2012年3月25日星期日

The 10K Question - How many reps do you need in your downline

Have you ever considered how many people do you need in your downline to make $10,000 per month?Once you work this out, the answer to this question may surprise you. It may even anger you depending on how serious you are about becoming financially independent via network marketing. The real question is: how much does your MLM company reward you for bringing in revenue?The best compensation plan is one that will pay you the most money for the least amount of effort. So why do some companies have "better" compensation plans than others?Simple, some companies simply don’t run as efficiently as others. Some companies have large numbers of employees, large buildings, private jets, led light bulbs and other high overhead items that they can’t pay their distributors more generously.The network marketing industry average for the earning $10,000 per month is about two thousand (2000) people, that’s $5 per person, per month. That’s not too bad when you consider that some MLM’s require you to have 10,000 people in your downline to earn $10,000 per month. There are of course, companies that only require you to have 300 to 400 people to achieve the same result. Obviously, you’d rather be in the latter rather than the former.This is what’s really strange about network marketing...When people go for a job, they want to know exactly what sort of work, how much of it they’re going to be doing and exactly what they’re going to be paid. They can then pick and choose the company that will pay them the best for their efforts.That rarely happens in network marketing because most people simply do not have the experience to understand how they’re going to be compensated.It’s very unfortunate that people still get into opportunities because of some hyped up income claim made by one hot-shot heavy hitter at the top, assuming that they can get the same result, while in reality the majority of the distributors in the field are making pennies.If you’re planning to build to an income level that will allow you to retire "happily ever after", it pays to understand your compensation plan. That’s because your compensation plan will determine whether you’ll actually make any money in the first place, whether you can actually retire on a full time income, or whether you’ll have to keep buildling your downline for the rest of your life.The biggest cost to you is acquiring new customers and distributors. How much does Nail Pen it cost you to bring in a new distributor? Even if a distributor stays with you for the rest of his life (most don’t), it could be a long time before you recoup the costs of just signing him up.The bottom line is, the more people you require, the more it’s going to cost you in distributor acquisition and the harder it is going to be to build to your income goal. Plus, and it’ll be even harder to maintain it. The more people you require, the more downline attrition you will have because the people who are sustaining the business, the part-time networkers are not being rewarded for their efforts. Why should they stay?If you’re serious about success in network marketing, it’s not just a side hobby, then it would be in your best interests to figure out your company’s pay plan and make an informed business decision on your company as an appropriate vehicle for financial independence.It doesn’t matter if your product is super duper and has every vitamin and mineral under the sun. That doesn’t matter if the compensation plan stinks. People need to be rewarded fairly for their efforts and they will vote with their feet.

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