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Network Marketing Residual Income--How To Predict When You'll Reach Your Financial Goals

Aug 17, 2007
I share this information with you from my good friend and business associate George Shears. His wisdom and insight in the network marketing business is both enlightening and inspirational. Enjoy.

One of the most attractive and important advantages of network marketing is that it can provide a superb way for people of modest financial means to generate a very comfortable and stable long-term residual income in a relatively short period of time.

At the same time, however, its main downside as an industry consists in the sobering fact that only about 5% of its members are successful in achieving this goal. The other 95% either fail completely or end up working for what some have described as "MLM minimum wages."

There are many factors that contribute to this extremely high rate of failure. One of the most important is that the vast majority of people who are attracted to this industry simply lack the necessary talent, skills and understanding that are essential to high level success.

The purpose of this article is to focus on one particular kind of understanding that can greatly increase one's probability of success in network marketing. Surprisingly, as important as it is, it's often not given much emphasis even by seasoned MLM veterans. It was only after four years in the industry, for example, that I personally became fully aware of it. When that happened, it was like having a very bright light turned on in a semi-dark room, and I was quite shocked at what suddenly became very clear to me.

My basic assumption here is that the ultimate aim in all network marketing is to achieve financial freedom by generating a stable, long-term residual income that is adequate to support the lifestyle that one desires. If this is true, an extremely important question presents itself to all network marketers: How long will it take me in the company I'm with to generate the level of passive residual income I want to have?

You can get an accurate answer to that key question by carrying out the following simple steps: (Before doing so, however, I suggest that you prepare yourself for a possible shock.)

1.What is the monthly residual income you wish to generate?
2.What is your current monthly residual income?
3.How many total members do you presently have in your organization?
4.Divide #2 by #3. This will give you the average monthly income you are currently generating per member.
5.Divide #1 by the figure you got in #4. This will give you a good estimate of the total number of members you will need to achieve your residual income goal.
6.How many months has it taken you to build the organization you now have?
7.Divide #3 by #6. This gives you the average number of members who have joined your team per month up to this point in time.
8.Divide the answer you got in #5 by the answer you got in #7. This will give you an estimate of the total number of months it will take you to reach your residual income goal.

If you've been in your company for a very short time or if you're still in the process of considering a company to join, you can ask your sponsor to provide this information; or, alternatively, you may be able to obtain it from other team members.

If you're in the process of investigating a particular company to join, you can also request the necessary data from that company to calculate the average income that is being generated per member, per month. If you encounter resistance in trying to get this data, however, you might take this as a red flag and move on to consider other companies.

When I personally carried out the above calculations for the network marketing company I was with, I was shocked to realize that I would need around 15,000 members in my organization to generate a residual income of $10,000 per month; and, further, if my team continued to grow at the same rate, it would take me about 192 years to reach my goal!

Happily, after doing a lot of due diligence, I have now joined a highly stable and respected company with a long track record of success that will allow me to reach my goal with a total of 500 members or less. What an amazing difference!

Moreover, I'm using the same 100% duplicatable and revolutionary new online business-building system that my sponsor has been using to enroll over 4 new members per month. Although it's too early for me to carry out the above calculations for myself in this new company, there's strong evidence that I'm now on a track that will get me to my goal "in this lifetime," as Kim Klaver likes to say.

George Shears is a retired psychologist, wellness consultant, and network marketer living in the northwoods of Minnesota. One of his main missions in retirement is to mentor and support other network marketers all over the world in using a new online business building system that avoids the main major pitfalls of traditional network marketing.
About the Author
Rick Jorgenson has been an online marketer for the past 10 years. He has created successful campaigns for the likes of IBM, Microsoft and DirecTV.
http://buildwealthnow.blogspot.com
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