In MLM Turnover is Vanity - Profit is Sanity!

I see the following situation so many times with people in their online Network Marketing or MLM Business.

They are looking for a way to get some extra cash and come across an MLM opportunity see the Compensation Plan, totally see the leverage that is possible and fall in love with the dream of working less, choosing their own hours and earning a lot of money in the process.

Do not misunderstand me all of this is possible once you know how to do it. But for the beginner in Network Marketing it is a steep learning curve and will take either a lot of time and effort or a lot of money for them to start earning.

Most people seem to get involved with a high end opportunity to start with that pays out big commissions usually $1,000 per sale and think that if they can just get a few sales they will leverage of their downline and earn a lot of cash virtually on autopilot.

The problem is that the people who purchase a product from them (Their Downline) also think the same think that they will too leverage from their downline.

Again this can happen if you are lucky enough to sell a product to someone who has a huge list of prospects and knows how to Network Market then they may go out and make 50 sales in a month and you therefore earn $50,000. Unfortunately the chances of signing somebody like that from just a few sales are not good. In fact 97% of people fail in their MLM Business.

Most people start out by buying leads from a company and this has several inherent problems.

1.They are usually expensive

2.They are usually sold several times over so that the lead generation company can make a profit.

3.They are quite often offered an incentive to fill in an online survey. Which means that they have not been the one to initiate the interest. (It is usually just another question on a survey)

4.They are not targeted enough.

A lot of the time people end up in the situation that they have spent more than they would earn in commission from a sale and they have not even made a sale yet.

Let me ask you a question '

Would you really spend $2,000 in marketing to earn a commission of $1,000?

It does not make any sense to do this anyone can see that you have just lost $1,000.

But what about the leverage is what most of you are thinking. If that one sale sells one product a month for the next six months I would be in a profit situation of $5,000.

And of course you would be correct if that did happen. Remember the statistic from above - 97% of people fail in their MLM Business. Of course this does not mean that they do not make any sales but I'm sure that you get the point. If you want to be successful in Network Marketing and have any kind of longevity then you need to:-

1.Create your own sales (Do not rely on your downline to sell)

2.Improve the odd's for your downline - Teach them how to be successful in their business - You will have some time wasters to filter - So concentrate your time on those who are taking action.

3.Create your own leads ( you can do this at far less cost and they will be far more targeted)

I would also recommend starting with a lower value product whilst you are building up your knowledge. It is far easier to sell something that is $30 than $3,000. Think about the products that you have purchased - I bet you have purchased several in the $20 to $80 category and very few over $2,000. The risk at this level is not as big also.

That way as you learn and add value to yourself in terms of knowledge you will also be building your list so that at a later time you can move up to the higher end product and you will have a list that you can sell to.

Remember the title to this article - Turnover is Vanity, Profit is Sanity.