Lydia, who sells real estate now, is very interested in the business. You’re sitting together after the presentation with her, her friend and your upline. She’s excited. What do you tell her?
Explain your answer in the comments.
Results so far here.
About the author
Kim I would and have said no after hearing more about how she will work the business. Here’s another way to answer, it’s not a yes or no.
When I’m asked, can I replace my current income with this in one year, I can say “I don’t know.” Here’s what you need to do to make money.
Find customers. The average customer order is $37, they pay us from $6 to $12 for each $37 order.
They also pay for reps who get more customers. Say 5% on those orders.
Now we can figure out how many customers and recruits you need to replace your income. Then you can decide if you can do that in a year.
Robin
Sure, so long you’re including (at least) one scenario whereby which she can. She needs (& deserves) to leave that conversation with a realistic view of how the numbers will need to be, in order for that income to begin to rival (or replace) her current one.
(No Leading the Blind to Slaughter!)
I would say can you “yes” will you that is a whole different point.
How much time are you willing to commit to this new business? How much money are you willing to invest to get off to a fast start?
If it is only a few hours a week and almost no money then of course not. This is a business and ALL business takes WORK and some money.
If you work this like a hobby then you will get hobby results but if you work this like a business then you will get business results.
Then I would find out how much time and money they have to put in this and we can discuss a game plan and make goals based on that.
Of course you can replace your income in a year.
Is there anyone on this list who doesn’t believe if they had 60 hours a week to devote to their network marketing business and a marketing budget of $500-1000 a month, that they could replace their income in a year?
In my case, I would need to recruit one person and a few customers every week. In a year, I’ve replaced my salary.
Of course, I don’t have 60 hours a week, so my results don’t go as fast. 🙁
Anyway, if you can’t find 10 new and 4 new distributors a month working your business full time, you’re in the wrong business.
Walter Reade (from Wisconsin)
Hmm, can she replace her income in one year? My answer is yes. Will she? I don’t know. Many people have done that and many not. So, this business has the potential to provide that for her and if she work at it she could do it.
This is not overpromising. We are not promising that she will earn 2,3 or 10 times more from what she earns right now. If she can earn an amount of income now it means that she is capable to earn that income again if she has the right opportunity in her hands and if she work at it seriously.
The conversation might go something like:
Her: “Can I replace my income in one year?”
Me: “I don’t know if you could replace your income in one year or not, but if you could do that? If you could do that like i did, would you put the time and effort? Would you be willing to learn how to do it and work consistanly on a plan that you and I would create for you, so you could feel comfortable?”
So i would tell her yes it is possible but what are YOU willing to do about that?
Sorry for my poor English.
Theodore from Greece
I responded no right off teh batt – but that was befoer I read the comments – after reading them adn thinking for a moment I like what Robin said best! That would be my response if asked now!
My answer would be yes, then with a question to her which would be do you want to? If she said yes, then I we would get a plan in place to move her in that direction.
I believe it is our reposobilty to give them a real picture of what they will need to do to make that goal happen.
“I don’t know whether you can or not…it depends…”
http://www.MyHealthyWebsite.com
Ditto on Robin and Nancy’s response.
Yes, you can replace your income in a year. It takes commitment and a road map with the end in mind. Define your goal and break it down into babysteps or one bite at a time. Know your numbers and work daily with your successful upline.
Wow,
I just checked and saw that 61% of the responders said yes.
I must be the only turkey trying to soar with all you eagles?
Does this mean that 3 out 5 people on this blog have replaced their full time incomes in one year in Network Marketing?
Lydia sells real estate. Is she a hobbyist or a pro? Did she make $3,000 last year or 1/2 mil? My first question to her, as gently as possible, would be, “Well Lydia I can’t answer that unless you give me an idea of how much you make in a year?”
I have a business associate that is very successful in most everything he does because he is driven. We were together at a business mixer and he was telling me about the incentive trip he had won with his company. He had earned over 6 figures, and he was quick to tell me how much he had spent on marketing to make it happen.
So fellow blogging eagles, (at least those 3 out of 5), are you saying it can be done because you heard about someone who did it; or because you have done it?
When you talk about replaced income, is it spendable or gross? For clarity: if your 1099 was for $25,000 in 2006, but your business expenses where $7,000(including commission qualifying expenses), you netted $18,000 that you now have to pay self-employment taxes on. So your spendable is going to be substantially lower.
In my mind, the most honest approach is:
1. How much do you have to make to replace your income, Lydia?
2. Are you going to continue your regular job while you build your new business?
3. Here is how much CV,PV,or ‘whatever’ your team has to generate in a year to earn that much commission, not considering bonuses.
4. Each widget equals $?.?? PV, CV, or ‘whatever’.
5.Can you and the team you are able to build in on year sell ????? # of widgets?
If so, I would answer yes to Lydia.
For the survey I said no, because the only big time first year earners I know personally where hardly newcomers to our industry like Lydia.
I hope you blogging eagles will teach this humble Tom Turkey how to soar like you do.
Gobble, gobble,
Tom Doiron
I would say it absolutely CAN be done, however, many people do not do it.
It takes hard work, determination and a willingness to do what’s been proven to work.
In my company, you are paid on volume, so, technically, you could sell 30,000 points/mo. (which is approx. $48,000)- 300 customers on a 100 point autoship per month. and make $10,000/mo., which is $120,000/year. If you sponsor a few people along the way, this will go quicker.
So, yes, it CAN be done but it will probably take the full year working full time to get to that amount, so in that case, it’s entirely dependent on how much time and effort Lydia is willing to put into her new business.
~Roxanne~
Roxanne,
You are the coach and the mentor. Have you read through these posts. Nearly every one is “yes…if.”
Even if Lydia puts the time and effort into her business as you say, it is still pure wishful speculation. What if she is a slow learner, what if she sucks on the phone, what if she can’t send a ledgible email???? What is she isn’t the one out of 1000 smashing successes.
It runs full circle right back to what Kim preaches. A year goes by and Lydia is way off track from replacing her income. So who takes the blame? She does. Because she didn’t do this and she didn’t do that. Oh barf. What a cop-out.
Come on you guys. Get real and stop dangling that carrot in front of the prospects nose. Under promise and over deliver, if you truly want to see a change in public sentiment toward Network Marketing.
Maybe I am not a turkey after all. Maybe I am an odd duck? Want to know why? Because I don’t ask people to do something I haven’t done or that I am not willing to do myself.
Whatever happened to the 3 to five year plan?
Quack, Quack,
Tom Doiron
Thanks to all.
If you look at the numbers for the public NM companies, from USANA to AMWAY, it’s plain that fewer than 3% earn enough each month to make their monthly purchase requirements, usually about $125/mo.
Yet 60% of our readers say, “Yes, Lydia can replace her Real estate income.” Although I didn’t way how much she was making, let’s say it’s $30,000/year, as a full time agent. Reasonable, yes?
Tom asks about the 60% who said YES on this survey, she CAN replace her income in 12 months:
“Does this mean that 3 out 5 people on this blog have replaced their full time incomes in one year in Network Marketing?”
So my question is, assuming that 3 of 5 of my readers have not attained a full time income, say $30,000/year, in their first 12 months:
Is it OK to tell someone else they can do what you have not done?
Tom,
The question Kim asked was
“What do you tell her?”
That’s the question I answered.
Sorry if it’s not what YOU would have said. I answered the question asked.
Have a wonderful day!!
~Roxanne Green~
Kim,
Yes, I FEEL THAT it’s OK to tell them they can do what you have not done as long as you provide them with exactly what it takes and LET THEM MAKE UP THEIR OWN MIND if that’s something THEY can do.
I did not have the time or the belief in myself in my first year with my company to make that much money. I was running a construction company full time and working 2 other jobs on the internet, so NO – I did NOT do it, but it is possible. That is up to Lydia to decide if she has the time to put into it once she is told exactly what she needs to do.
~Roxanne~
Kim asks: Is it OK to tell someone else they can do what you have not done?
It’s not a fair comparison.
Most of us are working part time, say 10 hours a week.
If someone can replace their income in 5 years working 10 hours a week, doesn’t it stand to reason that someone can replace their income in 1 year working 50 hours a week?
I don’t see the problem.
Of course, I would never advise someone to quit their job and bank on a network marketing opportunity, unless they’ve already build something in the past and has the skills and knows what it takes.
Anyway . . . I have an idea . . .
Maybe we should have a 2008 New School Challenge. Everyone pick a new company, and let’s see who can replace their income by the end of the year.
Anyone know of any good start-up companies? 🙂
Walter Reade (from Wisconsin)
Best case scenario – yes
If you can grow your team to a few hundred people in a few months or over a thousand in 12 months making tens of thousands of dollars a month.
Worst case scenario – no
If you didn’t do anything to make your business work for you.
Most realistic scenario – no
Even in 12 months you built a business and making a thousand or two thousand dollars of residual income, which may not be enough to replace your income.
It all depends on other things such as demand for your product, how much one puts into their business, and how quickly did they grow their business. Several factors are involved in whether or not you can replace your income in a year.
I have no direct answer to this one.
Sidney
http://www.e-dental-plus.com
My answer is a resounding “yes”. Many in my company ( including myself ) have created fulltime income returns in as little as 6 months’ time. this is with fulltime efforts which I define as 20-30 hours per week. Focus, training, support and a clear roadmap for how to achieve specific goals are all required as well as a commitment to follow through until those goals are met. This should all be pretty standard for a realtor. And one who’s only making $30,000/year can definitely see that with the company I’m working with.
Moira
http://www.myBIOPRO.com/onebrain
Moira,
You wrote,
“My answer is a resounding “yes”. Many in my company ( including myself ) have created fulltime income returns in as little as 6 months’ time. this is with fulltime efforts which I define as 20-30 hours per week.”
It is cute that your full time week is half the normal work week for most Americans, however what really intrigues me is that you have created a “fulltime income return” in as little as six months.
Could you please tell us what a “fulltime income return” is and how that compares to your annual salary (W-2, 1099, etc.).
Moira, what I am hearing you say is that you replaced your fulltime income in 520 to 780 hours. Since the standard work year is considered to be 2000 hours, you actually replaced your income in less than ½ a year.
Please help me with my skepticism, because if this is truly the case, I would like to send you hearty congratulations.
Wondering,
Tom Doiron
Eventhough my opinion is that
she CAN, I cannot answer that
question without further information.
If she makes 100-200k/year, it’ll
be more work than if she makes
30k/yr.
My caution would advise that if
that’s her goal it would probably
take ‘full time work’ (50-60hr/wk)
while going several months
without income from NM and probably
expenses for products and marketing
materials.
So I would say Yes it can be done
although I haven’t done it.
In the past and still now I make
more money from RE (investing
and syndication) than NM.
I like both for their respective
strength and diversity. I don’t
mix my clients and customers though.
To finalize my answer, I’d say
let’s start on the business for
60-90 days and see if you “Like
doing what it takes” to make
any money. Only then can you
decide if you want to
‘start or continue’ earning
money.
HAving started 23 businesses in the
last 4 1/2 years (7 NM companies)
4 RE, 9 online and 3 offline)
I’ve failed at all of them but
he 3 RE I’m running now and the
NM I figured out thanks to Kim.
I now feel I could do any NM
business but I like the products
in the one I’m in.
In RE, I realized I don’t like
doing most of the things some
of the business require,
even though they bring in
massive cash.
At least for me I cannot do
anythign “Just for the MOney”
althought that’s exactly why
I started and looked at all
of those ventures.
But maybe a core salesperson could
and that’s fine. I would probably
not be in a position to help
them though
Yves
http://www.NoPainMoGain.com
“Can I replace my income in a year?”
I’d say: “That’s certainly a good goal, but the reality is that most people don’t.”
As far as I’m concerned, Network marketing, when done right (ie, retailing product is an important part of the “system”), is a Great way for most people to put some extra money in their pockets every month.
And, if you’re either really good at it and/or slightly lucky (lol, I know I’m gonna catch some flack for that) it is possible to earn quite a bit more than just “extra” money.
But, before you up and quit your job, I’d suggest that you take a bit of time to build this part-time and see if it’s a good fit for you.
That’s my take on it.
Keep havin FuN!
TODD
There are no guarantees. It CAN be done, but I am quick to warn people I have no idea what they will make because I don’t know how hard they will work, if they will do what it takes to be successful, etc. There are way too many variables and you can never guarantee anyone that they will do what other people have done.