Whats up everybody? This is Kyle Federmann and welcome to the MLM 2 Freedom Project and today… we are going to be talking about WHY MLMers fail…and how you can use this to your advantage…

So I mentioned on the last episode that I've invested tens of thousands of dollars into books and courses whether it was MLM, real estate, marketing, or any sort of self development and when I was reading and deep diving into these marketing books I read a couple in a row that sort of gave me this giant epiphany that made me realize WHY people in MLM and network marketing fail and its because most of you are doing what your upline tells you to do and that is go and market to your friends and family because that is your warm leads, and this is completely wrong, and don't feel bad or down on yourself because I was told to do the same thing and I did the same thing, and failed miserably, and when I figured out how the actual top MLMers in the industry were making their money it really pissed me off, which is saying a lot because I'm typically a genuinely positive person who goes with the flow and can adapt to problems that come across my path and solve them and basically when I figured this out I was so pissed off and wanted to quit this business entirely but in the back of my head I thought, maybe there's a paper trail….so I'll start off with how it came into my mind and how I figured this out…

So there was this book I read called the dip by seth godin and in it he talks about in entrepreneurship everybody has some type of "dip" they go into… basically when you go into business your head is high, you're super pumped and excited and in the back of your head you're thinking "oh if I do this this and this" I will be able to pay off my car, pay off my house, pay for my kids school, donate to charities, and then you actually get out into the "real world" of business and start running and then you hit a wall… well I was in this spot and basically when I started reaching out to friends and family like my upline told me to do and I thought this is what I needed to be successful and then I ran out of leads and exhausted my entire warm market, I had family members telling me I was a scammer and trying to steal their money and I hit what Seth Godin call's the dip because I hit a wall and didn't know what else to do to make money and like I told you guys on the last episode, I literally was barely making any money, my girlfriend had this gorgeous condo, was paying all the bills and it wasn't intentional but I was literally leeching off her until I started actually making money and it sucked because I've always been the type of person that wants to provide and put food on the table and I literally wasn't able to… 

But I remembered reading a book called dotcom secrets by Russell Brunson and in the book I remembered reading that instead of trying to pave the path to freedom and success, you just need to model what works and for some reason I had this giant epiphany that I needed to go and find who was successful so I stayed up ALL NIGHT, I had finals the next day for some ethics class and there's no way I was studying for that so I procrastinated my face off and did what I normally did, I came into the house, exhausted from the day of work, studying for finals, and trying to start this MLM business and I had NO energy, not only because of the workload but because I was exhausted from life, and a lot of you may be in the same position I was in, and typically when I came home I would just sit down on the couch and stare at my computer wondering how the heck can I make the money to pay for all the bills, I had this 1991 chevy Silverado that I bought off a family friend for $1000 and have you ever had it where if one thing goes wrong there's just another giant pile of problems? Well I had that, my tire blew out, my radiator was leaking so my old rusty truck kept overheating, I killed the battery on it by leaving the lights on and it reset the security system so I was literally in an airport parking lot sprinting and pushing my truck across it to get it up to 5 or 10 mph so I could hop in and pop the clutch to start it… it was a rough time in my life and everything just kept piling up and what I remember from that night I just tried youtubing some ways to make more sales in my MLM and just started down this GIANT rabbit hole of successful people in MLM and I noticed a trend… 

They weren't going around pissing off their friends and family… they weren't doing these stupid hotel meetings and they weren't pitching any person they thought would be a good fit for MLM… what they were doing was another thing I learned about called paid prospecting… and basically what I figured out about this paid prospecting is that these people were giving out some type of information whether it was a paid course, a free cd, a book, ANYTHING at all on how to recruit and sell your products… and in those products they pitched other things including their MLM… and when I saw this I was livid I was thinking to myself "why the hell doesn't anybody else notice this?" and I started looking into this more and it actually changed the way I looked at the MLM industry and it just started this deep dive so I was in class everyday just looking into the top MLMers and taking notes on what they were doing to market their business and I just kept going through and found that NOBODY in the top 5% of MLMers were marketing their product or opportunity the way I was.

So obviously I started looking into how to do this because if you're like me, you can be super introverted at times and make it really awkward when trying to talk to people and I hated that about me, it's a huge flaw of mine that I've been trying to overcome… And when I was going through this I found that a lot of MLMers not only had their own products but they also had websites and facebook pages and other stuff that just provided insane value to get the customer in the door, so they would know, like and trust them. And this one guy I found had a whole website dedicated to teaching people in MLM how to market, so I dove deep into his stuff and also remembered that Russell said in his book that if I want to be successful, I cannot pave the path I have to model what works – notice I said model, not copy, that's stealing. So I started doing it I created a little video course on how to pitch people, some facebook live marketing tips and other stuff and I created what people in the marketing industry call sales funnels... basically it's getting someone in the door and then selling them aka paid prospecting on something that costs a little bit of money in order to qualify the leads. So it was like a little course and I would sell this facebook like script for an extra $3 and then another upsell in the funnel for like $97 and then a book and then something else that offered to join their team. I hope you guys are still following this and can see what this can do for your business.

…Realized they get paid even if they don't recruit someone…

This system weeds out the moochers just trying to get easy money, sort of like a coffee filter…

What I realized is this was the big thing, when people bought they were essentially raising their hand saying "HEY LOOK OVER HERE I WANT YOU TO PITCH ME"

And that's the huge realization, that's how the top MLMers make $ and have the freedom, they don't sit their pitching people on facebook all day or posting stuff all over their wall, they get people to come to them…. I'll go a little deeper into this the next episode and how I figured out to do it, but I want you to realize that your upline is teaching you all wrong and you are playing the poor man's game, and hopefully you realize how much this could help you because I'm sure you're like me and want to spend more time with family and not be so stressed about bills and everything piling up…

But all the dots started to connect and I realized for my upline at the time in that service based MLM I was booking appointments with my warm market and that's who my upline was making the money off of, it wasn't off of their own warm market, the guys that were crushing it were USING ME – and that is what set me off the most because I was being used to find their leads, I hope you're noticing the trend because your upline might be doing it to you – not intentionally but maybe just because that's what they were taught – and it's screwing you over in the end.

Anyways, I hope you guys enjoyed this episode I think I've ranted on too long on this topic but if you guys got value from this, please go subscribe and leave feedback and let me know some questions you have… I'm honestly trying to help you out because this isn't meant for the big whales in MLM this is meant for you and I, the little guys, who are stuck basically feeding our upline and I'm trying to change that and change the industry as a whole because like I said in the last episode, MLM is stuck in the 70s and it's REALLY bad.

But definitely go check out my little bonus I'm giving you guys to help you get a kickstart and move forward in this process because I can only post so many podcasts at a time and my 5 day bootcamp that I'm sending to you guys on a key shaped flash drive with some other goodies and stuff on it is literally pulling back the curtain on what I'm doing in my business and letting you peek in over my shoulder to help you be successful as well. 

That's pretty much all I've got for this episode but if you're interested in that flash drive it's customized with your name on it and says freedom on it and obviously its key shaped because essentially what I'm trying to do is help you guys learn what I'm doing to recruit and unlock freedom – which is the entire point of this podcast – kind of a stupid pun but thought you guys would like the personal touch. Anyways, I'll talk to you later, hope you enjoyed this episode and go check out that free flash drive at MLM2FreedomProject.com all you gotta do is pay like $6 for shipping… I'll see you guys on the next episode! Thanks for listening!