5 Laws of Decline

by Orrin Woodward

  1. Law of sturgeon’s Law- 90/10

Only 10% of everything is actually good. 90% of books, videos, channels, social media pages are garbage and the other 10% clean the mess.. Don’t expect of 100% of anything.

90% garbage floating their way in the circle that 10% causing it. This is in everything of Human Art. Anything that’s been created by human being.

In network marketing: So 90% of people you bring to the business will do nothing. Only 10% will do something and 10% of them will become leaders. Most people are not 10%. Means most are part of the 90% and they might become 10% they might not.

The key in mlm is to Lead the 10% and Love the 90%. And the 90% think they are part of 10%.

This become declined law when Companies, organizations put people who are part of 90% in charge..!

How do you identify the 10%?!  By keep the Scoreboard that shows the volume, numbers, production, work, growth and talent …

Great cultures have scoreboard.. Great games have score board. If you don’t have score board this law become decline. And 90% ers get in charge of the organization and lead the organization in the wrong direction..!

Without score board 90%ers think they are part of the 10%…

“I’m scared one sheep lead the thousands lion.. more than Lion lead 1000 sheep”. Wiston Churchill

The score board don’t lie. Helps you to identify your producers and those who don’t produce. It stops politics and drama to get into your organization and you won’t be promoting sheep…

Like when you recognize and over promote the small pay leg team because it pays you while the large leg is producing and working hard. You ignore the 10% in your large leg and promote the 90% in small leg. Because you don’t have the score board to notice the 10% in your large leg working hard.

  1. Bastiat’s laws:

People do the lease amount of work to get their favoritism results.. Blunder Or production

When people receive favoritism and doing lease amount of work and they would never say “No, I don’t deserve it.” Their expectations grow more and you can’t possibly meet all those expectations.

It create envy, jealousy, upsets, drama and politic in the team and destroy trust.

How do you spot this law : Special deal, privileges culture, Someone give a position..etc. Another example is power over people when the owners reducing the payplan so he can get the most income. Or when the owner put his/her family members on the top of the organization and milk the organization through his family. Specially if the family members are part of 90% and start to lead the organization into the wrong direction.  Or a leader stop someone’s growth, or sabotage the organization to get more for himself out of it. Or someone try to move and shift someone’s team for themselves by creating a situation where someone leave so he/she can take over their team…etc.

Anywhere there is a leadership there is potential for this law to happen. When someone receive things without earning. If you allow a privilege been given without earning it..!

Ask yourself: What is leading your organization scoreboard? Or politics, drama and unethical behaviors?

  1. Gresham’s law:

Bad behavior drives out good behavior

Either everyone do the bad behavior or they leave the company go somewhere where the 10% behavior get rewarded. The 10% never tolerate the bad behavior. They go somewhere the good behavior get rewarded.

Do you have producer culture or Political culture! If you got political, drama and unethical culture the 10% eventually will leave.

For example: Let’s say in a ten years old organization the same person get to talk on the annual conventions or events on stage.  Who this person might not perform and produce as much as someone who joined not long ago is producing. Yet the producer get ignored and the person who be around for long and not producing much get the stage. This eventually will drive the producer out of the company.  Always Put Best in front of the Best! Minimize the politics and work on the score board..! Your pay raise get effected as soon as you do!

  1. Law of diminishing return

When you read one book you get lots out of it and go apply and get results. Then you read two, three, four, five, six and now all you are doing is reading books and you get no more results. This is diminishing return at work. Reading that extra book is not benefiting your business anymore.. it’s hurting your business..

Another example is when someone open a restaurant and it works really well. Great service, food, and lots of customers. Suddenly the owner get greedy and opens 10 restaurant and all fail. Because he could not provide the same food, service to his customers.

In network marketing when you have one location for presentation and one good leader/speaker and your good meeting is getting full and standing room. But once the room get really busy you decide to have the next meeting in the next location. And then you got five or ten meetings in different locations but now numbers are dropping and no more growth. This law is at work.

As you expand you have to constantly develop the next leader behind you before you open new locations. Don’t expand too fast when you don’t have the leaders, management to lead and manage and provide the best quality. Or when one of these leaders turn to be part of 90%.. or start to get greedy and do Bastie laws behaviour and other laws kicks in and start to decline the organization.

When organization grow so big but leaders are outgrowing or not growing as fast and/or not enough leaders to lead the organization this law kicks in to decline the organization. You need to fill in the leadership gap after a big growth asap. Always Stretch and secure. Ask yourself how many leaders you develop. I rather be a servant to bunch of leaders than a leader to bunch of followers.

Or when you spend too many hours at gym your body is not responding. Your body has to rest and recover. Otherwise you get sick and that’s again this law at work.

When you are expanding and growing but you are not duplicating, replicating the leadership as fast as you are growing it’s guarantee that you unleashed the diminishing return law and organization will decline.

  1. Law of Inertia:


    When the five laws are happening it would be hard to turn everything around overnight. It can take a year or more to turn around a culture.

Trying to create new culture but so many 90% are used to the old culture and running in way in the circle.  It will take time for the culture to happen. Pushing, forcing, making people wrong will put the Inertia at power. And stop the organization.

The 5 laws of decline examine the organization to find the disease and help you create the new culture.

These laws work for you or against you.

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