“People at the top make all the money.”  This is one of the most common objections I hear about network marketing. 

I’ve heard it in the news media, from college professors, attorneys, and even the Attorney General.  Network marketers hear it from brothers, sisters, neighbors, and parents. So, if everyone’s saying it, it must be true, right? 

Wrong! Everyone says it, but it’s not true, and today I’m going to show you why this statement is utterly false. 

People at the Top

The first concept is “People at the top.” At the top of what? I know you immediately thought,  “At the top of the company,” right? That’s what most people think, but it’s actually not the case. 

I am the top distributor in my company. The day I joined my current network marketing company  I was number one. I signed that distributor agreement and bought the kit, and thought to myself, “Congratulations! You’re on the top of…Nothing!”

I didn’t start any differently 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. It’s your business, and you are at the top, but you’re at the top of nothing. That’s the first concept to get in your mind. What matters is what you do next. Do you sit on top of that “nothing” and do nothing?  Or, roll up your sleeves and get to work building, producing, learning and achieving? 

Way back in the 70s, there was a court case with the Federal Trade Commission vs. 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. This was kind of shocking to everybody when it first came out. But I’ve been in the industry for over 30 years.  I have been a consultant to about 200 network marketing companies and top leaders throughout the world. And I’ve never seen one single company, ever, where the first person in made the most money.

In Network Marketing the Most Productive People Make the Most Money

What most people have on their mind is that the person at the top must be the one making all of the money because everyone else is under that person. However, what most people don’t realize is that in network marketing, there is a limit on the number of levels deep you can earn money. 

In this example, I’m going to say that it might be seven levels deep. The exact number varies based on the company’s compensation plan. But the way it works is that let’s say you sign up, and you can earn based on 7 levels. Well, if a person who is eight levels below you brings in a person who activates a lot of reps and generates a huge volume of sales, everything they build is going to be out of your pay plan. This person could build a more powerful organization, and his reps could create a higher sales volume than you and your team, and even though he’s below you, he would make more money than you. 

This actually happens quite a bit. It happens in my organization. There are many people in my organization who make more money than me.  

You know what I call that?  Fair. Everyone in the network marketing company has the same pay plan. That’s fair, and that’s how it should be. The most productive person makes the most money.

Traditional Business – How is This Fair? 

So, in a network marketing company, the pay plan is the same for everyone, but let’s look at this from the point of a traditional business. 

A business owner comes up with an idea. He seizes the moment and says, “I’m going to build a company.”  What is he on top of? Nothing. 

He forms a corporation. Now he’s got a logo, an idea and himself. Next, he finds a partner who has some technical skills. They divide up the shares of the company and they start building. When they’re maxed out, they bring another person to the company to help run operations. Eventually, they need a CEO so they negotiate a pay package for the CEO and keep working. Eventually, they add a president, managers, middle managers, and a host of other employees that do the work that moves the company forward.  

And at every level there’s a different compensation package. Upper management employees might get stock options or profit-sharing bonuses. Other employees may only get commissions while others just get a straight salary with no other income incentives.

So in this company, you have multiple levels and everyone is offered different pay levels and no one in the lower ranks makes more money than the people above them. That is absolutely unheard of in traditional business. Lower ranks never make more than management. 

In Network Marketing Everyone Has the Same Amount to Gain

You see, that’s what makes network marketing different. Everybody has the same compensation structure and it’s all based on performance. Resumes, degrees, seniority – none of that makes a difference. It’s all about production. 

The most productive person makes the most money, and that’s the awesome part about it. It’s one of the things that I love about network marketing. Everyone in a network marketing company has the same amount to gain, and the same compensation structure. The top performers make the most money, and that is what I call “fair.” 

Do you think that’s fair? I’d love to know what you think. Take a minute to comment below and let me know your thoughts or questions. I’m very interested in what you have to say. 

-Tim Sales

PS: If you don’t have a team, haven’t recruited anyone (or less than 10 people), this is THE course you should get – Network Marketing Training Course