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

(c) By George Shears

October, 2004

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Summary: The single most important goal for most network marketers is to achieve a high level, stable residual income that will enable them to have the lifestyle they want without having to trade hours for dollars. Amazingly, however, even seasoned veterans in this industry can get so caught up in their dreams of success that they never realistically assess how long it will take them to achieve their goal. This article provides a simple and easy to fill in this common blind spot.

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Financial Freedom--The Ultimate Goal

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.

How To Predict When Your Ship Will Come In

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.

If you have questions or want to know more, please go to my webpage:

http://yodaspal.googlepages.com/myp

You can also contact me at:


651-204-0523
gshears@hcctel.net

First of all, I'd like to provide an introduction to the the Pay It Forward 4 Profits business building system. I published the following article recently to serve that purpose.

The Funded Sponsoring Franchise System--A Revolutionary New Approach to Network Marketing

(c) By George Shears - Sept., 2006

A revolutionary new approach is now available in network marketing. It provides a way to build ANY network marketing business entirely online and can be duplicated 100% by anyone who uses it. Not only does it eliminate all of the major causes for failure in traditional network marketing, but it has additional advantages besides.

First of all, it turns traditional network marketing upside down by eliminating ALL personal promotion, recruiting and selling. This saves a huge amount of wasted time and money that network marketers typically spend in working with vast numbers of highly unqualified prospects.

Network marketers using this system have personal contact with prospects only AFTER they have already enrolled into their business building system. This means that these prospects have already demonstrated that they are serious. This shifts the primary role of the business builder from personal recruiting, promoting, and selling to providing guidance, support, and mentoring. This is a far more satisfying role for the vast majority of network marketers.

Secondly, the prospects that enroll in the system generate income for the network marketer by enrolling in the highly attractive affiliate programs that it incorporates. All of these programs are designed to become quickly profitable. They provide quick financial benefits both to the enrollee and to the network marketer operating the system, whether or not the enrollee decides to join the marketer's primary business opportunity.

The system is specifically designed, however, to guide business opportunity seekers into recognizing the key importance of a primary network marketing business for building long-term residual income. It also guides them into considering the particular primary business of the person whose system they've enrolled in.

Once the system has provided comprehensive education about network marketing in general and the importance of a carefully-chosen primary network marketing business in particular, many of them will naturally opt in to the primary business of their sponsor.

So, once again, the business-builder who is utilizing this system waits for these prospects to approach him/her, instead of trying to recruit them actively.

But it gets still better. Not only is this Funded Sponsoring system very attractive to new business opportunity seekers, it has equal or greater appeal to the vast numbers of other network marketers who are struggling and/or failing using the traditional approach.

Further, since it is international in scope, its potential market is absolutely huge.

If you'd like to learn more about this exciting and highly refreshing new way to build a network marketing business, I invite you to go to my website shown below.

http://yodaspal.googlepages.com

Welcome to my blogsite. My name is George Shears. I'm a retired psychologist, wellness consultant, and network marketer living in the remote northwoods of Minnesota.

My main mission in retirement is to promote wellness and prosperity through network marketing. Having spent a long and fulfilling career in helping people as a psychotherapist, I'm now strongly dedicated to mentoring others in developing their full potential through my network marketing business.

Along with Zig Ziglar, I've learned repeatedly that the more I'm able to help others get what they want, the more I'm able to get what I want.

Accordingly, I've chosen to build my network marketing business with a revolutionary new online system that is based on this same basic premise. It's called Pay It Forward 4 Profits (PIF4P).

The main purpose of this blog is twofold: 1) To introduce network marketers to the multiple advantages of PIF4P over the traditional network marketing model; and 2) to provide a collection of high quality articles on network marketing that are relevant to building a business with this system.

George Shears

651-204-0523

gshears@hcctel.net

http://yodaspal.googlepages.com