To Be or Not to Be

It is always interesting in the networking industry as to the abilities of representatives of all of the companies currently in operation to truly reach the top earning positions in the company.  I came across a very good list of statistics that pertain to a multitude of facets within the direct sales industry that come from a very credible source.  Now, as KayCee, my wife, and I have built our business over the last several years, one of the questions we get is on the statistics of people making money.

The significance of the question in most cases, in my opinion, is irrelevant as there are so many factors that go into ones actual ability to earn income in this industry.  The topic of that is for a future discussion, but I wanted to compare and contrast the statistics in the United States of the traditional worker or corporate job to the statistics on the networking industry.

The following information is from Jeffrey Babener and was originally published in the October 2009 issue of The Network Marketing Magazine.

 Hard Facts About a Growing Industry
§ Every week, more than 55,000 people in the United States alone sign up as network marketers - 150,000 per week worldwide.

§ In excess of 15 million people in the United States alone are distributors for network marketing companies; one in ten households have a direct seller.

§ Throughout the world, there are approximately 60 million network marketing distributors.

§ In the United States, sales in the network marketing industry are in the $30 billion range. Worldwide sales exceed $100 billion.

§ The world leader in network marketing is the U.S. with Japan in close pursuit in the $20 to $30 billion range. Countries with at east $1 billion in sales include the U.K., Brazil, Italy, Germany, France, Canada and Taiwan. Business is booming in the new frontiers as well: Eastern Europe, Russia and the People’s Republic of China. In fact, Amway is headed for billions of dollars in sales in China, a country only on the brink of formally allowing the reintroduction of network marketing.

§ Seventy-five percent of all network marketing distributors are women. Men account for 25 percent. (These numbers likely reflect the demographics of long-dominant companies like Avon and Mary Kay. Recent growth in the industry has been among newer companies that have a more even balance between male and
female distributors.

§ Approximately 80 percent of networkers are part-time and 20 percent full-time people who work 30 hours a week or more in their business. For the vast majority of networkers, it is a "second job," with the hope of $300 to $500 per month in auxiliary income.

§ About 3 percent of all networkers will make more than $35,000 a year; 2 percent will make more than $50,000; 0.5 percent will make more than $100,000 annually; and about 0.1 percent will
make more than $150,000.

§ About 13 percent of direct marketers are African-American; almost 5 percent are Latinos; 1 percent are Asians; and about 0.5 percent are native Americans.

§ Approximately 66 percent of distributors are between ages 25 and 44. Another 14 percent fall into the 45 to 54 age bracket. Seniors over the age of 65 account for about 5 percent of direct sellers.

§ About 8 percent of direct sellers have physical disabilities.

§ Over two-thirds of all network marketers have high school degrees or some college education, and 25 percent have a college degree or beyond.

Now, I want to give a few statistics that I pulled off of Wiki based on the US census information.
§ 6.24% of Americans earn an income of $100,000.00 or more per year.

§ Less than 1% of Americans make more than $300,000.00 per year.

§ The average income of all Americans is $32,140.00 per year.

§ The average income for a high school graduate is $26,505.00 per year.


§ The average income for Americans with some college is $31,054.00 per year.

§ The average income for a college graduate is $43,132.00 per year.

§ The average income for a masters graduate is $52, 390.00 per year.

§ The average income for an American with a Doctorate degree is $70,853.00 per year.

What do all of the stats mean.  For me, it means there is opportunity for anyone based on each persons individual work ethic.  When I look at the majority of the American population who will work out their entire life will never have a business or vehicle that allows them to earn much more than $30,000.00 per year. 

The statistics show that the majority of people (80%) in network marketing companies are working part time looking to generate an extra $300-$500 per month.  Based on my experience, this is a very simple process to accomplish, but it is even more simple not to accomplish.  End of the day, get to make it happen.

That is to say, the threshold of entry for most people in a networking business is so small--the effort put into the business is equally as small, and thus the result or I should say the lack of results that follows.  Any endeavor will ultimately be based on the input of the individual. 

I look at the average income for a PhD holder in the United states at just $70,853.00 per year.  While that is obviously a good wage, is it truly commensurate with the time commitment of education.  The average PhD spends 7-8 years in higher education to not have a six figure earning potential on average.  Crazy.

Lets contrast that to the networking industry.  The average PhD candidate is working a part time position or is on the faculty of their university teaching a few classes for those 7-8 years and making little money during that time.  If you compare that to a direct sales company, most people (80%) are building their networking business part time.  The majority of networkers are still earning their normal full time income and learning this industry as they go along.  Fortunately, in networking, the compensation plans allow us to earn as we learn as the popular saying goes.

My wife and I actually never had experience in the networking industry prior to the company we are currently affiliated with.  To be honest with you, in the beginning, we were a mess as we resisted the networking systems and tried to implement our traditional business background models.  It took us a few months to realize the beauty of this industry....people have had success before us, and if we just plug into what they taught us, we would be successful as well.

Again, perspective, people in this industry that stay diligent with their networking company for a minimum of 10 years (approximately 95% of people) will have reached the top position in their company.  Most top positions in networking companies are $500,000.00 or more per year. 

For my wife and I, our first full year with our current company (and only company) we generated a six figure income, and we have been able to teach others to do the exact same thing in much faster times than us.  Networking is a simple business, but it is a business.   Give it the respect it deserves and the sky is the limit.

Consider the majority of endeavors we take on in our lives.  I can think of several ideas over the past years that I  wanted to be successful at but didn't really commit the effort.  Guitar lessons, learning Spanish, getting back into shape, and the list goes on.  It wasn't that all of those things aren't possible...many people are successful each and every day, month, and year mastering all of the things I have quit at.  And in the end, I am a big boy and have the personal accountability and maturity to know that it was me that made that ultimate decision to quit.....no one else.