In order to generate stable long-term residual income in ANY network marketing company, it must meet 7 critical criteria.
Network Marketing Residual Income--How To Predict When You'll Reach Your Financial Goals
(c) George Shears - October, 2006
Summary:
The single most important goal for most network marketers is to achieve a high level, stable residual income that will enable them to have the lifestyle they want without having to trade hours for dollars. Amazingly, however, even seasoned veterans in this industry can get so caught up in their dreams of success that they never realistically assess how long it will take them to achieve their goal. This article provides a simple and easy way to fill in this common blind spot.------------------------------------
One of the most attractive and important advantages of network marketing is that it can provide a superb way for people of modest financial means to generate a very comfortable and stable long-term residual income in a relatively short period of time.
At the same time, however, its main downside as an industry consists in the sobering fact that only about 5% of its members are successful in achieving this goal. The other 95% either fail completely or end up working for what some have described as "MLM minimum wages."
There are many factors that contribute to this extremely high rate of failure. One of the most important is that the vast majority of people who are attracted to this industry simply lack the necessary talent, skills and understanding that are essential to high level success.
The purpose of this article is to focus on one particular kind of understanding that can greatly increase one's probability of success in network marketing. Surprisingly, as important as it is, it's often not given much emphasis even by seasoned MLM veterans. It was only after four years in the industry, for example, that I personally became fully aware of it. When that happened, it was like having a very bright light turned on in a semi-dark room, and I was quite shocked at what suddenly became very clear to me.
My basic assumption here is that the ultimate aim in all network marketing is to achieve financial freedom by generating a stable, long-term residual income that is adequate to support the lifestyle that one desires. If this is true, an extremely important question presents itself to all network marketers: How long will it take me in the company I'm with to generate the level of passive residual income I want to have?
You can get an accurate answer to that key question by carrying out the following simple steps: (Before doing so, however, I suggest that you prepare yourself for a possible shock.)
1. What is the monthly residual income you wish to generate?
2. What is your current monthly residual income?
3. How many total members do you presently have in your organization?
4. Divide #2 by #3. This will give you the average monthly income you are currently generating per member.
5. Divide #1 by the figure you got in #4. This will give you a good estimate of the total number of members you will need to achieve your residual income goal.
6. How many months has it taken you to build the organization you now have?
7. Divide #3 by #6. This gives you the average number of members who have joined your team per month up to this point in time.
8. Divide the answer you got in #5 by the answer you got in #7. This will give you an estimate of the total number of months it will take you to reach your residual income goal.
If you've been in your company for a very short time or if you're still in the process of considering a company to join, you can ask your sponsor to provide this information; or, alternatively, you may be able to obtain it from other team members.
If you're in the process of investigating a particular company to join, you can also request the necessary data from that company to calculate the average income that is being generated per member, per month. If you encounter resistance in trying to get this data, however, you might take this as a red flag and move on to consider other companies.
When I personally carried out the above calculations for the network marketing company I was with, I was shocked to realize that I would need around 15,000 members in my organization to generate a residual income of $10,000 per month; and, further, if my team continued to grow at the same rate, it would take me about 192 years to reach my goal!
Happily, after doing a lot of due diligence, I have now joined a highly stable and respected company with a long track record of success that will allow me to reach my goal with a total of 500 members or less. What an amazing difference!
Moreover, I'm using the same 100% duplicatable and revolutionary new online business-building system that my sponsor has been using to enroll over 4 new members per month. Although it's too early for me to carry out the above calculations for myself in this new company, there's strong evidence that I'm now on a track that will definitely get me to my goal "in this lifetime," as Kim Klaver likes to say.
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Note: The information in this article provides ONE highly important objective means of evaluating ANY network marketing company. There are, however, a number of OTHER critical objective criteria that define ALL really outstanding network marketing companies. If you're interested in knowing what they are, here's an excellent free resource:
http://gshears.masteringyourprimary.com
After much due diligence in utilizing all of these criteria, I picked a company that meets all of them WITH FLYING COLORS. Just in case you're interested in checking it out, here's an excellent presentation:
Advanced Mentoring Team Presentation
(Please be patient, because this video may take a while to load.)
You can also contact me at:
George Shears
651-204-0523
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Here's another of my articles that be of interest to you if you'd like to reach your financial goal as fast as possible. It describes a revolutionary new alternative to traditional network marketing that many thousands of network marketers are now using to build their businesses with lightning speed:
The Major Pitfalls of Traditional Network Marketing And How To Avoid Them Through A New Funded Sponsoring Franchise Approach
(c) George Shears - September, 2006
Although Network Marketing as an industry has been highly successful and continues to grow at an ever-accelerating rate, it continues to be plagued by at least three very major pitfalls:
1. A large majority of network marketers have very limited success in duplicating the recommended marketing plan of their company and/or leaders.
2. The main reasons for this is that they lack the necessary personal skills required for effective recruitment of new distributors and also tend to spend inordinate amounts of time in trying to recruit highly unqualified and resistive prospects.
3. This commonly leads to much frustration and discouragement and is the basis for one of the most common problems with network marketing--namely, the very high drop-out rate for distributors. For most companies, this is 75% or higher. Further, this high level of failure contributes significantly to the the negative bias against network marketing that is still prevalent in this country.
Fortunately, a brand new approach to network marketing has now been introduced that offers a very effective way to avoid all three of these pitfalls. Even better, it provides a number of additional advantages. It's generally known as the Funded Sponsoring Franchise System (FSFS).
An FSFS can be defined as a highly integrated and duplicatible internet marketing system that is generically designed to promote the building of a primary network marketing business of one's choice, completely on the internet. It includes a very detailed, step-by-step plan for carrying out a wide variety of specific internet advertising and promotional activities that can be implemented by anyone using the system.
Another unique feature that it incorporates is the option of participating in a number of affiliate businesses, each of which has been carefully selected as having the potential to generate an additional stream of income very quickly. These affiliates are also designed to work together synergistically to this end. The overall business plan recommends that a portion of this additional income then be reinvested in further online promotion and advertising in order to accelerate the development of one's primary business.
Here are some of the most important advantages of this ingenious new system and how they provide effective remedies for the main pitfalls of traditional network marketing that have been outlined above:
1) It completely eliminates the need for personal face-to-face recruitment and promotion, relying completely, instead, on internet advertising and promotion. Not only does this save massive amounts of time that is commonly spent trying to recruit poorly qualified or non-qualified prospects, it also removes the high degree of frustration and discouragement that such activity often entails for many or most distributors using the traditional approach.
2) Similarly, it eliminates the need of the business builder to generate a high level of excitement in prospects and to instill their trust. In this system, by the time that most prospects initiate contact with the person operating the system, they already have generated a significant level of interest and excitement and, typically, are intrinsically motivated to learn more. Knowing as they do that the system, all by itself, successfully recruited them, they tend to have considerable confidence in it and want to learn how to utilize it themselves.
3) Since recruitment and promotion depend entirely on the system itself, which is identical for everyone using it, it levels the playing field markedly. For example, an individual distributor's success level no longer depends so crucially on his/her interpersonal and selling skills. Although there is still much to learn in order to apply this system optimally, this skill training is generally much less challenging what is required in traditional network marketing. It basically entails learning how to apply the very specific business plan, and how to utilize a wide variety of internet tools and resources effectively.
4) Since all distributors apply an identical business-building system, an FSFS has a very high level of intrinsic duplicatibility. It's an example of a highly standardized system that comes complete with very specific operating instructions. Anyone who applies these instructions is likely to get the same general results. The amount of motivation and time spent in applying them, of course, will vary from person to person, as is true likewise in the traditional approach. So results will vary accordingly on this basis among different distributors
5) Network marketers who use an FSFS have two powerful forms of leverage. The first of these consists in their team of highly motivated distributors who use the same system. Secondly is the leverage that derives from the system itself.
6) With an FSFS, the business builder invests time and effort ONLY with team members who have already demonstrated a high degree of initiative, motivation and commitment by enrolling in the system and in one or more of the affiliates it includes. This results in much less waste of time and energy with prospects and team members who are unqualified.
7) An FSFS has appeal not only to business opportunity seekers, but equally to many people who are already established in a network marketing business. Since the network marketing industry is currently filled with many failing or struggling marketers who have not been able to develop duplication in their downline, many of them are highly receptive to a system that offers a powerful way to overcome this problem. Not uncommonly, many of these frustrated business builders will enroll in such a system, when they understand it fully, and will bring in their entire team with them. Needless to say, this possibility offers a lucrative business-building method that is completely unavailable in traditional network marketing.
8) Last but not least, if this new approach continues to grow at its present very rapid rate, anyone who has the vision to start utilizing it now will be positioned to become a major leader in the overall network marketing industry.
Pay It Forward 4 Profits is the current leader in the Funded Sponsoring Franchise approach to network marketing. It offers a superb online business-building system that can be used to build ANY network marketing business super fast. It eliminates ALL personal promotion, recruiting and selling.