When starting a new job you want to know how much money you will be making. So why wouldn’t you want to know how many people you need in your downline to make the amount of money you want to make a month? Here’s what my mentor Michael has to say about that:

How Many Recruits & Customers Do You Need To Earn The Income You Want?

How can you set an income goal when you have no idea how many people you need on your team?

I ask people that question all the time, and most of the time, I get a blank look. They don’t have a clue. They’ve never figured it out.

But the fact is, every income goal set by any rep with any company requires a certain number of recruits. What is that number in YOUR company?

If you don’t know the answer, you don’t have a prayer of achieving any income goal.

I asked a guy this question recently, and he said, “Oh, I need 5,000 people to make $10,000 a month.”

I told him that was a very quick answer. How did he know it?

“Well, we make a dollar a bottle. And everybody goes on a 2-bottle autoship, so I’ll need 5,000 people to make $10,000 a month.

How does this play in the REAL world? First of all, 5,000 people … you KNOW not everybody will be on 2 bottles of autoship. Not everybody will be on autoship at all. So you’ll need way more than 5,000 people in the plan. How realistic is that?

But you’ve got to know those numbers.

Lots of people set income goals, but there’s no reality to it, because they don’t go that next step to figure out exactly how many people it will take in their organization to meet those goals.

They don’t know if they need 1,000, 2,000, 5,000, 10,000, 100,000 … they just don’t know. Once you know the formula, you can apply it to any goal you want. You can have a $1,000 a week goal or a $5,000 a week goal. You just need to understand what type of group you want to build.

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Some companies change the amount of product you have to buy to get your commissions. This is mainly so they can make more money. Instead of making it so they get more distributors they increase the price of the product or the amount you must buy.

You Don’t Produce More Milk By Squeezing Harder

Network marketing companies are like a dairy farm. If you needed more milk, would you squeeze harder, or would you get more dairy cows?

Companies call it “raising the bar.” Suddenly, distributors have to buy MORE product to qualify for commissions. So the company forces the distributors to pay for the new $28 Million Home Office. Or the 100 new operators in the Call Center.

Companies that charge reps $19.95 or $29.95 or $39.95 a month for the website to look at their downline genaeology … THAT stuff should be free.

That $20 or $30 or $40 a month is virtually 100% profit to the network marketing company. They want to increase their bottom line. But instead of getting more cows, they squeeze harder.

More Squeezing

Companies that change compensation plans are squeezing harder. They know their reps have built to maximize rep income from the current comp plan. So a totally different comp plan will ALWAYS throw a monkey wrench into the rep’s design and increase the income to the company.

Companies that want more milk start changing comp plans, they charge for more Back Office doohickeys, they force you to order more product to qualify for commissions.

Or they do the RIGHT thing, and get more cows.

Which way does YOUR company play it?

Do you know who the people are that are the head of your network marketing company? What kind of experience do they have? What did they do before they started your company? This is the number one thing you should know before you join any company if you expect to have a company that’s going to pay you in the future.

If Your Company Leadership Is Bad, You’re a Goner!”

Before you join a network marketing company, be sure to check the background of the company leadership to make sure they have MLM experience, with integrity. A simple Google search will often surprise you.

Not doing this background check is a common mistake, often fatal to your business. When the management team has built a downline themselves, they respect you. Companies are nothing without us – the reps. If they could sell their products themselves, they’d just put some magical ad on the internet somewhere and people would come to buy in droves.

But it does not happen.

Why? Because it takes you and me to build the relationships with the prospects, so they buy from us.

And how do you know if your company leadership has integrity? Simple. Read their company Policies & Procedures. Then you will know.

99.9% of the people you talk to want to build a business and then retire and enjoy the fruits of their labor.

But these companies have come in the backdoor like snakes in the night. They’ve changed their Policies & Procedures, adding phrases like “ongoing sales”, “ongoing recruiting,” “continuous”, “regular meetings.” You cannot retire – even though they’ve promoted early retirement as one of the main benefits of their business! It’s amazing.

If you retire, they can legally terminate you!

Does that show any integrity? Does that show any respect for the reps who built the company, who brought the business to them? Absolutely not.

Your Policies & Procedures are THE contract between you & your company. They are written by the company lawyers. You’d better know for certain what YOUR P&Ps say.

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The business model of a company has a great deal to do with whether you can make money with a company or not. Most people don’t take this into consideration when choosing a company to join.

Marketing Principle #1 Is Critical”

Business models drive the behavior in the field. You cannot change the model. You can only work with it.

Some companies have a business model of very high-priced products which could never be sold to the public on product merit alone. The only way they can be sold is as a money-making opportunity. THAT business model creates an atmosphere of “recruit, recruit, recruit.” And you’re setting yourself up for massive failure.

Think about this. Marketing Principle #1 anywhere in the world is that a business sells products or services for a profit. If your business can’t do that, and you only earn profits by recruiting people … who recruit people who recruit people who recruit people … THAT is not normal! THAT is absolutely not sound marketing. THAT will end up getting the attention of the feds.

Companies that only recruit instead of retailing products or services usually have a very good reason. Which is, their products or services are way over-priced, so no one could ever actually sell them. Don’t put yourself at that competitive disadvantage.

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You see it everyday Great New Opportunity Get in On The Ground Floor. So why is this not a good idea? Do you want to spend your time with something that might not be around very long? Here’s what Michael says about these!

“Prelaunch! Ground Floor Opportunity!”

Some people seem to be forever joining the next ground floor opportunity. And the next and the next and the next … alluvasudden, somebody who made some money sometime a long time ago … this one is so good, they came out of retirement for it!

The Blue personality type is especially susceptible to this. (I know – I’m a Blue!) You’re looking for excitement, and what could be more exciting than something new? So you just jump, jump, jump, and you’re never in one place long enough to ever build anything.

Unless you own the Fountain of Youth, you’re going to get older, just like the rest of us. The worst words to hear in network marketing are: “ground floor opportunity”. Over 90% of the companies that get started, don’t make it 2 years. And most of the rest are gone after 5 years.

Your chances aren’t much worse playing the lottery.

It’s important to choose a company that has proven it will be around long-term. Pre-launch deals don’t qualify. Only a very small percentage of them will last even 2 years.

Your benchmark should be at least 2 years. It takes that long to knock the cobwebs out of it. It takes 2 years to get their ducks in a row, to get their campaigns together, to get everything approved in different countries, to get warehouses built, and all that stuff.

They’ve already survived a lot of the normal growing pains. They have much better long-term prospects than any “pre-launch”.Make them prove themselves by being around 2 years before you commit your time & money to that business.

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Do you know that you have been network marketing since you were really little? You have been telling your parents what to buy you and you have been recommending things to others. But your weren’t getting paid for it.

A network marketing business is just getting paid to recommend products to people. You join a company which has products that other people want and use and then you recommend those products to others.

And the way you build your business is find other people that want to do the same thing. It’s just that simple. I think people try to make it too hard when it is a very simple thing to do.

What other business can you do that is so easy yet can make you a lot of money? Want to know more? Contact me.