is it so hard? Because outer circle recruitment involves a two, and usually three phase process.

Step one is to open the mind of your prospect as to the possibility of just starting a home-based business.

Based on surveys performed by MarketWave in 1989-91, 85% of all Americans who do not own their own business do have the desire to be entrepreneurs. When polled as to the reason why they do not pursue this desire, the four most common reasons were:

1. Takes too much money
2. Takes too much time
3. Too much risk
4. I don’t know how

Understand, this means that over 200 million people in this country want to be self employed who are not – and for reasons that do not apply to network marketing! Nonetheless, these are powerful objections and ones that must be overcome before an outer circle prospect would even consider your opportunity.

Once the prospect has accepted at least the possibility that there might be a type of business which overcomes all of their concerns, you must the confess, if you will, that it is called network, or multilevel marketing.

At this point, you will very likely have to address the stigma that surrounds this industry and/or at the very least, educate the prospect on what MLM is in general. So step two is to legitimize the industry as a whole.

(Gratuitous plug: These first two steps are the basis for my “Case Closed!” cassette tape. See the end of this article for more information on ordering this tape.)

So to recruit outer-circle prospects, the first step is to open their mind to starting their own business. The second step is to remove all the garbage about MLM that may be in there, and the third step is to then pour new information in by finally presenting your specific opportunity.

And as I said, steps one and two may be the most difficult to complete. So, wouldn’t it be so much easier to just find folks who are already involved in MLM, who’ve gotten past steps one and two, and just convince them that your products are better and your compensation plan will pay them more? I mean, why go through all the trouble of taking them through steps one and two when someone else has already done the tough part for you?

Because if you don’t… this industry will not grow, our downlines will be forever turning over as these transient MLMers move on to the next better deal and – you will never recruit a heavy hitter!

There are thousands of them out there. Get out there and recruit one!

Or, recruit five !!!



Note from Dale: It is hard to believe that this article was written over 15 years ago. Won’t we ever learn?

Create a Lead! We have multiple courses and a free ebook that provides an in depth analysis of how to become a master
at lead generation available here: www.6DMLMTraining.com

Open their minds – only if they are an entrepreneur minded person that you know is sincerely looking. (www.FreeRKCD.com program is the best way to do that.) If you open the minds of couch potatoes, their minds close quickly and you end up with an organization full of couch potatoes!

Let them hear the entire story using your company conference call, webinar or live event.

Get them Started Correctly! (http://www.StartRightMLM.com)

Those that learn how to penetrate the market outside of the MLM World will be the BIG WINNERS
in the future.  It is not that difficult to do,  the problem is that has not been the focus.  For the past
20 years we have been focusing on recruiting each other instead of penetrating the market.  The
real competition of this profession is the dead end 9-5, not other companies.











As always your questions and comments are welcome!



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