True reason why people do not make any money in MLM.
Read on to find out the real secret behind the profession and why it is so hard.
One may ask, “I am not a fan of MLM but I do not mind it. The only question is, ‘Why does it have to be every week a meeting?”
Weekly meetings are a backbone to a successful MLM business.
MLM works on basic mathematical principles. Geometric progression over time. Your retirement planner may have told you that time will be the biggest influence in the amount you will have at retirement; so the sooner the better. Time in, that case, is measured in the amount of months needed for interest to compound. If you had a trick that you could make a months worth of compounding happen in a week would you do it? Ah ha! This is what makes The Four Year Career possible. In Network Marketing our “time” is not months compounding, it is people compounding. It is that one distributor who brings in another other. And then those two who now each bring in one more to make four. Think of going from one distributor to four as a few years passing (or by the rule of 72 depending on the interest rate this simple first step could have taken over 10 years in your retirement account) Now, I told you in MLM we can control the rate of those turnovers or the “time”. One way that is done is by a weekly meeting.
Basic geometric progression turns a penny into 5 million.
There are 52 weeks in the year. Counting holiday weeks, vacations and some other weeks that business does not get done, lets say there are 30 working weeks in the year. So you have a MLM that you want to grow to a million dollar organization. Geometric progression will make that possible in a year and weekly meetings are the catalyst for bringing people into the business. This progression is not going to work perfectly in real life but for the purposes of the example let’s say it does. Just to compare it equally to the next scenario. In this graph where it says Day 1, Day 2… etc. Lets make that week 1, week 2…etc. Each week is a weekly meting where the person brings a new person with them into the business. The compounding, the “time” or the turnover is what drives the final dollar amount. You can see that missing a few “meetings” even as little as three would result in a miss to the targeted million dollars. This is the work in Network Marketing. This is what makes it possible for organizations to grow. Fortunately or unfortunately the timing is not fixed, such as month intervals in your retirement account but rather it just depends on the work the distributors want to put into it and how fast they want to build.
<h3> Lets look at this same scenario with every other week meetings<h3>
Assuming that business only progresses in a meeting for the purpose of this example, which may very well be close to the truth, lets look at what the chart looks like if we are not as diligent.
Same 30 weeks the only difference is every other week we did not hold a meeting. So the work in Network Marketing was not taking place. We did not lose anybody, as you can see in the chart from Day 1 to Day 2 it stayed the same or Day 11 to Day 12 it stayed the same; but the geometric growth was halved and it resulted in a major different at the end of the year. You are looking at $163 compared to over $5 million. That is a HUGE difference. For the purposes of this example we assumed the growth would happen perfectly which it does not and we assumed that there was no attrition, which in real life there is. Especially in the second example where distributors are in it for a year and only finish with $163 in there organization. Imagine if we took this same scenario and applied it to a monthly meeting, which is even less. Even if your were consistent for four years it would nearly be impossible to keep up with the attrition rate because there is no way that many people will stay with you for those four long, dragging years of starvation with out making any money. Does that answer the question?
Why weekly meetings in MLM?
So it is not MLM itself that is off or does not work, it is the people who do not work fast enough or long enough to allow the geometric progression to take affect. Its the reason why they say,
Go into something expecting a million dollar organization and after a year only looking at a whopping $163. Must be a scam right? Because anything slightly legitimate would have gotten you closer to your goal.
Today’s reason to Join an MLM… You are the difference. Now you know this information. You know what it takes. You know that the difference between a few hundred dollars and a few million dollars is a weekly meeting compared to a monthly, You know when you friends say, “Why work so hard when you are halfway through it on week 16 and only at $300?” But if you keep on that same path, you pass a million by the end of it. You know those facts and understand how that works and you are willing to work through till the end until you reach your goals. Now you know, it is not MLM that is flawed, it is not the company, or the product but it is simply your ability to make duplication and geometric progression work in your organization.
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