So said Lulu the other day. She’d been in the business two months, and discovered that it wasn’t quite as each as she thought it would be. She needs to learn how to do it “quick” so she can earn some money.
“So Lulu – how much do you want to make?”
“Oh, an extra $1000/mo.”
“Do you know what you need to do to earn that?”
“Not really.”
How many networkers can clearly and immdiately answer the question: What do you need to do to earn $1,000/mo?
Or ANY specific amount? $300 say?
If a person doesn’t know what to do to make a specific amount of money, how will they do it?
Is there any business but ours where most people have no idea what, specifically, to do to make income?
CHALLENGE: Tell how you might make $300/mo or $1,000/mo in your business. Assume your current position (level), and tell how to earn that income, in two sentences, without using any mumbo jumbo.
(No, it’s not duplication. Or sharing. Or calling people. Or buying leads. Or advertising. Or buying into a proven system. Or working really hard. All answers I get on conference calls when I ask that question. Those words tell no one specifically what they need to do to make $300/mo, do they?)
Hint: Say you’re applying for a job. The pay is $10/hour. You need $300. What do you have to do to make $300?
Can’t wait to see who can meet the challenge! It’s not as easy as it looks, btw. In any NM company there’s more than one way to do it.
—
The New School referral scripts for customers? – a customer book and CD program to help you. Here’s help for referrals about your business opportunity – a business opportunity CD set and cribsheet .
Spot on again Kim,
You have brought this up before and I’ll admit I still haven’t done the math… despite being thoroughly sick of hearing the same old stuff on conference calls. Lots of motivating schpiels about bottom-up and top-down recruiting but nothing substantial. No how-to’s that didn’t make me cringe.
But OK – the challenge! The first thing I’d say to Lulu is that you can’t earn money fast, no guarantees, no magic wands… then I’d suggest she listen to 100 customers in 100 days… then I’d run through all the Reaching Out Methods and find how she wants to run her business… THEN if it fits, I’d tell her what I did to earn $300 a month, and that it might work for her too.
So, what did I do to get an income boost when I needed it? In a nutshell, I had a couple of ‘party plan’ style afternoons and sold some product… and earnt the retail profit.
Howzat?
Wendy
http://www.myphotosforever.com.au
I encourage people to begin building their business with retail sales if possible.
Bringing prospects into your business requires more time to develop the relationship than to find consumers for your product.
So, I encourage finding retail customers and building relationships with everyone as you move along.
The method of finding those retail customers is as of course as varied as the personalities entering the network marketing industry. Just whatever my new business partner feels most comfortable for them is the direction we start.
Brenda Bunney
http://MLMSuccessBunney.com
brendab@brightok.net
To make $1000 a month, you will need to find 100 people who order an average of $100/month of products. You find them by very politely but positively asking people for referrals to anyone interested in what you are selling.
-Bob
NUS-Pharmanex
NM or MLM is no different than any other sales business. To make a specific income you must see people find out what problems they are having that could be solved by your products and provide the solution and close the sale. The more people you see the higher your income is going to be. If your closing ratio is 2 in 10 and you make $20 on each sale, then you must see 75 people to make $300. You better work on your sales skills to get at least a 25% closing ratio. As Elmer Wheeler would say, find a need a fill it.
Learn selling skills, it is vital to your business!
$1000?
5 parties with a low average of $500 each ($200 profit) = $1000
$2250 in total retail sales = $900 net income plus $100 bonus for having $2000 in sales = $1000
I already have 8 parties scheduled for June and expect to net WAY more than $1000 this month!
Good post! I had worked through this a couple of months ago, and it really helped me to shape my goals for that month.
Thanks for your great blog. I discovered it recently and have learned quite a bit!
Janette Reinke
PositivelyPassionate.com
I need 25 people…customers or distributors (It Doesn’t Matter) on 100 points/month to make $500/month.
Scott Bradley
http://scottgbradley.blogspot.com
To make $300 a month, you can either try to sell $1,000 in products by yourself, or simply bring in three members who each sell $250 a month. For $1,000 a month, triple this.
Hi Kim,
To make $300 in my company (at the level I am at), I have to find 6 customers who buy $100 worth of products from me each month.
To make $1,000 in my company, I would have to find 20 customers who buy $100 worth of products from me each month. Or I could have 10 customers who buy $100 worth of products and have two distributors whom I have helped train who also have 10 customers each. These distributors would be earning at the lowest profit percentage the company offers (25%).
Another variation is that I could have 15 customers and two distributors (who earn at the same profit percentage as I do) who have 25 customers each. In this example, these distributors would be earning a little more than I was – they would be earning approx. $1,250 each.
Suzanne
Most of our customers spend $40 a month. At my level, 30 customers will earn me $300 a month, and 100 customers will earn me $1,000. I can increase that, of course, with earnings on productive distributors in my downline.
Dianne
In every MLM there are variables and different ways to do the math.
Since Lulu’s question is the ‘fastest way’ to make $1,000, I would advise her to find 20 retail customers who purchase $143 of products per month. Her retail profit is 43% so 20 x $43 = $860. She would be at the 8% (of retail value) level. $143 x 20 = $2860 x 8% = $228 bonus. $860 (retail profit) + $228 (bonus) = $1088. There’s Lulu’s $1,000.
After Lulu had achieved her first goal, we would then move on to discussing the ‘variables’ in distributors, etc., etc.
Venetta
http://www.aloecare4u.blogspot.com
In my business the simplest way which may or may not be easy for any given individual is this:
Pick up the chamber listing or phone book.
Start calling people and asking for referrals. I say: ” I’m a new business owner in town and I’m calling all the chamber members to see who can help me get my first 100 customers, do you have a minute?”
When they say, “ok, what do you od?” I say:
” I market a product for people who have a hard time getting up rested in the morning. Do you know of someone who may want to know about a product like that?”
Follow kim’s script.
On our sleep patches we make $20-$30 depending if we preorder or use the company site. I jack up the price 10 bucks and haven’t noticed any lower conversion rate. So we make $30/pack/month.
I would then say to the prospect:
Well you make $30 prifit per pack. If you want to make $300 in any given week or month, you’ll need to sell 10 of them.
THen I would add:
” some people will like the product so much that they’ll call you back to reorder the next month. But most
of the time you’ll have to call them back to ask for the reorder and how it worked and you can offer them a discount if they go on an automatic reorder program.
If you do it long enough, you’ll end up getting two extra benefits:
first, peole will refer your product to others and second you’ll have enough automatic reorders to cover whatever amount you goal was in the first place.
Yves
http://www.NoPainMoGain.com
http://www.SleepStamina.com
Thanks, Kim,
It is VERY important for distributors to know WHERE the money comes from.
You would not buy a car, nor sign for a mortgage if you – or a hired professional – didn’t analyze the contract. You would be considered NUTS if you didn’t study and know the deal.
A BIG question is: WHY, in MLM, does nobody EVERY read, much less know or study, the CONTRACT. A contract that can make or break you after you put in YEARS of your life, energy, dedication into a deal.
People get all caught up in the ether of what a great product it is, or how the product is going to save the world so they NEVER study the plan to find out if they can save themselves first.
All money in MLM comes basically from product sales.
Otherwise the company is some sort of an illegal pyramid operation making money off of recruiting fees being passed around in a shell game. As in a Ponzi scheme.
In the company for which I rep, a distributor can make approximately $100 for each 300 points of products. Those 300 points can come just from the work of that 1 rep, OR from the work of that rep’s team.
So $100/week from product sales would give $300 in 3 weeks. (Our company pays weekly.)
Alternatively, the bonus for bringing in a new business building rep is $150…. so brining in 1 rep/week would give $300 in 2 weeks. Or you could bring in the 2 reps anytime you wanted and create a $300 check for yourself.
(And yes, new reps in our company get real and fairly-priced products when they join…. not just an expensive $499 plastic card or binder full of information or over-priced front-end loaded products.)
Our AVERAGE working reps make around $200/week…. and this is the AVERAGE part-time reps, not just the top-of-the-heap superstar aggressive throw-em-on-the-wall-and-see-who-sticks recruiting monsters.
So it is important for reps to understand WHERE the money is coming from in their chosen company’s plan. And HOW the money pie is divided up among the rank and file of distributors and company.
Otherwise, reps will get beaten up by breakage – of which they probably naively no nothing 🙁
Sad, but true.
Pat Crosby
Professional Network Marketer
http://NETWORKwithPAT.blogspot.com
I’m with Wendy on this one. Making money in any business is not easy and with netwrok marketing being able to make money in different ways within the same company expands our options but can look confusing at the start. We need to help fit how a person is going to make money once they decide it is with our product or service. Now how much they make is how hard they are going to work within that area. For me to make $300 each month I need to find 15 customers who will order each month. I use home parties to do that but there are many other avenues.
Thanks Wendy for saying it so well.
Nancy Carlson @NMC
perfectmombusiness.com
In my company this is based on everyone bying a US$125 pack each month. Share the product with 4 people I receive US124, which straight away basically covers my product. Then help those 4 people share the product with 4 people each, so that they can each receive their US$124 each. With only 20 people you now receive US$400 every month. You and the team help the 16 members on your second level to share the product with 4 people each. Those 16 members will each receive US$124. The 4 members yopu personally introduced will each receive US$400+ per month. With only 84 people you now receive US1950 + every month. The whole team will help the 64 members on your 3rd level to share the product with 4 people each. The income does not stop at 4 levels. We have the potential to earn up to 12% of every order that is made in your business to unlimited depth, no matter who introduces the people. There are also other streams of income that are paid weekly, monthly. While we are building the 4 step unilevel system, these other income streams are building automatically for you. With just 340 people, yopur business can generate you over US$100,ooo per year! Do the work once and get paid for life. This is actually happening, and I am staring to get the benefit, it is hard work to find the people but is is truly worth it. I get Paid to Drink Water.
Dorothy
“Well, if you want to make $1000 really fast, buy the BIG package and then all you have to do is find 4 people to also buy the BIG package.”
Just kidding! 🙂
— Walter
After my last comment, I thought I’d post something substantive. 🙂
I’m totally on board with explaining to people how they make the money. But for people who are used to thinking linearly, the idea of finding 300, 100, or even 50 customers may seem daunting. How do you get past that?
I like how “Big Al” explains it to people:
“Between you, and everybody you talk to, and everybody they talk to, and everybody they talk to forever and ever and ever . . . you will eventually accumulate about 300 people who want [insert your product benefit]. Then you will make an extra $1000 a month [or whatever the amount would be].”
I also like companies that provide average incomes per level of the comp plan. It makes it easy to say:
“If you find approximately 20 customers, you will reach Level A, and people at Level A earn on average $300 a month. If you then find a business builder like yourself who finds 20 customers, you will reach Level B, and people at Level B earn on average $1000 a month. Etc.”
— Walter Reade (from Wisconsin)
http://www.SpaBeautyAtHome.com
Walter@NMC
I’d say “Lulu I’d like to share these facts with you:
1.) In our Company the Home party appt. sales average is $200
(average party size of 4 people)
2.) The ‘one on one” appts sales average is $66 ( for some reason individual appts have a higher per person sales average)
3.) The average Customer reorders $160 a year
4.) We earn 35% of what we sell
So Lulu you can earn $300 a month in one of 3 ways:
Do 5 Home Parties a month
Do 15 “one on one” appts a month
Build and service a Customer base of 65-70 regular Clients
Ok. I signed up with Send Out Cards a half hour ago.
The simple math way is this: I need to make 3 sales to make $300+. So 3 sales a month will do it.
I have not figured out the residual aspect yet, of course. But I’m not really concerned about that. I want CUSTOMERS. I have no idea what the commission structure is yet.
But I will find out in 45 mintues when I get on another conference call with my reps.
greg cryns
Thanks all…
Greg – You wrote: “I need to make 3 sales to make $300+. So 3 sales a month will do it.”
What do those customers have to spend for you to earn $100 on each one?
There are many different plans that can be created to make a $1000 per month based on the product, demographics and specific compensation structure a company provides. I have designed many action plans over the years.The ones that seem to work the best are those that take into consideration the comfort level of the distributor involved. If it is something they believe they can do and they want to do then you are off to a great start.
If it is a product that is already in demand then it just extends the interest level of the conversation.
Let’s hear it for rich dark, healthy, Belgian chocolate.