VIDEO: How to spot the FOURTH LAW of Decline in your Network Marketing business.

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Over time, ALL companies and organizations experience “dips” in their sales.

Even if a company or team execute properly on the first three laws and achieve success, eventually they will get big enough that the fourth law will engage. They reach a point where an increase in quantity produces a decrease in quality, creating a dip in production. This is called The Law of Diminishing Returns and, if you’re not careful, it can significantly hinder your growth.

In this video, Orrin Woodward and Art Jonak cover how to keep the “Law of Diminishing Returns” in check, so a dip doesn’t turn into an out-of-control downward spiral. Plus you’ll find answers to the following questions:

  • If I want “long-term sustainable growth” I’ll need to ___________.
  • To grow my income past 4 or 5 figures a month, I can’t ignore ___________.
  • An organization will experience a “dip” when it outgrows its ___________.
  • At what point will reading that extra book no longer help my business?
  • When can overdoing a habit actually hinder my growth?
  • A major, yet least talked about, pitfall of international expansion is ___________.
  • The leadership concept of “Stretch and Secure” is ___________.
  • A team or company can’t sustain higher levels of sales than its existing ___________ and always falls back to its ___________.
  • When my team has a “dip” in sales, I need to fill in ___________ gaps after growth.
  • The signs of The Law of Diminishing Returns kicking in are ___________.
  • Excess can lead to loss, not gain when ___________.
  • A leader is not determined by how many followers they have, but rather by how many ___________ they’ve ___________.

World-class network marketing leaders have learned how to keep the “5 Laws of Decline” in check because they know these laws are responsible for their culture. They know the “5 Laws” will reveal where their team or company culture might be diseased. And by inoculating against the “5 Laws” they also know their team will enjoy continued growth and even momentum.

Here are the links to the first three Laws of Decline:

  1. First Law of Decline: Sturgeon’s Law
  2. Second Law of Decline: Bastiat’s Law
  3. Third Law of Decline: Gresham’s Law


COMMENT! “What’s ONE thing you are GRATEFUL for today?”

You know what, life is good. I say it a lot, but truly, there are so many things to be grateful for in the world. #FocusOnTheGood

Post you answer in the comments below. Don’t worry, there are no wrong answers, people are happy for millions of different reasons! I’m curious to see how big of a “Gratitude List” we can compile.

Here’s to Your Success!


Art Jonak

PS: On November 1-3, 2013, in Orland Florida thousands of network marketers from every continent and over 100 different companies will gather for this years Network Marketing Mastermind Event — to learn, network and celebrate our great profession. And did you know the price of Mastermind Event tickets are at their lowest right now? Prices only go up as we get closer to the event. Get your tickets today!

41 thoughts on “VIDEO: How to spot the FOURTH LAW of Decline in your Network Marketing business.

  1. I am so grateful for the job opportunity that I just accepted, I was not looking for a change, it found me and my income tripled overnight. Thoughts become things choose the good ones.

  2. What I am most grateful for in life is that I am blessed to be the mom of the most amazing boy. As an adult, seeing the world through the eyes of a child is incredible. It is incumbent upon me to nurture him in all areas. Every night before he goes to bed I whisper in his ear, “You have greatness within you. You are going to do great things. I’m excited to see your great things.” Most of the time he says it back to me! Talk about Awesomesauce! :)

    Every day I have to “get after it” because my son is watching and I must be the example for him. He enriches my life every day.

    I am grateful for him and how having him has made me grow and strive to be a better person!

  3. Well the best thing I am grateful for is life itself, to work on my late brothers dream and to see it through…yet to be a success but I know in time all I have in stock for it will bloom. 2nd thing which actually should be the first is the little baby my sister had, at least now I don’t feel alone anymore, sometimes It feels like my late brother in a baby form, I love babies and the moment we get to share with them as one…Hope he knows I love him and miss him very much, my hellos to dad. Miss you guys :( Muah…adios.

  4. I am grateful that my 9 year old daughther woke up this morning and hte first words she said to me were: “Mommy, when ever I am asleep or I am away from you; when I see you again, it makes me so happy, because I love you so much”.

  5. I’m grateful for my husband who shows me unconditional love and support daily. I’m grateful for our only son who is growing up to be a caring, responsible, respectful and respected young man. I’m grateful for waking up each day knowing I’ll have more than enough but strive to help others learn how to big dream with focus!

  6. I am truly grateful for my loving wife and children, for life and all the joys that I experience each day. To the beauty of this life I wake to each and every day. For a family that loves and supports me for who I am. For great friends and deep and meaningful friendships. For frustration in life, because it gives me something to overcome and demonstrate my strength. For rejection from others, because it shows me that I am enough even without others’ love and affection from time to time. I am grateful for my friends and for my health. That I have tools to help me through life. I am grateful for good times, laughter and joy. I am grateful that I have options; that I am free to make choices. I am grateful for all my life experiences, thus far and for the chance to have felt true love. I am grateful that my body is healing and for the ability to smile. I am grateful to be Me…

  7. Wow this is huge. I am grateful for God in my life.
    For surpassing the hardest time I have ever lived and coming out O. K. I have forever grateful for my home. For have clean water and good food and living in a country that I don’t fear bombings or war or raids. I can walk and do whatever I want. I am grateful that I have the opportunity to reach for my dreams and become more then I ever could imagine. I am grateful to just be here embracing the day.

  8. I am great full that i have seen all times in my life, and have never regretted the downfall, nor did i overjoy, when the tables turned to my favor…the ability to understand life and live life as it came my way….I am happy as i am…..Thanks for sharing such a thoughtful article, and for asking such meaningful question….

  9. I am grateful that I have the ability to learn something new every single day. Every challenge can be viewed as a teacher or tormenter. I choose to be taught. With every challenge there is growth, and with growth I am closer to the person I want to be.

  10. The good wishes I received from my cousin and sister this morning.
    The live conversation I had with an online connection on survivorship
    I have the strength and health to do something in the health care consumer space

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VIDEO: How to spot the SECOND LAW of Decline in your Network Marketing business.

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Did you know that increasing your retention (how many people stay on your team) by just a few percentage points, compounded over time, can make a massive difference in your bonus check? It can be the difference between creating a ‘residual income’ and a ‘legacy income.’ And it’s another reason you want to keep the Laws of Decline away from your organization.

In today’s video, Art Jonak and Orrin Woodward cover The Second Law of Decline…
( In case you missed it, you can watch the First Law of Decline here. )

COMMENT! “If you could plan a trip anywhere in the world for yourself and your best friend/spouse, where would you like to go?”

Once you develop a royalty income through your network marketing business, the world is your oyster! You have the ability and the freedom to go just about anywhere. So why not start making your list now! :)

Don’t worry, there are no wrong answers, there are thousands of places people want a to visit! I’m curious to see how big of a list we can compile. :)

Post your answer in the comments below… 

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Did you know? Richard Fenton and Andrea Waltz wrote a book written about the MLM Cruise that I host along with Tom “Big Al” Schreiter? Cool! :)

Here’s to Your Success!


Art Jonak

PS: Did you know? On November 1-3, 2013, in Orland Florida thousands of network marketers from every continent and over 100 different companies will gather for this year’s Mastermind Event — to learn, network and celebrate our great profession.

And did you know the price of Mastermind Event tickets are at their lowest right now? Prices only go up as we get closer to the event. Get your tickets today!

50 thoughts on “VIDEO: How to spot the SECOND LAW of Decline in your Network Marketing business.

  1. Oh my…Bora Bora – first on my mind…been on my live list since absolutely forever – Rick and I both share this dream/goal – we know one day it will happen ;)

  2. I would like to go to Kiev and Pinsk in Russia. This is where my grandmother was born. I have tried to trace my family roots but impossible because the records, if any are hand written.

  3. I would very much like to make the “Camino de Santiago” or Way of St. James pilgrimage in Spain. Spiritual discipline in our lives allows us to experience life more fully.

  4. There are so many places I’d like to go. Italy and Sicily seem like a perfect place to start. Since I’m planning a dream vacation I’d like to extend it a little bit and hop on over to Australia.

    I can’t wait for my business to grow enough to get me there!

  5. There are many tempting places. I love Europe and have visited some part of it but not England, So I would go to England and travel up to Scotland and see as much of it as possible.

  6. I would like to go to Tahiti. I have been dating the same guy for 10 years. I told him when he is able to take me to Tahiti, I will marry him. Either he doesn’t really love me or he doesn’t know how to do network marketing (LOL, maybe I had better win and give him the book!

  7. I know this may sound cheesey to many people but I am being sincere when I tell you that the place I am seeking is a place within myself that I have not been able to access within the place called me…..I am a believer….it is not so much a spiritual thing as it is a mind blockage. I would like to get to that place, deal with the blockage and take my family there as well so that they can be free from that blockage. My parents had a retail store so part of the blockage comes from this place.
    Now if I have to go to Costa Rica or Hawaii or Roatan to find that place, I certainly would not complain!:)

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VIDEO: How to spot the FIRST LAW of Decline in your Network Marketing business.

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While most network marketing training centers around building a team, today we will focus more on keeping the team you are building. Both are vital skill sets. You want to avoid the ‘revolving door’ syndrome, where the drop out rate on your team is the same as the join rate, resulting in little or no growth or worse… decline.

Think of it this way…

1) Build your team to create a network marketing income.
2) Bond your team and turn that income into a residual income.
3) Keep the laws of decline out of your organization and turn that residual income into a legacy income.

A residual income is created when you do the work right one time and then get paid over and over and over again for the work you did… even while you are sleeping or on vacation!

A legacy income is residual income that pays you not just for a few months or a year, but for years, potentially for decades.

If you seek a legacy income, this video series is for you. We’ll be discussing the Five Laws of Decline… and how to keep them out of your organization.

Like most things in life, your team either grows or declines. Did you know there are specific laws of decline that can creep into any organization? Odds are, some are already active within your organization. You may not even be aware of them. I sure wasn’t! The good news is you can spot them… and with the correct actions, remove them from your team.

These laws are crucial if you already have a growing team… but just as crucial if you are starting to build a team. Knowing these laws before starting to build my organization would have saved me a ton of time, heartache and money. That’s why I want you to know about them… and the sooner the better.

How “The 5 Laws of Decline” affect a network marketing organization. I visited with Orrin Woodward on his Florida estate to discuss how to spot the ‘laws of decline’ and how to stop them from growing roots on your team.

In today’s video we cover The First Law of Decline…

COMMENT! “What’s ONE thing you LOVE about residual income?
Freedom? To give some away? Security? Pay off debt? Impact others? Or…?

Don’t worry, there are no wrong answers, people want a residual income for hundreds of different reasons! Even if you haven’t created a residual income yet, what do you love about the idea of residual income? I’m curious to see how big of a list we can compile.

LeadershiftMontageSquare500

Ex Libris Arthur V Jonak: Latin for “From the library of Arthur V Jonak.”

You can pick up a copy of Orrin Woodward’s lasted book LeaderShift  directly on Amazon or Barnes & Noble.

Here’s to Your Success!


Art Jonak

PS: Did you know? Thousands of network marketers from every continent and over 100 different companies gather once year at the Mastermind Event — to learn, network and celebrate our great profession. And did you know the price of Mastermind Event tickets are at their lowest right now? Prices only go up as we get closer to the event. Get your tickets today!

29 thoughts on “VIDEO: How to spot the FIRST LAW of Decline in your Network Marketing business.

  1. What I love about residual Income is the fact that you busted your butt to make something that will not only live on in others and for a very long time but you get paid for it over and over again. Residual income allows us to be in multiple places at the same time without ever really being there at all. Residual income is a way to multiply your “octopus-ness” over and over and over again.

  2. I love this question because it really made me think. I knew nothing about the subject just 7 months ago. I was just the average guy doing the average normal American ritual. You know the wife has a job she didn’t really like I had a job that I used to like when it was a hobby but when it became a job, now it sucks. My brother calls me one day and says hey, have you ever heard of selling something once and getting paid on it over and over again? I laughed at him the first time we talked but at the same time I was intrigued. So I asked more questions and was immediately hooked on the idea. I loved that the little guys could make the money on a consumable product or service and make the money. I learned the old adage of only the rich get richer was not true in network marketing and that was awesome! So to answer the question what my favorite thing about residual income, it would be hard to put it in just one statement but the idea I would like to convey is that in the beginning my favorite part was that now I didn’t have to worry about the light bill next month, and then it became now I don’t have to worry about the kids daycare, then I didn’t have to worry about the tow truck at the end of the road coming to get my car, then I didn’t have to worry about those things for my friends and family that shared the same vision and determination. I guess in a nut shell, for me it boils down to residual income equals no worries!

  3. I would like a residual income that would enable me to take a vacation or plan a special trip with my loved ones, take care of all my to dos around my house.

  4. The one thing I love about residual income is that it gives real freedom of choice in life. Therefore it is worth to work on establishment of residual income, to experience real freedom and share it with the most important persons nearby without a hurry……..

  5. I love residual income so when something comes up and I cant do my business I know I will still make money which makes it one less thing I have to worry about.

  6. I have been involved in networking for 15 years. What a learning curve. Can a curve bend both ways?? Well it does and the learnings are huge in size and number. Residual income is brilliant. No matter what level that may be at, high or low, the fact that it is earned “residually” ( do it once and be paid many, many times) is just magic. When I have needed that income it was right there. Regular, on time, like clockwork. Brilliant.!!

  7. Residual income gives me the freedom to “give back”. I’ve been so blessed in my lifetime and my residual income allows me to invest into others lives in ways a traditional job never could.

  8. What Orrin is saying totally makes sense. It helps put into perspective what realistic expectations are for this business. I present a scoreboard of 3 options at the presentations so people can self-identify.

  9. Residual Income means a few things – I agree that personal freedom is a portion of this, THe main thing it means to me is establishing a legacy for the grandchildren to follow and believe in.
    It allows me to play a part in changing others lives by being able to make a difference in their lives.
    True residual income is a blessing derived from putting in the “Right” effort and work. When I help others become successful I am then rewarded with true residual income.
    Thank you for allowing me to serve.
    MPL

  10. I’m vacationing in Honolulu today because I have chosen to lead others in building their network marketing business. I love residual income because I can CHOOSE where to live, when to work and how I want to live my life. While I’m waiting for the sun to come up over the beach in Waikiki, my bonus check is being deposited in my bank account. My team members are introducing new people to the business as they build their business and achieve their goals. My family is free to pursue their dreams, not someone else’s. I love the “freedom to choose” that residual income provides me and all who choose to follow the path to achieve it. As one of my favorite song says. “Grateful, grateful, truly grateful I am!”

  11. I love to earn residual income as it can give my Family and I a security and a plan B – if anything happens we still have the business and keep collecting come rain or storm :-) So glad I got this opportunity in my life :) (looking forward to actually hearing Mr. Woodward live in Oslo this weekend:)

  12. Residual income opens so many possibilities, so I had to think about what my heart calls out for me to do. That would be speaking to others, to help motivate them to do what they are able but think they can’t. To let others know that their mistakes are a learning experience not to constantly dwell on but to learn from and become stronger for. The residual income would allow me to focus on learning how to do this by using my life experiences, and mistakes to relate and speak to others on improving themselves.

  13. “What’s ONE thing you LOVE about residual income?
    I am reading a book called “Your Money or Your Life’ which brings up a aspect I have never heard off, called the “crossover point” where your passive residual income overcomes your expenses leaving you with the choice doing things you love with out the worry or concern for money, which is beyond having enough. Each of us reaches a point in life where we have enough. This allows a person to volunteer their talents, skills, or help other for pay. It offers more creativity, Freedom, relaxation, dreaming, much less stress allowing a person to get more done. So my answer on this questions is the ability to have more than enough of whatever and assisting others on their journey in realizing that there is enough for all of us, regardless of how each of us defines the term “enough’ in our own specific life.

  14. I like the process of creating a residual income in network marketing.

    In my regular business I taught my employees as much as I could to help them and my business. They got better. Then they became my competitors.

    In network marketing I can teach and give 100% without holding back because we’re partners.

    And let us not forget that this is an incredible personal development business disguised as a business opporrtunity.

  15. When I graduated I wanted to make a difference in the world. Life tossed me a few curve balls and I found myself at single mom of 7 by the age of 35. I got involved with NWM and learned to create a residual income. Because of this, I made a difference for myself, my family and also have been able to show so many others a better way of life. A life of Freedom of choice and that helps families and to me,that is a making a powerful difference, I am now an example and can light a path because I actually did it, I found a way and others can too. Hope for a brighter future. That is what residual income means to me. Thanks for asking. It caused me to think about it more.

  16. One for me is the opportunity to live congruent with my values, principles and dreams
    I don’t have to sell one out for the other and the money supports it.

  17. Ability.
    the ability to be with and see mty daughters and wife everyday-
    Ability to visit the beauty of this world
    Ability to lead others to see their potential
    Ability to give limitlessly

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