How do I make money in MLM?

So how do you make money in MLM? You know, it's interesting, I was speaking to one of my business partners a few weeks ago and we got on the subject of taxes and the amount of money you can make in MLM on a part time basis. He told me that his accountant was so amazed when he was getting his taxes done because of the fact that he made a very high five figure income last year from his MLM business on a part time basis.

His accountant shared with him that he has a lot of clients that are involved in a wide variety of MLM businesses and that the average client makes about $2000 a year in MLM. That works out to a little over $150 a month. When you factor in the costs of meetings, trainings, increased minutes on your cell phone bill, subscription to your company's voice message communication system, regional events, national or international events, leads, advertising costs, marketing tools and materials, product inventory if you are in a business that requires inventory, the average distributor is probably spending more money in a year than he or she actually makes.

It's no wonder why MLM has such a negative reputation. The average distributor really isn't making any money.

That being said, there are thousands, if not tens of thousands of people who are making huge 5 figure annual incomes from their MLM business, many of them earning this income on a part time basis. There really is no trend when you look at the product. There's people who I would say have a really good product making this type of money. There are people who I quite frankly think their product is a bunch of crap making that type of money as well.

There are also thousands of people who are making a six, seven and in a few cases even an 8 figure annual income from their MLM business. Even some of the six figure income earners are earning this type of income on a part time basis.

So how do you make money in MLM? What's the difference between the people who are making the big incomes from the people who are losing their shirt every month? I took a look at what the people making the big incomes do vs the people who aren't making the big incomes and I found several differences between the two that explain why there is such a variance. If you are not making money right now in your MLM business, here are 3 steps that you can take so that you can start to make money right away.

1. Have a consistent system of generating prospects to talk to - One of the things that I notice between the big earners and those not making any money is that the big earners have a consistent system of generating prospects to talk to about their products, services and business opportunity. What's amazing is that the systems in many cases are so different yet all of the people with consistent systems are making consistent income. It doesn't matter whether your system is warm market list, referrals, three foot rule, business opportunity leads, product leads, internet marketing, offline advertising, direct mail campaigns or something cool that we've all never heard of before. If you don't have a consistent way of identifying prospects to talk to about your products, services and business opportunity you aren't going to make any money.

2. Are willing to make investments in their business - It's always the broke distributors that are always trying to nickel and dime their business. The successful distributors are always making investments in their business. Case in point, one of the leaders in my organization makes 1.4 million dollars a year and he talks about the importance of having an account with our company's voice messaging system. The account is only $9.95 a month. Yet, you wouldn't believe how many of my fellow distributors tell me that they canceled their account to save money. That's EXACTLY why they are struggling right now. They clearly don't see the value in making investments in their business. Don't nickel and dime your business. Make the necessary investments so you can get the necessary RETURN on investment.

3. They build their organizations on a foundation of personal development - A lot of people think personal development is hokey and cheesy. It's not. What you have to understand is that we were designed for success but our environment programs and conditions us for failure. In order to combat that negative program, we have to first of all make a commitment to personal development ourselves and then make sure that those distributors that we recruit into our organization make a commitment to personal development as well. One of the things I do in my organization is that I give every brand new distributor that I personally recruit, I give them a personal development book and a personal development CD. It's one of the best things you can ever do. I have had friends who I recruited into the business who are completely different people today because of the personal development. One of my friends told me that even if he didn't make any money with the company, it would have been worth it to join the company just because of the personal development.

Those are the three things you need to focus on if you want to make money in MLM. If you do those things and if you teach your organization to do those things and the key is being CONSISTENT and PERSISTENT in these activities, then you will be the one that is making money in MLM and then your accountant will be amazed as well.