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The Rise of The Entrepreneur full documentary by Eric Worre — Transcript

by Iris Jeunesse · 8,826 words · 1,442 segments · language en · Watch on YouTube

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0:05[Music]
0:12hmm
0:15[Music]
0:22all right i'm speeding
0:25speeding
0:26speeding five
0:28four three two
0:31one
0:34the world is changing faster than ever
0:36what used to take decades is now taking
0:38years or even months what you see right
0:40now is the
0:42illusion that people have had for many
0:44decades
0:46about the workplace being this secure
0:48place to to work the rest of your life
0:50for the first time in the history
0:53of our nation
0:55our children will not do as well as us
0:58we've seen our friends get laid off
1:00we've been laid off we've had our pay
1:01cut people are overworked and underpaid
1:04they seem to have less time and less
1:06freedom
1:07they live under constant pressure this
1:09is going to be forced
1:10and so even if your employer loves you
1:13they may have to cut you there's
1:15something wrong
1:16that on monday morning the heart attack
1:19rate increases by 35
1:22technology is accelerating job security
1:24is declining it just doesn't seem like
1:27the old models of making a living are as
1:29reliable as they used to be every aspect
1:32of our lives there's a better way out
1:33there but we're still doing it the old
1:35way we live in the greatest country on
1:36the planet and there are a lot of people
1:38sitting around complaining and being
1:40cynical like everyone's whining about
1:42this old model and i'm like once you
1:44leave it look at all this over here look
1:46at all this opportunity since so much of
1:48our lives revolve around our work and
1:50the way we make our living
1:52many people are thinking there just has
1:54to be a better way the biggest challenge
1:57facing our world today is not making
2:00money is what are we going to do with
2:02all the displaced unemployed people
2:04people are afraid that they're going to
2:05make the wrong decision people are
2:07afraid of the unknown people are afraid
2:09that maybe i don't have the skills hey
2:11sports fans
2:12industrial edge is it over it's dead
2:15it's dying that's why going to school to
2:17get a job is an obsolete idea a steady
2:20paycheck is an industrial age idea
2:26[Music]
2:32it's the search for answers that has
2:34brought us here together today
2:36my name is eric worre and for almost 30
2:39years i've been an entrepreneur
2:40struggling at times but ultimately
2:43succeeding
2:44as a best-selling author speaker and
2:46business owner i've spent my entire
2:48career helping millions of people around
2:50the world to become entrepreneurs and i
2:52believe strongly that there is in fact a
2:55better way when it comes to how we make
2:57a living
2:58the career landscape has changed
3:00dramatically and many are still working
3:02in a model that is completely out of
3:04date
3:05what worked for previous generations
3:07isn't working as well for people today
3:10in this film we're going to explore
3:11three important questions
3:14first
3:14what's really going on in our working
3:17world today
3:18second in this new economy is it better
3:20to become an entrepreneur or is it safer
3:23to work for someone else
3:25and third
3:26if a person decides to become an
3:28entrepreneur and start their own
3:29business how can they do it without
3:32taking on massive risk
3:34to help in this journey i've brought
3:36together some of the greatest experts
3:38and thought leaders in the field of
3:40entrepreneurship to share the real facts
3:42with you
3:43my intention
3:44is to give you new information
3:46that will allow you to make choices that
3:48are not limited by an old outdated model
3:52let's start by understanding what's
3:55going on in our working world today
3:57[Music]
4:03let's look at unemployment 30 40 of the
4:05people are honestly not working but
4:08would be working
4:09what our government does is if you
4:10haven't found a job in six months we
4:12don't call you unemployed we pretend you
4:14dropped out of the labor force i've
4:16often said that unemployment
4:17particularly structural unemployment
4:19that's unemployment due to technological
4:21changes
4:22is the first sign of economic growth
4:24think of it 10 people live in an island
4:27they go out every day and fish one day
4:29new technology shows up a missionary
4:31brings them a net
4:32now using the net one pilots the boat
4:34one throws the net two fishermen can do
4:37all the work 10 used to
4:39that's a 500 percent increase in
4:41productivity to doing the work at 10
4:44in one day you don't have to learn a lot
4:45to learn how to throw a net instead of
4:46throw a fishing line the island's got a
4:48big problem 80 unemployment but the
4:51island still has all the wealth of the
4:53fish because the two people produce as
4:54much fish as ten did
4:56now of course looking back in history
4:58these changes used to take thousands of
5:01years and during that time we went into
5:03farming and transportation some of us
5:05became doctors and some teachers and
5:07lawyers and we developed all these new
5:09professions and new manufacturing jobs
5:11today these changes are occurring
5:13literally in one day when a new
5:14technological advance occurs and we
5:17don't have the social structures to deal
5:19with it or to retrain the unemployed
5:21people so one of the things that i think
5:23is interesting as i travel across the
5:26country and really travel around the
5:27world
5:28is
5:29the way that we work
5:31and the way we get paid for work
5:33is changing pretty dramatically
5:36on a global basis
5:38everything is being turned upside down
5:40because of the rapidly advancing
5:43technologies
5:45uh
5:46they are eliminating many jobs and we
5:49have been left with many people not
5:51prepared for the jobs that exist a lot
5:53of demand in public companies was to
5:55squeeze out all the fat and to get just
5:58as much margin as we possibly could and
6:00fat equals humans so this idea of job
6:02security and information is so obsolete
6:05but it's still taught inside our school
6:07system and that's where the problem
6:08starts there's no financial education in
6:11school system and people are still
6:12trained to be employees work for that
6:14paycheck this is a chart on the middle
6:16class
6:17what's happening in the middle class
6:19those who went to school their incomes
6:21have been coming down for years
6:23and parents still say the kids go to
6:25school get a job
6:26now what happens to all those middle
6:27class people who are dropping off the
6:29ends of the off the chart well they
6:31become what's called working poor
6:34and this is what happens to working poor
6:36but they say poverty is ending well
6:38poverty may be ending but working
6:40poverty is going up and this is food
6:42stamp usage so food stamp usage in
6:45america is going through the roof right
6:46now because people cannot earn what they
6:49call a living wage most people have
6:51experienced
6:52financial pressures
6:54that i think are probably
6:57greater
6:58than they have been in the past if
7:00you're not working for yourself then
7:01it's going to be a pretty hard road for
7:03a lot of people today if you're going to
7:06control your future the 40 40 plan is
7:09gone where you can graduate from college
7:10and get a job and work for 40 hours a
7:13week for 40 years that day is gone
7:16so some of these charts actually tell
7:18you what's going on and this is a really
7:20interesting one you know
7:22people are going back to school because
7:24if i go back to school i'll get a nice
7:25job but this is what's happening to it's
7:28called sallie may which is the student
7:30loan guys
7:32student loan is going through the roof
7:34is now over a trillion dollars and
7:35student loan debt is worse than credit
7:37card debt so when people stop using
7:40credit card the government got people
7:42into sell or student loan debt it's too
7:45the problem with student loan debt you
7:47can never be forgiven
7:48see with credit card debt you can
7:50declare bankruptcy and all is forgiven
7:54but student loan debt you can take
7:55declare bankruptcy you still owe it it's
7:58the worst of all debt but this is the
8:00next picture look at this chart here
8:02this is what's happening to wages of
8:03college graduates
8:05it's going down
8:07so you go to college you rack up all
8:08this debt but you earn less money now
8:10that's not that intelligent
8:12average person who's been working a
8:14lifetime in america today is ending
8:16their lifetime at 65 with about 41 000
8:18in assets they earned just enough to
8:21survive i think in the united states we
8:23have something like 17 trillion in in
8:26debt that's just a federal government
8:29we've got another two in municipal
8:31and in other let's call it almost 20
8:33trillion government we've got 40
8:35trillion in private debt that comes up
8:37close to 60 trillion
8:39when you then add something we never had
8:41before what you were talking about when
8:43we look at the unfunded portion of
8:45social security and primarily medicare
8:48medicaid
8:50that is the most conservative estimates
8:52from outside firms klein or perkins 67
8:55trillion and growing that's that's more
8:57than all our other debt there's less
8:59conservative estimates that say it's 84
9:01trillion or higher
9:03i added up conservatively 127 trillion
9:05dollars in total debt debt is a
9:07financial drug
9:08when you take it to excess it's like
9:10taking a drug yeah it makes you feel
9:12better it enhances your performance but
9:14at a huge cost eventually it kills you
9:17and and so that's what happens we keep
9:18doing more and more debt and you get
9:20less and less results just like a drug
9:22until the debt gets so high that it
9:24crushes the whole system that's where
9:25we're at 8.2 times gdp
9:28you know i feel sorry for
9:31i feel sorry for the person who dreads
9:34going to work who
9:36is sick to their stomach on monday
9:39morning who hates their alarm clock
9:42who gets a little glimmer of hope on a
9:44wednesday because it's hump day
9:47and says thank god it's friday
9:49and they live for those two days a week
9:53where they get to be themselves and get
9:55they don't have to be around people they
9:56don't they don't like and they don't
9:57have to
9:59play the political game in the office
10:02and they don't have to
10:03live this half-life
10:06the person that
10:08works 50 weeks
10:10a year
10:12just to be able to have the two weeks
10:16for vacation and you know what happens
10:18to most of them nowadays
10:20they don't have a vacation they have a
10:21staycation
10:23they have time off of work but they
10:26don't get to go where they want to go
10:28because they're overextended they've got
10:30all this debt they got all this
10:31situation they hate their alarm clock
10:32there they can't sleep until they're
10:34done they have to spend most of their
10:36life in traffic
10:38i feel sorry for that group of people
10:40because
10:42there's a better way they just don't
10:43know it i see this really interesting
10:45attempt at rugged individuality in a 6x8
10:48rectangle and i feel like you're all the
10:50same
10:51except for the little push pins of the
10:53pictures there's different pictures
10:54here's this name jenny and his is named
10:57sujara but it's the same people and this
11:00is how they are and they're just like
11:02the zombies and there's no joy in there
11:04there's no fun there's always like the
11:05wacky woman who decorates her cubicle
11:06and that that's that's the most she can
11:08do there you gotta give her credits
11:09right the wacky cubicle woman the basis
11:11for their life is worry i'm i'm worried
11:14you know maybe i'll get fired i'm
11:16worried maybe my company will go out of
11:18business i'm worried i can't keep split
11:20spinning the plates on paying the bills
11:23i'm worried about how do i send my kids
11:24to college i'm worried what if the
11:26transmission of my car breaks that's you
11:28know two or three i can't fix it people
11:31live
11:32in a in a sea of worry and it eats at
11:35them those signs that people held up
11:37during the depression didn't say looking
11:39for gainful employment in a cubicle
11:41instead looking for work work is what
11:44we're looking for job is just a unit of
11:45measurement work is what we're going
11:47after it's time to look in the mirror
11:49and say it's not the economy it's my
11:52economy it's my little world of where i
11:54am i need to improve i'm not going to
11:56wait for the economy to come back
11:57because frankly the economy is doing
11:59great in this country
12:01so i'm here on wall street
12:02the financial center of the universe the
12:05financial capital of the world
12:07this is where
12:09most people's money
12:11goes
12:12to at least be held for a time right
12:15with interest rates in banks being
12:18effectively zero and many experts are
12:21predicting it's going to stay at zero
12:23for the next 10 20 even 30 years
12:27people feel like they don't have any
12:28choice but to put their
12:30future into equities
12:32to put their future into the hands of
12:35other people
12:36on this stock market and hope
12:39that the stock market goes up hope that
12:41the stocks that their advisors pick or
12:43that they pick
12:45goes up
12:47that's one way to go i guess
12:49it's my personal believe
12:51that if you put your future
12:54into the hands of yourself in other
12:56words you have earning power by yourself
12:59i think you're a better investment
13:01than these guys
13:03i think you can controlling your future
13:06is a better option than handing over
13:08your retirement
13:10to these guys
13:14the average household income in the
13:16united states is approximately 50
13:19dollars a year what they call the middle
13:21class
13:22to reach the top twenty five percent of
13:25income earners you need to earn at least
13:27ninety thousand a year
13:29to reach the top ten percent would be a
13:31household income of a hundred and forty
13:33thousand the top five percent a hundred
13:35and ninety thousand
13:37and to be in the top one percent you'd
13:39need a combined household income of at
13:42least three hundred and eighty thousand
13:43dollars a year
13:45so here's the question what do you think
13:48would give you the best chance to move
13:50up and get to the top ten percent the
13:53top five percent the top one percent of
13:55beyond
13:56in my opinion and in the opinion of many
13:59many experts
14:00the answer is to become
14:02an entrepreneur
14:03to become your own boss i think you have
14:06to be a business owner i
14:08i can't
14:09the only time i ever say to someone
14:10would be great to be an employee is when
14:12they've already told me they've
14:12surrendered i only tell people who are
14:16wounded spiritually that they should be
14:18an employee and it's that feeling that
14:19you get
14:20when you
14:21pick up the backpack off the little cub
14:23scout and say don't worry little guy
14:24we'll get you back to the camp you know
14:26it is not a it is in no way a kindness
14:29when i tell someone they'd be a great
14:31employee the other status symbol really
14:33increasingly is lifestyle people can own
14:35their own business
14:36maybe even work out of their house that
14:38i tell people admire that like gosh i
14:40wish i could do that the spirit of the
14:42entrepreneur is to be a risk taker and
14:45to be resourceful and unstoppable and to
14:47have a vision of yourself beyond where
14:50you are and not willing to settle for
14:52life as it is you think about the great
14:54entrepreneurs they're visionary they
14:56have heart they're willing to do today
14:58what others want so they can do tomorrow
15:00what others can't personally i don't
15:01think of the new economy the old economy
15:04i create my own economy the
15:06entrepreneur's in control
15:08i decide
15:10what the economy is going to be like in
15:11the world of entrepreneurship there are
15:13no limits you can make as much as you
15:14want depending on how much you want to
15:16work and how smart you are and how great
15:19a team you put together there's no
15:21more
15:22lifetime rewarding
15:25business than being an entrepreneur why
15:27in america where anyone could be
15:29anything when people want to give up
15:31their freedom and become effectively a
15:33modern day slave told shut up and be
15:34here every morning at 7 30 leave at 5 30
15:37and do what i tell you if people decide
15:39to become an entrepreneur and work for
15:40themselves they have some traditional
15:42options but they're riskier than you
15:44might think any kind of a retail
15:46business retail build outs is extremely
15:48expensive
15:50even just these small little yogurt
15:52stores where they're putting little
15:54yogurt machines and you get all the
15:55different flavors you're spending two
15:58three four hundred grand to open a
15:59yogurt shop i would love to buy a dunkin
16:01donuts but it's a half a million or so
16:03to start i don't quite have that just in
16:06case money risking lose it all and most
16:08guys do two or three times and even big
16:10guys like branson because i'm such a fan
16:12of his half his companies don't work you
16:14make a million your problems are going
16:15to go if you make a billion your
16:17problem's really going to go
16:18just the opposite you and i know you're
16:20making a million you get a million
16:21responsibilities you make a billion
16:23you've got a thousand times a million
16:25responsibilities and most people say
16:27i'd love to be my own boss seventy
16:29percent of americans would love to be
16:31their own boss
16:33according to recent polls
16:35but they don't know how to get there
16:37because what are you going to do
16:39one you could buy an existing business
16:41if somebody's
16:42selling an existing business you have to
16:43ask why
16:45usually because it's probably hard
16:47it's probably not making as much money
16:48as they hope
16:49two they can buy a franchise a little
16:51less risk proven system
16:53but it's expensive to be able to do that
16:56three they could start something from
16:57scratch
16:59and
17:00that's where a lot of people feel like i
17:01don't have the
17:03the chops to do it i don't have the
17:04money i don't have the
17:06the product idea i don't have the
17:08expertise i don't have whatever it's
17:10going to take to be able to get there
17:12and i can't risk my family to do it
17:14so
17:16forth they could become an investor
17:18a lot of people in this town
17:21invest
17:22uh to try and
17:24figure out a way but you got to be
17:25pretty smart with that game too right
17:26venture capitalists who are the very
17:29best and most sophisticated in investing
17:31in new breakthrough businesses make it
17:33on one out of 11. that means 10 out of
17:3511 are mediocre or pale most of them
17:38fail
17:39that's the risk there an angel investor
17:40is lucky to get one out of 15 or 20. a
17:43business is a team sport
17:45like i have to have accountants i have
17:46to have engineers i have to have system
17:48designers i have to have sales marketing
17:51i have to have accounting i have to
17:53admission statements i have to have
17:55legal and all that the average joe schmo
17:57even me i go out there i don't have the
18:00skills to to put a business together i
18:03think the bottom line for the four
18:04traditional options is they take money
18:06sometimes a lot of it they take
18:08expertise and they take time
18:11all of that adds up to just too much
18:14risk for most people i bought a business
18:16from somebody else and it was a lot of
18:18work and you know you start wondering
18:20what did i just buy because i guess
18:21ultimately i own your email lid list and
18:24i just overpaid for it people that start
18:26their own business they spend a lot of
18:28money they spend a lot of time a lot of
18:30effort to get things started
18:32and the more you invest on the upfront
18:33the harder you typically work at it i
18:36can tell you what the success rate is of
18:37a restaurant what is it they're crazy
18:38enough about ninety percent of them fail
18:41but 90 and how how quickly uh
18:44a year year or less wow and if we're
18:46talking non-franchise we're talking
18:47about you guys that's totally different
18:48yeah but our students aren't getting
18:50franchise reps you gotta you gotta
18:51invest a big money exactly and with
18:53someone like mcdonald's you've had to
18:54work with the company for a long period
18:56of time really know that you even have a
18:57chance of investing a million have a
18:58chance and it's a slim chance what if
19:02there was a way
19:04that you had all the proven aspects the
19:06comfort aspects
19:08and you could still control your own
19:10life what if there was both
19:14in other words you didn't have to create
19:15everything from scratch
19:17you could you didn't have to be a super
19:18leader
19:20all you had to do what if there was a
19:22proven product already you don't have to
19:23create the product
19:24and there's a proven system already
19:26proven training already
19:28everything except
19:31an employer
19:32that was the only thing that you didn't
19:34have
19:35do you think more people would be open
19:37to
19:38working for themselves in that
19:40environment
19:48in our search for a better way to make a
19:50living we've come to the conclusion that
19:52becoming an entrepreneur is actually
19:54safer than being an employee
19:57and through our look at the
19:58entrepreneurial options one particular
20:01path kept coming up from expert after
20:04expert and i think most people will find
20:06it surprising because it's certainly a
20:08non-traditional business model
20:11that model is for people to start their
20:13own business and become an entrepreneur
20:15to the creation of a network marketing
20:19some people call it direct selling
20:21because the product is being sold
20:23directly from the manufacturer to the
20:25end consumer cutting out the middlemen
20:27other people call it multi-level
20:28marketing or mlm because there are
20:30multiple levels of commissions paid
20:33the most common term today is network
20:35marketing because network marketing best
20:37describes using a large group of
20:39independent distributors independent
20:41entrepreneurs to move a product or
20:44service more efficiently so my friend
20:46here donald trump and i we always write
20:48about the network marketing industry and
20:50the reason we support the network
20:52marketing industry because it really is
20:54a business school for entrepreneurs
20:56because most people come out of school
20:58looking for a paycheck
21:01oh
21:02that's terrible i went to network
21:04marketing like that
21:06i think if it didn't exist we should
21:08invent it it is that good i think direct
21:10selling is a great way to do business
21:12today it's very easy to get into that
21:15industry and you can be self-employed be
21:18in effect an entrepreneur when we see
21:20multi-billionaires adding network
21:23marketing companies to their portfolio
21:25of companies that would be a clue when
21:27we see
21:28people who are very famous authors and
21:31very famous business people endorsing
21:33the industry that would be a clue
21:36these network marketing companies are in
21:3850 million companies they're billions
21:40and billions of dollars they lead the
21:42stock market they're major companies
21:44when we're going to get it
21:46you know and you're going to school to
21:47work for a paycheck but if you want to
21:49be rich be an entrepreneur and network
21:51marketing gives you the spirit to be an
21:54entrepreneur a traditional company will
21:56spend up to 50 percent of their total
21:58revenue on marketing network marketing
22:01companies use a different approach
22:03instead of having all that extensive
22:05marketing expense
22:07they utilize a network of independent
22:09distributors to do the marketing for
22:11them now why do they do this
22:14first because word of mouth advertising
22:16is so much more effective today than
22:18traditional media advertising second
22:21some products need to be explained or
22:23demonstrated and an independent sales
22:25person can do that more effectively than
22:27an ad campaign third it's completely
22:30efficient
22:31the company only pays for the marketing
22:34of their product if a sale happens and
22:36not before
22:38imagine if amazon allowed you to become
22:40an independent distributor and paid out
22:4240 of its revenue to that distributor
22:45group
22:46all you had to do as a distributor was
22:48recommend a product and if a person
22:50bought it on amazon amazon would take
22:52care of all the logistics
22:54and you'd get paid for bringing the
22:56customer
22:57now imagine you got paid for every
22:59purchase that customer made for the rest
23:01of their lives
23:03well amazon doesn't offer this option
23:05but network marketing companies do 85
23:08percent of all buying decisions in our
23:10society are made as a result of word of
23:12mouth or reputation we're recommending
23:15things to each other all the time
23:17you know who's your dentist who's your
23:19doctor who's your lawyer what detergent
23:21you know are you using what legal system
23:22are you using what product are you using
23:24we're talking to each other about the
23:26things that we love anyway when you go
23:28into a big box retailer you're lucky if
23:30the clerk looks you in the eye much less
23:32gives you any detailed or accurate
23:34information about what you're purchasing
23:36so of course this personal information
23:38this education coming from a friend a
23:41neighbor a relative or even a stranger
23:43but who one who has experience with the
23:45product is extraordinarily valuable as a
23:47matter of fact
23:48network marketing can educate consumers
23:50probably better than any other form of
23:52marketing it certainly can do better
23:54than advertising because
23:56advertising usually has a certain hype
23:58to it and you can only get limited
24:00information
24:02so you know network marketing trumps
24:04advertising if you were a typical sales
24:06company and you wanted to sell a million
24:08dollars a month worth of product
24:10you might go find a hundred superstar
24:13sales people
24:14the quota would be
24:16ten thousand dollars a month so network
24:18marketing as a distribution system just
24:20flips the numbers
24:22so we use ten thousand
24:24happy raving fans of a particular
24:27product
24:28and we don't concern ourselves so much
24:31with how much product each one of them
24:32individually sells if they sell just a
24:35hundred or two hundred dollars a month
24:37and there's ten thousand of them
24:39you're selling a million to two two
24:40million dollars a month worth of product
24:42that's the best way i can explain how
24:44network marketing works this is the
24:45marketing arm of the company there's not
24:48money being wasted on bricks and mortar
24:50there's not money being wasted on
24:51inventory that's sitting stagnant
24:52somewhere there's a lot of employees
24:54standing around that don't have
24:55customers these are people they're going
24:57to connect with customers these
24:58companies allow people to become
25:00independent distributors for extremely
25:02low cost and with no minimum time or
25:04sales quota essentially they own their
25:07own business and can provide as much or
25:09as little sales as they choose
25:11in other words the distributor gets all
25:13the benefits of traditional business
25:15ownership without the risk the advantage
25:18of network marketing is
25:20the ease of entry the low risk and the
25:22low startup cost because almost
25:24everything else has very high risk you
25:26can get in for a minimal investment
25:28you're buying into a system that's
25:30already been proven products or services
25:32that have been proven to work the keys
25:34to network marketing is providing an
25:36opportunity for the masses
25:39to get involved providing an opportunity
25:41for the average person
25:43who doesn't have the resources to start
25:45their own business all of this so far is
25:47fairly straightforward but network
25:50marketing offers another benefit and
25:52it's this benefit that makes it so
25:54interesting for entrepreneurs
25:56network marketing allows a distributor
25:59to build their own network of other
26:02distributors and then compensates them
26:04on the sales created by that entire
26:06group direct selling is at its base very
26:09simple
26:10it's the sale of a product or service
26:13to an individual on a face-to-face
26:15one-on-one basis just the way we're
26:17talking right now but there's an
26:18important element as well and that's the
26:20offering in conjunction with that sale
26:22of product the offering of an
26:24opportunity an opportunity for someone
26:26to make something of themselves no
26:28matter what your social status is no
26:30matter what language that you speak i
26:32mean look how many unbelievable people
26:34are becoming successful to speak
26:36every kind of language out there what an
26:38awesome gift to give the world instead
26:41of having to work your way up in a
26:44system and prove that you could be a
26:46sales manager they just decided
26:48everybody can be a sales manager
26:50everybody gets to build a sales team
26:52from day one
26:53and so what that brought into the system
26:56of growth as a direct selling company is
26:58the concept of compounding or geometric
27:01progression
27:02because now you can actually grow sales
27:04force very quickly because everybody
27:07is enrolling people in their own sales
27:09force people who are like oh this is
27:10weird i'm building a sales team and what
27:12do you think you do at a regular company
27:14how do you think a regular company works
27:16network marketing is the only industry
27:18that doesn't say your past determines
27:20your future it looks at your past and
27:22says okay now what can we train you to
27:23do so you can have a great future future
27:26every other employer out there wants to
27:27exploit you for what you already know
27:29not teach you something new network
27:31marketing has a potential
27:33to save the united states and the world
27:36because it's going to teach people not
27:37to be employees but to be entrepreneurs
27:44[Music]
27:46according to the direct selling
27:48association if you add up all the
27:49network marketing companies around the
27:51world they combine to do over 178
27:55billion dollars a year in retail sales
27:58to give you an idea of how big that
28:00really is the nfl the national football
28:03league does approximately nine billion
28:05dollars a year the music industry does a
28:07little more than 16 billion dollars a
28:09year and the movie industry does about
28:1280 billion dollars a year
28:14using a conservative average network
28:16marketing companies pay their
28:17distributors about 40
28:19of that 178 billion dollars in the form
28:23of commissions
28:24which adds up to more than 71 billion
28:26dollars a year that's almost 6 billion a
28:29month
28:30it's almost 200 million dollars in
28:33commissions every single day
28:36so it's certainly working and people are
28:38making serious money in network
28:40marketing with the growth of the direct
28:41selling industry over the last 10 15 20
28:44years we've seen a broader understanding
28:47of the channel we have seen more and
28:49more people getting involved in the
28:50business so our penetration in the
28:52marketplace has increased and thus the
28:55understanding in the marketplace of who
28:57we are has increased and we've seen
28:59non-direct selling companies look at the
29:01direct selling model and say
29:03something's going on there
29:04people are making money
29:07companies are being profitable
29:08individuals are being motivated product
29:10is being delivered to market maybe we
29:13should explore this
29:14some people think only the people at the
29:16top make money well let's take a look at
29:18that as well
29:19in the network marketing profession
29:21there are roughly 500 people in the
29:23world who earn over a million dollars a
29:25year
29:26if you round that number up to two
29:28million dollars a year that adds up to
29:30about a billion dollars a year that
29:32takes the 71 billion dollars paid out
29:34each year down to 70 billion
29:37so where does the rest of the money go
29:39the vast majority goes to part-time
29:42people making anywhere from a few
29:44hundred dollars a month to many
29:45thousands of dollars a month it goes to
29:48people who choose to make it a full-time
29:49career move and earning even more than
29:52that
29:53every day people are using the money
29:55they earn through network marketing to
29:56pay off debt have more fun and improve
29:59the quality of their lives everyone i
30:01know in network marketing has been doing
30:03that since the 50s they go to work when
30:05they want to go to work they stop
30:07working when they want to take time with
30:08their children to have a leisurely
30:09breakfast and discuss issues and driving
30:11to school they go back to work when they
30:13get home wherever they're working out
30:14the biggest thing that i've seen is
30:17people that have become much happier in
30:20their life mlm has probably made more
30:23millionaires of more people in more
30:25countries and i've spoken to them in 50
30:2767 countries
30:28than any other single form of business
30:30starting from nothing if they have a
30:32choice between working a job for the
30:34next 10 years or working a network
30:36marketing business for the next 10 years
30:38the result of working the network
30:40marketing business will be better a lot
30:42of people within the industry go on and
30:44make this a career
30:46and do extremely extremely well at it
30:48network marketing has been nothing but
30:50good for everyone i know that's been
30:52involved with it because they did it
30:53seriously and they've played full out
30:55and they've been very successful it's
30:56been a constant
30:58barrage of success stories and
31:01people showing off stuff
31:03i think god is a result of it how many
31:04people are involved
31:06approximately 16 million americans and
31:0896 million people around the world are
31:11currently participating in network
31:13marketing
31:15and in a recent poll 82 percent of those
31:17people report a good
31:19very good or excellent experience with
31:22network marketing so people are happy
31:28[Music]
31:30so i've taken a look at the network
31:32marketing profession and really tried to
31:34understand
31:35why so many people are confused
31:38as to the validity of this as a business
31:42one is
31:43this pyramid shape people get really
31:46messed up with this pyramid oh it's one
31:48of those pyramid things
31:50so
31:51i just think there are a lot of haters
31:52out there who really don't understand
31:54the industry and say oh it's a it's a
31:57get rich quick scheme it's a pyramid
32:00well corporate america is a pyramid
32:01scheme you know i mean it goes like this
32:04you have thousands of mbas you know
32:06let's say working for a fort
32:08or general morris or coca-cola if all
32:10his mbas are all trying to get to here
32:12that's a pyramid
32:14only one guy is going to make it you
32:16know every 10 years one's going to make
32:18it whereas you look at network marketing
32:20it's like this
32:21so you're here and your job is to
32:23develop other ceos coming up behind you
32:26so it's inverse pyramid in network
32:28marketing it's a very simple concept if
32:30you sell product you get paid it is paid
32:33based on production there is no first
32:35movers advantage there is no investment
32:37component where the more somebody spends
32:40the more they're entitled to make
32:42so the two are polar opposites of each
32:44other it doesn't matter what shape the
32:46company is or the compensation plan is
32:48shaped whether it's a circle or a
32:49pyramid or a triangle or trapezoid it
32:51doesn't matter if compensation is coming
32:53primarily from recruitment then you've
32:55got a problem on the other hand if an
32:57operation is basing their compensation
32:59to participants on the basis of sales
33:03even when those sales are generated by
33:05people you've recruited well then you're
33:07a perfectly legitimate enterprise that's
33:08the legal test it's the practical test
33:10another issue that's been true in the
33:13past
33:14that is no longer true now
33:16is people used to be in network
33:18marketing loaded up with products that
33:20they couldn't sell and they ended up a
33:21loser they ended up with a bunch of
33:23product in their garage they had a bunch
33:25of products sitting in their kitchen
33:27shelves or whatever and they thought
33:28they could sell it and then they weren't
33:31willing to or able to sell it and they
33:33ended up with a bunch of stuff and they
33:35were bitter about it there was this
33:36thing called front loading where you had
33:37to buy like oh if you bought 25 000 with
33:39a product you got better commissions and
33:41all this today
33:43it's almost all done by computer it's
33:45direct mail comes from a warehouse
33:47somewhere else you don't have to have
33:48all this inventory you don't have to
33:49stock up it's a paperless world now you
33:52know uh most of it's not online you have
33:54a back office
33:55it really works and i mean the
33:57technology has changed everything third
33:59issue is people start talking about
34:0299 of people in network marketing don't
34:04make any money
34:06well we've talked about that over the
34:08course of this
34:10journey together almost 200 million
34:13dollars a day is being paid out to
34:15network marketing distributors around
34:17the world the naysayers the people who
34:19say that it doesn't work are usually the
34:22ones who just don't know how to make it
34:23work for themselves and so they're
34:25giving you an opinion
34:27and i tell people don't confuse people's
34:29opinions with expertise because opinions
34:32are free and don't confuse sincerity
34:35with the truth because people can be
34:36sincerely wrong but here's the reality
34:38inside of network marketing the vast
34:40majority of people that get involved in
34:42network marketing just become customers
34:44and they get involved to be able to
34:46purchase product at a lower price
34:49if you take a costco as an example
34:52if a person goes into costco and gets a
34:55membership to costco so they can get a
34:58lower price on the product
35:00we don't call that person a loser
35:03because they have a bunch of product
35:04that they walked out with with a smile
35:06on their face
35:07yet when some people want to take a look
35:09at network marketing they say well those
35:10people they're just using the product
35:12and they aren't earning an income
35:14so they must be a loser they're not a
35:16loser they're a happy customer
35:18that's the vast majority of people that
35:20are involved in network marketing now a
35:23smaller percentage of those those people
35:25decide to go build a business they earn
35:28300 a month 500 a month a thousand two
35:30thousand
35:31that's the bulk of earnings in network
35:33marketing and then there's the few that
35:35really decide to take it serious really
35:38decide to build a large network really
35:40work to make that network very very
35:42productive and those people make huge
35:44amounts of money and there's no cap
35:46what i do
35:48as an outside economist just somebody
35:50look into this industry like any other
35:51industry i speak and say look what's the
35:53realities of this one percent do
35:55incredibly well ten percent generate
35:57some additional income it pretty low
35:59risk and and effort that's nice and and
36:0290 of people roughly end up customers
36:05one thing that i think is real when it
36:07comes to
36:08people's perceptions about network
36:10marketing
36:11is
36:12people put this and distributors i think
36:15involved in network marketing have some
36:17responsibility for this
36:19they have sometimes unrealistic
36:21claims
36:22about the product or about the income
36:24most people who become distributors
36:27they want the money they want to be
36:29successful but they don't have the
36:30skills they don't know what to do and
36:33when people don't know what to do and
36:35they're in a new business they're scared
36:37and when they're scared they panic and
36:39desperation kind of sets in so they
36:42think everyone they talk to has to get
36:45in so if i talk to you and you say well
36:47no i don't have time to they're like no
36:49no no i need you
36:52you have to do this or i won't be sick
36:53so i i start clawing on you i stood that
36:56desperation so then i start making
36:58claims about the product which are not
37:00appropriate probably not even true or i
37:02start saying oh you let me show you how
37:03you can make all this money and you
37:04don't have to do anything erican and so
37:06you you just totally misrepresent the
37:09opportunity and
37:11you you're clingy with people because
37:14you think you need everybody to be
37:16successful and you don't you know one of
37:18the messages that i try to deliver most
37:21forcefully to companies as well as sales
37:24people in direct selling is that you
37:26don't have to over promise
37:28reality is in network marketing
37:30there's a lot of hard work involved
37:32there's a lot of effort you're going to
37:34have to develop yourself it's a business
37:35like anything else it's going to take
37:37some time but in my opinion it's better
37:42[Music]
37:46it's light years
37:48better for people starting today than it
37:51was even five years ago i think it's
37:53more widely accepted now and people
37:55understand it is a business it is being
37:57an entrepreneur it is being a business
37:59owner our belief system is based upon
38:01our evaluation of something and
38:03frequently if we re-evaluate a situation
38:05our belief about that situation will
38:06change the industry has changed and it's
38:08grown up it's totally transformed you've
38:11got young people today
38:13that have grown up with social media and
38:16they understand networks they understand
38:18how people are connected through
38:20technology and they understand how money
38:22flows through those networks so when
38:25they see network marketing they don't
38:26see it the way their parents saw it and
38:28we've all learned
38:29we the the larger industry that you
38:31represent has all learned from those
38:33mistakes and flaws and errors that have
38:35happened early on early algorithms
38:37didn't work the right way that's all
38:39fixed it's like when they design a
38:41computer program uh they design the
38:43program then they run it and then they
38:44go back through and they debug it the
38:46mlm industry has been debugged this is
38:49the day of being virtual being able to
38:51run a business from your mobile phone i
38:53mean it's it's incredible companies are
38:55getting smarter
38:57they're they're implementing more
38:59consumer protections they're
39:01implementing more compliance training
39:03they're doing more with respect to
39:05product research if you do get involved
39:08and you make purchases of inventory even
39:10on a voluntary basis if you decide that
39:12this business is not for you you can
39:14leave and have that inventory
39:16repurchased by the company there's no
39:18other business that offers that kind of
39:20protection on a voluntary
39:22self-regulatory basis
39:28[Music]
39:30if you decide to look further into a
39:32network marketing business in order to
39:33generate more cash flow for your family
39:36i would recommend reviewing the
39:38following four elements
39:40first
39:41is the product or service and on the
39:42product or service i would ask five
39:44important questions one do you like it
39:47is it something you would feel
39:48comfortable sharing with others
39:50two is there a recognized need in the
39:52marketplace
39:53it's hard to create a need if one isn't
39:56naturally there
39:58third
39:59does the product meet that need does it
40:01solve a legitimate problem for consumers
40:04and fourth is it price to sell
40:07can it compete in the marketplace and
40:10fifth is it price for profit is there
40:12enough margin for the company and the
40:14distributor to be able to generate
40:16income for the long term
40:18if you can answer the questions on the
40:20product to your satisfaction the next
40:22element to consider is the company
40:24itself
40:25is it well run do you believe in the
40:27founders or the management team do you
40:29feel they have what it takes to go all
40:30the way
40:31see it doesn't matter how good the
40:33product is if the management can't take
40:35care of the company
40:37good management can change with the
40:39times they can handle adversity they can
40:41make good decisions
40:42make sure you choose a company that can
40:44serve you for a long time
40:47the third element to consider is the
40:48compensation plan and with that there
40:50are three important things to look at
40:53first a brand new person needs to be
40:55able to generate some money fairly
40:56quickly
40:57it may be an obvious reason but you can
40:59probably imagine the ripple effect of a
41:02distributor getting involved and having
41:04even a small victory fast
41:06that can only help with the overall
41:08success of the organization
41:10second a person should be able to
41:12develop a moderate part-time income in a
41:15reasonable period of time
41:16as they develop their network and as
41:18their sales grow they should be able to
41:20enjoy more benefits
41:22and third
41:23for the people who are really serious
41:25for those who decide to really go pro in
41:28the network marketing profession there
41:30should be the possibility to make a
41:32serious full-time income if they work
41:35hard and are committed to developing
41:37their skills
41:39if you're comfortable with the product
41:41the company and the compensation plan
41:44the last thing you should look at is the
41:46support that will be made available to
41:48you
41:48does the company have a website does it
41:51does it have a solid online reporting
41:53tool
41:54do they have comprehensive training
41:55available do they host events to help
41:57you build your business if you decide to
41:59do this what kind of a support system
42:02can you plug into choosing a network
42:04marketing company is a personal decision
42:06but evaluating the four elements of
42:09product company compensation plan and
42:12support
42:13is a great place to start is the company
42:15promising that you're going to get rich
42:17quick or that you can make a lot of
42:18money without a lot of effort that's a
42:20red flag
42:21is there a product that you really
42:23believe in that you think can be sold or
42:25are you being told by sales people or
42:27the person who's trying to recruit you
42:29or by the company itself that don't
42:30worry about the product all you have to
42:32do is recruit other people into the
42:34business red flag warning sign if you're
42:36hearing that
42:37take a second or even a third look get
42:40to know the customers the products the
42:41business have some success and see where
42:44the opportunities might take you to move
42:45up in the organization when i find out
42:48how concerned are they about my
42:50education my training and my development
42:52is there a space for me to grow most
42:54important question learn everything that
42:56you can about the product make sure it's
42:59something that you believe in
43:01and learn everything you can about the
43:03industry
43:04and work that system you have to be very
43:07passionate about whatever
43:09that company is doing i would get
43:11involved you can always test drive
43:13anything you know the product the
43:15service the community and um and then
43:18lean into it a bit if it feels good then
43:20lean into it a lot behind me is the
43:22lincoln memorial
43:24and
43:25this is a place where martin luther king
43:27jr had his famous i have a dream speech
43:30and at that speech
43:32he talked about his dream for equality
43:34for everyone around the world and that's
43:36a noble dream
43:38but i think more people need to remember
43:40what it was like when they were kids and
43:42the dream was still alive in them before
43:44it got beaten out of them by reality by
43:47this paycheck by
43:49these responsibilities
43:51and by
43:52having to live for
43:55this job to pay the bills
43:58i think people need to remember that
44:00go back to that
44:02once they know that there's a better way
44:05i think their future is going to be much
44:08brighter they can live a better life
44:16so if you're considering getting
44:17involved in a network marketing company
44:19let me offer you just a few pieces of
44:21advice
44:23first
44:24network marketing isn't perfect it's
44:26emotional it's challenging like any
44:29entrepreneurial venture
44:30it can have its up days and its down
44:32days
44:33but if you have an entrepreneurial bone
44:35in your body it's just better second
44:39if you're gonna do it
44:41decide to be professional
44:43decide to go pro
44:44it's better to do that than just be this
44:47amateur sticking your toe in the water
44:49third
44:50as any professional you're going to have
44:52to learn some new skills and i promise
44:54you inside of the network marketing
44:56profession they're not
44:58too
44:58difficult to learn fourth
45:01like anything worthwhile
45:03it's gonna take some time don't expect
45:06that you're gonna get to the finish line
45:08right out of the gate and fifth
45:10it's worth it
45:12it's worth it to be able to take charge
45:15of your life again it's worth it to be
45:17able to control your own financial
45:19situation it's worth it for the people
45:21you're going to be able to spend time
45:23with it's worth it for the things you're
45:25going to be able to see and the
45:26experiences you're going to be able to
45:27experience
45:28it's worth it for the causes you're
45:30going to be able to contribute to the
45:32lives you're going to be able to touch
45:34the customers you're going to be able to
45:35help
45:36the friendships you're going to be able
45:37to develop
45:39i promise you it's worth it
45:41remember most people are searching for
45:44answers just like you are
45:46but i do have to tell you the catch
45:48to network marketing if there is a catch
45:51if you want to understand this
45:53from
45:54an emotional point of view people say
45:56well it sounds too good to be true it's
45:58not it's hard work but here's the catch
46:01most people still don't understand it
46:04so you're going to have to endure the
46:06loss of social esteem from ignorant
46:08people
46:09the uneducated will think less of you
46:12now if you can handle that you're on
46:14your way if that's going to destroy you
46:15you know what entrepreneurship in
46:18general probably isn't in your future
46:21if you can face that catch
46:24you can become unstoppable i want
46:26everyone to really contemplate this if
46:28they're not in network marketing
46:30you're in a job you probably have a
46:32mortgage you have rent you have debt
46:34whatever is going on you're in a prison
46:37you work just hard enough to keep them
46:39from firing you and they pay you just
46:41enough to keep you from quitting
46:43come on
46:44i've been there done that and bought
46:46that t-shirt in network marketing if you
46:48run into failure it's really just a
46:51homework lesson for yourself you really
46:53there's no one to blame you really have
46:54no excuse not to be successful you just
46:57don't
46:57people don't want to hear that but
46:58there's so much available to you if you
47:00want to be a good network marketer be a
47:01student to the people above you be a
47:03fellow traveler to the people on the
47:04same level and be a teacher to those
47:06below and know when it's appropriate to
47:08do which people who are not afraid of
47:10asking people
47:11to buy things or not afraid of
47:13persuading people with a chance they may
47:15say no these people own the future
47:17nothing happens until something moves so
47:19you got to go move you got to go do
47:21something or nothing's going to change
47:22in your life in the beginning
47:25you're going to do a lot of things that
47:27you don't get paid for but as you go
47:29down the road you get paid for a lot of
47:31things that you don't do your job is
47:33rehabilitating the spirit the
47:34entrepreneur's spirit in all of us
47:37give it back
47:38either give it a strong yes
47:41or a strong no
47:42but no wishy-washy dilly-dally stuff in
47:45the middle there's dreams and there are
47:46nightmares but i believe that the
47:48biggest nightmare of all is when you
47:50don't pursue your dream you're going to
47:52see some monumental growth in this
47:54profession it's an exciting exciting
47:56time
47:57to be involved with the network
47:58marketing profession the next 10 years i
48:00see just exponential growth when that
48:03tipping point comes it's not a matter of
48:06asking somebody have you ever heard
48:07about network marketing you're really
48:09asking them which company are you
48:12building
48:13your wealth in we are here to fix the
48:15world to improve relationships with
48:18other people to improve other lives and
48:19the real reward comes as an entrepreneur
48:22in any level from teaching somebody
48:24something and watching them soar there
48:25is no greater reward
48:28[Music]
48:32life's too short to spend it living
48:35someone else's dream instead of your own
48:38it's too short to spend it living at a
48:40fraction of your potential
48:43can being an entrepreneur be a challenge
48:45at times
48:46sure but here's what you get in exchange
48:50it can be yours
48:52something that you built something that
48:54you created
48:56something that you made happen
48:58this balloon
49:00represents
49:01your dreams it represents
49:03entrepreneurship
49:05my wish for all of you
49:07is that you would reach out
49:09and grab it
49:10the choice
49:12is up to you
49:16[Music]
51:36[Music]
51:41did
51:49[Music]
51:57you mentioned the word scam why did you
51:59mention the word scam and the only
52:00reason it is a scam is because
52:06oh
52:07that's terrible

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