Network Marketing Success - The Logical Approach


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Success as distributor is not subject to interpretations
In network marketing – like any other business – there is no way you make money instantly and without effort. Like any other line of business it’s a job, and like any other job you should take it seriously and professionally in order to succeed.

If in any other job, personal success is usually a vague concept, since an employee production and contribution (success) is hard to translate into money terms, success as a distributor is quantifiable. It can not be argued or be subject to interpretations. To put it plainly, the size of your success is the size of the pay cheque received from your company.

Success = Company's cheque

The secret of success
Everyone is looking for the secret of success, or the magic formula. After surfing the Internet for a while, you can find many articles explaining how you can succeed in network marketing. Every article reflects certain aspect relating to the writer's own point of view and experience. Beyond work methods and tactics, let us examine success in a logical – I would say “mathematical" - method. For our discussion, let us expand the simplified first equation into 3 equations:

1. Success = Company's cheque
2. Company's cheque = Sales
3. Sales = Organization size

Let us now analyze each of these equations:

Success = Company's cheque
The compensation we receive from the company is the ultimate yardstick of our success. This is the bottom line. All our activities, time, actions, investments and thoughts are channeled to reach the highest possible bottom line. Although there are other side benefits or issues we may derive in the process - such as health, personal satisfaction, sense of belonging and accomplishment, friendship - at the end of the day, the size our success is measured by the size of the cheque we receive.

Company's cheque = Sales
At the end of the chain there are customers who buy the company's products. The company's turnover is the sum of all these sales. A percentage of this turnover is used to pay the company's sales force – the distributors. This motivational system of remuneration is called the “Compensation Plan".

Sales = Organization size
Our compensation (commission) as distributors is derived from the overall sales of our organization. Statistically, if we take the company's turnover and divide it to the number of distributors in the company, we will receive a figure which represents the average sales volume in $ of a single distributor. According to the company's specific compensation plan, we receive a percentage of this figure out of each sale made in our organization.

It becomes clear now, that our measurable success is determined exclusively by the number of distributors in our organization. Or, in a single equation Success = Organization size

So, how do we build a big organization?
This is the million dollar question which, has been discussed in many articles before, has been the topics of numerous conventions…. and many people make a good living of.

Let me give you my answer in one word: Slowly!

Bill Gates has been once asked what is the secret of his success. His answer was: “First: I was at the right place in the right time. Second: I had a vision, and third: I worked very hard to accomplish my vision" If we “translate" his “formula" to network marketing terms we could say the following:

To be at the right place in the right time: When you get a “no" from a prospect, you do not always know what the reasons behind the rejection are. I prefer to look at this “no" as “not now". A blunt refusal, as final as it may sound at the time, may change or even reverse and become a “yes" subject to the prospect's specific circumstances. How many of us have experienced such a situation? In other words: you never know when the “penny drops". Be patience, be persistent, be consistent…. just be there. You would hate to learn that someone else heard the ringing voice (of the penny…. ).

Vision: Working without a vision is like trying to sail without wind. Vision is the force that drives your business, load you with energy and helps you overcome obstacles. Vision is the target line you have in your mind when you think about your business. If your vision is not a mere fantasy – you can achieve it.

Work hard: There is an ocean of difference between working hard without a vision (working for someone else for instance), or working hard for yourself to fulfill your own dream. The first creates a growing sense of fatigue and dissatisfaction, where the second fills you with endless energy and strong will to go on and on…. Even a star like Bill Gates worked very hard to achieve his dream (in fact he still works very hard today).

The first two components are intangible and immeasurable, whereas the last one –hard work - is very real …. and it is all up to you. If you ask me what is the essential component from these 3? I would definitely chose the last one.

Hard work can make the difference between failure and success!

We do not believe in magic solutions. We do not believe in “ten steps to lead you to assured success". We do not believe you can make money while you sleep.
If you do the right things long enough – if you continue to work hard towards your vision - then the right results will come.

This is part 1 of 4 parts series:
Part 1: Network marketing success – The logical approach
Part 2: Do you really need a recruiting Website?
Part 3: Recruiting Website: A guide to MLM distributor
Part 4: How to advertise your Website

Nili Raam is a renown expert in her field in Israel, as a Communication Consultant for business, professional and executive improvement. She is author of a few published books and many articles.


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