It always amazes me, the number of people who are trying to build a business in network marketing who have never bothered to evaluate the company that they are working with, or never bothered to take the time to even figure out what it is they should be looking for.
I suppose the very nature and common practice in network marketing revolves around the warm market and the great percentage of folks involved in MLM are with the company that they are because their brother, or cousin, or friend, etc., was with that company and that just happened to be the one that they were presented with –an “if it’s good enough for Joe, it’s good enough for me” mentality.
Back in the days before the internet was really being used too much –I’m talking not very long ago — someone would present you with a money-making opportunity and a lot of the time, that was the only one you even knew existed. That is, at least until someone else came along to present you with a better one.
These days when you present someone with an opportunity they just hop on Google and begin searching and they find everything under the sun, both good and bad, about not only your opportunity, but every similar opportunity in existence. This has good and bad aspects. It makes it easy for one to research companies if they actually know what they are looking for. But it makes it difficult to recruit and hang on to people if your opportunity is not legitimately competitive.
There are those who join and stick with a company for no reason other than they are so proud of the product, that they would never think of doing anything else.
You know, they guy had arthritis so bad that he couldn’t even walk and then he started drinking “Super-Berry Juice” and his arthritis cleared up totally within 6 months and now he can play tennis again.
These stories are amazing. I certainly would not expect such a person to venture elsewhere in such a situation because that person is not really in it for the money. They are on a mission of healing, really. It could be that they have one of the least competitive pay plans on the planet, only paying out say 20% overall. It wouldn’t matter because the intention there is to serve the greater good. I commend such people for being so dedicated to a cause, and for having something that they can get so passionate about, and that they can make a business of. Certainly, it is going to be more difficult to make money in such a situation but that’s okay.
That example is not that of the great majority however. Most of us are in it for the money. If I didn’t need money at all I would just sit and play guitar 6 hours per day, for no reason other than the enjoyment of it. or I would spend every moment playing with my daughter. There are those who will rationalize otherwise but the fact remains that nearly all of us would be doing something else, something other than marketing, if we already had an unexhaustable source of funds behind us.
Well, this is fine too.
But I have found that most network marketers when actually provided with some of the really important criteria for evaluating an MLM company, find that they are not quite as happy with their current opportunity once they have done the evaluation.
I provide a training video to my teams which covers the items to look for when examining an MLM company. I’m not going to cover all of that material here but there is one really important item that I did want to go over.
It has to do with doubling your income in your MLM business, without doubling the size or your team and without doubling your work. It revolves around only the percentage of revenue that a company pays out as commission.
In our industry their are companies that pay out only $20 to $30 for every $100 they take in. And you can easily find lower percentages depending on whether you hit your qualifying sales volume and all that. I’m just talking about overall here.
Typically, if you are with a company that pays out around 50% of their revenue in commissions that would be considered pretty competitive. Admittedly it is difficult for a company which has a tangible product to manufacture, store, and transport, to pay out much more than this and still stay in business.
You will find that it is generally the companies with information products which pay out higher percentages.
iLearningGlobal pays out around 73 or 75%, somewhere in there. Same for TVI Express and Diamond Rewards, Pyxism, Diamond Holiday, etc. I’m not endorsing these companies. I’m just pointing out some examples. We are only looking at payout percentages right now.
Some of the old standby companies such as Amway pay out less. Some in Amway would argue that they pay out as much as 60%, etc. but this is not correct. There are some products, some individual items where your profit on them could be 60%, but this is not the bigger picture of what the average rep gets in return for sales volume overall. It’s not my intention to make less of this company. I’m just pointing out the fact of percentage of overall payout.
The way that you can double your income by really doing the same amount of work has to do with this percentage.
Realistically, it takes about the same amount of work to recruit someone, regardless of which company you are a part of.
In many companies you can recruit a whole lot of people and never make much of anything because many of your downline do not hit their sales volume or they drop off.
Retention is a subject for another article.
By simply moving from an opportunity that pays out 45% to one that pays out 90% you would in effect doubled your income, all other factors remaining constant. If you are honest with yourself and look at what needs to be done in order to actually create a certain amount of sales volume in each opportunity, and then you look at what would be the result should your commission on that sales volume double, this becomes quite clear as to which direction to go.
There are only a couple companies that I know of that pay out 100%, or nearly 100%.
One of those is called Infinity Downline.
I do not use Infinity Downline as a primary program but many people do.
Infinity Downline is in actuality an affiliate membership program wherein the membership is $25 per month and each person you enroll pays you $25 per month, with no admin fee.
This seems unlikely upon first review as one must ask, “Where is the company making money?”. They make money by various other means, supplemental products, optional marketing tools that they offer, etc.
But the commission payout for Infinity Downline 100%.
So if you brought in 50 members, then you would have 50 X $25 per month.
There is a spill-up process wherein your 2nd and 4th enrolless are spilled-up to your sponsor and become part of his team.
This spill-up process for two of the enrolless applies to your downline as well so they also end up donating you their two enrollees once they bring in their third. So I’m assuming here that out of these 50 hypothetical enrolless that only two of them have brought in 3 people each. This yields you 50 X $25.
The pay plan for this I explain in another article but the point is that once you have got your two donated from your downline, just as you donated two to your sponsor, you are now at 100% commission payout.
And whether you have recovered you two spill-ups from your downline or not, the company is still passing through 100% or the revenue in commissions.
After 12 years in network marketing I don’t think I’ve ever seen a company that paid out 100% until I came across this one. I know of only one other, and it is run by the same folks.
So purely from a money-making standpoint, Infinity Downline could theoretically allow you to double your income fairly quickly with the same amount of effort, provided your current opportunity pays out 50% or less in commissions.
Infinity Downline is something I use as a feeder program. Low buy-in, 100% payouts, immediate residual commission payments. Feed your primary opportunity with this super-simple and easy turn-key wealth-building system, or use it as a primary opportunity.