Is Network Marketing for Me? An interview with Ray Higdon. - Five Channels
Is Network Marketing for Me? An interview with Ray Higdon.
Interview with two-time best-selling author Ray Higdon about the sometimes-controversial Network Marketing or Multi-Level Marketing profession. Ray and his wife Jessica have a history in the profession as former number one income earners and their network marketing coaching and training company was recognized on the Inc. 5000 last year as one of America’s fastest growing companies.
Jason Hall: Ray, what got you into the Network Marketing space?
Ray Higdon: Honestly, I never wanted to be and although I truly didn’t know anything about it, I was against it due to hearing other people blast it for being shady or not legit. I was in the real estate profession and doing very well but when I learned through a friend that not only was it legit but you could also make pretty serious passive income through it, I was interested but wasn’t sure how to do it.
Jason Hall: So, did you crush it right away?
Ray Higdon: Definitely not. The truth is I did get some signups and sales quickly because of my past experiences in sales but I honestly didn’t understand how to truly build a team in network marketing. One major distinction we teach entrepreneurs that are venturing into the network marketing space is that it ISN’T about simple transactions or how many people you can recruit, it is much more about either building or being a part of the culture and utilizing tools. In regards to creating passive income I actually failed in the first 11 or 12 network marketing companies I attempted even though I had made some sales in almost all of them. It wasn’t until a company I joined 3 years in that I became the number one income earner of.
Jason Hall: What was the difference?
Ray Higdon: I’d like to say it was the company, product, service, timing, compensation plan or something external like that but the truth was my back was against the wall and I was the difference. Instead of acting like I knew what I was doing I sought training and mentoring and was determined that I was going to make it work. That is what helped me go from losing it all in real estate, being in personal foreclosure, to making millions in the profession.
Jason Hall: What would you say to the person asking themselves “Is Network Marketing for me?”
Ray Higdon: The greatest thing about network marketing is also the worst thing, it’s low barrier to entry. If you wanted to start a restaurant you wouldn’t even bother unless you had a few hundred thousand dollars and serious experience. Even at the franchise level it will cost you $250,000 to start a Dominoes franchise with a return of your investment somewhere around year 9 or 10. Most network marketing companies you can join for less than $2,000 and you have a business in a box. Unlike all the poor saps you see on Shark tank that need funding and are willing to give up large amounts of equity, you just don’t have to have any big capital investment to start a network marketing business but you DO need a few things or even this low risk, low investment business will never get off the ground.
You need to have work ethic and view this for what it is, a long term business. Too often the network marketing profession gets a bad rep because some untrained independent representative is posting on social media how you don’t have to sell anything and overnight you could be making thousands of dollars, which is simply not true. I would not dare to say network marketing is easy but I would say it is simple. Unlike our friends you see groveling for money on the shark tank, you don’t need help with figuring our shipping and logistics, trademarks and patents, executive key performance indicators, organization charts or have some impressive commercial location, all you need is the energy and fortitude to point people to a tool or resource that does the explaining for you.
That being said, not everyone has even that level of fortitude. If you are looking to get rich quick or overnight, network marketing is NOT the place to do it (although I would argue there is no such thing as getting rich overnight). If you are someone that is thinking you will “try out” network marketing for some small period of time that is less than at LEAST two years, but you are hoping to make thousands or tens of thousands of dollars, I would say, save the business startup cost and take your spouse or significant other to a really nice dinner.
Jason Hall: How are you helping the profession?
Ray Higdon: We teach network marketers the right way to do this business. We aren't teaching what turns off people from the profession, we teach them to be professionals and to treat their business like a million-dollar business. We have a community called Rank Makers that every single day we do a live training in sharing one simple action step for the day along with a training to help them grow their mind and their business.
Jason Hall: How are you helping to convince those skeptical to the network marketing profession that it is legit?
Ray Higdon: I don’t and we teach our students not to either. When my wife and I made our first million dollars in network marketing not all of our family and friends accepted or approved of us being in network marketing but we still got paid. It is nonsense to think that network marketers have to get everyone in the world to understand, accept or approve of them. There are enough people that WANT change in their life whether it be financial or not that if you just focus on finding the people that ARE open, you will make a great living without having to stoop so low to attempt to turn around nay-sayers.