Network Marketing / MLM and the law of Numbers

A powerful section from Success in 10 steps on the power of the numbers, also that a lot of people are people who do not enjoy being sold at all.
They need to feel that they made the decision themselves and that may take time, as Michael Dlouhy also states average people are able to build the business
that they can prosper as a person. As Michael Dlouhy says you need a plan which will work with you as a person that will work with your own
personality.

Each person sponsors 2.7 people into their business as Michael Dlouhy states, yet the compensation plans can sometimes work against those people
who are just average people looking to make a income in Network marketing and MLM. You have to work with those numbers as Michael says not outside those
numbers, learn to work with them.

It Just SEEMS Like Brain Surgery

People ask me all the time,

“Michael! What is the BEST compensation plan?

Here’s my answer.

The best comp plan has 2 key features:

1. It works “with” the numbers (I’ll get to these in a minute)

2. Average people (part-timers) can build & prosper. (The vast majority in your group will be average people).

Most network marketers are doomed from the get-go because the com- pensation plan they are working does not work with the numbers.

Don’t listen to me. Just listen to the numbers.

I used to race dirt bikes. When 59 motorcycles come off a 27-foot high jump, not one single bike EVER “magically” floats up.

Fifty-nine out of 59 come crashing back to mother earth.

Gravity.

You cannot SEE gravity. Makes no difference if you like gravity or not. Or if you understand it.

But if you jump motorcycles, you sure better learn to work with it.

In 26 years in network marketing, I’ve learned that you have to become a num- bers-cruncher or die. You may not LIKE the numbers, you may not understand them.

Doesn’t matter.

The numbers are reality. Either work with them, or sayonara.

So … what are the key network marketing numbers?

1. If you ask virtually any successful network marketer about their suc- cess, they’ll tell you most of their income comes from 2 to 3 people in their group.

I’m not making up that number.

I have learned to work with it. 2. MLM industry statistics tell you that “average” distributors sponsor 2.7 people into any home based business in their career.

I’m not making up that number. I have learned to work with it.

Do you see a connection between these two sets of numbers?

Yellows make up 35% of the population. They don’t like aggressive people.

Blues make up 15% of the population. They don’t like being sold.

Greens make up 35% of the population. They don’t like pushy people.

Reds make up 15% of the population. One-third of Reds don’t like being sold, ei- ther.

3. So 90% of the population, 9 people out of 10, 900 people out of 1000 don’t like pushy, aggressive people, or being sold.

I’m not making up that number. I have learned to work with it.

When I call prospects I have 9 out of 10 people 900 people out of 1000 leaning forward wanting to find out, how I can help them reach their dreams.

This is because I lead with benefits, benefits, benefits,

I NEVER, never sell or close them.

People ask me all the time, “Michael, why do my people just SIT there? Why don’t they DO something?”

Well, brand this MLM truism on your brain:

If you sell or close your people to join your opportunity, you will have to re-sell them every month to get them to do any work!

Logic & experience will tell you THAT statement is true.

So back to the compensation plan question. Just work with the numbers and you’ll never go wrong.

If the “magic” number that most people sponsor is 3, then any plan wider then 3 will not work for the masses.

Note to the Red “Super Recruiters:” I know, I know. You can sponsor 3 peo- ple a day. Maybe 3 a minute.

The bad news is, you only make up about 3% of the population. Your best bet is a plan that pays you fast-start money on everyone you personally sponsor and that also pays leadership bonuses to infinity for unlimited income.

From Success in 10 Steps written by my good friend and mentor Michael Dlouhy,

Your comments and feedback are important to us. What are your thoughts?

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