Does Network Marketing Give You Job Security?

What prevents someone from becoming a rep?  Some people feel that Network Marketing lacks security, and will tell you they prefer the safety of a traditional job.  

But is that really job security?  

Today we’re going to compare and see which one really has more risk versus reward.  This video might really open your eyes to give you a new perspective.

So in taking up this conversation, I’m going to start off with a security concept, what I call “points of failure.” 

Points of Failure 

I want you to imagine that this is your home and what you want is multiple points of failure. 

When you “run security”,  meaning, you’re trying to protect somebody else,  you want points of failure. 

Either way you look at it,  from the person on guard out on the outer perimeter (large circle around the house) or the person on guard at the house, the concept is the same.  

You’ve got a perimeter around the house and that’s going to be what we call alarm number one. 

Beyond the first perimeter, there’s going to be another. Perhaps it’s a fence line around the house. That would be alarm number two. 

And then there’s the house itself. If the alarm goes off in the house, that would be alarm number three.  And if there were to be an intruder at alarm one or two, hopefully that would give the person in the house enough time to get prepared. 

With that idea in mind about “points of failure” I want to talk to you a little bit about network marketing and its security. 

Points of Failure & Income Security 

When we’re looking at income security, we’re also going to look at points of failure. 

Let’s say I have a job, one point of failure, right? Why? Because if I get sick, if I get injured, I get fired, no income. 

That’s the least amount of security you can have. 

Number two, someone else controlling my income is always minimum security range, right? 

So if I’m not controlling my income, then it just falls into the minimum security range. 

Someone contributing to my income is a high security in income. I have a business with two customers. That’s three points of failure:  my ability to generate another customer and the two customers that I have. 

If I have 20 customers, that would be 21 points of failure.

If I have 1,000 reps, with 20 customers each says 21,000 points of failure. 

And you could probably add one more because of my ability to get reps and customers. That is a high security level. 

Efficiencies of Decentralized Command

Now I’ve shared this image before and it has to do with the formation or the structure of the Navy Seal Team. 

This structure is called decentralized command. 

You have a platoon leader, his squad leaders, and his fire team. And if you’ll notice each one of these is a function of four. The platoon has four squad leaders and the squad leaders have four fire team leaders. And then there’s four shooters under each fire team leader. 

That is called decentralizing command and that is the utmost in security.  

That is the very best structure. And the reason that we use it in special operations has to do with that, no one person is sitting up at the top of the Platoon having to receive communications from everybody.

Can you imagine all of these shooters going into a building and radioing back to this platoon leader in all of these, right? It would overwhelm this person. 

And so what you want to do is just radio back to the fire team leader. And then the fire team leader sends that message to the squad leader.  That way, the platoon leader is only listening to four people. 

Network Marketing: The Ultimate Decentralized Command

So in a similar way, in terms of security in your income, is that if this team right here is paying me $400, and this one is paying me $400, and this one is also paying me $400, and this one is paying  $400, that is the very best scenario you could ever find. Right? 

And the reason being is because the income is not dependent on one person. It’s dependent on multiple people and even better if this is diversified into multiple countries.

And so now you’ve got that security of currency. If something were to happen in a particular state or country, then you’re going to be safe because you’ve diversified your income into other countries. 

Here’s another example.  The other day I was having a conversation with my wife. As you may know, I’ve been in network marketing for 32 years and I’ve made six to seven figures in income every year during this time. There is no doubt that I love the network marketing business model. 

So I walked into my wife’s office and she said, “I cannot believe how incredible network marketing is!” 

And I just smiled. 🙂 

She continued, “Well, I was running ads on Facebook and they shut down my ad account. It didn’t have anything to do with network marketing…and just like that, it went away.” 

I know so many people whose entire business is dependent upon Facebook ads. That’s a single point of failure because it’s the lead source that starts the whole customer acquisition process. 

But when it comes to lead generation in network marketing, we have multiple ways to generate leads. Facebook is one but we can generate leads via YouTube, Google, and so many others. 

Let’s say the internet goes down. Well, we can just shift quickly and start sending out postcards or use direct mail. We can do whatever we need to do to keep leads coming in. 

You’ve got multiple ways to generate leads, multiple ways to contact them, and multiple types of presentations. And what I mean by that is you could do an event, you could go to an expo, you could present by video, you could present by podcast. You could present any way you want. 

• You’ve also got  multiple products and brands (if your company has those) 
• You’ve got multiple customers
• You’ve got multiple reps 
• You’ve got multiple countries. 

That’s why I say network marketing is the ultimate in decentralized command on all levels.

And although it’s ideal, is it possible that something could go wrong? 

Certainly. Let’s look at that too. 

What Can Go Wrong?

I’m going to be very upfront on this. 

It’s possible that a network marketing company could go out of business as with all employment opportunities.  

It’s possible that a leader could leave, as with all companies. 

The more leaders you have, the more secure. And, and by the way, I define a leader as someone who’s doing the Pipeline and being effective.

My Advice To You

My advice to you based on all of this is build your wealth before you build your lifestyle. 

I see a lot of people out there with really nice cars, and that’s alright, it’s good and it’s fun. I think everybody has to go through that cycle. 

But I really recommend that you build your wealth and then increase your lifestyle as opposed to increase your lifestyle and then build your wealth. 

If you build a lifestyle first, you buy a Ferrari on debt and then something happens. You lose a leader, company goes out or whatever it is, and then you’re trapped in that. 

Right now this is a very appropriate conversation. And the reason I say that is because if you look across the economy of the United States  (and even the world) bankruptcy is up 20%. 

Restaurants by 2% 

Retailers by 2% 

Entertainment by 4%  

Real estate by 2% 

Oil and gas by 3% 

Computer and software is up by 2%   

Uncertainty Is Out of Control 

For those of you who follow me, you know that I trade stocks quite a bit. 

Here’s a recent headline: Record-stunning 400 billion inflow in stocks in the last 16 weeks. 

When you look at all of these ups and downs on the market and then all of the sudden a spike, to that I say, are they getting out of cash? Is something happening to the currency?  To me, seeing a spike like that is a reason for concern. 

Then, take a look at this next image. This is the real unemployment. And what I mean by that is, is there’s different ways to show unemployment, and U3 is standard way.  

But when you really look at it, we are back to the 1980s in terms of the real unemployment rate.  

Inflation – many are talking about hyperinflation. In other words, real estate went up, so the building materials went up by more than 80%.  That means it’s going to cost 80% more to build the framing in house. That’s going to have an effect on new houses. 

Inflation seems how the feds are trying to get out of the COVID mess. 

Increasing the price of products could cause the collapse of the market. 

What I’m trying to say here is simply that uncertainty is out of control, but 

I’ve never seen growth faster in network marketing than right now, in my 32 years. 

How To Have More Financial Security 

The last thing I want to talk about is that security is inside of you. Even with my confidence in network marketing, if I lost a whole bunch of leaders, I know how to get others. 

If I lost my company, I would know how to do it again. 

I could land in any city in the world and start working without any hesitation. And that is a very comforting feeling. 

That is security because I have an ability, right? The better you know the Pipeline, the more control and security you will feel. 

The more you DO the Pipeline, the more certainty you have. 

There is knowing the Pipeline and there is doing the Pipeline, and doing the Pipeline increases your ability. 

And if you don’t know the Pipeline, learn about it here. But it’s simply:  

1. Generate a lead 
2. Contact them 
3. Set an appointment 
4. Do a presentation 
5. Follow up with them 
6. Get a customer 
7. Served them and you earn money

That’s just simply the Pipeline, and it’s what every business in the world must do to get leads. It’s what every college has to do. Every politician, every church must do to get a congregation. 

Everything has to go on that. 

The closer you are to paying customers, the more financial security you’ll have. And I know I’ve talked about this a lot, but what it has to do with is that everybody knows that a CEO of a company is very important, but I would argue not as important as the person who is acquiring the customer. 

In other words, the salesperson is the most important person in a company, and the reason is because that CEO can’t make a penny unless that salesperson is acquiring a customer. 

Because when that person pulls out their wallet and hands over the credit card or the cash to the salesperson, that is where the company gets money, and that’s the only place a company gets money.

That is a very important concept to understand about security and whether or not you have security in your position is really how close you are to the customer. 

I think acquiring the customer is the very best. The more customers that you have, the more financial security you will have. 
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