SFR 73: MLM Funnels! Special Interview with Jon Penkert

Ever wonder how the top guys actually make fortunes in MLM? Join us now to hear secrets of the "big guys"...

Steve Larsen:

What's going on everyone? This is Steve Larsen and you're listening to Sales Funnel Radio. Now this is part six of six. This is the last segment of this whole series. We're gonna talk about MLM funnels. MLM funnels, this is gonna be a little bit of a different sub interview than the other five so far, and the reason being is because in the other five, I have always been interviewing an actual funnel builder, right? Somebody who put the funnel together for their business, their industry, whatever it was.

This is a little bit of a different scenario, I have an opportunity to interview an amazing gentleman who has built MLM the traditional way, but without bothering the family members and friends...

You guys know that's my whole thing and so, we're gonna learn how he did that without using heavy tech like I use. Does that make sense? So it's kind of a rare look at this. He's done both seven figures personally, both in his MLM, but also in traditional business. Anyway, he's a very, very rare take on MLM and what it takes to be successful with it.

Then what I'm gonna do is I'm actually gonna show you guys, or rather talk about and teach, why I have an MLM funnel myself and what it does and what it's done for me, and the whole psychology behind it because it's amazing. I've never seen anybody else do it. There's one other guy who kind of came close, but even then, it actually won't do the full thing that this does. Anyway, I'm excited for this interview.

Even if you're not an MLM, I think you'll enjoy the tactics that he uses and how he manages his own business, 'cause I think if we were all to manage his MLM business the way we manage our personal ones, our actual lives would get mentally quieter.

There wouldn't be so much noise in our head. Anyway, let's get into the interview...

Announcer:

Welcome to Sales Funnel Radio where you'll learn marketing strategies to grow your online business using today's best internet sales funnels. And now, here's your host, Steve Larsen.

Steve Larsen:

Alright you guys, I am super excited that you're here listening with me today. We have a very unique opportunity to hear from, honestly, one of the most brilliant people I've ever met. I actually only met him only a month or two ago, but right off the bat I could tell something was different.

I have on the call with me Mr. Jon Penkert, who alone inside of the MLM industry, he's one of the top income earners. He's one of those rare guys that has done both seven figures in regular business, but also seven figures in the network marketing business.

One of the things he's taught me is that most people only recruit two and half, two to three people into their MLM business ever. And to say that he's done, which is true, over $500 million in his own downline is absolutely amazing. Anyway, I'm excited to have Mr. Jon Penkert here with me. How are you doing man?

Jon Penkert:

Hey! Good morning Steve and thanks for having me on the call. It's a privilege to be speaking with you.

Steve Larsen:

I'm really excited that you're here. This is a very unique take. Most of the time when you hear the word MLM, I'm sure you were the exact same, you tend to run the other way.

Most people do anyway, and I know that you've figured out though the way that this whole thing works. But before we jump into that, I actually wanted to ask, how did you get into MLM?

Jon Penkert:

Well, I was an entrepreneur out of college and moved to southern California. I wanted to take advantage of the business opportunities there and leverage my skills and my degree. When I arrived in California, you know it's kind of the mecca for network marketing, I never really heard of MLM.

So, a friend of mine invited me to a meeting and I was very skeptical...

It just seemed too good to be true. I couldn't believe all the money they were making. I was like, "Man, I gotta check this out." And it's funny, you say that people run from MLM. What happened is, I started getting involved in network marketing and then people started running from me.

Steve Larsen:

Exactly!

Jon Penkert:

I learned very quickly that this MLM business, it's rife with problems. You end up losing a lot of your friends in the beginning 'cause you don't understand what's required to be successful, you don't understand that the key ingredients to network marketing that makes successful champions are no different than any other facet of life.

Whether it's business or music or sports, there's a formula to success. Once you figure that out, and you embrace the formula, then guess what?

You begin to have this success that you long for...

Steve Larsen:

Now, did you know what that formula was when you first started?

Jon Penkert:

No. As a matter of fact, I have about 10 years of pain, which means failure. I learned that success is built on the back of failure. I used to tell people, "I'm the biggest loser in network marketing," because I tried everything and did it wrong. So, I got about 10 years of pain before I figured out, "You know what? There's gotta be a smarter way to do this."

Steve Larsen:

That's amazing. So, when you first joined though, what happened? What was all that failure? Most people don't talk about the failure parts, but I think we can all relate to it.

Jon Penkert:

Well, I don't fail small. I failed big. Back in the 80's people in California were making $30,000 a month in network marketing and there was a company called FundAmerica.

You can research it...

It actually is the case that all the case law studies. It changed the industry, because back then, you paid a lot of money for your membership fees. It was high membership fee to get involved in these clubs, these MLM clubs. The federal government shut them down for illegal Ponzi scheme, and so the big boys like Herbalife and Amway, they all went to school on that and they changed how they come to market. So all the case law for network marketing was really centered around that FundAmerica.

You can do the research on the lawsuit. They came out on the other side nine months later innocent and not being convicted of a Ponzi scheme 'cause it wasn't, but it ruined the business opportunity and all the downline had dissipated. All of us that got involved and began to build saw the rug literally pulled out from under us in what we thought was the biggest opportunity of our life and we were all gonna become millionaires.

The truth is, you realize if you don't have experienced leaders that have set a foundation to do it right, you're gonna get taken out and there's a lot of examples of that today but the case law began with that FundAmerica opportunity that I was knee deep in and got the rug pulled out from under me.

Steve Larsen:

So you came in while that was all going on then?

Jon Penkert:

Yeah, actually I had the misfortune of coming in at the end. I got all my guys in and we started running right as they closed the doors.

Steve Larsen:

Oh man! Oh my g...