10 Reasons Network Marketing Leaders Move to the Insurance Industry

They need some really nice things. Better be coming with no strings. We need some really nice things. Joined the Marines back in 1996. Went into the Navy as a Navy Corpsman. In the network marketing industry, we're worth $30 billion. Travel services to health and wellness. Yes, it depends on the person's mindset. Yes, it depends on the person's work ethic. The focus has to be on building teams. We're talking about down there close to hundreds and hundreds of people on your team to make some money. And we just crossed over $152,000 in the insurance industry. There's about the 10 reasons why network marketers are choosing the insurance industry. What's crack-a-lackin', everybody? Money Smart guy Matt Zappala here hailing to you from the Money Smart Movement headquarters. We are just back from a national private jet tour from last week, and a conversation was coming up between all the different tour stops because so many people are getting involved in so many different businesses, franchises. A lot of people are asking me about network marketing, MLM. So there's about the 10 reasons why network marketers are choosing the insurance industry. And I'm very excited today because I got some gentlemen here joining with me on the show. One is actually right here next to me in Chicago in our Oakbrook office. He's from Chicago. Also a United States Marine Corps veteran. Was an instructor at the School of Infantry. So I got on the show here, Mr. Chris McCoy, man. I'm glad you're here. Hey, thank you for having me. And also with me too as well from Annapolis is a gentleman by the name of you'll see his Lawrence, but we call him Bill. I don't know where Lawrence came from. But Bill Corman comes to us. Also a military veteran and instructor at the Naval Academy. So we're going to be discussing why people get involved in network marketing and why people are saying, you know what? Let me consider an industry like the life insurance industry to translate and make a lateral move with my skills. So there you are, Bill Corman. How you doing, brother? Doing great, brother. Welcome to the conversation. Oh, thank you. Thank you. Thank you for having me. By the way, if you guys are watching this towards the end of this video, watch this video until the entirety. And I'm going to give you some details because we got some goals. We want to reach 20,000 on our Facebook business page. And if you're watching this on YouTube, we're looking at 10,000 YouTube subscribers. And I would love to have your help on it. Reaching those goes 20,000 on Facebook and 10,000 on YouTube. And watch to the entirety of the show because I want to give you an opportunity to win a set of custom Jordans. Money smart movement, money smart guy on it. I'm going to give you an opportunity to win, but we got to hit those benchmarks first. I need you to help me share this video. Share it on Facebook. If you're watching this on YouTube, make sure you share it also from your YouTube channel. So let's get right into it. So Chris, since you're right here, let's start with you. Tell us a little bit about your military background and also your involvement with network marketing. Joined the Marines back in 1996 as the 0-3-11. That's infantry for Marines. Done that from 96 to about 98. And then I decided to go further into my career. So I became an SOI instructor. Once I got out of the Marines, I took some little out-of-jobs. Didn't really know what I really wanted to do. I've done work at a factory, things like that, until I came across sales. And once I came across sales, direct sales, I was selling vacuum cleaners. Wait, wait, wait. Were you selling Kirby's or rainbows? Electrolux. Electrolux. Electrolux. That's my old school right there. In the meantime, I met a person who's in network marketing, and I just saw the good of it. He brought me to his house, huge house, big lawn, saying he'd make about $10,000, $15,000, $20,000. When I was making a year, he was probably making a month. So I wanted to be part of that life. And network marketing provided that solution or the opportunity, I should say, in order to go about doing that. Very good. Bill, let's go to you. Talk to us about your service and also your involvement in the network marketing industry. I grew up in a military family. My stepdad was in the military, so it led me to join the military. My family, my mom had already prescribed I was going to be a doctor. So I was like, I'll choose a different route. I want my own route. So I went into the Navy as a Navy Corpsman. 20 years in the Navy, I spent with the Marines. I was FMF Corpsman, Marine Corps regs, got to do some incredible stuff. Everywhere the Marines go, they take a doc with them. So it was incredible. Still incredible friendships, partnerships today. So along the way in the military, being enlisted, trying to raise a family, let's say the financial benefit is not as big as it could be. And my brother-in-law actually introduced me to network marketing. So he introduced a company, one of the powerhouses in the industry for many, many years. We were part of that company for almost 11, 12 years. It took a long time, but then eventually we did okay. I got approached by a gentleman who asked me to get involved with reviewing and analyzing compensation plans in the network marketing, MLM industry. Along the way, what I found, there's very, very big, huge differences in the network marketing depending on the company. We all have the same, similar experience. We're in the military, we serve in our country, but the paycheck just isn't enough. Whether you're in the military, especially after the military, it's just not enough. So we're always looking for things to do on the side, especially when you're back in the rear with the gear on, assuming that you're not forward deployed. So here's some facts here, and I got this from, and here's my source. MLMAttorney.com. Here's some facts from their website. More than 55,000 people in the United States sign up a week as network marketers. That's 150,000 per week worldwide. In excess of 13 million people alone in the United States have become distributors for network marketing companies. In other words, that's one out of 10 households having a direct seller. In the United States, sales in the network marketing industry are north of $30 billion. 75% of all network marketing distributors are women. Men account for 25%. 80% of network marketers are part-time, and 20% are full-time who put 30 more hours a week more into the business. Here's the interesting thing. About 3% of all network marketers make $35,000 a year. 2% will make more than $50,000. 0.5% will make more than $100,000. 0.1% will make more than $150,000 a year. Interesting. There's a large multicultural demographic with inside network marketers, and 66% of people are between 25 and 44 years old. Guys, let's jump right into it. Bill, let's start with you. What attracted you about compensation when it comes to network marketing? I got approached by many, many different companies, and I learned from my leadership to say, listen, if you want to compare apples to apples, show me your comp plan because there are some massive, massive disparities as you just went over the stats about what people make in the industry. For me, studying the comp plan leads you down the road, is this going to be successful? I evaluated everything from travel services to health and wellness to the one that I the last one I came across, which was interesting, was financial services. It blew me away because I had not studied any of the comp plans and financial services, and when I was approached by it to take a look at it, I was like, this can't be right. Are you kidding me? What about you, Chris? Why network marketing for you? The opportunity to make the money. Now, compensation wise and everything else like that, they'll tell you, okay, if you go ahead and do X, you'll get Y. If you go ahead and do Y and bring in X amount of people, etc., etc., etc., you'll end up getting this type of money. At the end of the day, as you were going through the stats, those margins start to come into play as far as those who are successful and those who are failing. Interesting. Interesting. Let's go back. We'll go one each with you guys. Bill, let's start with you. We got some talking points here. Here's some reasons. We got 10 reasons why network marketers considered making a move while you've made a move to the insurance industry. Number one, you talked about flagship products versus the deal of the month. Instead of being in the industry of building people and building a system, they focus you on a lot of those other companies on learning the product of the month and becoming a product knowledge expert instead of building a network of people. What about you, Chris? You say you love financial products versus just simple consumer products. Can you explain that? Right. Absolutely. Because along with products, that kind of leads to many choices. Yes, people become emotionally attached to physical products, but at the end of the day, guess what? Bill's going to keep on going. It depends on that individual situation. Sooner or later, you're going to be like, okay, do I pay my bill or do I leave my teeth for the day? Do I pay my cell phone bill or does this skin cream really... Is it really that important for me to spend $80 for the one ounce bottle of skin cream? Correct me if I'm wrong, but with your guys' experience, the majority of the network marketing companies I see and I experience and I get hit upon, a lot of them is health and wellness. Yes. In other words, the insurance industry is providing a product for you that's a little bit more tangible than a protein drink. Your secret stuff. Absolutely. Would you agree with that too, Bill? Yes. Absolutely. Bill, you talk about the balance of actually helping somebody make money and not getting distracted by other things. What did you mean by that? What happens is that if you're going to build a successful network marketing business in any industry, the focus has to be on building teams. It has to be building people. The problem is in most industries, it's a company who manufactures products. Instead of buying advertising, they build a distribution team. You get distracted chasing this one, then this cream was better. Now this one's packaged better. It's got a prettier label. This one's got a new ingredient in it. You're constantly distracted from the important thing, which is if people are following you or getting involved for financial freedom, you need to teach them how to duplicate themselves. When they're following every day and learning about new product changes, it just doesn't work. Chris, you talked about low success rate. We talked about the success rate. We talked about a lot of people just don't make enough to pay the bills and make a living. Absolutely. I was found on that. Usually what that means is that sometimes most of these companies that's out there, yes, you have those few that's out there making the money, but when you go to these little meetings and things like that, it's almost the same type of folks. What about the average Joe and Jane? Sometimes these companies and how they're structured is not tailored to them. That's where you get that whole revolving door action going in. Yes, it depends on the person's mindset. Yes, it depends on the person's work ethic, but then again, you're only dealing with the cars that's dealt with you. You understand if that makes sense? It's kind of hard for, again, the average Joe and Jane to really try to get ahead versus the person who's done it for years or has a massive following, et cetera, et cetera, based off of what that company has already structured for that. That's why you have that, once again, that revolving door action. Let's speak because I know there's a lot of people tuning in right now. There's some people watching. Who are these guys? Who's Chris McCoy? Who's Bill Corman? Let's talk about your success real quick. Chris, you just got started with this. What'd you earn this week? $1,800. You're brand new at this. First time ever in this industry. Yes, I'm used to marketing, but the insurance game, very, very, very new. This one right here is very ... It holds a special place because think about what I've done in the past or the history of these past companies. Do you know what I actually had to do in order just to get a check with a comma? How many people I had to have on the team to make $1,800? We're talking about, Dan, there are close to hundreds and hundreds of people on your team to make some money with commas in it. With this, I talked to a couple clients. Bill, talk to us about you, man. What's been your success rate the last 11 months, 10 months? Well, it took me ... The present company took me about four or five months to come on board because I literally could not understand that compensation plan, how there was that much money there. I said, you know what? I'm going to give us a word. I believe in network marketing. We got started. Our first check was June, the first week of June last year. We just crossed over $152,000 in so basically 11 months. In the insurance industry. It's been absolutely insane. My last check, 20 years in the Navy as a Chief Petty Officer, not counting the other allowances which really don't count, but my regular pay, I just made three times in 11 months what it took me 20 year career in the Navy to do and it's coming in a good percentage of it past the residual amount. Yeah, so both of you are making money by teaching people about money. Right? That goes into your guys' financial products conversation, flagship products, et cetera. That's phenomenal. Let's talk about retention. What do you mean by retention? The retention is people come across your opportunity or you expose them to your business opportunity, whatever the industry is, and what happens is that no matter how much people like the products or trust you or like the service, at the end of the day, they're there to provide a financial change for them and their family. When they don't see that money coming in after 1, 2, 3, 6, 12 months, they're gone. That's what I found in the other industries. When I studied those comp plans, I said, you've got to put a lot more incentives in these bonus pools because if people are not making money right away, they're gone. I want to add another point here because I'm just thinking about this too real quick because I'm thinking about competition in our industry. I'm thinking about competition in any business, in any industry, and because of the insurance industry shifting their methods of distribution more to independent contractors, more to companies like PHV Agency, and I'm thinking about competition to guys in a network marketing industry because it's not like you guys lose business. You guys are in the insurance industry now. How many times have you lost business to Allstate, to the bank, to New York Life? How many times do you lose business to other competitors in our industry? We take business from them all the time. Clients love what we do, what we offer, and we take business from them all the time because not only we have better products than a large group of companies to offer, but we service them. Let's flip that around to network marketing industry. I just mentioned that earlier that the majority of the network marketing companies I've seen, I've experienced, are health and wellness based. They've got to have big companies. Why would I do business with you versus me just going on Amazon or Whole Foods to get a healthier type of product? How does that play into you guys? I can speak on that especially because I used to do the whole e-commerce thing as well, and that's what used to be one of the things to deter people from a product-based business because, okay, why should I spend $50 to $60 on this product when I can go to eBay or Amazon and get it for a fraction of the darn price along with that? That goes along with it. That's one of the biggest things, again, that revolving door of retention that people are going through in that network marketing space is that, once again, if people come in and they don't make money within a certain period of time or they have the little shining ball syndrome or whatever the case may be or whatnot, then they're gone. Of course, when they leave, guess what? That does affect your pockets tremendously eventually down the road. Bill, what would you say to that, brother? It's very interesting. The company I left, I was a founder. I had founder shares in when I got approached about PHP and wanted a conversation to have with the other founders, the board members, is that they called their company, I'll leave the name out, but it was based on a book called Blue Ocean Strategies. It talks about red ocean markets, blue ocean markets. Amazon, I mean, Apple created a blue ocean market where people stand in line for four or five hours overnight to get a new product when a new phone comes out. What happens is that the opposite as a red ocean market where there's so many people competing for market share in a market space that you're trying to become pick me, pick me because I've got something special. Exactly what you said, with Amazon and e-commerce, all of health and wellness right now is a bloody red ocean because there's so much competition out there. Like I said, Amazon can squash you. Let's talk about this one. You were talking about this earlier, Chris, higher revenue per sale, higher revenue per transaction in the insurance industry versus, both of you guys are smiling. Remember I mentioned before that 1,800 for two or three clients versus you power up a company and you got to have hundreds and hundreds and hundreds of people that's on auto ship to even try to come close to that. And that's, once again, with PHP and this insurance agency, if I'm going to do the same thing, and that was my whole decision making when I came here, if I'm going to do the same thing that I'm doing, I'd rather get more bang for my buck. Because, yes, money is good, but also the time as well. Bill, what has been your experience in terms of this talking point here, which is higher revenue per sale? I was just doing some quick calculations. For example, the commissions we made in April, in the industry I was in before, the company I was with before, you'd have to have about 120,000 clients. 120,000 clients to make $47,000 in income in a month. Let's talk about this. What about auto ship in the insurance industry? Let's say somebody says, man, I got an overabundance of savings. Oh, yeah, that's a bad thing. My money's growing. My money's stacking up. That's our auto ship in this industry. We're helping you build massive cash. Instead of massive inventory, that expires. When I left the company, I was with 11 years, we had so much inventory on hand from buying over to hit promotions each month. I had a 1,500 square foot workshop. It was lined with shelves of product. It took me about 9 to 10 months to try to sell off some of that inventory, but that's how that industry is designed. You have to hit promotions and things like that. You've got to do it. If it's not coming in from your team, you buy extra. We're here. Auto ship and you get people complaining about I try to cancel my order. Here, we put somebody on monthly premium and they're calling you, thanking you. I just checked my app. My cash keeps going up. Bill, let's go back to you. You talked about earlier about a higher barrier to entry. If you're recruiting and building a team in the insurance industry, there's a higher barrier to this industry. Explain that. In this industry, obviously, it's a professional service industry. You have to have a license. There's a screening process for that. A little more skin in the game. We're very selective on who we can bring on. We tell people all the time, I can't promise you anything. Why? Because there's a regulatory component to it, a screening process to that. In the other companies I was involved in, if you had a pulse, they would say, hey, I'll hold the pen, you move the paper. Get them signed up as an IBO or distributor. Here, the thing I love about it is that we're very selective. We work with clients who go into people's homes. It's a higher barrier to entry, which is good. 100%, absolutely. That's huge right there. Just like you mentioned, you're working with a core group of individuals who could get the work done. Everybody has a core group. You got yourself a Navy SEAL team out there getting things done. Just a few people who can dominate the figures that the people in the network market industry are doing right now. You guys mentioned that this is a career as well as a business. One of the litmus factors that I've mentioned to network marketers that have approached me, one of the litmus factors for me is to say, listen, if your team quits, because I've recruited teams and built teams in the insurance industry, and what has always kept my lights on and my business open is that even if my team quits, even if I recruit a sales force, a sales team, and they get recruited by somebody else, or they just quit, I, with my individual pen, can still pay my bills with my own personal effort and keep my business alive. When you guys mentioned that this is a career as well as a business, can you guys expand on that? Chris, why don't we start with you? Yes. Most definitely. In the network marketing space, let's say your team just leaves, and you're, okay, now it's up to me. Now I have to go out there and push lotions and potions and diet creams and things like that. But guess what? Depending on how that company is structured, you're still putting in a whole bunch of a lot of work and getting that little commission. Versus, if I'm over here and let's just say, my team just, hey, Chris, this is not for me, or I want to go part-time, or I just don't want to do anything at all. I still have the opportunity to still go out there with my personal pen and still make as much or even more than I did with myself and my team. That's huge. Bill, what's your experience on that? So, yeah, absolutely. For me, it's the same thing. We have this powerful thing that we work hard to. Like I said, there's a higher screening process. It's called our license, right? That license will make sure that you never go hungry. And we've been through, like I said, I've been in the industry for a long time. People have life things. They quit. Whole teams quit. Things happen. But the beautiful thing about what we do here is that even if the whole team quits, you're still going to eat. Your family is still going to take care of because you've got that piece of paper that says you're licensed to go out and educate and teach people and offer products and services. And let's wrap up with this one. So, let's talk about ownership, right? Let's talk about ownership. You guys are here at PHP Agency. You just got started with us, Chris. You got a nice comment check with us this week, which is the equivalent of a team of 40 people. Bill, you made 47,000 last month, which has been the equivalent of 120,000 clients in your former network marketing company. What would you guys say about ownership? Why the insurance industry and more specifically, why PHP Agency? So, I would say for me, we have here now being a co-owner of PHP, it was the icing on the cake. When I studied at ComPlan, I went over the ownership piece, the equity piece over and over and over again. If you look at some of the people over the last 10-15 years that have become multi-millionaires and you look at how they made it, they owned a piece of a company that they were founders of or had equity in and that company went public or got bought out and now their family generational wealth has been created. Here, ownership is real and it's going to create generational wealth for tens of thousands of people. Chris, what would you say to that? Most likely, and that was probably the icing on the cake with me for collabing with PHP and the Money Smart movement is that when you have ownership, I've been in prior companies so many times that there's a flash in the pan and you never get all that ownership. So, you could spend time, spend years, spend months building companies to the point of they implode because of lack of infrastructure or they couldn't handle the momentum of the teams that you bring it in. But when you have a solid company like PHP and I have an offer like equity, goodness gracious, that did it for me. And just like Abil said, most of the wealthy people they became wealthy because they had ownership of something such as Uber or Lyft a few months ago. They went public and boom, instant millionaires right out the gate. So, that's what did it for me about ownership. People are wondering, is ownership for real? Let me show you something. I'm holding in my hands right now my three legal documents by Stradling Law Firm and Cooley Law Firm. I've got three years of stock ownership right here in my hand. I know exactly how many shares I have. I know the exercise per share price that I have, the date that I earned it, my vesting provisions. Alright, so everybody here that gets stock, it's just not something that you talk about. You actually have documentation. It's just not something you talk about. Oh, you got ownership and there's nothing really to prove it. Here we have ownership. Guys, I really appreciate you guys this time. By the way, Bill, talk to us about what's going on with yourself, your career now with the Naval Academy, your wife. What's going on now? Like I said, we more than replaced their income. When I left, I started working at the Naval Academy when I retired and I built this other company before coming to PHB. We left that company, so I stayed there. It's now replaced their income. Now, I'm done. I'm donating my job, my GS job. I'm donating it to somebody who doesn't understand entrepreneurship. We need good people in order for the government as well. We've also obviously retired my wife as well. This is all because of this opportunity here at PHB. For those of you that's watching this show, listen, I'm an eight-year Marine Corps veteran. I've been in this industry now for 20 years. I just paid my guys last month last month's commission over $830,000 in commissions. Two of my guys made over $100,000 last month. Six of my guys made over $20,000 last month. Fifteen of our guys made over $10,000 last month. Twenty-two of our guys made over $5,000 last month. Let me take a quick pause there because the average income in America is about $60,000 a year coast to coast. Because of this opportunity of this insurance industry without recruiting tons and tons and tons of teams by showing them a craft, showing them a business in this field, over 22 of our guys are making more than the average income in America today. Over 51 of our guys made on a part-time basis $2,500 last month. Over 119 of our guys made over $1,000 extra last month part-time. So what that means is listen, if you make an extra $1,000 a month part-time you live in the zip code you want. But this is an industry where if people are considering network marketing, although it's a very... It's obviously a solid industry. $30 billion a year in sales. But I just see a lot of people that have a lot of skills and abilities that just aren't rewarded for the transaction effort they put in. Not because they're not honorable people. Not because they're not hardworking people. It's just that they don't have enough revenue per transaction for the effort they're putting in. And these gentlemen here have completely displayed that through this conversation, through this video, that if you put your skills into an industry that actually compensation pays you for the skills that you learned inside the network marketing industry. Which by the way, when I was in the insurance industry, I'd be reading books about network marketing because they have the same relative skills. For me, I was recruiting a team at that time. Now I am. But back then I was recruiting a team. I was recruiting clients. So either way, it's always going to be about recruiting. Either recruiting customers or recruiting clients. And by the way, who's a former chief talent officer, HR, at Netflix. She just wrote a book. We were spending time at the vault with Patrick McDavid a couple months ago. She said, listen, any CEO that's worth their weight is always recruiting. You're always looking for the best people to be on your team to improve the quality of the service, quality of the environment, quality of the culture, quality of the experience of your customers that do business with you and the people that work with you and for you. And if that's you, you're watching this video right now and you say, man, I want to be the next Chris McCoy. I want to be the next Bill Corman. I want to be the next person in the insurance industry that has a network marketing background and say, you know what? I deserve to be paid what I'm worth and I deserve to be paid for the time that I put into the business. Give us a call. Drop a message in the comment section below. DM us. Make sure you follow Chris McCoy and we'll make sure you put your Instagram and information here in the comment section. Same thing too with Lawrence Corman. Bill Corman. We'll make sure you put information in the comment section below too as well as the description in the YouTube video. My suggestion is you reach out to these gentlemen. Bill's in Annapolis, Maryland and Chris is right here in our Oakbrook office right here, a suburb of downtown Chicago. That being said, thanks for tuning in. By the way, I promise you that at the end of the video, in order for you to win a pair of customized Jordans, boom, from my desk to your desk, my gift to you, we got to reach 20,000 likes on Facebook and 10,000 subs on YouTube. Please, would you share this video? Look at Lawrence. Share this video and as soon as we hit 20,000, I'm going to give out a pair to somebody on Facebook. Reach 10,000 on YouTube, I'm going to give out a pair randomly to somebody that shares this video from my YouTube channel. With that being said, guys, thanks for tuning in. Thank you so much for the comments that we've been sharing and thanks for making sure that you're deciding to not only know more, but willing to do more. On behalf of Chris McCoy, Bill Corman, I'm your Money Smart guy and you've been watching the Money Smart Movement Podcast. Until we meet again, continue to live smart, continue to love smart, and be money smart today. Have a good day, everybody. Thanks, Bill. Appreciate you, bro. Later, Bill.