I got an email with a press release that Ray Higon is retiring from network marketing. I was just talking about that yesterday with an Internet business blog writing customer of mine.
Let me say I do not know Ray Higdon, but have always read good things about him. I made the comment that I have believed those who can do, and those who can’t teach.
I do not think that applies to Ray Higdon as I explain in more detail below.
As a MLM’er you can make your money in network marketing, or you can make your money teaching people how to make money doing network marketing.
Most network marketers try to do both. In reality this is way too much for the average person take on.
Think about this…..
Distributors in MLM need training on how to do network marketing on both the retail and recruiting level.
Because this is totally different than anything they’ve ever done before there’s a huge learning curve. The sponsor, who takes his job seriously, is in contact with the truck driver inviting him to training calls, online webinars, sales meetings a local hotel, and so on.
Often there’s a cost to attend the meetings, or purchasing training materials. That’s okay the sponsor tells the truck driver, and his wife, because you should view this as a cost of doing business. Plus you can write the training off of your taxes.
They are also instructed to purchase all of the products because everyone knows that the best way to sell something is to personally use it first.
Build A Team?
At the same time the truck driver begins to understand that he will never be able to sell enough products to quit his job driving a truck. His best chance to do that is to learn how to sponsor new distributors, and build a downline team of distributors.
At this point the truck driver has a lot of time and money invested in his new network marketing business and is still not making much, if any money yet. In the meantime he is still putting in long hours driving a truck and the whole thing becomes overwhelming.
The sponsor is also getting frustrated, because he’s put a lot of time into trying to train the truck driver to be successful like he is. Eventually the sponsor gives up and moves on to the next person and the cycle repeats itself.
I’ve Seen It Happen!
This is not a scenario that I’m making up. I grew up in an Amway family. Many of my relatives were in Amway, and my mom and dad even did Amway full-time for several years in a rural town of Southwest Nebraska.
I saw this scenario played out over and over. The difference was many of the people who were in Amway in those days got a lot of social benefit out of the functions. Although nobody was making that much money, I think everybody had a good time.
Flash forward to today.
You can build a successful network marketing business 100% online. You can even be trained on your own if you take the time to do it, which many start and quickly quit doing.
Ray Could Help!
That’s where someone like Ray Higdon can actually come into play to help you become more successful. He’s going to take the training aspect out of personal development and network marketing.
As a sponsor, or new distributor, you can focus on 4 things.
1. Get more customers.
2. Get more frontline distributors.
3. Work in depth to sponsor new downline distributors.
4. Spend your time teaching and training.
If you think about it that’s what every business needs. They all need more customers. They all need more marketing, or in the case of network marketing they need more distributors, which is in essence their own sales force.
What often happens is people sponsor a couple of new team members and then start micro managing their group. They call, train, and badger. That is a bad strategy.
Why Is Ray Higdon Retiring From Network Marketing?
You can read why Ray Higdon is retiring from network marketing in his own words here.
Ray and his wife Jessica say they earned over $1 Million Dollars in their network marketing company and in 2013 it merged with another company. Ray says the money continued to roll in.
I have no reason to doubt them. My question today would be what did you earn in 2015?
There is no doubt that extremely talented and hard working network marketers can earn money. A handful will earn a lot of money.
Look at this list here. Top 200 Worldwide Earners In MLM – February 2016
Unless I missed it I do not see Ray and Jessica Higdon on this list. That doesn’t mean they are not earning good money in MLM. I’ll bet they are.
You know who else I do not see on this list?
Mark Yarnell, who was at one time called the greatest networker in the world for building a Nu Skin team of over 500,000 distributors.
He also went on to become a trainer for network marketers and had a very successful book Your First Year In Network Marketing which was written in 1998.
What is my point?
From what I have read about Ray Higdon the reason he is getting into teaching is to focus on building his coaching and training business. I understand he is selling his position in the MLM company he is in and really is retiring form network marketing altogether.
I respect that. He will not have any conflict of interest when he works with various MLM companies and their distributors.
I suspect Ray and Jessica will build a very dynamic new business that will help a lot of people in various companies. They already have some of their training in over 75 companies and are speaking at various functions now, so they are not jumping into this cold.
Doug Firebaugh has done something similar with his Passion Fire MLM training for the past 15+ years. Before that he was in MLM as a distributor for 14 years. He would have to tell you his own reasons he get out of MLM to become a trainer.
I always liked the Jan Rhue story. She impressed me as someone who made money as the Top Distributor in her company, as well as made money selling her books like Fire Up, and speaking at training functions.
Many people sell businesses, both offline and online, to start new ones all of the time. For Ray and Jessica it sounds like it makes sense. I’m sure they are very excited!
Follow Your Passions
I am a big believer in following your passions and making money doing it. That is why I like info blogs monetized with Google Adsense. You can create a blog on a topic you really enjoy and make money at the same time.
I am not in the MLM niche, except sort of with SFI part time, but I do write articles about network marketing and home businesses and really like doing that!