While we were discussing how you can build your business with leverage, I know you must have thought about how to start writing business plan and doing feasibility studies when you did not go to business school nor posses the necessary qualifications to put all that stuff together. Now there is good news for you. You really don’t need to go through all that stress to start creating a stream of residual income for yourself. Actually, the most powerful implementation of the concept of leverage is Network Marketing.
Today, I’m going to share with you how this concept of Leverage work with network marketing.
Frankly speaking, the term “Network” means to connect. As a Network Marketer, you are a connector, you are to connect people with what they need. You are being paid for helping people with what they need. Like Zig Ziglar said “you can have everything you want in life if you help enough people get what they want”. In network marketing, you leverage on an existing company. You don’t need to have your own product or service, what you do is get registered with the company of your choice and then you do business on their name.
How does it Work?
To give you a good insight on how Leveraging works with network marketing, I will be using three basic case studies as shown below:
Case 1: Lets assume that you are a very hard working person and that you work 12 hours a day and 7 days a week and that you get paid $10 per man hour.
How much will that sum to in a year if you were to follow through consistently?
Well, lets do the calculation.
Solution
Work hours per day = 12 hours
Number of days per year = 365 days
Total work hours per year = 12 X 365 = 4380 hours
Amount earned per work hour= $10
Amount earned in one year = 4380 X $10 = $43,800.
This means your eafrning in one year will be $43,800. But you and I know that if you do this you will definatlely be lying in the hospital and you wont even have the time to spend with your family. But this is as far as you could work. Anyway, its time to see the approach of leveraging.
Case 2: What if you decided to build your own business consisting of 5 persons by using an already existing company; and you invested your time and energy to train those 5 persons to become business owners and do as you’ve done.
Based on your training and assistance, those 5 people went and built their own 5-member business on the same system and company that you are using, this means that there will be 25 new members in that team right? Making a total of 30 people under you (i.e is 5 X 5).
Now lets say that these 30 people decided to work just 1 hour per day. How much man hour will this be for you and how much will you earn in one you year assuming you still earn $10 per hour?
Solution
Work hours per day = 1 hour
Number of team members = 30
Number of days per year = 365 days
Total work hours per year = 1 X 30 X 365 = 10950 man hours
Amount earned per work hour= $10
Amount earned in one year = 10950 X $10 = $109,500
Isn’t that wholesome? But I think we can still go further.
Case 3: If those 25 new members of the team also became business owners with 5 members each in their businesses, this means that there will be 125 (i.e 25 X 5) new members making a total of 155 (i.e 125 + 30) members under your team.
Now lets say each of those people decided to put in just 30 minutes of work. How much will that get us in one year?
Solution
Work hours per day = 30 minutes = 0.5 hour
Number of team members = 155
Number of days per year = 365 days
Total work hours per year = 0.5 X 155 X 365 = 28287.5 man hours
Amount earned per work hour= $10
Amount earned in one year = 28287.5 X $10 = $282,875
Can you see the great possibility in doing this? And you know, the most important part of it is that, it is also helping those your team members achieve success. that is, you are earning for helping others grow. And you are being paid on the combined efforts of the team.
Remember what John Paul Getty said: "I would rather have 1% of of the effect of 100 people than have 100% of my own efforts".
I encourage you to start building your network today and in no distant time, you will not have need to work, because you must have helped enough people to get paid for the rest of your life. And it all begins with finding the right network and starting now. Just like Robert T. Kiyosaki said " the richest people in the world look for and join networks, everyone else looks for work". Don't look for work, look for a good network instead.
Was this article helpful, feel free to share with your friends.
To join my inner circle of Entrepreneurs and Network Marketers, sign up here.
No comments:
Post a Comment