Why 95% Fail Miserably In This Industry
"And It's Not Their Fault"

Chapter # 1: What is Network Marketing

There are many perceptions about Network Marketing. To some it is a SCAM, while to others, it is the way out of the rat race to achieve time and financial freedom. In this chapter, I would like to reveal to you the truth about Network Marketing.

There is nothing wrong with the word ‘Network Marketing’. It depends on one’s experience and knowledge of the industry. To those who have negative experience, it is a SCAM and a quick get rich scheme. While to those who have positive experience, it is the best thing since slice bread.

So what actually is Network marketing? Network marketing is merely a way of distribution of products and services. It is just like distribution through retailing, warehousing, franchising and others. It is one of the best ways of marketing as it uses the power of ‘word of mouth’ and leveraging.

Marketing through ‘word of mouth’ is one of the most effective mean of advertising. It is spread from one person to another. Just imagine when you are satisfied with a product, you will naturally tell others about it. Since these are the people who trust you, it is more likely that they will be convinced. If you see a great movie that you like, you will naturally share with others? This is word of mouth advertising. It is free and very effective. This is the reason why when a product is promoted through Network marketing, it cuts the time by 7 years compared to marketing in a retail store.

If a great health product is displayed in the pharmacy, the promoter in the pharmacy will not have much knowledge about the product as there are thousands of similar products in the pharmacy. It depends on customers knowing about the product and asking for it! In Network marketing, the distributors are well trained about the product and moreover have a financial interest in promoting the product. I hope you are beginning to see the power of ‘word of mouth’ marketing. In fact it can go ‘viral’.

Another powerful ingredient of Network marketing is the power of leveraging and exponential growth. Let me give you a simple example here. In one day you have a maximum of 24 hours. Even if you do not sleep you can only work 24 hours a day. In Network marketing if you have a team of say 1000 people and each one of them only work 1 hour a day, you’ll have a total of 1000 working hours a day. So can you see the potential?

Now, let’s take a look at exponential growth. Which would you choose?

​1. $100,000 one-time payment or

2. One cent now but doubles it every day for 31 days?

​Well, I am sure most will choose the first option and receive $100,000, right? Let’s take look at the second option…

​Day 1 – 1 cent                       Day 6 – 32 cents
Day 2 – 2 cents                      Day 7 – 64 cents
Day 3 – 4 cents
Day 4 – 8 cents
Day 5 – 16 cents

​After a week you only have 64 cents – no big deal! But wait for 31 days and you’ll have in excess of $10,000,000 Wow, this is mind boggling. That’s why Albert Einstein calls exponential growth and compounding, the 8th Wonder of the World!

The Pipeline Builder

Network marketing allows anyone to generate passive income provided they do it the right way. Have you heard of the story of the Pipeline Builder? There once lived 2 good friends Pablo and Bruno. They live in a small village where there is lack of water. They got the opportunity to go to the mountain top across the village to carry buckets of water back to sell to the villagers.

​They work hard and carry buckets of water every day. They made money doing this. One day Pablo got an idea. He thought of building a pipeline from the mountain top to his house. He shared the idea with Bruno and the villagers. They laughed at him and said it was impossible.
Pablo continued carrying buckets of water but during his free time he began building the pipeline. Meanwhile Bruno wanted more money and started carrying bigger buckets of water. As time goes on Bruno grew older and could not carry that much water as before. One day he got sick and is not able to carry any more buckets of water and so his income stopped immediately. Meanwhile Pablo managed to complete the pipeline after lots of hard work. Now Pablo does not have to carry buckets of water any more. He has water all the time for his family and can sell the extra water to the villagers. You know what? His children and grandchildren can also enjoy the water.

So my friend, are you a pipeline builder or a bucket carrier? If you are a bucket carrier, isn’t it time for you to build your own pipeline? It is still not too late! In Network marketing when you build the pipeline properly you’ll have passive income and can inherit it to your children.

I like what Warren Buffet quoted. If you cannot find a way to earn income while you sleep, you have to work for the rest of your life.

​In this short chapter, I am giving you my opinion of what is Network marketing. It is indeed one of the best business models out there. It is for ordinary people with BIG dreams and willing to work hard to make their dreams come true. It is not a quick get rich scheme and you need to work hard for a short period of time. Many have achieved time and financial freedom through the Network marketing business.

Is it right for you? It depends on what you are looking for? Also what other choices are there out there that do not require a huge sum of money to get started? I am telling you from the bottom of my heart that this business can change your life. I have the right to tell you because I have been immensely blessed with Network marketing. Stay tuned as I will reveal to you my story in the next chapter.

So I hope that you now have a better perception of the Network marketing business!

Why should you listen to me? In the next chapter I will tell you more about my story…

Chapter # 2: Why should you listen to me?

​My name is Richard Quek and I come from the sunny country of Malaysia. I come from a middle class family and was fortunate to go for my further studies in the United Kingdom. My parents had to use their life savings to send me there. I studied Chartered Accountancy in England. It was not easy as I had to work there as part of my course. I worked in a few Accounting firms and had to study on a part time basis.

After 8 years of working and studying in England I decided to return back to Malaysia. I decided not to work for anyone, so I decided to start my Accounting practice in Malaysia. I started my Accounting practice in the state of Terengganu(Kuala Terengganu)

I managed my Accounting firm for more than 20 years. It was during this period that I was introduced to Network marketing. I joined a popular company from the US and was with the company for more than 10 years. I learnt a lot and I started to fall in love with the industry as a whole. I did the business on a part time basis together with my wife, Nancy. We had some degree of success but did not achieve our dream.

After more than 20 years in my Accounting practice, I discovered that this is not what I wanted in my life. It was really hard work and there were many problems such as staff issues and collection problems. I also slowed down in my Network marketing business as there were some obstacles I was facing at that time.

I have dreams like others, to provide the best for my wife and children. I have 3 children, Daniel, Nicholas and Hannah. Today 2 of them are working with us to build their Network marketing business.

So after 20 years of managing my Accounting practice, we decided to sell it off and move to Selangor (see the above map). There were 2 main problems when I decided to move. Firstly, I have more than a million ringgit (about $300,000) of fees that were due to me. When I leave I am aware that I will not be able to collect a single cent. So can you imagine the fear I faced? However, I realised that fear is what holds us back from greatness. So I decided to forget about the RM1,000,000 and took a drastic decision to move.

The second problem is even a bigger one. I owed more than a million ringgit due to heavy losses in the stock market. This, I will surely have to settle!

I want you to realize that I have a wife and 3 small children at that time. When I moved to Selangor (Subang Jaya), I was RM 1million in debt and have no income or job. We literally moved on faith!
I still remembered, we rented a small house and we had to budget every day. The truth is that Nancy could not sleep most of the nights as she was worried for the family.

To make ends meet I started giving Internet marketing seminars. It kept us going but after a while it was just too stressful. I told Nancy that this will only be temporary as I do not see me doing this forever.

Then in 2004, I got a call from my friend, Micheal Ng from Australia. He is a Malaysian who had migrated there. He told me about a new Network marketing company from the US that market a unique food supplement. I provided him with my credit card details and every month 2 bottles of food supplement arrived at my home. Nancy was not happy as we were financially tight at that moment. She also refused to consume the product. The truth is that she got burnt out with Network marketing and said that all the Network marketing companies are the same. She refused to know of what I was involved with.

One day when I was in Singapore conducting my Internet marketing preview, I meet up with one of our upline from Australia. He told me he was coming to Malaysia and asked me to organize a meeting. Like most people I invited many of my friends and contacts. On the day, I still remember only 4 people showed up. Nancy was forced to come to open the small meeting room where she was conducting English classes to school kids. She sat at the back of the room! Surprisingly after the presentation, she told me that this is what we have been looking for!

By the way from the humble beginning of 4 prospects, two joined us. You know what? Both of them are gone from the business. However, we know what we wanted and continued showing the business to prospects.

After that we started working together and in just 10 short months we were able to achieve time and financial freedom. Were there challenges? Let me share with you a few of the obstacle we faced, when we first started.

1. We have no one to assist us as our enroller was in Australia. All he provided us was a set of slides. Without understanding about the products and compensation plan, we just read off the slides. You know what? As we keep reading the slides, we began to understand more about the business and the products. Some people actually joined us.

2. The company was not yet opened in Malaysia. I recalled prospects asking if there is an office in Malaysia and I have to say ‘not yet’. When they asked if I have the products, I told them that I’ll go to Singapore to collect them. I literally was smuggling products into Malaysia. There was only one product available at that time. Despite the challenges, we persisted as I believed that success is built on inconveniences. However, you can be convenient and remain broke for the rest of your life!

I still remember one incident that happened to me when we first started the business. It was a Wednesday and I drove to the office to order some products. I found a nice car park and parked my car. Then I opened the car door and stepped out, without being aware that there was a big hole beside my car. I fell into the hole but managed to keep myself up with my arms. I can see the next floor car park from the hole. I was slightly injured and had a black eye as my glasses broke. I still continued to the office to order the products. The manager asked me what happened and joked that I must have been punched by the prospects. This happened on Wednesday and we have a weekly meeting on the day and I was doing a presentation that night. What will you do in my situation? Most will be too shocked to attend. After all I have a legitimate excuse. Not me, I attended the meeting without any dark glasses and did my presentation as scheduled. You know why? I was hungry for success and did not find any excuses not to attend.

Fast forward to today, we live a life of time and financial freedom as we were willing to pay the price for success.

We are still actively building the business although we can stop building as we have built the pipeline.

We have been blessed tremendously and we are here to assist others to change their lives too.

What we achieved from the business?

1. We have time and financial freedom. We are at home most of the time doing what we enjoy, watching movies, reading and surfing the Internet for knowledge.

2. We managed to send our son to the US to do his higher education.

3. We live in a 7 bedroom house. We also have other landed properties that we invested in.

4. We drive the cars of our dream. We bought a car for each of our children. We have 5 cars in the house.

5. We have been able to travel to many countries and enjoy great food and meet new friends.

6. The best satisfaction to us is to be able to assist others to change their lives.

7. I have been able to author more than 10 books. These are on the topics of Internet marketing, Network marketing and Personal development.

We have been able to transform our live through the business. Today we have many great friends and we have learnt to be more caring and patient. As a whole we have transformed ourselves physically, mentally, spiritually and financially.

I am telling you my story not to brag, but to impress upon you that you too can change. It is a matter of decision. As the saying goes, ‘It is in your moment of decision, that your destiny is shaped’.

Stay tuned as in the next chapter, we will take a look at the perceptions of Network marketing…

Chapter # 3: The Perceptions of Network Marketing

​As the saying goes, ‘perception is everything’. Network marketing has many negative perceptions and in this chapter, I am going to reveal some of them.

People make decisions based on the status they will be in when they make the decision. When the status is high, people will make a positive decision to join you. However, when the status is low, people will make a negative decision not to join. Generally with Network marketing, the status is low. Here are some reasons why the status is low.

 1. Scam and Quick Get Rich Scheme.

Many people associate network marketing with scam and quick get rich scheme. As such the business is not legal and unfair. To make matter worst, many people lose money doing the business. I know of a friend who lost more than RM 1,000,000 (about $300,000) in a Network marketing program. This is because he was asked to purchase excessive stocks in order to achieve high ranks. By the way the company is legal, but it is the leader who misled their team. You can achieve the highest rank, but you only make money when you move the products and have an active team.

 2. The non-professional activities

I still remember in my first Network marketing company, I went to prospects homes with a demo bag. I did product demos for my prospects in order to impress them to purchase. Can you imagine what the prospects think? This is not my cup of tea as you do not expect me to do this too! Prospect will be put off by what you do!

I still see distributors sitting in coffee shops late at night and early in the mornings talking to prospects and showing the plan. I do not know about you, but I’ll ask myself this question?  Is this what I have to do? Then I’ll  I make a decision whether to join?

There are also those who unethically steal other peoples’ distributors and customers. This really gives a bad image to the industry!

 3. Expectations

Many people see Network marketing as low class and suitable for housewives and those who cannot get a decent job. Well, the reason is that anyone can get involved with Network marketing and there are many who conduct the business unethically.


Can I ask you a question? Do you like to sell? I believe the answer is ‘NO’ and I am sure many people out there are negative about selling. The old way of doing Network marketing is ALL about selling. No wonder the industry have a low status.

Prospect may not tell you, but in their mind they will be thinking, ‘I need to push my family and friends to buy from me’. This immediately put the status down. No wonder it is not easy to recruit people into the business.

Having said that, it is ‘SELLING’ that makes the world go round! You can manufacture the best products but someone needs to sell it!

However, too much focus is in selling and this is why Network marketing has a negative image. If you recruit 100 sales people you’ll have a sales team. But if you have 5 leaders, you’ll build an empire!
Later on, I’ll disclose how to overcome this problem of selling products…


Traditionally a new distributor will be asked to make up a prospect list of about 200 names. There are a few problems with this approach:

1.  Many of the prospects do not have any experience in managing a business. Most of all, many of them are close to you. Do you know that the people close to you are the most difficult to prospect? They know you too well and have seen you fail previously. So many of them will ridicule you, instead of supporting you!

2. What happens when you have gone through the whole list of prospects? For many people, there are no more prospects and they will stop prospecting. The business will then stop growing.

So why do we focus on the small list when there billions out there who are potential prospects. At the time of this writing there are more than 2 billion members in Facebook and 500 million professionals in LinkedIn.

Yes there are more than 2 billion prospects in the 2 social media sites. However, you need to know what to do and have the right tools to approach it. I can provide you a few tips on using social media.

 1.  You have to use attraction marketing instead of the usual ‘push marketing’.

2. You need to brand yourself. Remember that people buy form people they know, like and trust.

3. You need to identify your ideal prospects, connect, communicate and close them. Since you are not going to approach all of them, you need to learn how to pre-qualify and then pre-frame your prospects. When you do it correctly, there is no rejection and the process becomes fun!

Check your follow up email as I’ll provide you another of my FREE ebook on using LinkedIn in one of the emails.

So we now know the main objections from prospects. In order to succeed you need to be able to break down all these objections. If you can break down these objections without the prospects telling you, you’ll be able to win them over. 

 Chapter # 4: Why The Old Ways Are Failing

Here are some of the ways that was practiced in the traditional way of building a Network marketing business:

 1.  Make a Prospect List

As I mentioned earlier there are many set-back with this as people will eventually run out of prospects. Once they run out of prospects, they will stop building the business. By the way how can you build a huge network with only a few hundred prospects?

 2. Invitation

Invite your prospects to an opportunity or presentation meeting. The problem with this strategy is that many prospects have heard about your Network marketing company and will not be positive because of the negative experiences and perceptions. This is the reason why many distributors use the curiosity approach. They may get a few prospects to attend but when the prospects attend they will be disappointed to find out that it is Network marketing and they have negative perceptions of the company.

3. Presentations

Many of the presentations focus on the background of the company and on the products. This approach will only attract product users. As you are aware, to build the network, you need business builders and not customers. Remember, facts tell and stories sell…

4. Quantity Vs Quality

The approach is to recruit as many distributors as possible. It is a numbers game! Eventually you will get the right people. Yes this is true to some extent but before a new distributor can get to the right person, he would have given up due to disappointment. I believe that not everyone can succeed in Network marketing. They need certain qualities and all you need to do is pre-qualify your prospects and then pre-frame them. In this way you zero in to the right person and do not waste a lot of time.

5. Product Demo

It is true that product demos are important, but what sort of people, usually do product demos? These are normally done by sales people selling items like water filter, vacuum cleaner, etc. So when you do product demos, you put yourself into the same category of these sales people. When prospects see you doing the demo, they will think that they will have to do the same thing. Also as I mentioned earlier, people do not like selling! So this is status down…

6. Travelling

​Most Network marketers travel to many cities and countries to build their business. This is very stressful and expensive. It is a waste of time and money to travel just to do presentations. You can use the Internet and do Online presentations first. Only when you have a small number of committed leaders, you can travel to conduct trainings and assist them.

7. Push marketing

The old ways of doing Network marketing uses ‘push marketing’ strategies. As the saying goes, ‘people do not like to be sold to’. It is no longer effective in today’s environment. To be successful today, you need to use ‘Attraction marketing’. Attraction marketing involves branding yourself and educating and teaching your prospects. Only when they trust you, they will join you!

 8. The ‘Me’ Generation

The traditional ways of doing Network marketing, was in the ‘Me’ generation. This involves telling and showing people how successful you are. Look at me and follow me! Look at the cars I drive and the home I live in… Today we are no longer in the ‘Me’ generation. In fact we are now in the ‘We’ generation. It is all about teamwork and collaboration. So you hear things like this… how can we work together to make this better?

9. The Pay Plan

The traditional pay plans are top-heavy. What it means is that the top distributors earn big commissions, whereas the grass-root and new distributor struggle to earn a decent income. This will allow the top distributors to flash their checks for the new distributors to see. The truth is that when a majority of the commissions are paid to the top distributor, the balance, (very little) are paid to the others.

Do you realize that some of the pay plans are designed to make sure that you fail! This is frightening!

 10. Attrition Rate

In many old Network marketing companies, the attrition rate is very high. Some of them as high as 95%! What it means is that after a period of time, (like 18 months) out of 100 distributors that are in your team, only 5 will remain. This is the reason why many distributors have to work on the business over a long period of time. They need to keep on recruiting new distributors in order to maintain their business.

As a conclusion to this chapter, I’ll say that the old ways are still relevant, but we need to change to improve ourselves. In the following chapter, I’ll show you the changes that are needed, to remain competitive…

Okay, I hope that you enjoy the information so far. If you want to have FREE access to the remaining chapters, all you need to do is CLICK on the button below…

​​I look forward to providing you with the remaining chapters :-)

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