I’ve made millions in network marketing, I’ve made millions through investments, and I’ve also lost a lot of money too. Profit from my mistakes and learn how to best invest the money you make in your MLM business.
How to Manage Your MLM Profits
Can you make more money by diversifying into investments such as stocks, bonds, real estate, etc., and have your money working for you in other areas besides your MLM business? Or would you make more money by really focusing and investing your money back into your MLM business?
Three questions to consider in deciding how to manage your MLM profits:
- What else would you do with your time?
- What else would you do with your money?
- What else would you do with your attention (def: The ability or power to concentrate mentally)?
Every investment (stocks, bonds, real estate, or even your sister’s MLM business) requires that you learn about it. And just the learning costs time and attention. Using up your attention is what rarely gets factored into the “diversify your money” advice.
The greatest amount of money you will ever lose is that amount you will never make because you misused your time, money and attention. Read that a couple of times.
I was listening to a radio talk show about 10 years ago and the advice given was to, “Select the top 3 stock market sectors based on trends. Put one-third of your investment capital in each. Wait 10 years and you should be wealthy from your passive investments.” I was making about$50,000 a month above my expenses, so I thought, “Why not?”
I chose the following sectors: Health Care, Technology, and Telecommunications. After losing a lot of my money, I changed to three different sectors. I looked at my portfolio today and I have lost another $11,848.78.
Don’t get me wrong; there have been times I’ve made over $50,000 in the stock market – in a day. Fun! And there have been times I’ve lost $150,000 in a day. Not fun. In addition to that, I’ve spent an enormous amount of time on my “passive” investments.
Many hours (per week) have gone into “pondering” what the stock market is going to do next. Reading newsletters, magazines, newspapers, watching the stock market news and commentaries on TV. And still my return has been negative.
The only thing that has remained very stable and predictable is my network marketing income. Had I taken the same amount of money, roughly $500,000 and invested it into promoting my MLM business would I have had a greater return? Yes. There’s no doubt that my MLM Profits have always been good, and are worth reinvesting into my MLM Business.
So what about the Rich Dad, Poor Dad philosophy of “Buy assets that produce more income?” Or the more common, “Create multiple streams of income?”
As you may know, I created a prospecting tool based on that philosophy in Brilliant Compensation. In this tool I explain to prospects how wealth is created by investing in assets. So, I’m very close to this subject. However, if you listen closely to the way I said it in the online prospecting tool, you’ll see there are various types of assets and they each have different returns.
So what are assets? Well the most obvious ones are: stocks bonds, real estate.” Then I say, “education and businesses.” And to that I’m referring to educating yourself about business. Whether that be your MLM business or your pinball machine business.
Of course you need to pay your bills now. They’re screaming at you! But keep in mind what I talk about in Brilliant Compensation, “It’s not faster (in the long run) to tie your young son’s shoes than teaching him how to do it himself. If you tie his shoes for him, you silence the screaming urgency, but you’re still stuck with the job UNTIL you teach him to tie his own shoes.”
When you make financial decisions, make sure you’re looking at the long-term. Network Marketing income also has the built in beauty of actually being Residual income. That’s what makes an MLM business sweet.
Making Decisions Based on “Could” vs. “Will”
Do you make decisions based on what you could do versus what you will do with your time, money or attention?
This is best described with an example. A guy determines that it’s a poor use of his time and attention to mow his own yard, so he hires the boy down the street to cut his grass.
Now, what does he do with that extra time, and the extra attention? He watches TV. Bad choice. When he was making the decision to hire the lawn boy he thought, “It’s a waste of my time to mow the grass, when I could be doing more important things like building my MLM business.”
Make sure when you free up any of the three resources (time, money, attention) that you use them wisely.
The Bottom Line: Your Highest Return Lies in Your Business
My personal opinion is invest your time, money and attention into KNOWING your MLM business and getting really good and profitable at it. Continually reinvest your MLM profits back into your MLM business by promoting it more – that’s where the high return is. These steps will produce more Network Marketing Income.
When you have a surplus of income, buy a secure investment like Treasury Bills until you’re ready to learn another business FULLY. By business, I’m including all investment activities as well. Then focus your time, money and attention (from the surplus only) on knowing THAT business.
From my experience, diversifying my “money” has done nothing more than dissipated my focus, which resulted in a lot of lost money, time and attention.