

If you lived in England in the 1760s, you would have been lucky to own two shirts.

That’s because cloth was incredibly difficult and slow to make.

Thread was produced by individual artisans, in their homes, a single spool at a time.

Inefficient, to say the least!

Then one day, a poor, illiterate weaver named James Hargreaves—who had a keen eye for engineering—literally stumbled onto an idea when his daughter Jenny accidentally overturned his spinning wheel.

He noticed that the wheel continue to spin, despite being on its side. The spindle was now upright, instead of its usual horizontal orientation. And in this moment, Hargreaves envisioned a hand-powered mechanism that could spin eight threads at one time, instead of just a single one.

He called it the “Spinning Jenny.”

And its efficiency kick-started the entire British textile industry.

Not only that, but the direct effect of this mechanization fundamentally changed the entire economy.

Soon the technology improved and production scaled to 80 spindles and then 120, and within 20 years, cloth was readily available in Britain, where eager consumers began to purchase more clothes, and sure enough…

The Industrial Revolution was born!

spinningSo, what network marketing business lessons can you learn from an illiterate, three-century-old British weaver?

More than you might think!

The key is this…

Success is replicable through systems.

Systems, of course, being the component parts of a machine, which work in unison to automate certain functions.

But without getting too “jargony” or belaboring this metaphor, here's the point…

Individual effort doesn't scale.

A single person can only accomplish so much in 24 hours.

But, through systematization, your efforts become more efficient and highly compounded—allowing you to leverage technology to accomplish exponentially more than would otherwise be humanly possible.

As you are aware…

Our entire modern world is a product of the advances brought through industrialization.

Nothing in our lives—from our food, cars, and homes, to our computers, clothes, and smartphones—is unaffected by these dramatic shifts in our means of production.

This is especially true in our global economy…

Let me share another story from our century to explore the concept of systems a bit further.

High-school dropout discovers 7-figure Internet business system

How's that for a headline? ;-)

It's true, though.

Back in the early '00s, our very own fearless leader, Mr. Tim Erway, was a 20-something high school dropout without many advantages in life.

In an effort to improve his lot in life, he joined the Coast Guard, was relocated to Alaska, and found his way to a network marketing opportunity.

Convinced that he would make it “big,” Tim decided to quit his full-time job to put ALL his effort and energy into making his new business work.

You can probably guess what happened next:

The bills kept coming, but the income didn’t.

Not to be deterred, Tim’s credit card companies kept giving him credit line increases.

Problem solved!

…until the bills came due, and there was still no money to pay them.


That’s when the collection calls started

Every day. All day. Hounding phone calls.

Tim had to figure out how to deal with his debt, which was suddenly the most pressing problem in his life.

Born from personal necessity, he figured a way out of his credit and debt mess that led him to what we now call…

The 7-Step Internet Millionaire Formula.”

Sounds a little “hypey,” right?

I get that. But, here's the thing…

Once Tim figured this formula out, he personally used it to build several successful businesses responsible for tens of millions in sales.

And if you include Tim's students that have used the same formula…

The total sales this system has generated easily tops $100MM

short-cut-to-success…a truly staggering feat!

So let’s take a look at the steps, and then look at how Tim used them.

  • Step #1: Find a need or a problem
  • Step #2: Find or create the solution
  • Step #3: Set up a sales system
  • Step #4: Give away free value
  • Step #5: Offer the solution
  • Step #6: Follow up
  • Step #7: Make premium value offers

Rest assured that these are universal principles that work for every type of business, online or offline.

In fact, Tim calls them “the holy grail of success in business.”

Now, it's true that people can and do mess up this perfectly good formula in all sorts of creative ways.

But at the end of the day, this formula works 100% of the time for everyone who uses it correctly.

Now back to Tim's story…

Take note here, because Tim was working hard at the time to build a network marketing business, but he had another need that was even more urgent…

With creditors hounding him, he had to figure out what to do.

He figured there had to be a “DIY option” for how to deal with these creditors.

Buried nearly two dozen pages deep in his search results, he found a course on how to negotiate with creditors, with the primary goal of getting the harassing phone calls to stop.

He bought the course, tried their scripts, and they worked.

The phone calls stopped!

Behold, there was an opportunity!

With a keen eye for business, Tim realized that other people had the same problem of harassing calls from bill collectors that they needed to stop too.

Basically, they needed the same information in this course too.

So Tim reached out to the creator of the course, who agreed to allow Tim to market the course for a share in the profits.

So Tim built a simple capture page offering a free report to stop the creditor phone calls.

He made an offer to buy the whole DIY course in a short sales letter.

And guess what happened next?

People started buying! He started making money!

He was finally making real progress in his business–just not the network marketing business he originally planned to build.

So how successfully was Tim implementing the foolproof formula?

6.supplemental_800x800_2Well, let's recap. By this time, he…

  1. Had a problem: Debt
  2. Found a solution: a DIY debt negotiation course
  3. Wrote a sales letter and created a sales funnel
  4. Created ads offering free value (the report to stop creditor calls)
  5. Offered the full DIY solution (the complete course)
  6. Followed up via email to non-buyers

After some initial success, he tried to keep growing and scaling up his profits by selling more of the DIY debt negotiation course…

But he learned the hard way that it's tough to scale at a low price point.

Almost by accident, he discovered, “Step #7: Make premium value offers,” when his clients started emailing and begging for more help.

So, he created a “done-for-you” premium offer to make the phone calls and work with the creditors on his customers’ behalf.

Guess what happened next?

Almost overnight he multiplied profits by 10x!


With the addition of the final step comes the massive profit and scalability of the entire system.

Now, this might sound simple. Too simple, even.

But, in life, it's often the simple things which are the most profound.

It's the same in network marketing business.

Complexity is the enemy of efficient systems.

Just ask our friend Mr. Hargreaves—you know, the guy who kicked off the industrial revolution—his “Spinning Jenny” was remarkably elegant in its simplicity.


Take heed, young Padawan!

Let's dissect this formula, piece by piece…

Although Tim’s initial goal was to build his network marketing opportunity, he personally had a much bigger, more pressing need—those persistent creditors blowing up his phone—and within that need was a fantastic opportunity.

And you know what?

There's always opportunity.

Because, let's face it, there will ALWAYS be problems that need to be solved.

So keep your eyes open. Pay attention to your personal struggles.

And don't forget your triumphs.

After all, you're uniquely qualified to present a solution to a problem you've solved.

Remember Tim's story?

If you already have a network marketing business, then you have a solution to someone’s problem.

Now ask, what is that problem, and are you addressing it head on?

In Tim’s case, of course, it was those dreaded, relentless phone calls.

Notice—importantly—that he didn’t create the solution; he found it.

So don't over-analyze your solution.

It might very well be an already-existent product, a business opportunity, a service, or an affiliate offer.

When you’re first starting out, creating a funnel seems daunting. Don't worry, I understand.

Sales funnels are a bit of a “buzz word” right now, and it seems like everyone is hawking expensive software that can up-sell, down-sell, cross-sell, behaviorally retarget, and do all sorts of other fancy stuff.

Here's the thing: you DON'T need any of that.

You don't need a high-tech website, or complicated traffic strategies, or techie skills, or even a huge budget.

All you need is a simple system that collects leads and warms them up into buyers, predictably.

That's it.

It's honestly something you could set up in less than an hour, once you know how.

More on that in a minute.

This “bribe” or “gimme” doesn’t have to be hard to create.

Remember how Tim gave away a free report to stop creditor calls?

That honestly could have been a one-page document. And guess what?

No matter if it was two pages or 200, it was extremely valuable to his target audience.

So ask yourself, what does your target market need most?

It could honestly be as simple as a grocery list.

Don't think so? You know how popular fad diets are? Yeah, there's a new one every year.

Weight loss is a $64 billion dollar industry, after all.

And you know how many diet books get sold that are nothing more than glorified shopping lists?

Countless millions.

So yeah, if you can put together a shopping list, you can create a valuable free report.

You've already identified your particular solution (in Step #2). Now's the time to offer it.

Recall that you've already offered free value (like a report) and your new prospect is a part of your simple sales system (Step #3).

Next you simply introduce your solution and ask for the sale.

Whether it’s a DIY course to negotiate with your creditors, a tutorial on how to groom difficult dogs, or a step-by-step guide to video production, the process is exactly the same.

Now, just about everyone I've ever spoken to already had an offer in mind. But keep in mind this doesn't have to be something you create yourself.

Tim certainly leveraged someone else's offer.

Ever hear the phrase…

“The fortune is in the follow-up.”

Yeah, it gets thrown around a lot. But it's true.

People are naturally skeptical.

They've likely been burned before. They're resistant to buying. And they hate being sold.

So, how do you break through these barriers?

By being REAL.

Seriously. By acting like a real, live human being and cultivating a genuine relationship with your prospects.

People buy from those they like a trust. And the best way to do that?

Consistently staying in touch, keeping on their radar, delivering value, and following-up.

And that brings us to the final step…

Remember how Tim's debt-relief clients started emailing and begging for more help?

And in response, he created a premium offer to work with the creditors on his customers’ behalf?

Not only did this “high-ticket” offer substantially impact his bottom line (to the tune of 10x), but it also delivered tremendously more value to his customers.

I believe that's called a “win-win.”

Let's take the diet industry, for example.

Yeah, some folks only want to buy a book.

But I'd venture that most, if their desire is high enough, would also go for…a personalized meal plan, personalized prepackaged meals, a personal trainer, a personal chef, quantified progress reports and personalized lab results of various biomarkers.

See where I'm going with that?

Sure, not everyone will purchase every premium offer, but no one will purchase an offer they're not presented with.

It's in thinking through these additional, premium products and services where you'll make the majority of your income as a network marketing business owner.

It's the Pareto principle. 80% of your revenue will come from the top 20% of your customers.

Okay, that about wraps up our discussion of “The 7-Step Internet Millionaire Formula.”

Keep this in mind:

This system works for ANY type of business.

And what I want you to remember is that the biggest takeaway here is…

The power of replicability

When you have a system that you can replicate and scale, you have a recipe for success.

It's how you build an automated selling machine.

Now, just for fun, let's return to our friend Mr. Hargreaves.

And ask how he would have fared with this system…

Because had he known it, his life might have turned out very differently.

But we'll cut him some slack considering he was trying to build his business 250 years ago!

He found a real, pressing need: there was a problem producing enough thread for the weavers.

He came up with a solution: a simple, lightweight machine that could be operated and moved by one woman in her home that could create eight spools of threads with the same time and effort it previously took to create one spool.

But poor Mr. Hargreaves didn't understand the rest of our selling system.

You see, he focused on selling his machine and more yarn to the weavers. And to his credit, he did make some money from those ventures.

What he didn't understand, unfortunately, was patent law.

So he started making and selling his machines before applying for a patent, and thus, his patent was rejected.

This resulted in other people making and selling his machines, and he wasn’t paid for the design.

By the time of his death there were over 20,000 “Spinning Jennys” in Britain, but he didn’t get paid a dime, and died a poor man.

…even though his invention was largely credited as kicking off the Industrial Revolution.

Now that's a sad, cautionary tale.

Let's try to not repeat it.

So how did Mr. Hargreaves break his selling machine?

1.supplemental_800x800_2Well, it's a simple and all-too-common mistake:

He didn't understand the value of his intellectual property.

Instead of selling yarn and his machinery (low-ticket offers) in volume…

He should have taken his expertise and cashed in on the information between his ears—

Either through patenting and licensing, or selling his idea outright and focusing on developing new, advanced versions of his machine (for a consulting fee, of course).

These monetization avenues are high-value, high-leverage, and can radically change one's fortunes.

Mr. Hargreaves didn’t recognize where his value was, and inadvertently gave it away for free.

If he's realized his true potential, he could have been remembered along with names like Vanderbilt, Carnegie, and Rockefeller.

Now, I don't mean to be harsh.

Hindsight is 20/20, after all.

But I don't want history to repeat itself. And…

Unfortunately, far too many business owners make the exact same mistake

If you've been online for any length of time, you might have fallen into the trap of thinking you should just be giving away your intellectual property for free without using a proven, strategic process for doing so.

I can't tell you how many business owners I see posting updates on social media until they're “blue in the face” trying to scrounge up eyeballs for their offer or opportunity.

This is a big mistake.

Because I'll let you in on a not-so-secret secret:

If you're building your network marketing business online, or if you'd like to…

You need to make absolutely sure you have each and every aspect of the “The 7-Step Internet Millionaire Formula” fully implemented before you invest another moment or dollar into your current efforts.

Otherwise you risk going broke LONG before seeing the results you're after.

Now, I'll presume you've already identified Step #1 and Step #2—the problem and the solution.

Next, before you set up your sales system, offer the solution, follow-up, or make premium value offers…

You need to accomplish Step #4, and know exactly what value you'd like to provide.

I know, it probably sounds strange, but there's a logic at work here…

Your ability to effectively sell is largely determined by the value you strategically offer your prospects

Why, you might be asking?

It's because the value you demonstrate is how you attract your audience and is effectively the first conversion point in your sales system.

It's the first commitment your prospects make towards becoming a customer and it's your make-or-break introduction as a solution provider.

So you've got to get it right.

Remember: consumption leads to conversion!

Now, don't get overwhelmed by this idea.

It's easier than you might think to position yourself as an authority.

If you know how, that is.

So, to help you gain clarity on how to effectively provide value and attract prospects with ease…

Sign up for our FREE 10-Day Online Recruiting Bootcamp and discover our proven method to quickly build your own automated online selling machine!

You’ll learn about the specific tools and techniques you can use to connect with prospects on social media, so you'll never have to chase anyone, pester friends or family, or face rejection ever again.




So if you’re ready to get started…



Andrew Draughon
Director of Content
Elite Marketing Pro



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Andrew T Draughon
