Earn extra cash — the power of recurring income
By: Steve Devane
Many people want to earn extra cash. A good strategy can make it happen sooner.
People often go in with a wrong focus when they decide to do an MLM business. You often hear, "I can't sell any product unless I love it!" Actually, the truth is, you can't sell a product unless there is a market who want it. And for a professional, that is always their number one consideration.
If you're going to be successful long-term in MLM, you need to provide one or more products that people really want, and which are consumable, so they get ordered over and over and over. It's surprising how many businesses which call themselves network marketing, actually sell products which offer no month after month after month recurring income. Instead, it's a one-time sale.
The great advantage of a true MLM business is that as you build, your income is cumulative each month. That's what they call residual income. Very few people ever get to the point where they actually build residual income and then they take off for two months to go to the Galapagos Islands or something and when they come back, they have two checks waiting for them, and the second check is bigger than the first. THEN they really get an idea of recurring income, and it's pretty exciting and pretty life-changing.
A lot of people start in network marketing with the idea that they want to get in position to make a lot of money. They've heard of people earning seven figures a month. And it's true. It has happened. But it's important to understand the numbers.
A few years ago, a report was published about the accountant statements of seven well-known, publicly-traded MLM companies. The report revealed that compensation play payout to reps ranged from a low of 25 percent of gross income to a high of about 42 percent of gross income.
Think about this. You'll always have just a portion of profits to the distributor base. Let's be generous and call it 40 percent. If you have a heavy hitter at that company making $1 million a month, what does that mean? You can certainly conclude that a lot of other reps aren't getting much return for their work. If that company pays out 40 percent of the gross the fact is, the LESS that heavy hitter is paid, the MORE that the part-timers get paid. And those folks account for 95% of everybody in MLM, and they are the ones who have the dream.
People get so excited when someone gets a huge paycheck. However, it may mean you actually have LESS chance to earn a good check.
You can find these ideas, plus a lot more, in "Success in 10 Steps", a free download describing the pitfalls of MLM and how to be successful anyway. The plan described in the book is focused on how to build a strong team through long-term relationships. It's a free download, and you can use the book as part of a very inexpensive lead-generation system offered by the author, Michael Dlouhy.
The reason it has such a strong impact is that so many people want the benefits of MLM, but they've just never had the real-life success that they want. Dlouhy shows exactly why that is, and exactly what you need to do to achieve long-term success. Then you can immediately use the book yourself to build your MLM business, which is a real bonus.
You can get a copy of the classic "Success in 10 Steps" ebook at the http://michaeldlouhy.net web site.
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