10/22/2025
Just had a conversation with a couple who had been in network marketing before, had failed miserably at it, wanted to get started again, but was afraid.
They asked, "If network marketing is such a valid business model, why do so many people fail?"
Thought I would share something we talked about which was "The Thompson Rule."
Not truly understanding people, in my opinion, is the main reason why people struggle building a business.
When you truly understand "TTR", it not only explains so much about business, but about life.
Let's dive in, but before we get going, we will be exploring 3 facets that put handles on all of this for you to grab a firm hold on to and forevermore run with.
1) It reinforces the simple genius of TTR while giving new understanding and insight to an ages-old axiom.
It's called "The Pareto Principle".
You may know it by it's other name which is the "80/20 rule".
Named after Italian economist Vilfredo Pareto who observed that 80% of the land in Italy was owned by about 20% of the population.
Further study and exploration of this principle yielded the observation that, for many events, roughly 80% of the effects come from 20% of the causes.
80% of the wealth of a society is held by 20% of its population.
80% of the work is done by 20% of the work force.
And so on.
The Thompson Rule or "TTR" explores and explains that principle further by redefining the numbers.
80/20 is redifined to 80/15/5.
Although TTR can be applied universally, let's focus it on the network marketing business model.
Simply stated ( I could talk for DAYS on this, but not here)
80% of network marketers will do little to nothing. They have little time, little drive, and may get some products for themselves and get a few new customers each year. They have little to no interest in building a team. They have neither the time or desire to get on conference calls, attend events, or trainings.
15% of network marketers have more drive, will devote more time, and will bring in more customers, and have the desire to build a small team. They will attend a few calls, events, and trainings.
5% of network marketers will devote an insane amount of time, drive, effort, and energy into their business. They develop a massive customer base and build huge teams. They're at every event, on every call, and every training.
Now let's get back to that original question which was "If network marketing is such a valid business model, why do so many people fail?"
With all of the "get rich quick" idiots out there, many people fail because their expectations were not properly managed from the very start.
Can you become financially free? Of course.
Is it easy? Of course not.
It takes an above average drive and committment to achieve that level of success and most people have neither the time or the drive to do it.
They have an 80% mentality expecting 5% results.
They were not properly onboarded.
They were not placed into an environment that supported them, taught them, encouraged them, and made them feel appreciated no matter where they were in TTR.
2) Another facet is that TTR is a continual sliding scale.
Life happens.
You can go from 80% to 15%, even to 5% overnight.
And vice-versa.
Part of that crucial environment is to not to judge, EVER!
People do what they do for their reasons, not yours.
So many 5%, because of life events, were forced to drop to a 15% or even an 80%, only to be ridiculed for it.
They hear moronic statements like:
"I thought you were serious!"
"I guess you're not a player."
"What's wrong with you?!"
MANY, because of this treatment, quit.
They leave, never to return, all because some "Leader" or "Leaders" were ignorant of TTR.
3) The last facet we will talk about is that the ONLY difference between an 80%, a 15%, and a 5% is their activity level.
It's not what you know, it's what you do.
A-C-T-I-V-I-T-Y is the crucial metric that defines where you are, at any given time, in the TTR scale.
You can have the skill sets and mindsets of a 5%
You can have the desire and willingness of a 5%.
But your activities define your true place in the scale.
Let me close with this.
Wherever you are, at any given time, is perfectly okay!
You are good enough, right where you are, right now.
Live your life.
Work your business.
Be authentic to YOU.
Understand the foundational principle of TTR.
Absorb it and metabolize it until it is such a part of you that it permeates every part of your life and your business.
Put into practice what you have learned here.
If you've unwittingly been a victim of TTR ignorance, now you understand why things happened the way they did.
If you've unwittingly done to others what we've talked about here, now you better understand why you did it.
Make amends where you can.
And, from this day forward, make TTR the foundational bedrock upon which your business, your life, is built.