The people at the top make all the money. That's what we're gonna be talking about today.

Hi my name is Tim Sales. if we haven't met yet I've been in the network marketing industry for about 30 years I've made many millions of dollars I taught network marketing at the University of illinois-chicago on a certificate course I was interviewed by Larry King on the topic of pyramid schemes Ponzi schemes and legitimate network marketing as well as Grant Cardone I was interviewed by him as well and so I'm taking all that knowledge and expertise and I'm breaking down the industry into little bite-sized pieces I'm not here to convince anybody to join network marketing and I'm not here to convince somebody to not join network marketing it's just brought me so much joy in my life and fun and then you know a consistent income for over 30 years and so I'm just sharing that knowledge with you okay so let's jump into this okay so these are two different concepts I know they're always said in one rhyme but people at the top make all the money is way it is but I want you to in your mind break it down into two different concepts okay so who says this well I've heard the news media say it college professors say it attorneys even Attorney General say it brother-in-law neighbors parents and kids must be true right since everybody knows it that way well let's see the first concept is that top of what all right and so I know you probably immediately said right there right that's what most people think and it's actually not the case I am the top distributor in my company it happened about seven years ago I know the math doesn't work that I've been in the industry for 30 years so I was in another company I built it retired for 18 years and then the company bought my business back from me okay so then seven years ago I joined a network marketing company and I was number one and I'll never forget it it was in July it was the one month of my son's birthday all right and so he was born a month earlier and so I was sitting there and I'm now the number one distributor on top of what nothing I don't I didn't start any different way than anybody ever starts network marketing wherever you come in you're on the top of nothing you're not at the bottom you're on the top of nothing because it's your business all right so that's the first kind of a concept to get into your mind and way back in the 70s Federal Trade Commission sued Amway and once those books got opened up they were able to reveal that there were many people within the structure who made more money than the people above them all right and this was kind of shocking to everybody and so that's when it first came out but I've been in the industry again 30 years I was a consultant to about 200 network marketing companies and top leaders throughout the whole world and I've never seen one single company ever where the first person in made the most money and what would make sense to people would be the first person in and then everybody's under up well they maybe have everybody under them but there's a finite number of levels that you earn money on ok and I only have three here because I run out of space but but you know let's say it's 5:00 or it's set six levels deeper whatever seven levels deep and what you do in your levels is the only thing that matters okay and so somebody walk walk you through another one here so if this is you and this person right here brings that person in everything that they build is going to be out of your pay plan okay so because it cuts off right here and so that person now you'll get paid on that person's volume but you won't get paid below that and so that person could build a more powerful organization and and I'm talking about more sales volume not necessarily people okay and so the more volume that this person creates then that person can make more money than this person this person in this person that is not just telling you that people lower in the ranks can make more money but actually showing you how that happens and it happens quite a bit it happens in my organization there are many people in my organization who make more money than me all right you know what one more point I saw as that was coming by and that is is that and the reason being is because each level has the same compensation though is every person who comes in even though their circles here those are human beings who want to build their own business right and they're just utilizing the resources from the parent company called the network marketing company and so but everybody gets the same pay plan right so that's the reason that this person can earn more than this because it's all based on production all right yeah so I showed you the network marketing industry let's let's talk about corporation any other corporation let's take Microsoft for example it's not any different Bill Gates comes up with an idea I'm not sure that it was Bill Gates who came up with the idea but for this conversation it really doesn't matter let's just say that Bill had an idea and he seized the moment and he said I'm gonna build a company what's he on top of nothing right he forms a corporation so all he has is a logo a simple one and in himself right and so then he goes out and he you know maybe gets one partner and then another promoter kind of a guy so a geek in a promoter and and then they divide up the shares of the company and they start building and then when they're taxed out and they can't do anything more then they're going to try to bring somebody into the company to help run operations and stuff right so that they can make bigger decisions and so they bring in a CEO and the CEO wants some sort of a pay package right and so there's negotiations that go on and and so you know they agree and they negotiate or whatever and then they get the pay structure right the compensation structure and then the CEO all right he runs out of time or Talent and so he's then going to get a president and what's he going to do with it president right humans relations is going to negotiate with the president and you're going to come out with a pay compensation plan right and and so maybe this guy here he gets stock options also if he meets performance the president might get stock options if he meets performance criteria and then the middle managers typically do not get those kind of packages although if anything is possible right anybody can write any compensation idea that they want into a company and then the employees you know typically don't get any kind of a stock option package but they get a different compensation plan than these people do and these people get a different compensation than these people do and a different one than that that's what's different over here everybody has the same compensation structure and it's all based on performance okay resume you know gifted all that stuff doesn't come into play you you have to produce your education level and none of that it doesn't hurt but but it doesn't help it only productions the only thing okay and that's the that's an awesome part about it okay so just to in one final look the main point is is that the reason that people lower in the ranks can make more money is because everybody has the same compensation in this one the reason that each level earns less is because they have a different structure and that is what creates the chain of command as in who is able if you will to tell who what to do right so that's what the chain of command is all about there and this person makes more money so they are there they are therefore in charge and that's they tell people what to do and then the president tells the middle managers what to do in the CEO and so forth okay and so while so these people because they got in at the beginning they make billions of dollars these guys make millions these guys may alright but at least hundreds of thousands and then here you know depending upon if they're a programmer top level program or whatever and so each level earns a little bit less alright okay so this is the US military I was in navy spec ops way back in the day and I started part-time in network marketing and when I first got into the military in everybody who comes into the military as an enlisted person they're going to enter right here and they're gonna be an e1 enlisted one and and the income today is 1638 but it was a whole lot more 3040 years ago okay and and then officers come in here and they're an o1 okay so sixteen hundred and thirty-eight and then you go all the way up here to the top and you can see ten thousand five hundred and thirty-four I know you can't read it probably from there but that's what it is ten thousand alright and so that's about 16 hundred there okay so picture this there's about 300 of these people in the military and there's 1.3 million in the whole military so okay well let's just March up the ranks right and get all the way up 208 okay maybe not because there's only 300 and that's limited there you know they don't allow any more than 300 and so literally somebody has to retire or die in order for a spot to open up to get one more person up there and down here and everywhere there they have something called time in grade in other words when I wanted to advanced let's say from a 5-2 e6 once I became a five I could not advance without time in grade as they called it these are paid grades and that means that I was gonna have to wait a two years and I hated that right it's like I it doesn't matter what I do I cannot get a pay raise and so once that two years happened then I was up for eligibility and I got it right okay great now I gotta wait another two years so I wanted something myself where I could go out and perform and get paid okay in here I had to perform and there were notations of my performance the way that I dressed in the way that I you know exercise in a way that I you know perform my duties in the way that I respected my seniors in the way that I all these things were in there and so they drove you to to be a good performer if you will but you didn't get a pay rate until you were up for pay great increase and so I wanted something where I could just go out and perform make more money okay so uh so that's the military and then the last thing I want to show you here and this has to do with the disproportion from the bottom to the top and so people talk about that and they say you know the the people at the bottom make nearly nothing in the people at the top make all the money and that's that should have like you should understand that a little bit better now that I explained to you the concept of on top of what the reason the people at the bottom and I and I say bottom because I don't really even view it they're on top of nothing is all that it is and so they haven't built it yet they don't have the production or the skill set yet and so it's just like anything when you first start they've got to like do that and get better at it and and you know rehearse it and you know like figure out how to do it wrong and how to do it right at least they have help with it okay and so in this was done by a gentleman by the name of Ray Dalio and so much respect for that man because of the way that he broke down the economy he's a billionaire and he said that what we have here is is that the top one-tenth of 1% of the wealthy people is worth the bottom 90% combined now that's a tongue twister so let me explain this okay so right over here this is ninety percent of the u.s. working class and this pink area right here not the red one the pink area is ninety nine percent or ninety nine and more okay ninety nine percent okay so that's the part that's right there and then that top sliver at the top is one-tenth of one percent and those people own the same amount of assets as the lower ninety percent of America as a matter of fact I'm pretty sure the statistic is correct that the 1/10 phenomenon is also true worldwide in that they own fifty percent of the world's wealth all right and so there is a wealth gap in absolutely everything if you ever you know broke down and said how much do the shareholders not stock trading but the shareholders of Microsoft me how much do they make how many billions are they worth and then break it down and say okay how much is that in ratio wealth gap meaning to the employees right you'd find probably the same statistic and it would have to be that same statistic because if if 1/10 of 1% controlled 90 percent of all the wealth in America the lower ninety percent then that means that almost every corporation would have to have that same statistic in order for it to be the way that it is in America and so in summary people at the top you know know what that means make most of the money that is true in network marketing so does every structure okay no other no structure where the bottom the least productive people make the most money I mean can you imagine us starting a corporation our company and saying you know what we're gonna do this for the little guy you know what we're gonna pay the least productive people the most amount of money and we are just going to take you know just a couple of pennies that's fair right how long would that company last okay so you have to pay the top performers the most it's the only way it works otherwise it's just welfare network marketing is different because everyone has the same compensation and people at lower levels do earn more than those above it I appreciate you watching please do me a favor and comment down below if you appreciate this video give me a thumbs up and subscribe to the the channel so that you get notifications when I'm when I release new videos on topics such as this thanks again I'll see in the next video