Grab a calculator. I’ve got a simple exercise for you
Say you generate 100 leads for your business.
Over the course of time (with a good follow up system
-10 of these leads become customers and purchase an
info product that you earn a $30 commission on
-Of these 10, 5 of them purchase a product that you
earn a recurring $20 commission on every month, with
an average lifespan of three months
-Of these 5, 2 of them sign up as distributors with
a business opportunity you promote and you earn a
If you add these figures up, you’ll find that you’ve
made a total of $3,000 from 10 customers. Which means
in the long run you make an average of $300 from each
If the average customer is worth $300 to you, and
it takes 10 leads to get 1 customer, that means
theoretically you can afford to pay up to $30
(both in terms of dollars AND time) for each lead
and still break even.
If you don’t know what this actual number is for
YOUR business, I suggest you stop everything you’re
doing right now and figure it out.
It is the most important number you will ever need
to know because it will determine which lead generation
methods and which products make the most sense for
And if one of your goals is to make money using MLM,
it’s important to understand network marketing for what
The purpose of your business in and of itself is NOT
to build a downline.
Just like the purpose of opening a facebook account
in and of itself is not to simply get as many friends
The purpose of your business – the purpose of ANY
business – is to generate leads that turn into long-term
In whatever way makes the most sense.
Network marketing is just one of the many models a
business can use to make money from their leads.
Each model has advantages and disadvantages, but the
only reason you should ever promote any program is if
it fits in with your overall strategy.
If you’re looking for a network marketing opportunity
to promote, there are a lot of different factors that
can help determine if a given company is a good fit for
My friend Lou Abbott has a free newsletter that talks
about what these factors are.
Just go here to subscribe:
After you subscribe, I’d recommend picking up a copy
of his book, “MLM The Whole Truth”
It talks about the 12 main things that a legitimate
and reliable network marketing company should have.
Here’s the link again:
To Your Success,