Why New Reps Making 5-Figures a Month Will Go Broke

With so many profitable network marketing businesses that offer very lucrative compensation plans ($1000 commissions and up), it is a very exciting time for this great industry. Many brand new reps are making $5-10K in their first month, and making $20K and MORE per month very soon thereafter. The problem is most of these people weren’t making more than $40-50K per YEAR before they found their riches online… and now they’re unfamiliar with how to spend the new-found wealth.

I thought about this problem after watching a video of a new distributor that had made about $50K in his first 2-3 months with his company. The video started out showing the “junker” he was driving before he started with his new business venture. It looked like some kind of old Honda hatchback. You know the kind: faded blue, with the black doors that were replaced on the vehicle some time ago, some rust on the hood.

The narrator of the video says that “this is before, and now this is after I made $50K in the last 2 months with (company name).” He then pans the camera over to a brand new Mustang Convertible. And you know how he bought it? Yup, you guessed it. Cash. Just wrote a check for it. And he’s got $100 bills taped all over the front of the car. “And these are just some of the blessings this wonderful business has given to me.”

Impressive? Yes. It’s great to see new reps have early success. But who counseled them… who advised them in their life that they should go and get that car? I don’t know ANY upline, ANY lawyer, ANY financial planner that would say, “Oh, you just made $50K? Go blow it on a car.” They counseled THEMSELVES.

Is it motivating? Sure. Does it show that their business works? Absolutely. But what is their real goal? What is YOUR goal? Is it to go buy your dream car as soon as possible? Is it to get an enormous “rock-star” house that you want to impress the relatives with? (Believe me, I’d like to show the in-laws a thing or two as well …) If these are your only goals in network marketing, you will go broke faster than you can say “Bling Bling.”

Isn’t your goal to create financial freedom and security for your family? Isn’t it to help other people reach their goals and dreams? To help them get out of the rut YOU were in when YOU started your own network marketing business? I hope so.

Remember to delay gratification. It is one of the most powerful motivators in your business. This guy with the car, I can probably guarantee he won’t be able to fill the gas tank in another 6 months. Or maybe in 6 months he’s doing great and he does buy that dream house. Then he forecloses in 3 months after that because he never got the right advice on how to handle his new massive income.

When growing your business, whether you’re making $1000 a month or $100,000 a month, seek out the knowledge on how to manage your budget. Get some counsel. Delay gratification. Delay getting the “bling”, the cars, the house for a little while longer. As you have that kind of discipline in the early stages of your business, you’ll continue to develop that good habit as your income grows.

Don’t try and impress others early on in your business. You don’t want to be declaring bankruptcy and asking the same relatives you were showboating for a month ago for a handout. You’ll have a lot more success in the long run.

Now Go Explode Your Business. And Explode Your Income.