“I’m Not Interested in a Get Rich Quick Scheme”

Some people believe that anything other than a job is a scam.  Or that it’s risky.  But is that really true? What are the mechanics of wealth that the wealthy use?  And just because a business can grow exponentially, does that make it “get rich quick?”  

I was curious and decided to dig in.

This video is part of a series I’ve been doing where I discuss what prevents someone from joining or even looking at Network Marketing. 

Recently, my wife told me that she’s in a Facebook group, and one of the ladies said, “I’m looking for work, if anybody has anything, but please no get-rich-quick schemes.” 

When my wife said that to me, I thought, “I need to do a video on that because I know what’s going on here.” 

Some People Believe that Anything Other Than a Job Is a Scam

Some people believe that anything other than a job is a scam. I’m not invalidating anyone; they’re welcome to have that view, but if you are in that situation, you could help that person with it. 

You’re the person who decides whether or not you want to try to help or not. In my world, it just depends upon how much emphasis the person has on that particular thought. If they’re adamant about having a job, I won’t try to change that. 

I’ve told this story before: Years ago, a Network Marketer brought a person to my house. This prospect had two degrees, and had never had a job yet. I asked him if he would ever think about owning his own business. 

He said, “Oh, absolutely not. I’m not a risk person. I want a stable job.” But he had been in school for about 13 years and had never had a job. 

Every time that he would go out to get a job, he couldn’t get one, and he’d go back to school to get more education because he believed that the more education you have, the more qualified you are and the more people will want you to work for them. 

When I had that experience with that individual, I realized that is just what he’s after, and I’m not going to get in his way. 

I said, “Well, you’ve got your plan. Work your plan.” 

The guy who brought him to me said, “Tim, I brought him here for you to convince him.” 

I said, “No, no, no, no. That’s not what I do. I don’t convince people. That’s not what I’m about at all.”

Some people believe that anything other than a job is a scam, or anything other than a job is risky. That’s what you’re listening for, and are alert to. 

Typically, they won’t research to prove if something is or isn’t legal or ethical, and they don’t know the mechanics of wealth. 

When someone says, “Get-rich-quick scheme,” become very, very curious and dig in and find out what the true, underlying concern is. 

Typically, I’ve found that when a person thinks Network Marketing is a “get rich quick scheme” the root cause is really a bit of self-invalidation because they think they can’t become wealthy. 

In their mind, they don’t even think in that category, and anybody who does think in that category is a dreamer, and that’s what they do not want to become. They can’t envision themselves ever being wealthy, so why would they ever learn the mechanics of wealth? 

The way that I look at it is if I’m going to work, I might as well create wealth in the same amount of time. 

But the attitude “I can’t become wealthy” prevents them from actually looking. 

IRS Data Shows How the Wealthy Really Make Money

I’m going to walk you through how I typically explain this to someone. 

First I show them the IRS data comparing partnership income and S Corporation income. We look at how that income is earned and also what income bracket they’re in. 

As you can see in the image below, for people who make $1-1.5 million, 72.9% of their income comes out of partnerships and S Corporations. That’s business ownership. It goes on up from there, all the way to 90% for people who make $10 million or more. That’s got to be a mechanic of wealth. It’s a very stable item.

Which Category of Business to Be In? 

Next, I ask them which category of business would they want to be in. 

• Would you want to be in extracting raw resources out of the earth and then manufacture it? 
• You could be in raw resources. 
• You could be in manufacturing. 
• You could be in the branding side, which would include legal services, licensing, packaging, things like that. 
• You could be in the warehousing of it. 
• You could be in the selling side of it, which is the brick and mortar, online store, or sales rep. 
• You could be in the customer service area, which is not serving the customer, but it is handling returns, complaints, restocking, shipping and so forth.

In my world, I chose that I wanted to partner with all of those items, and I only wanted to do this one – sales rep. 

The sales rep makes the most margins on the products. The margins between raw resources and manufacturing are small, and the margins for each of the other categories are small, except for the sales category, which has the largest margins. 

I wanted to be in the largest margins and I wanted to partner with someone else to do all the other stuff. That to me is a mechanic of wealth. 

Mechanics of Wealth: Products vs Services 

You could ask, “Tim, why aren’t there services up here?” 

Well, typically I can run 50,000 SKUs in manufacturing in a day, but I can’t cut 50,000 people’s hair in a day. 

I want to be able to manufacture something real fast and be able to sell multiple thousands of units. That is an absolute mechanic of wealth. 

I would rather be in the product industry instead of the service industry for that very reason. I’m not cutting them down, I’m just saying that from a mechanics of wealth standpoint, selling a product is better than a service. 

So then what is my job if I’m in the sales area? Well, it’s to generate a lead, contact, set an appointment, do a presentation, follow up and get a customer. 

That’s what every business in the whole world does. Everybody does this. It’s got to be done for every business, but I wanted to do it in such a way that I would be able to learn it, learn it well, and then train others.

Business Ownership is a Wealth Multiplier 

The reason business ownership is such a wealth multiplier is because the people who own the corporation have employees or independent contractors. It doesn’t matter which one. 

I prefer independent contractors, because I don’t have to pay a person who’s nonproductive. I only have to pay someone who’s productive. When they sell a unit, they make money. That’s the reason that I prefer this type of a model. 

I can learn it, know how to do it, and can train others to do it, and the people I train can train others to do it as well. 

The Exponential Factor vs Get Rich Quick 

Somebody might look and say, “Oh, well, that’s a get-rich-quick scheme” because we use the exponential factor. 

What’s the exponential factor? 

One person gets six on the second level, and each of those six get six, and that’s 36 and on and on. And then it gets all the way down to the 13th level. 

“And it’s more than the world population! What a scam!” 

That’s the way they put that. They never ever look at it in any other way, because they’re fixated on this idea. 

But if you look at it, the average number of Instagram followers is 150. If I have Instagram, the average is that I will have 150 followers. All of those 150 followers also have 150 followers, on average. 

That’s going to be 22,500 people on level number two, 3 million on level three, and 506 million on level four. 

Just because it’s an exponential factor does not mean it’s a pyramid scheme. It’s just smart business. 

Instagram is a smaller one. Facebook has 2.8 billion people. Twitter has 330 million people. Instagram has 112 million people. 

How does social media get all of these people? What are they selling you? You. If it’s free, you’re the product. That’s what the catch is. They have no problem using all of your contacts’ contacts’ contacts to run ads to. 

Why Doesn’t Social Media Like Network Marketing?

Somebody said to me, “Tim, why doesn’t social media like network marketing?”

I said, “We’re their biggest competition.” 

They want to just show ads and get paid for every time somebody promotes a product or a service online. And they want that to be an ad revenue, instead of all of us using it. 

They don’t want me sharing my product with my friends and friends’ friends, because that’s competing with their people who spend money on ads. 

Facebook now will not show you most of your own friends, let alone your friends’ friends. They have been cutting back the reach. I think since about 2012 is when they started cutting it back, and they’re still cutting it back to this day. 

Just because somebody uses the exponential factor does not make it a scam. It doesn’t make it a get-rich-quick scheme. 

If I were looking at the mechanics of wealth, I would want exponential growth as a factor because one of the greatest wonders of the world is the way that it goes out like that, the way it multiplies. 

If you just said 99% won’t buy and just 1% will buy for $1, you can look at the numbers. With the exponential factor, it is a lot. That’s the reason that I feel it is a mechanic of wealth. 

Why Not Have the Mechanics of Wealth In Your Favor?

If you’ve got to work, why not have the mechanics of wealth in your favor, instead of saying, “I don’t want any of those get-rich-quick schemes.”

It’s not a get rich quick. It is “I just want to make sure that I could get rich.” 

I remember driving down the road, when I had first looked at Network Marketing. I didn’t know anything about it. I thought Amway was a train: Amtrak, Amway. I really never, ever saw anything about it. I remember just thinking about it, thinking, “Man, this is crazy.”

I was on my way back to the Navy base and it was late at night and this guy was out in front of me. I just kept seeing sparks flying out of the truck in front of me and I was trying to catch up to where he was.

I thought, “What in the world is that coming out of the back of his truck?” 

I caught up to him and I looked, and his bumper was broken on one side and it was bouncing off the road. Every time he hit a bump, it would bounce and scratch the ground. 

And that guy’s bumper had a bumper sticker that said something about “Navy Lifer.” 

I had 13 years in the Navy and I was considering getting out versus staying long-term. It occurred to me that I couldn’t do anything on 100% of my base pay, but when I retired I would get 50% of my base pay. And I couldn’t do anything on 100% of it. 

The idea is to look around the environment of where you work and what is the likelihood that you will be able to reach your boss’ position and what would that give you? 

When I looked at Network Marketing, I said, “I can reach those levels. And those levels are big income. I can reach those levels.”

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