Network Marketing Success
One of the highest thrills of building a Network Marketing business is seeing folks attain both time-freedom and financial-freedom.
It’s great to see folks begin taking steps to improving their lives and pursue their financial and personal goals.
However, if you are in Network Marketing (also called Multi-Level Marketing, or MLM), you will see some people quit – sometimes only months after joining.
There are hundreds of reasons why people quit. Many suddenly leave due to family issues, job or money issues, or other unforeseen circumstances.
But there are many more who don’t quit suddenly. Instead, they begin a “cycle” that if left unchecked will most likely end with them quitting.
The cycle is this:
- Excitement (for the opportunity and the potential income)
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Concern (when they don’t see money coming in after only a month or two)
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Disappointment (when their residuals remain low)
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Frustration (when they don’t see “big commissions”)
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Anger (that no one seems to care that “it’s not working”(sic))
This is a cycle you can prevent or, in a few cases, even remedy after it’s begun.
If you have a new member in your organization who, only months after joining, expresses concern about not seeing commissions, residuals, or enough people joining, this is clear indication that when you shared this opportunity, you forgot one critical piece of information: Time. *
While it’s good to share the potential income one can earn in MLM such as ten-thousand-dollar residuals within a few months or a six-figure income in only 2 1/2 years, it is very important to make them aware that for many, if not most, building annual incomes of $100,000 + will take a long-term time commitment, and active steps on their part to move forward toward their goals.
You may sponsor fewer people by teaching it is a long-term business, but those you do sponsor will have that understanding and are more likely to remain to see success.
Imagine having an entire organization committed to working the business for more than just 6 months to a year. What would that do for them? What would that do for you?
So how can you help them keep a long-term mindset? Use some real-world examples of time and growth for comparisons to MLM.
Here are two examples you can use:
The Apple Tree
In the corporate world, one who starts his own venture typically can be “in the red”, having a negative income statement, for the first 2-5 years.
Coincidently, it can take an apple tree 2-5 years to start bearing fruit; but it can provide apples for decades after.
When you plant an apple seed, even with work providing the right conditions, it will still be a while before you see signs of growth. You don’t dig up the seed to check on it, or to make sure it’s growing. You just have to do what’s necessary and trust that nature will do it’s part.
The same is true with your MLM business. When you first join and begin working to promote your business, it may be a while before you even see any sign of growth (like sponsoring your first person). You just have to stay consistent and keep your eyes on your intended end result with a firm belief that your efforts will bring your goal.
Building Residuals
One way you receive residuals already is from the money you have in your savings account in your bank. Each month you receive1/12th of the interest rate offered by the bank. For instance, let’s say you are receiving 5%APR. Your residuals will be .05/12, or .00417 (rounded up).
Now let’s say you wanted to earn a residual of $4000 each month. This would likely be enough to allow you, if you chose, to leave your full-time job, work at home, and have time and money to do the things important to you.
But how long will it take you to build a residual monthly income of $4000 a month?
Here are two options:
- Savings account (with 5% APR): To build a residual monthly income of $4000, you’ll need to save $500 each month, without any withdrawals, for over 44 years.
- Your own business: With focused and consistent effort, you can easily build an income of $4000/mo in 4 years with Shaklee Corporation. (note: want to get there sooner? Get on the Fast Track)
It’s your choice.
Consistent work, part-time, for 4 years? Or take the easy way for 44 years?
Imagine what you can do, or where you can go, if you achieve your goals in only 4 years.
Will you still be able to enjoy these same things if you wait 44 years?
“The time will pass anyway; why not spend it making the most of your life?” - Earl Nightingale
I hope these ideas help you to teach your organization and build a team prepared for long-term success. Wishing you great success,
Shawn Madden
* There is another factor, which I will post about separately; a clearly-stated, specific, goal