Really Kim, can I make $10,000/mo in my company?

A reader wrote last night, “Kim, tell me in confidence, can I really make $10,000 in my company?”

I wrote back: “Yes, of course. Someone can make $10,000 a month in probably any NM company.”

(Whaaaa???!!!)

Yes of course someone can. You just need to know what to do, so you can tell someone who asks. Here’s how.

NM companies pay kind of like real estate. The sales agent gets a percent of the selling price of the house.

Lulu sells a house for $100,000. The sales commission is 7%. She gets $7,000 (before splits with the house or other agents). The owner of the home (forgetting other closing costs) gets what’s left – $93,000.

Lulu sells a bigger home for $500,000. Her 7% commission is now $35,000. Lulu likes working on commission, and finds a NM company.

She sees that NM companies work like real estate. Only NM companies sell products or services, not houses. And they sell them to her, a distributor, not to the general public.

With NM though, she sees she gets paid on her efforts AND the efforts of others she brings in. She likes that a lot.

Her NM company, on average, pays her 5-10% on all the money she and her group of other sales reps bring in to the company – just like real estate. (5-10% is the average percent paid to a rep in about any NM company, regardless of the type of pay plan.)

The more money she and her team bring them, more she earns.

So here’s how Lulu can make $10,000 per month. (Assume she earns 10% of all the orders she and her gang bring into the company.

To earn $10,000/mo, Lulu’s group needs to bring in $100,000 worth of orders/mo.

To earn $5,000/mo, the group needs to bring in $50,000/mo.

To earn $1,000/mo, the group needs to bring in $10,000/mo

For $500/mo the group needs to bring in $5,000/mo.

(The overall commission and bonus numbers actually average closer to 7% of the orders you bring to the company, but you get the idea.)

So yes, of course Lulu can earn $10,000 a month! All she has to do is see to it that her organization brings in $100,000 in orders to her company each month and it’s done.

UPDATE: The 7% average NM company distributor payout assumes a person has an organization of reps 5-10 levels or more deep, and they they’re being paid on those levels of activity. It’s less from the downline because the reps are presumably doing less to earn the income that’s 7 or 8 levels deep.

HOWEVER, some companies have strong customer-based pay plans, where a rep can earn 10-30% on repeat customers that they’ve personally sponsored. Several companies I know of pay reps 20-30% on repeat customers like this. Even without reps.

Say you bring in 1,000 repeat customers who spend $37/mo, and you earn $10/on each one. That would also earn you $10,000/mo (1,000 customers @$10/ea to you).

Or if a company pays out 10%, then on a $100/mo customer order (also $10/ea to you) you could also earn $10,000/mo. You’d have to get 1,000 customers paying in $100/mo for their product.

With the traditional recruiter-based model there is more money up front, because the one-time orders are bigger than for a customer. But with the customer income I’ve described, the percents paid out in some companies are much bigger, and customers tend to have much less drop out than reps.

So find out what the company pays you most for, and see if that’s the activity you enjoy most. Most companies are pretty different.