Due to a full 3-day intensive workshop on public speaking from 6-8 February, followed by the hospitalization of one of my daughters in the early hours of 9 Feb, I have not been contributing here until now.
If not for the fact that MLM is a flexible business model, I’d not have been able to juggle home duties, my business and the caring responsibility that comes with parenting at the same time. I feel truly blessed.
What I’d love to talk about in next week is about the two other awesome qualities about Network Marketing (MLM): Freedom & Personal Development.
Meanwhile, let’s follow up on what I talked about in my last blog. The amazing power of MLM lies in ‘leverage’.
Exponential Growth created by teamwork.
The best illustration about how ‘leverage‘ works is by doing this simple exercise:
Suppose you were offered to be paid $10,000 a month or just $1 a day but the pay would be doubled each day. Which would you prefer?
You can stop here and have fun by taking out the calculator and do the doubling game.
If you have ever been pitched about the ‘Exponential Growth’ in MLM, you’d probably have been told that by the end of this first year, your MLM organization would have 4096 people even though you have enrolled just one distributor. This figure comes up presuming that EACH distributor enrolled into the organization would do exactly the same thing – enrol another distributor who would go out and enrol another one who is committed to share. This is what is called ‘duplication’ in MLM.
The power of ‘Leverage’ lies in duplication. The growth of the business is the result of teamwork.
In the $10,000 a month case, the employee gets a FLAT rate of $10,000 each month. Great security. Not a growth model.
In the case of doubling the income from just $1 a day, by Day 21, the pay is $1,048,576!
MLM & Serious Money
MLM leaders get great results by leveraging on the teamwork. This means that rather than just collecting customers who love the products, smart MLM business builders also enrol promoters and business builders.
Customers continues to use the products – distributors get repeat pay cheques. This is what is generally called ‘passive income’. The initial work of introducing the customer to the products is done ONCE, you get pay over and over and over again.
Promoters are happy customers who share their positive product experiences with their friends and families. They are the best source of referrals too. The power of this group cannot be underestimated. By helping enough small groups of promoters, the business turnover for the whole distribution organization can be significant.
A top leader in the USA created this campaign – helping mothers to make $1000 a month and make a difference to others lives. She has become very successful and is amongst the top earners in the MLM world. Here is Margie Alprandi’s site if you wish to find out more.
Business Builders are the ones who treat their MLM business like a real and serious business. They totally appreciate the power of ‘leverage’. They do not expect the exponential growth to happen in the first few months of their MLM venture.
In the case of my dentist mentor, a couple of hundred dollars a month was definitely not in direct proportion of the extra time and efforts that he put into the business.
Yet, he had had his vision absolutely clear and created a most fabulous lifestyle for him and his family. The most meaningful part is that he has helped many teammates to live their dreams too!
I’d like to end this post with the famous quotes of billionaire oil baron, Jean Paul Getty:
“I’d rather have one percent of the efforts of 100 people than 100 percent of my own efforts.”
May you DECIDE to work smarter. You can have a huge distribution business by starting small. You just have to start.