Network Marketing Success: The Taker Bomb

In life we’ve learned that there are takers and there are givers. The ones who find network marketing success seem to be those who can consciously balance the two. A few rare individuals like Mother Teresa seem to derive tremendous fulfillment from unselfishly giving to others and those people are among the most respected of all human beings. But you’ll never find a taker being seriously considered for sainthood and to my knowledge there is not one statue dedicated to such a person anywhere on the planet. That’s because we hold givers in high esteem and takers do not command respect.

Network Marketing tends to attract both kinds of people, but I think our industry is a natural magnet for takers because of the potential for such dramatic wealth. You’ll attract prospects who will take as much of your energy and time as you’re willing to give them and you’ll find very few Mother Teresa’s. The key is to understand that givers must create boundaries because takers never do. There is absolutely no reason to give huge amounts of time to takers who are not productive.

You’ll recognize the Taker Bomb by two indicators. First, takers will demand more of your time than other team members. Second, they produce very little, in spite of their demands. I’m always prepared to spend more time with productive people, but most of them aren’t interested in spending time with me because they’re busy recruiting.

Here’s the simple acid test. If you feel that you’re spending more time than you should with those who aren’t producing, you probably are. One real good tip off that you may be dealing with a taker is several back-to-back telephone calls in the same day. Takers
appear to suffer from chronic amnesia because they seem to forget to ask you one question that they could have asked earlier. It’s not amnesia…it’s takeritis. Takeritis is an inflammation of the dependency gland brought on by unnecessary Upline attention. Either withdraw the unnecessary attention or prepare for even more dependency.


Givers must create boundaries because takers never do. There is absolutely no reason to give huge amounts of time to takers who are not productive.

Network Marketing: The Exit Strategy Bomb

New Networkers are perplexed by this land mine because it is so irrational and unexpected. But if you’re prepared for it and if your people are educated before they step on it, they won’t waste valuable time trying to diffuse it.

This bomb is not particularly devastating to a new Networker’s career, but it can cause a considerable time drain. The Exit Strategy Bomb is also called the Dabble Bomb and it refers to the prospect who desperately needs to make money, and may even be on the verge of personal bankruptcy. While it’s obvious that Network Marketing offers his or her best escape from a horrible financial plight, the Exit Strategy Distributor will build in a formula for failure and create advanced excuses for never succeeding. I’m not referring here to those who choose to start part time, most of us did. I’m talking about the person who sets up an exit strategy when he first begins even though he needs the business desperately. Here’s how it works.

An unemployed Distributor acts very excited about the network marketing opportunity, buys a kit and listens intently to your training information. He acts very enthusiastic and may even compile an extensive list of contacts, but will announce very early on that he’s still looking for a salaried job in order to finance his new business and pay his bills. Full time job seekers never seem to get around to building their networking business. Never mind the fact that he’s unemployed, broke and upset about his life. Never mind the fact that you’ve provided him with the only legitimate way to create dramatic wealth without any huge risk or investment capital. He informs you that, in spite of all that, his time is tight and he’s going to seriously build as soon as his upcoming full time job is in order.

Why does he do this? Because in his heart-of-hearts, he believes he might fail, so he’s launching his career with a perfect exit strategy…delayed or half-effort. Should he then fail, he can point out to his spouse and friends that he just “dabbled” in this industry and therefore failed by not really trying.

Without an understanding of this land mine, new Distributors will tend to waste time trying to inspire and motivate such Distributors. Forget it. People who study the Holy Grail are elated to discover that done properly, full time is two hours a day!
Many dabble in our industry and fail by not really trying. Don’t waste your time with those who present an exit strategy from the get-go.

Network Marketing Success and Avoiding The Snake Bomb

This seems like such a no-brainer, yet it’s a bomb that’s very dangerous because many Networkers elect to step on it purposefully and hope for the best. So I’m going to be very direct. Not all the snakes are in the jungle. If you make the conscious choice to attempt to handle a snake, don’t whine when you get bit. And you will eventually get bit. That’s what snakes do. If you want to take a little extra time to learn more about snake/sociopaths, read Snakes In Suits. It’s available everywhere. But for our purposes, let’s look at the Snake Bomb as it pertains directly to Network Marketing.

Statistically speaking there are an estimated thirty million sociopaths in the U.S. and less than 1% wind up in jail. Most sociopaths learn very early in their lives that it’s more profitable to remain out of prison and cheat people than it is to risk armed felonies.

White-collar snakes do very little jail time, even if they are caught. Those who do go to jail sometimes end up with a major book contract and movie deal. They definitely become much more celebrated. I think sociopaths are more prone to enter Network Marketing than most fields because there are so few regulations.

There’s a lot of more money for snakes in securities and investments, but there is also a very powerful SEC with considerable oversight. Network Marketing isn’t always as profitable, but it’s nowhere near as risky. The problem with snakes is that they appear to bring economic opportunities, albeit shifty ones. The challenge is not so much recognizing sociopaths as it is avoiding the temptation to profit from their skills.

I’ve seen some pretty ethical people become seduced by sociopaths. They knew exactly what kind of people they were dealing with, yet decided to work with them anyway.

New Distributors need to understand that the short-term gain of associating with snakes is always a mistake. It may take some time, but ultimately sociopaths will lead decent people into cesspools. And they don’t care because that’s the M.O. of such people.

Sociopaths are only interested in themselves. Snakes lack the capacity to feel empathy for others and no matter how hard you try, you will not change them. So, here’s my suggestion. Judge no one unless they give you a reason. It makes absolutely no sense to classify anyone as a snake until you see clear evidence that you’re dealing with a sociopath.

That’s not difficult because this bomb is seldom disguised. Most of us have a built in snake meter. When some slick talking scoundrel sets off all the warning alarms, we must not be seduced by our desire for money.

If respected people have warned you or you are reasonably certain that the person you are about to recruit is a snake, don’t do it, regardless of the potential rewards. No matter how attractive, successful, wealthy, connected, powerful or seemingly kind, you cannot afford to align yourself with a business associate if you know for certain that the person is a reptile. You certainly don’t need to recruit one that is clearly unethical from the get-go.


Judge no one unless they give you a reason.
But handle a snake and prepare to get bit.

Network Marketing: The Dump Bomb

Human beings are social animals and as such we love to communicate with others. In fact, great sales trainers have always cautioned people to never over-sell. Some new sales people will sabotage themselves by continuing to talk long after the close.

In Network Marketing, the Dump Bomb usually manifests itself in the first two steps – Expose and Present. Poor Networkers often do a “data dump” of information on a prospect during the exposure step. The purpose of the exposure step is to expose them to exciting information without disclosing unnecessary facts which will deter further investigation.

Do not reveal the name of the company, product, industry or any other details during your initial mlm approach. If you do, many of your prospects will never
call you back because you’ve unwittingly set them up to do a self-presentation. If they can google your company, they will. In fact, they will do whatever they need to do to review all the facts they can find. But during the presentation step you need to be in control of the process so you can answer questions and deflect unwarranted objections stemming from prospect biases.

Many people use our free exposure tool so that prospects won’t initiate their own presentation until you’re there to facilitate it. If they find that intriguing, send them to your site. But don’t send them to your site first.

New Distributors need to be warned about the fact that the more information they dump on prospects in the exposure phase, the less chance that prospects will participate in a thorough presentation. They’ll prematurely decline.

They also need to be prepared for the fact that prospects will use very clever ways to get as much premature information as possible right up front.
Prospects may act very interested and frequently make leading comments like, “ That sounds exciting. What’s the name of your company?”Or, “This may be exactly what I’m looking for, tell me about your products!”

Some will act offended that a Distributor doesn’t trust them with more information at this point. I’ve heard comments like,“Look, I’m a very sharp business person looking for a great opportunity. If you can’t trust me with more information about your venture, I am just not interested. So, what’s the product?”Don’t fall for that trick.

New Distributors must be trained to watch for this land mine and avoid the temptation to dump information which should be released during the
presentation, rather than the exposure step. And there’s another very good reason for this strategy. Many prospects will attempt to control the entire recruiting process, just to see if the Distributor can be manipulated. They realize that if they can take control right up front, and force a Distributor to do it their way, that person is not a leader. They will never admit that, but prospects respect leaders who demand an orderly process rather than catering to their requests.

When prospects have been demanding and tried to take control of the process, I’ve stated forcefully, “I can’t work with you unless you follow my process of checking out a bit of information first to see if you’re intrigued. If what you hear interests you, we’ll take the next step. I’ll spend as much time with you as you want, giving you all the information you need to do your full due diligence.”Some became angry, but many respected my position.

We’re social animals who love to talk. But the time to really talk business is during the presentation, not the initial exposure.

If your people reveal the presentation info during the exposure step, they will talk themselves right out of success by stepping on The Dump Bomb.

Network Marketing: The Product Knowledge Bomb

Some people believe that a thorough knowledge of their company’s products or services is essential to network marketing success. They learn every tiny detail they can and, of course, teach their own team to do the same.

There’s nothing wrong with that philosophy on the face of it, but there is a problem lurking below the surface. If someone who wishes to make a lot of money is recruited into a product-oriented organization, she will either fail or have to be strong enough to break away from the Upline immediately.

Money is not the only adult report card. Some people enter our industry to be trainers and others want to be coaches and ministers or counselors. I’ve met many men and women over the years who were perfectly content to form a small mastermind group of people who love the company products and need a small social bonding experience each week. As far as I’m concerned, Network Marketing provides the perfect vehicle for such people. They get to socialize with like-minded individuals and share personal stories and anecdotes about their valued company and products.

But what happens when people who are motivated by big checks find themselves recruited into such a group? They become frustrated and either quit or rebel. It’s not only problematic to the mastermind group, but it’s very unfortunate for the new recruit who may desperately need to learn how to recruit a large organization and earn huge checks.

This land mine is paradoxical because it comes disguised as a formula for success. To the person who enters Network Marketing as a product or service
user, one who has experienced positive results, or the person who enters the group without any desire for big checks, the whole concept of small weekly meetings may be very important.

For our purposes, we’re committed to assisting those who value big checks. Such people should not waste their time learning intricate product knowledge. Your goal should be to lead with the MLM business opportunity and avoid irrelevant minutiae.

You don’t need to know how the polysaccharides are fractioned to penetrate the surface of the cellular membrane and force electrolyte absorption in each
topical or sublingual administration of your juice. You just need to know that the juice works and many people are earning huge incomes by joining your
company. You don’t need to become a CPA in order to teach people financial skills. You just need to talk about the income potential.

I once decided to become a product expert in my own company. The only problem was that medical doctors seemed baffled by my lectures and I went ninety days without recruiting one good business builder. I did manage to recruit one professor who proceeded to drive me nuts for two years with irrelevant discussions about DNA and quantum physics. He never recruited
one person, but he sure understood our products and taught me a great deal about how they were made.Look, here’s the bottom line. Of course the products and services in Network Marketing are generally far superior to similar stuff. They have to be in order for people to join our industry and then recommend them to others, especially family and friends.

But many people join our industry for the purpose of achieving wealth and time freedom. Those people cannot afford to waste their time learning the technical data necessary to become product experts because huge checks result from recruiting and retailing, not from complex knowledge. That’s not because of anything immoral or unethical and that doesn’t make a big-time recruiter a participant in some pyramid scheme or illegal sales scam. The more people we recruit the more customers we reach. That’s because in a legitimate Network Marketing opportunity, the larger the sales force, the more products and services wind up in the homes of end consumers.

New Distributors need to understand that the more time they spend in product knowledge sessions, the less time they spend recruiting new Distributors. The
less time they spend recruiting, the smaller their group will remain. And smaller groups distribute fewer services and products to end users which means smaller checks to all Distributors.

If the goal is large monthly checks, recruit more people. If the goal is socialization and nurturing, by all means study the products to your heart’s content and schedule regular weekly sessions. Just make certain to introduce your people to the Holy Grail so those who are interested in earning big checks have the tools to do so.

Whether you joined your company because you experienced a life changing transformation by using the products, or you simply need to achieve a greater
income, your products will still be sold to folks who desperately need them. Regardless of your motives, business builders help the most people. So avoid the Product Knowledge Bomb because it will diminish your impact and income.


If you want to be a teacher, learn all you can.
If you want to be an entrepreneur, do all you can.

Network Marketing: The Neurological Bomb

According to those who have dedicated their entire careers to brain mapping and neurological medical studies, as many as 50% of all human beings are simply not cognitively hardwired to become entrepreneurs. They cannot and will not attempt Network Marketing.

Dr. Albert Bandura, the noted Stanford psychologist, confirmed this in our minds when we spent an entire day with him in Palo Alto, California. We had his divided attention for eight hours and learned a great deal about what leads to personal wealth and self-efficacy. Most interesting to us was his research that concluded that success is not just about personal choice, but rather specific neurological hardwiring.

New Networkers must realize two things about prospects if they want to avoid the neurological bomb. First, half of the people they approach cannot do Network Marketing. Second, many of those who can’t will blame it on the industry rather than admit their own inadequacies and fears. By understanding those facts, new Networkers can both anticipate and recognize what’s really occurring when half the people they approach are immediately resistant or negative.

Here’s how it works. We meet a person who appears very talkative and outgoing. She may be wearing an expensive watch or beautiful clothing, so it looks like she’s experienced success. She’s a natural salesperson and could be a tremendous addition to our team. Right? Not necessarily. She’s a woman with a good watch who may not be hardwired to perform tasks without structure or supervision. She may be a brilliant marketing representative with a Fortune 100 company who succeeds because of quotas, good managers, an office and a specific territory. In fact, let’s assume that she’s not neurologically hardwired to succeed as an entrepreneur in spite of her appearance and projected confidence.

First, she doesn’t know that she doesn’t know how to be an entrepreneur. That’s called unconscious incompetence. But even if she did fully accept her limitations, she’s not about to tell a stranger or friend. She’ll maintain her self-assurance and poise to the bitter end. Perhaps she’ll point out why pyramid schemes or home businesses are beneath her dignity and professionalism. She may actually sneer and laugh-off the approach as nonchalantly as a cow flicking away flies with her tail.

But it doesn’t always stop there. Sometimes prospects feel the need to ridicule the person approaching them as if to do so might somehow cover up their own character defects, fears and inadequacies. New Networkers need to be ready to sidestep this land mine because it will surface often if they’re exposing a lot of prospects to the business.

Expect half the people you contact to say “no” because they just can’t do our business. Of the other half who are neurologically hardwired properly for our industry, most will be comfortable enough in their own occupation to decline your offer. Don’t let those numbers and ratios upset you because one good leader can earn you millions. That happened to me and it certainly happened to everyone in my Upline.

Stay with it long enough and you’ll find your thoroughbreds. Don’t worry about all the mules you pass on the road. Mules can’t help the fact that they

were born to be mules and there’s nothing we can ever do to convert one into a Kentucky Derby winner.


Expect half the people you approach to say, “No” because they just can’t do our business.

Network Marketing: The Friends and Family Bomb

Don’t try to convince new Distributors to think that their friends and families are their only or best warm market. Most of us can count our friends and family on our fingers and toes. What happens after we blast through them? What if they refuse to participate? Not only that, the last thing we want to do is alienate any of them. They are far too important to us and while some will join when we succeed, many won’t be successful. None of mine were.

Please pay close attention to: Yarnell’s Warm Market Law:

“When family and friends become a new Distributor’s only vehicles for growing a business, all important relationships can become tainted by ulterior motives.”

Then why is everyone taught to build a friends and family list and approach them first? Because Network Marketing has always been a relationship business and usually we can count on the support of those who love us. The problem with that perspective is two-fold. First, supportive relatives are seldom committed to our business because they join for all the wrong reasons. Second, we’re looking for serious entrepreneurs and customers, not aunts who love us. Those of us who have made the big money have learned those facts. By all means introduce friends and family to your new venture, but don’t depend on them for long-term network marketing success.

Before 1950, Network Marketing was a novelty business. It was fairly new and most people had never been to one recruiting meeting. Today, most people are very aware of Network Marketing and friends and family members won’t automatically get real excited about direct selling. Many have been approached countless times and most will resent any relative who is too persistent.

The friends and family bomb not only blows up the self-esteem of new Networkers, but can also injure personal relationships. Save your family for later in your career if they say “No,” your first month. Don’t push them. Believe me, many of your family and friends will join your company as fast as rats running off a sinking ship as soon as you start getting big checks. Until you start making big money, and you know you can fully trust the ethics of your company and efficacy of your products and services, don’t stress your most important relationships by being too forceful.

Some of you may be thinking that your Upline leaders are incompetent for the network marketing training they gave you, and teaching you to focus first on friends and family as prospects. If they are, so am I because I believed and taught that strategy for years. If enough people believe something it becomes canonized. But remember, if a million people believe a stupid idea, it’s still a stupid idea.

People much wealthier than I am abandoned their focus on a friends and family philosophy decades ago because they knew it was blowing up some of their best new Distributors. They were right…I was wrong. Remember, your warm market is comprised of literally thousands of individuals who will warm up to you immediately once they discover that you both have something important in common.

God made the birds and the worms but He didn’t go around dumping worms in nests

One day a prospect told me that he was being flown into three different companies in order to meet with the corporate leaders. He said he would be happy to talk to anyone, but first wanted to know how many front line people would be placed under him and how many leads he would be provided each month.

He explained that he was a “big hitter” with 30,000 people in his last downline in another deal that had just gone under.

I told him I wouldn’t give him any leads; any front line people and he wouldn’t be flown into the home office. He was absolutely indignant so I wished him the best of luck and hung up.

He called back an hour later in total disbelief that I wasn’t overwhelmed with his potential. He wanted to know why I didn’t want to work with someone of his stature. Since you will eventually bump into this kind of person, I’ll print my exact response so you can use it on your own egomaniac prospects.

I said, “Phil, the only thing we know about you for sure is that you don’t know how to pick a good Network Marketing Opportunity. We also know that you are willing to recruit others into deals that go under. If a company is legitimate, they won’t spend their revenue wining and dining non-distributors. Great network marketing companies reward their loyal distributors, and not arrogant prospects. We want people who are looking for a home and not a free meal. The fact that you are asking for leads and a plane ticket is proof to me that you won’t fit into our culture.”

At that point he stopped me and interjected, “yeh, but I could make you a fortune! Aren’t you being stupid!”

I said, “Maybe, Phil. But I don’t want to spend the next 20 years of my life socializing and working with people who need to be dragged over the finish line. I don’t have to buy friends or associates.”

He hung up on me…which was my goal.

Network Marketing: The Correct Approach

Network marketing by definition is the word-of-mouth distribution of legitimate products to end consumers combined with the professional recruitment and training of additional distributors to further distribute those products. Professional recruitment means just that. Can you imagine Xerox or IBM or some other big company closing their human resources and recruitment offices in favor of fax blasts and Internet banner ads?

Approached properly and professionally most people will take a serious look at MLM. Approached coldly through mass contact systems, few people will entertain the notion of changing careers.Remember, there’s no such thing as “virtual passion.”

Let’s use Internet statistics as an example. According to Red Herring, an expert Internet source, “less than 1% of all banner ads result in any kind of profitable sales to the advertiser.” If I were guessing, based on feedback from lots of users of Internet recruiting systems, no system currently available has even produced a consistent income of $50,000 a month in our industry. So why do people keep paying for expensive lists and banner ads? Because they are grossly misinformed.

The best way to distribute products is to ask people to buy them. If you can’t look another human being in the eyes and ask her to buy what you’re selling, get out of marketing – network or otherwise. If you don’t believe so fervently in your product that you are passionate about sharing it with everyone you’ve ever known, quit marketing or get into a solid company with a meaningful product. If you can’t passionately approach ten or fifteen real human beings each day with a network marketing opportunity to retire wealthy in a couple of years, get out of MLM.

You don’t have to be beautiful or educated, but you do have to work hard and be extremely passionate about the product and opportunity you are selling or YOU WILL FAIL. MLM success results more often from attitude than ability, but if you don’t have either…try another profession. MLM is a SELLING PROFESSION. It’s not a lottery. I would rather talk personally to five people a day than email 500. Most quality entrepreneurs don’t even bother to read unsolicited attachments any longer anyway!

A Common Pitfall to Avoid when Creating Sales Tools for a Network Marketing Company

In my last post, I provided insight on creating excellent sales tools for your network marketing organization. While we’re on the subject, it’s important to address a common pitfall regarding those tools: how to provide them to your organization.

First, they should be offered to your organization at your cost. Your goal must be to avoid regulatory problems while earning tremendous income through the legitimate movement of company products to end consumers. You might be tempted to profit from sales tools, but that’s the dinosaur approach.

The big money in today’s networking arena results from product movement and not from the movement of sales aids. In the old days of MLM success, leaders would consistently earn more money from tapes, books, and brochures than the actual movement of company products. That was fair and it still is. It’s called free enterprise. But in today’s world everyone knows that an audio can be dubbed for a quarter and many folks consider it offensive that their uplines would sell a tape for ten times that amount. It’s not unethical or immoral. It’s simply stupid and greedy.

It’s important to keep in mind that the essence of network marketing has always been the process of recruiting a large organization to move a significant amount of products or services to the largest possible number of people. Those leaders who figure out the best and most inexpensive way for folks to do that, will ultimately achieve the most wealth. Some would argue that any leader who creates a great tool deserves to profit dramatically. I agree. It’s a question of whether that leader feels better about profiting from his organization’s success or at their expense. Either your people will appreciate your efforts to provide them with low-cost tools, or they will resent your willingness to profit from their sales and purchases.

It’s also very important to keep this simple concept in mind; a leader is someone who demonstrates what is possible. If your actions imply that the way to prosper in MLM is to create sales tool profits through exorbitant pricing, that’s what your people will plan to do. Pretty soon, all your best people will be focused on generating side money rather than product movement. There are some phenomenal distributors in MLM who have left our industry in order to pursue a career in lead generation systems,
recruiting tools and consulting. That’s everyone’s loss. No one ends up sadder than the dynasty builder who has lost the vision of passive residual income.