Is someone telling you “Don’t do network marketing?” Why might they be giving you that advice? How should you respond?

You know, my dad told me not to get into network marketing. He knew somebody who had been in the military for twenty years and was living on a pension. This person was enjoying a comfortable retirement. So naturally, my father didn’t want me to forfeit the potential for a similar pension myself.

My sister also told me not to get into network marketing. She said, “Tim, it’s absolutely a scam.” Some of my friends told me not to do it. But the question I had to ask myself is: Who’s going to pay for my life? I am. Not them. I have to make sure I'm not giving them too much influence over my decisions. I have to ask:

  • What do I want?
  • What’s my dream?
  • What are my goals?

That’s the reason I started my network marketing business—even when so many voices were telling me not to. Because I’m responsible for my own life and accomplishing my own dreams. Nobody else is. But let’s dig a little bit deeper into this. When it comes to network marketing (or MLM ), why do so many people say, “Don’t do it?” I’ve narrowed it down to a list of 7 possible reasons.

1. It’s the easiest advice you could ever give somebody.

Let me give me an example. After I retired with millions of dollars, I wanted to make an investment. I hired an attorney to evaluate and research the opportunity. He came back a couple of weeks later and said, “Tim, I’m going to advise you not to do this.” And I said, “Okay, why?”

He went through a 30-minute presentation with all the reasons why I shouldn’t. When he was done, I thought about it for a little bit, thanked him for his advice, and told him to turn off the work clock. I said, “You’re no longer charging me for time. I just want to ask you some personal questions here.” Now we’re off the clock.

I said, “Okay, so it’s not your money. Why are you advising me against it?” He started into the exact same presentation as before and I said, “No, no, no. I’m not asking as a client of yours. Why did you say not to do it? Why didn't you sell me on it?” He said, “Look Tim, I’m an attorney. In my position, if I recommend that you don’t do it, and you go ahead and do it anyway, then you went against what I said. There’s no threat there for me. You’re not going to sue me. However, if I told you that it was a good deal, now I’m liable. Now I could get sued.”

Of course, I found that very...interesting. I thanked him, said I appreciated his time, and that was the end of that. I never used that attorney again. But his answer makes perfect sense—and not just for an attorney. The easiest advice anybody will give you, especially in an off-the-cuff kind of a conversation, is don’t do it. It always carries the least risk for them.

2. They don’t actually want you to succeed.

I’m not going to name any names here. I was once in a situation where the people around me were afraid of me achieving greater success and getting out. Not necessarily because they didn’t want me to succeed, but because they were afraid it would create an imbalance between us. And maybe if I suddenly started making bigger bucks, I’ll drift away and no longer be their friend.

Now, in my own mind, that had never occurred to me. They would always be my buddies. But I felt a constant tug from their end. They made jokes about me and disparaged my ambitions.

When you start talking about following your dreams, that can be their cue to defend themselves by telling you not to even try.

3. The poor and middle class tend towards fear.

I’m painting with a very broad brush here. This is far from true for every person. But as a generalization, in my experience, the poor and the middle class tend towards fear.

  • They’re fearful of losing money.
  • They’re fearful of starting something new.
  • They’re fearful of someone becoming “better” than them.

I’ve found that people in that kind of mindset are generally going to suggest that you avoid risks. They’re too timid to take a chance themselves, so they give you the same advice. Don’t do it.

But the wealthy can be a very different story. I go to various charity events, and normally if you’re sitting at the “wealthy table,” you hear very different conversations. When I say I own a network marketing business, they say, “Man, I have always been curious about that. What is network marketing, and how does it work?”

It’s a completely different mindset. They know that any person who has a driven mind will make anything work. (That mindset may be a major part of why they’re wealthy in the first place.)

4. They don’t understand downside risks and upside risks.

Another thing that wealthier people tend to do differently is evaluate risk. I talked about this my video "Is Network Marketing Risky?". I've invested in Google stock. Once, I bought a thousand shares at $1,193.

I set a stop loss at $1,192. In other words, if it drops down a buck, I’m going to sell it. So what’s my loss then? $1,000. That’s the downside risk. But based on the ways the stock moved in a given day, I figured that it was going to take less than 10 days for it to move up to $1,228. That was my sell target.

If I hit that target, I'd make $35,000. At the time I filmed the video, I was already looking at a $28,000 profit. After that, it climbed all the way up to my $35,000 sell target.

So here’s the thing: what was the downside risk? $1,000. What was the upside risk? Yes, I said upside risk. Not potential. I said risk because that’s the way wealthy people think. The risk is that if that money sits in my pocket, it’s not earning anything.

  • My downside risk is $1,000.
  • My upside risk is $35,000.

This is the way wealthy people look at risk: downside risk versus upside risk. What was the risk of me not investing in that Google stock? I would be $35,000 poorer right now. Now, to bring it back to our original topic.

  • Seven years ago, I spent $1,200 to start my network marketing business.
  • Since then, I’ve made millions.
  • I have 57 people who have made over a million dollars themselves, and around 5,000 who average $250,000 a year.

Hit me with a shovel if I wouldn’t take a deal like that again. So remember this phrase: the most amount of money and time you will ever lose is the amount you will never make due to lack of action.

"The most amount of money and time you will ever lose is the amount you will never make due to lack of action."  - Tim Sales

5. They don’t understand network marketing.

What is network marketing, and how does it work? If you don’t know the answers, you’d be far from alone. Most people don’t understand network marketing. And that means they don’t understand residual income either, because if you understood residual income, you would crawl naked over broken glass to get it.

I worked for about five-and-a-half years and then I retired for 18 years with a residual income. That’s unbelievable, right? Yes, but it’s true. To give you an example of how residual income works, it helps to think about what you spend on a residual basis.

  • The service on your phone is one such expense. Every month you pay to keep your subscription going.
  • Maybe cable television is another for you.
  • Maybe the mortgage you pay on a monthly basis.
  • Internet service might be an even better example. A computer is a one-time purchase. The internet service, on the other hand, is a recurring monthly bill. The company is getting a residual income from you through the service.

But network marketing is even better than that. With network marketing , you’re building a sales team and training them to build another sales team. That means your residual income multiplies.

That’s the fundamental difference. There were months during my retirement when my check would jump $15,000, $18,000 or even $35,000 in a single month—all while I was completely retired.

So when somebody tells you not to get into network marketing, there’s a good chance they don’t have a clear understanding of what network marketing or residual income actually are.

6. They think network marketing functions differently from other organizations.

The real problem isn’t just that most people don’t understand what network marketing is—it’s that what they think they know, is wrong.

Too few people have asked, “What is network marketing?” and gotten an accurate answer. Most people have a bizarre viewpoint that what network marketing does is somehow fundamentally different than from what any other business or organization does. But every organization in the world has to follow a simple five-step process:

  1. Generate leads
  2. Contact
  3. Appointment
  4. Presentation
  5. Follow up

Think about any business, college, religion, or church. If they want to expand, they’re going to have to go through the exact same process.

Everybody does it.

So when I saw that for $1,200, I could get into network marketing and build a residual income, I absolutely took that deal. Because I know that five-step process. It’s the only thing a person has to know in order to build their own network marketing business.

7. They have opinions, not facts.

I’ve made a lot of videos about this. If you can’t get the facts to evaluate them, then you have to depend on the opinions of others.

That’s the reason I decided to come out and actually show you facts in the first place—so that you can evaluate them and decide for yourself. During my 30 years in the industry, I’ve been behind the boardrooms of 200 network marketing companies. That’s a lot of experience. I know where to look to find the facts.

Most people hit Google, read the first couple of pages in the results, then say they did their research. “They have the facts.” No they don’t. They have secondhand opinions. That’s very different from having the facts.

Is someone telling you “Don’t do network marketing?” Here’s how you should respond.

We’ve already talked about why someone might tell you not to try network marketing. Now, if anyone is giving you that line, based on what we’ve discussed, here’s what you should do:

1. Live your own life.

So what if someone else tells you not to do it? You’re in the driver’s seat of your own life, not them. No one can make those kinds of decisions for you.

2. Pursue your unapologetic dreams.

Emphasis on unapologetic. If you’ve got a big dream, don’t apologize. Go after it. I’ve got two young boys, and if somebody hurt them, I’d be mad. But if somebody stole their dream? That’s a whole other level of anger.

3. Evaluate facts, then make your own decisions.

Don’t just go with the flow. Don’t just read the top results on Google, either. Get the real facts, then make your own decisions based on that. Find out the truth for yourself.

4. Surround yourself with people who inspire you to do MORE—not less.

What can I say about this? It applies to all areas of life. Who you spend time with matters, and it’s important that you surround yourself with people who will inspire you to greatness, not hold you back.

Now it’s up to you.

You should have a better understanding of why someone might be telling not do get into network marketing and how to respond. Now it’s your turn to follow through and climb the ladder to your goals—especially if those goals include your very own network marketing business.

If you’re interested in learning more about how to start network marketing, check out my website. I have plenty of videos and articles to make it easy for anyone to grasp.