Are you getting paid what you're worth?
If you believe in the linear income model of "trade your time
directly for money," no matter how much you earn per hour, day,
week, month, or year, your earnings will always be limited by the
number of hours you're willing or able to work.
There is a better way!
Unfortunately we've been conditioned since birth to believe that
getting a conventional education and finding a job or career is
the only pathway to success. But, you don't have to look far
today to find many sad examples that disprove that theory. "Job
Security" is a thing of the past and after decades of sincere
effort, many more people retire near the poverty level than
retire "financially independent."
As Napoleon Hill said in "Think and Grow Rich," - the most
powerful personal development book I've ever read - "If you can
conceive it, you can achieve it." (I'd be happy to gift anyone
with an email address an online version of that masterpiece. Just
contact me and ask for it.)
Very few people understand that the business model for network
marketing offers almost unlimited potential for anyone willing to
learn and apply a few critical strategies that are the keys to
success. Because of these "3 Millionaire Secrets," some people
on my team have created streams of ongoing passive recurring
income of $5,000 - $10,000 per week - in less than 2 years! Many
others are delighted with monthly incomes in that range.
The important point to appreciate is this: They could all walk
away today and go travel the world, lay on a beach, or retire to
a deserted island, and their income will still be coming to them
10 years from now. That's financial security! And when they
pass away, it will be there as an ongoing legacy to pass on to
their children's children, other loved ones, or their favorite
charity.
Is YOUR current financial plan doing as well?
If you're serious about LONG TERM significant income or financial
security, it's critically important to understand the MLM
business model. Then you have to know how to pick the RIGHT
company and the RIGHT compensation plan. But, MLM compensation
plans can be complicated and confusing. Very few distributors or
home-based entrepreneurs truly understand them, so they end up
working for peanuts. If you're not an elephant, don't settle for
peanuts.
Below are THREE SIMPLE KEYS to understanding really GREAT
compensation plans.
All compensation plans have some pros and cons, and we all have
our favorites. Different personalities are attracted to
different plans. And, depending on your personality type, some
plans will be impossible for YOU to be successful with. But
that's another article. If you have an interest, just ask me for
more information on the "Four Colors to Success."
With the RIGHT company and compensation plan you do NOT have to
be a "super-recruiter" to create lifelong financial security.
All you have to do is learn and apply a few simple secrets. Then
just teach one other person like you who is willing to do the
same. Repeat this simple process a few times and watch the magic
begin!
The BOTTOM LINE with comp plans should always be, "What kind of
LONG TERM RESULTS will it produce for ME?" - not for the company.
Many comp plans are deliberately designed to produce good results
primarily for the company and a few "heavy hitters" at the top,
not for the rank and file distributors.
Answering THREE SIMPLE QUESTIONS below is the best way to simply
and accurately evaluate or compare ANY comp plan. Many companies
may do well in one area. But the important KEY is to...
Find a company that does well in ALL THREE AREAS!
1) How many customers does it take (in your ENTIRE organization)
to make "X" dollars/month - every month - whether you work or
not?
We're talking about PASSIVE, RECURRING, ONGOING, RESIDUAL INCOME
here folks, not "trade your time directly for money" or "make a
quick one-time commission from a sale." Understanding and
applying this important principle is one of the "3 Millionaire
Secrets" that allows you to spend your TIME doing whatever is
important to you.
You have to fill in the "X" dollar amount above that is important
or realistic FOR YOU. It could be only $500 or $1,000? But,
using $10,000 as an example, there are great companies where you
can earn $10,000/mo. with less than 400 people in your entire
group. There are others where you need 1000 - 2000 - 5000 or
more!
Using COMMON SENSE, if you understood this and everything else
was equal, which would YOU choose?
Can you see how there could be HUGE difference in the EFFORT or
TIME it may require for YOU and other members of your TEAM to
reach a given dollar amount of income? But, most distributors
have never stopped to calculate this important number.
2) What percentage do you make on your own personal customer
purchases?
Customers are the lifeblood of any legitimate business. Many
shortsighted or "pseudo" network marketing companies and
distributors ignore this crucial UNIVERSAL TRUTH and focus only
on recruiting more distributors. That business model will
eventually "crash & burn" every time.
With the RIGHT company and compensation plan, some people who
aren't interested in building a large organization, or aren't
good at it, can still make a decent income just gathering
customers. But the company has to reward everyone fairly and
offer incentives for customer acquisition.
Eliminating the unethical and usually illegal "money games" from
this comparison, the best compensation plans with legitimate
companies pay as much as 40-50% commissions on individual
customer purchases - and still offer great value to their
customers. Others may pay LESS than 10 - 20%, and do not offer
any better value to the customer.
If you're wondering how this is possible, I'd be happy to explain
it. Please contact me directly and I can send you information or
point you to a website about successful "forward-thinking" and
"streamlined" business models.
Again, can you see how a difference in just this one area can
have a HUGE IMPACT on YOUR profit potential? But once again, few
distributors factor this important element into their decision-
making process.
3) What percentage of TOTAL VOLUME in your entire organization
will you be paid?
In other words, if you added up all the products purchased by the
people you introduced, and the people they introduced, and the
people they introduced, ad infinitum, what would YOUR PERCENTAGE
of that TOTAL VOLUME be in commissions?
Have you ever calculated this number for your current or previous
favorite company? It may be a shocker!
Some VERY good plans may pay in the 10 -15% range. Some good
ones may pay in the 5 -10% range. Some of the really bad ones
pay a lot less. In some compensation plans much of the volume
you SHOULD get paid on ends up outside your "pay leg."
Where does it go? It usually flows to the company through
something called "breakage." Of course, every company has a
"sales pitch" explaining why their comp plan is so great. Using
common sense and answering the 3 questions above will separate
the wheat from the chaff.
The three numbers above are easy to calculate once you've started
building in a company. But they're not always easy to get
beforehand. Many distributors have no clue how important this
simple information is and may have never given it much thought.
Others may not be anxious to share the truth, and some may
selectively skew their numbers to help "get you into their deal."
Can you see how knowing this information before you "marry" a
company, could have a HUGE impact on YOUR personal profit
potential and your happiness in that "marriage?"
Unfortunately, most distributors make emotional decisions to get
involved with a company based on all the wrong reasons, instead
of objective analysis of important facts. Once a decision has
been made, most people find ways to rationalize it rather than
objectively consider the possibility they may have made a poor
choice. If you're an elephant it's easier to accept peanuts and
fairy tales from your trainers than to risk stepping out of your
comfort zone to see what's outside your cage.
There are several critical factors that go into making good
business decisions. Great products are important, but they're not
the only things. The fact that your best friend is involved, or
that the company has some celebrity endorsement, rarely has
anything to do with making the best choice about YOUR future
financial security.
Do your best to answer ALL THREE questions above before you join
ANY company. If you are in a company already, run ALL THREE
NUMBERS ABOVE for yourself. It may be GOOD NEWS or it may be
BAD? But, you need to know the truth. Potential partners who
are smart will be asking those hard questions. Your HONEST
answers WILL impact your business and your level of LONG TERM
success.
Although compensation plans are very important, they are only one
of the "5 Pillars to Success." If you have an interest in living
your dreams or achieving uncommon lifelong success, I'll be happy
to freely share important information on ALL "5 Pillars." All
you have to do is ask.
Wishing you lifelong... Good Health, Wealth, Financial Security,
Happiness, and FREEDOM.
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Copyright Mar. 2006 by Michael K. Duffey - All rights reserved.
No part of this may be copied or used IN ANY FORM, without the
express WRITTEN consent of the author.
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