Start An MLM businessHow many people will it take in my team for me to earn $10,000 a month?Why would you start an MLM business and spend years building a team of 10,000 people to get $10,000 a month when you could do it with 1500 and save yourself a whole lot of work. Can there be that much difference you ask?Oh yeah. There is one online affiliate marketing MLM network that claims to be 'The most powerful opportunity on the planet!' and it takes 10,000 people to get a residual income of $10k a month. I say residual income coz you can not retire on fast start bonuses. There is another high profile company that requires each distributor to have around 10-20 customers (good) that will earn you under 1% (bad) through 7 levels to qualify for 5% on the 7th level (good, that will get you around $10K). If they become the 2nd largest in their industry (highly unlikely that they will get to 1% market share) that will allow 2 people in Australia to earn $10k/month. When you start an MLM business, make sure there are enough customers to go around. In this case, there are not. Keep in mind that most people are not looking to start an MLM business for a big income but you do need customers. So. How many? Here is how you go about it. Ask the company and some people who are close to, or currently, earning $10k/month - from residuals only - no fast start bonus. Get the raw data and work it out for yourself. Here is what you need to know.
or, straight up fact. Not the ideal
(A company may have an ideal of under 500. In the real world it will be 1500) The answer is found by dividing 1) by 2) and check it against 3), if you have it. To find out the average income to you, per distributor, divide $10k by 3) but don't get discouraged. 1) divided by 3) will give you the average BV / distributor. Now you can see what a difference some retail will make to the bottom line for everyone. After all the hype and excitement you will find this sobering. I know you want to work with your friends and it seems like a fun thing to do. The prospect of paying off your mortgage or having a holiday is attractive... But wait. We are here to start an MLM businessWe are talking about successful here. It will cost you some money. Don't waste it. It will cost you some time away from your family. Make it count. It could well be great fun. Don't hitch yourself to a falling star. Your enthusiasm should last to 100, if you have a big enough why. Or even 2000, if you have a proven marketing system. It would be a rare individual that could last to 5000 people and almost impossible to not let your enthusiasm turn to desperation before 10,000 people. If you can't get the figures above, you may not have the right company. Still, try the calculator. Have a play using the instructions below. Particularly try altering the retail sales to see what effect it has on the bottom line. Here is how to use the calculator to work it out.Find out how much BV is required to earn $10,000 a month. For now, put Zero in the Retail BV box. What is the minimum BV to earn a bonus in your comp plan? Place that in the third box. Click Calculate The result is ... Now assume that each distributor has an average of half a customer each and enter that BV in the Retail box. Why only half? Most of your distributors will be users only. Or beginners. The ideal is for each distributor to have 10 retail customers - now you can see the importance of that retail business. Have a play with itImagine if you had no retail customers, you would have to find a lot more people. They would not be making any retail. At the bottom they would not be getting any commissions and they would quit and say that it did not work. It was NOT their fault. It is the compensation plan. And you would be chasing your tail finding new people to start an MLM business and fill the gaps. Does this sound familiar? Pick a compensation plan that encourages retail, pays part timers and you get a great income for the least number of people in your group. Then, it will be worthwhile to start an MLM business. |
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