Posted By: Richard B. Brooke
 Date Posted: November 11, 2009

The future of Network Marketing is in our hands … the hands of company owners, executives and independent sales leaders. We can band together with shared vision and values and execute a quantum leap in our success, or we can continue to operate with opposing visions and values and battle each other along the way. The future is our choice; it is in our hands, every one of us.

I have been a full-time Network Marketing leader since the concept saved my life in 1977. I used to cut chickens for Foster Farms. I intended on spending the rest of my working life there and would be retiring any year now. It is hard to imagine how my life, and the lives of many others, would have been different had I not been drawn into our magnificent industry.

And as much as I love it and appreciate its gifts, it has been a love-hate relationship. I have bled from both sides. I have been terminated without cause after building a group of 30,000 people. I have had sales leaders in my company — those we honored with magazine covers and on center stage — attempt to knock off our products, sue us, raid our sale force and still expect to be paid their “residual income.” We have spent millions on attorney fees to protect what we have built. Even with these challenges, I have seen Network Marketing work beautifully with loyal leaders who fought all the battles with us.

The history of our industry has been wild, fun, profitable and heartbreaking. We have grown 19 out of the last 20 years. And we could have done so much more. We could have avoided so much bad press; so many regulatory actions and so many dreams destroyed. We could have shifted the paradigm by now … the “tipping point” if you will. We could have been one of the dominant laws of wealth-building for individuals — equal to investing in equities, real estate and traditional small business ownership. We still can. And to do so, we need to shift our vision. We need to assess our values. We need to move from a belief of scarcity to a belief of infinite abundance. We need to tap our core values of contribution, respect, love, friendship, honor and integrity … and avoid our attachments to greed, recognition, dominance and control.

The franchising model in the U.S. is a valuable comparison. They started about the same time we did — 50 to 60 years ago — with Kentucky Fried Chicken, Burger King and Dunkin’ Donuts. Unregulated and operating from a dysfunctional set of values, the franchising concept created its own share of train wrecks through the 70s. Federal regulation was the result … not something any of them, or any of us, would prefer. As a result of aligning their efforts over the years, today the franchising concept contributes close to one trillion dollars in revenues.

After the same amount of time, we only produce $30 billion. Franchises generate 33 times more business than Network Marketing. That’s 33 times more billion-dollar companies; 33 times more hundred-million-dollar companies; and 33 times more millionaire and multimillionaire entrepreneurs. The way I see it, although franchising is an incredible business model it does not hold a candle to ours. At the very minimum, franchisors must risk tens of thousands of dollars, up to millions, and they must dive into their new business full time, risking everything they own. It is like buying a job with no guarantee of success.

We, on the other hand, have an opportunity that anyone can pursue for a few hundred dollars and a few hours a week. Nothing is risked and everything is to be gained. Our model not only offers personal, spiritual and character development, it demands it. Our model utilizes leverage, where one person’s efforts can result in building wealth based on dozens, or hundreds, or even thousands of other people’s efforts. Our model offers (or should offer) residual income such that four to five years of success can provide income, security, freedom and wealth for many generations. From value and ease of access, the Network Marketing model should attract tens of millions of participants. No doubt the franchising model, with its financial and time commitments, will always produce far less attrition, but we can compete with far more participants.

Network Marketing, or Multi-Level Marketing, is NOT what some people like to call “just a compensation plan.”We ARE a unique community within the Direct Selling Industry. We are a community and culture of building empires of multiple levels of sales representatives, on which we expect to be paid forever. We are not looking for another sales job. We have had those.

We are looking to build our wealth through residual income … commissions based on product sales from the network of distributors we build … distributors who likely would have never joined our company had we not joined first and succeeded in leading them to follow. We expect that as long as we honor what we build — as long as we protect it, promote it, lead it and nurture it — we should be paid on it virtually forever. It should be the wall of protection around our family … forever. It should be our legacy. Without this promise in our culture, we are just expendable employees … roadkill on the highway to corporate quarterly profits.

The shared vision of Network Marketers could be this:

To bring a new paradigm of abundance and wealth building into existence so that most people …

• Understand how and why Network Marketing could work for them;

• Admire and respect those who succeed, just as they admire those who succeed in equities, real estate and small business;

• Trust the business model based on our ethics, our candor, our commitment to build trust and respect;

• And have one primary Network Marketing business, in which they are building residual income.

Imagine … almost everyone you know is building wealth through the residual income of their chosen Network Marketing company, just like they are investing in equities and real estate. Now there are three ways to build wealth, and everyone knows it.

There are at least 100 million candidates in the U.S. alone for what we offer. Most of them invest in equities and a large percentage in real estate, if only their primary residence. Attracting 50 million of them to participate is achievable. There is synergy in going from 10 million to 50 million. Our measly 30 billion would not just grow 5 times, but more likely 10 to 20 times. A trillion is within our reach.

This new paradigm will never exist without a shared vision and shared values. If we truly embody the core values of contribution, partnership, success and integrity we can get there. But not if we continue to do what industry legend Mark Yarnell is famous for saying: “We are the only industry in the world that when things get tough, we circle the wagons and start shooting at each other.”

This synergy will never happen as long as we tolerate greed, unlawful strategies, irresponsible product development and unethical business promotion. It will never happen as long as company founders continue to design compensation strategies that violate the law; violate the DSA Code of Ethics; and as long as those same company founders continue to hide their lawlessness in the complexities of their plans, hoping to run under the radar or at least get big enough fast enough to be able to afford the fines and move on. It will never happen as long as company owners and their executives see the source of their sales — the independent sales leaders — as employees or dispensable assets. And it will never happen as long as sales leaders act as hit-and-run drivers, with no loyalty or gratitude for the tremendous risk, investment and work ethic required to successfully launch and lead a company.

Here is a possible dialogue for both parties. Here is what companies could commit to in order to earn the trust, loyalty and evangelism of their sales leaders, as well as the admiration and respect of the media and regulators.

Corporate Commitments:

1. A commitment to the longevity of their MLM compensation model. A 100-plus year MLM business plan.

2. A commitment to honor, champion and protect the sales leaders who build with you. Success is a partnership, with both parties committing 100 percent.

3. A commitment to develop the very best products possible, and to market them legally and responsibly.

4. A commitment to design and market the opportunity in a way that fosters trust, respect and an environment free of regulatory actions and negative media.

5. A commitment to respect and champion every other company’s right to compete, and every leader’s right to choose and build their empire without undue litigation intimidation and harassment.

6. A commitment to a clear, concise set of policies and procedures that spells out each party’s rights and responsibilities, and is balanced in its favor. (We cannot expect sales leaders to invest years building something that the company can terminate at any time … “at their sole discretion.”)

And here is what sale leaders must commit to, in order to earn the loyalty and trust of their respective companies.

Leader Commitments:
               
1. Do your homework. Find a company that honors your own vision and values, one that is responsible and commited to longevity.
   
2. Marry your company, for the long haul.  

3. Follow your company’s policies and procedures. Do not put your company at risk with unethical marketing or business practices. Check your facts. Just because someone else said it, doesn’t make it true.

4. Follow the spirit and intent of your compensation plan. Compensation plans are designed to incentivize specific behaviors and a specific culture. Undermining the plan undermines the culture.

5. If a divorce is absolutely necessary, do it with honor, integrity and generosity. When it is clear you made a mistake, get out quick and get out clean. Don’t expect to be paid to compete with your former company. There is no leadership or integrity in such an expectation. Also, don’t promote your new company at the public relations expense of your previous company. Remember, at one time you said that they were the best there was.

6. Be a “Do the Right Thing" leader. You know what the right thing is. Do that.

I propose that companies adopt a set of strong Cultural Commitments … a Code that lays out their vision, their values and their commitments to be part of the solution and part of our industry’s future prosperity. A code to which leaders can hold their company accountable; one to which a company can hold their sales leaders accountable. A public Code from which we cannot hide.

Ours is an instantly perishable business model that, by its very nature, requires we prove longevity. We cannot afford to kill each other off. Every failed Network Marketing business that was honorable hurts us all. They fuel too many stories of failure, negative media and more evidence for the regulators.

We need to lock arms in mutual respect, choose our partners and build an industry, a business paradigm and a way of life that can never be voted out of existence. We can only do that with ethical, legal and moral success.

"United We Stand."

NOTE: Richard Brooke recently presented on this key topic at the Network Marketing Mastermind 5 in Houston, Texas. The event attracted hundreds of Network Marketing masters from around the world who gained valuable insights from some of the industry’s leading experts and top income earners.

Powerful feedback:

“Richard was brilliant at Mastermind; truly stellar! His message was so inspirational coming from someone with 30-plus years of success, integrity and a true leader of our profession!”
-Garrett and Sylvia McGrath
International speakers and trainers

“Richard sobered the giddy enthusiasm of the crowd with the hard reality of the challenges we inflict on ourselves. Then he went on to give the leaders a bigger vision of what we could do by being responsible and setting an examples to others. Magnificent.”
-Tom “Big Al” Schreiter
World-class Network Marketing trainer and best selling author

“Richard gave one of the most challenging talks of the weekend, declaring that we must remove the gap between the owners and the field. I believe Richard captured the future soul of Networking and a model of responsible liberty that should be heard by all. He closed with a powerful challenge to field leaders to do what they know needs to be done.”
-Orrin Woodward
Co-author of the bestselling book, Launching a Leadership Revolution.

“Richard Bliss Brooke spoke with the unabashed confidence and power that exuded experience. Delivering a message every attendee — from ever every corner of the globe — needed to hear, Richard reminded us of our responsibility to care for, and protect, this profession. Personally, I wish every Network Marketing company CEO could have heard his passionate plea for sanity …”
-Michael S. Clouse
Network Marketing author, speaker and success coach

COMMENTS (27 - Responses)

Kathy Schneider
11/13/2009 2:44:31 PM

We appreciate you, Richard!

Nile C. Costa
11/13/2009 2:58:14 PM

Richard:
Your INTEGRITY, your Leadership and Your Commitment to the Industry and to our Company, is what IGNITES ME.
I am blessed and thankful being part of this family.

Julia Irrgang
11/13/2009 3:14:15 PM

Thank You Richard, Your leadership excels us into excellence. Bravo

Joan Kenney Fitzgerald
11/13/2009 3:53:04 PM

Your leadership inpires me! A call to action of the heart and mind - for the long haul!

Gilbert Galang
11/13/2009 4:22:57 PM

This is really great, we need to stand for our industry, protect and work to promote it the right way..Thanks Richard.

Octavio Ochoa
11/13/2009 7:51:25 PM

Thank you Richard, your leadership inspire us to be the best networkers and best persons in the world.
Thank You.

Donna Johnson
11/13/2009 9:04:16 PM

Richard, I consider you the Warren Buffet of our profession. Thank you for talking candid, and causing all of us to reflect on how we can continue to grow and develop as individuals, teams and companies to elevate this great profession. We really are at the

Lori Hanni
11/13/2009 9:31:10 PM

Richard,
Thank You!!
Such GREAT insight on things to come!! Something we all need and must be aware of. You are always very good at bringing things to a new light, a different way of looking at things, engaging the mind, making us think things through!!
Your Vision is a very important one for everyone!!!
I also feel very fortunate and thankful to be a part of this wonderful family!!
Thank you for being such a Great inspiration for all!!

Jane Ray
11/13/2009 10:08:52 PM

Thank you Richard for being such a strong leader for this wonderful industry of Network Marketing and for stating the truth that needs to be said and heard over and over again.

Ron Richards
11/13/2009 10:28:20 PM

Richard,
Thank you for taking a stand to a code of ethics, integrity, trust, and honesty within our great profession. We must continue to believe and work together at making a difference in the lives of Gods children. Thank you for you vision and inspiration! God Bless you and family with love this holiday season!

Dee Ennis
11/15/2009 9:37:21 AM

Richard,
I am proud to call you my Friend and Mentor.

Michael Linden
11/15/2009 3:25:18 PM

As always, you lead the way with a vision that is uplifting and dripping with integrity. Thank you, Richard, for being who you are and for doing what you do... you are an example to all of network marketing at its finest. I love you and I stand with you.

Faouzi Daghistani
11/16/2009 2:37:14 AM

Surely this should be required reading for every MLM owner and administrator, top income earners and those that want to be. For every step forward we make on the line of 'professionalism', we endure three or four steps taking us back to a point of why people look at our industry and say 'no thanks!' I hope every single person that is involved in this industry and wants to lift it to the heights it deserves takes action on Richard's words.

Carl Froese
11/16/2009 9:04:53 AM

Richard, you did an inspirational and insightfull presentation on this critical subject at the Mastermind 5 Event in Houston. This concept is absolutely essential for all network marketers!
Thank you for laying out this challenge for all of us to commit to!

Troy Vineyard
11/17/2009 9:59:09 PM

Richard,

You are a shining example of intergrity and compassion.

I totally agree with your thoughts on our industry.

Thankyou so much for this posting.

Todd Smith
11/20/2009 8:12:43 AM

Richard, you are absolutely correct on all points. The Franchise industry has events in which industry leaders conduct workshops training their competitors. They decided years ago to work as a team to build the industry. If corporate and field leaders do the same in our industry, everyone will benefit.

Gwen Field
11/25/2009 8:51:00 AM

Richard, I am fully supportive of this plan and would like to participate in any way that I can. Together Everyone Achieves More. Houston was merely the beginning of banding together, of doing the right thing in a consistent and deliberate manner and of bringing together leaders from various companies, with the intention of elevating the profession and making it instinctive for everyone. Thank you.

Sheatina Sparks
11/30/2009 5:25:53 PM

Richard, I am honestly proud to be a part of this industry and with the company that you lead. Thanks so much for sharing your enthusiasm and knowledge with us!!

Robert Quadra
12/21/2009 7:35:57 PM

24 years in the military where I grew in a value system of honor, ethics, and integrity. It is a crossing of paths that am now promoting a company of similar sentiments.

In my recruiting I have found the lure of money promises overwhelm the desire to work with a company holding a great set of values.

Some see it; most don't. This message must persist in our marketing. Eventually it will gain momentum and the Law of Compensation will take affect. The message must persist.

Roberto Diaz
12/24/2009 2:11:24 PM

This is really great, we need to stand for our industry, protect and work to promote it the right way, we need each other to survive company and distribuitor so lets work as a team

Sharon Nani
12/29/2009 10:22:13 PM

So true and brilliantly expressed. Thank you.

Dave Wilder
12/31/2009 11:36:27 AM

Thanks for using your leadership and influence to discuss what needs to be discussed. The sleazy leaders and companies are really making the reputable companies look bad by being perceived as in same category of businesses that are legit. Maybe there should be some standards/guidelines by an association of MLMs that potential marketers could check on before they jump in.
Thanks for doing all that you do!
DW

Michael Eisbrener
1/18/2010 8:58:29 AM

What will it take for a 'band' of like minded people to create a 'club' with the highest standards that announces who is in and what it takes to be one of those companies? No amount of money a company has should buy their way in either. There could be another group labeled 'not a chance.' The current oversight groups while good intentioned have no value when the crooks can be members for the same price as the legitimate. There are too many US state AG’s who are opposed to one and all. They too are in it for the money and being re-elected.

Darryl Chance
1/18/2010 2:24:00 PM

Great Job Richard.

Just what everyone needs in this mixed up World.

Thanks,I will spread the word.

Daniel Hirtz
1/19/2010 2:33:36 PM

I am very happy to see a long time leader in our community standing up to promote those values.

Where are the others? Has it all come to

Greg Arnold
3/9/2010 9:26:50 AM

Walking toward a bigger vision always creates those who would criticize, those who would praise but do nothing, and those who would be inspired.

Unlike what I have read and heard, I think leadership is about taking a walk. I think a willingness to walk alone for a higher ideal is the ultimate display of leadership.

But you aren't alone in this one bud...not this time.

Balagopal
5/5/2010 6:26:30 PM

God help Richard Brooke to keep on doing what he is wonderful at ... motivating people to the brighter sides of life!

The new paradigm of network marketing should be Students. All above 18 must have a taste of entrepreneurship (in a country like India where I come from) while at campus. It gives them the clue that relationship-building should start from there and the bonding should continue even as they graduate and (if) choose other tracks of jobs/professions. They would, if they have the proper mix of training and a supportive pro-run company, never think of any other profession or quadrant (read ESBI)except networking which they have tested and proved in campus as The viable choice to the big B sector!

They will realize that Education itself is Acquired Leverage and Knowledge is to be used as Applied Leverage!