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I know that starting to build an internet business from scratch can be intimidating. So,for a limited time, I'm offering you a FREE 30 minute consultation (Value $87.50) to help guide you in your marketing efforts.
For Pete's Sake QUIT Making This Argument!
Wanna know one of my biggest pet peeves?
It's such a big pet peeve, that if someone brings this up to me, I likely won't talk to them anymore....
Are you curious?
Get ready, here it is….
In terms of money to be made:
“At the end of 2009, XYZ company reported it had nearly 60,000 distributors.
For the year, it paid those distributors $4.9 million in commissions or less than $82 per distributor.”
The numbers don’t lie.
Oh yea, super argument there, Einstein....
If you’re doing your due dilligence on any business opportunity, I’d be willing to bet you’ve run across this statement. Let’s explore what these “numbers” really mean, shall we?
What The Numbers REALLY Mean...
Here’s a hypothetical.
Imagine that you're part of ABC, Inc. The company manufactures and sells widgets. ABC recruits distributors to distribute its widgets. Let’s take a look at the company’s 4 distributors: Alan, Bob, Carl and David.
Alan is a super-star. He is working by 6:00 AM. Doesn’t quit until after 10:00 PM. All of his spare time is spent reading up on the latest widget technology, and researching the companies he will be visiting to sell his widgets. He spends 80-90 hours per week at work.
Bob is a hard-worker, but he has a wife who works, and 4 small children. He would like to work as hard as Alan, but he just doesn’t have the extra time. So, Bob works selling widgets consistently from 9:00-5:00- a solid 40 hour week.
Carl is a student at the local college. He heard about the distributorship through an ad in the college-paper. He was thrilled that he could work part-time to allow him enough time to go to class and do his homework. On a good week, Carl is working about 20 hours.
David is a dreamer, but not so much a do-er. He has heard about the money to be made selling widgets. He started working selling widgets, but he doesn’t really like that he has to study about widgets. He also hates to give up his leisure time to work on his widget business. Every now and again, he’ll talk to a few companies about purchasing some widgets. David ends up spending about 2 hours per week working on his widget business.
Alan, Bob, Carl and David are a microcosm of a company's, let's say 60,000 distributors.
By simply dividing the total revenue paid out by a company by the number of distributors, you're implying that Alan, Bob, Carl and David each earn the same amount of money.
In my opinion, that's a completely ridiculous result!
Naturally the person who devotes 80-90 hours a week (assuming they are doing the right things to grow their business) is going to make more than the person who spends 40 hours a week, who will make more than the person who spends 20 hours a week. Of course that person will make more than the person who only devotes 2 hours per week to their business! Any other result would just be-American!
Here is the moral of this story…
If you work hard, there is money to be made. But the money you make initially will be disproportionate to the time you spend on your business.
Once you have a solid organization, of course, filled with Alans or even Bobs and Carls- then you will make a lot of money with far less time spent. But, to get to that point, you’ve got to be ready to put in some serious effort!
The good news is, though, unlike your 9 to 5, this business model can set you financially free!
Disagree with me? Got another Perspective? VOTE then Comment!
Can't get enough of moi? :) Head over to www.NatashaNassar.com
About the Author: Natasha Nassar
Member Since: 03/10/2008
I'm a Distributor For:: PRO U
Other Company: Fast Forward Marketing, LLC
Industry: Communications and Networking
Primary Web Site: http://www.NatashaNassar.com
Right On The 'Money' =)
So true Natasha!
I have always gotten a kick out of those numbers that say each distributor only makes 82 bucks. Of course that's not true. But, since the companies have to state that number, some people looking to join decide that it must not be worth it (But, the good news it, these aren't the people that we want to work with anyway!).
Work hard, work smart (using leveraged income) and then you will be financially free. =)
Stacia
http://ThinkandGrowYourMLM.com
Oh, The Business Resume'
I love it when a person thinks down to mathmatics of someone's claim. Just like many people do with their work resume' and fluff up normal things with big words and titles, these companies are using fluff to show their success.
I knew I would be learning more than two sides to the marketing coin from you Natasha!
Keeping my eyes open as wide as my mind,
GM
Re: Right On The 'Money' =)
Stacia-
Couldn't agree with you more. That's why I usually weed out the "I think I'm gonna be a Millionaire with no work by next week"- types out. Much less stressful that way : )
Re: Oh, The Business Resume'
Greg-
I think it's the naysayers of the industry that are just as guilty of fluffing the numbers, and maybe even more so- by trying to treat people who expend different effort levels.
Although company hype about earning potential annoys me a lot too! :)
As always, thanks for sharing your thoughts!
Natasha
How Can I Do More With Less ?
Hi Natasha,
thanks for sharing your thoughts. I like your controversial approach ;-) You are right that these average numbers mean little to nothing because people's individual efforts are very different from each other.
As far as I'm concerned, I'm always driven by the question:"How can I do more with less ?" For example with less physical effort from myself. The key is leverage. Using leverage properly is smarter than simply working 80-90 hours a week - working alone doesn't make you rich.
Be blessed
Take care
Oliver
Averages and the 80/20 Rule
So the average is $82 per person. If you apply the 80/20 rule a few times to the $4.9 million and 60,000 distributors then you find out that 19 people made almost $84,000. Who cares what the average person did, decide to be at the top.
Re: Averages and the 80/20 Rule
Ooo Wayne- I love it! "Decide to Be at the Top". I may be quoting you on that one in the very near future :)
Working Smarter
Oliver-
You raise an excellent point! Working hard isn't the same as working smart!
I guess I should put the disclaimer on there that for my hypothetical, assume that they are all "doing the right things".
Just putting in a ton of hours won't cut it- if you're working on the "wrong stuff".
Thanks for sharing your thoughts and bringing up this important clarification :)
Natasha
Another Angle
Natasha,
Love the way you broke it down to numbers, it's big help for newbies to put it into the right mindset about "Working Hard" v.s. "Working Smart". Personally, there is no way around it when coming to working hard to start with the journey. It doesn't matter how much we can leverage on Pay Plan, team members, or all tech tools, systems...to get business of the ground...working-hard or should I say working ethic is required, period!!! After that then, we can talk about "leveraging" on resources. In short, work hard to be resourceful, then work smart to be the resource!
Keep on your awesome work!
Kelly
Re: Another Angle
Kelly-
Thanks so much for sharing your insight. You're so right...and I think you said it better than I did! :)
I think the key in all of these comments is that the key principle that any beginner should take away is that it does take WORK! Working hard/being resourceful, then WORKING smart....
Bottom line- the money doesn't magically appear when you join a company gotta work for it! :)
Natasha
Great Read Natasha
Great stuff Natasha
Re: Great Read Natasha
Thanks Robin!