The Power of Compounding in Network Marketing

If you throw in the towel after just a few weeks or months of not receiving favorable results then there is no chance of you making any money in the network marketing business. It takes time to master any sort of techniques that will bring you an income. People who go “opportunity hopping” rather than commit to learning how to market one opportunity correctly will remain broke.

I have met many “network marketers” who give up on opportunities when they meet slightest amount of problems. They want to make easy money. They jump from one opportunity to another hoping against hope that they will hit a gold mine. They continue to sing the same song and dance the same dance, each time with a NEW company’s name behind their act? The truth is that such people have ZERO INTEGRITY.

By ‘opportunity hopping’ these people sabotage their OWN ability to make any money regardless of what business opportunity they join. They also confuse the people whom they sponsor with their confused state of mind. Either you have to be consistent or learn to accept being broke.

NETWORK MARKETING WORKS ON COMPOUNDING PRINCIPLE

UNFOTUNATELY MOST PEOPLE DO NOT COMPREHEND HOW THE POWER OF COMPOUNDING ACTUALLY WORKS.

Albert Einstein, who had perhaps one of the finest mind in the history of mankind, once remarked “One of the most amazing phenomenon of our universe is the power of compounding”. It is equally amazing that so few fully understand either its power or application.
For ease of understanding let us take an example. Suppose you start your network marketing business by sponsoring one person in the first month. Imagine too that you teach/help this person to sponsor one person. Let us say this teaching and sponsoring process takes one month. In month two if you personally sponsor one more person and the person whom you sponsored in the first month also sponsors one person then you will have 4 people in your team. In month three you will have 8 persons in your team through sponsoring and training. If the same process is repeated month after month your organization will grow in the following manner:-

Month 1: You + 1 = 2
Month2: 2 +2 = 4
Month3: 4+4 = 8
Month 4: 8+8 = 16
Month 5: 16+16 = 32
Month 6: 32+32 = 64
Month 7: 64+64 = 128
Month8: 128+128 = 256
Month9: 256+256 = 512
Month10: 512+512 =1024
Month 11: 1024+1024 = 2048
Month12: 2048+2048 = 4096

If you observe the table you will find that after three months your team has only 8 members. Nothing exciting. You might be subsiding your purchases. But wait…..sixth month you organization will grow to 64. You will be earning a little money to sustain your interest but NO BIG DEAL. Your life and financial future have not changed. On completion of 9 months your team has now grown to 512. Now for the first time you are seeing the fruits of your labour. There is a renewed understanding that the business actually works. The fun is not over …… in the 12th month your organization is taking a life of its own. It has now grown to 4096. Each member of your team is trying to secure his/her financial future. Your organization is not only big but growing at a faster rate without much effort from you. Your passive income is flowing in ever greater amounts each month. You feel rich for the first time in your life. The essential fact is that during the 12 month period you have only sponsored 12 people into the business and trained them to conduct the business properly. The remainder of your network has been created through power of leverage. In the first month your organization had just two people in it. In the twelfth month it grew by 2048 people for the same effort on your part. This is the amazing power of compounding in network marketing.

If compounding and growing a network is so simple then why don’t most people succeed? The reason is very simple but most people don’t get it ………. the power of networking and compounding takes time to take effect.

The Tunneling Effect

In network marketing when you first start out, all the hard work takes place upfront, at the beginning. You have nothing to show for your effort. This is called the ‘Tunneling Effect’. There is darkness all around and little hope. This is where most people give up because they do not see any results for their sacrifice, hard work and effort. Most people who come to network marketing come from jobs where they are paid by the hour. They are accustomed to seeing a direct correlation between the hours they have worked and the compensation they have received. If they worked 5 hours they expect 5 hours pay. In a network marketing business one has to think like an entrepreneur. When an entrepreneur starts a business there is a gestation period. He knows that profits will flow in due course of time if the business is set up correctly. An entrepreneur works one hundred hours and gets paid nothing. And once the business is set up he can work five hours and get paid for one thousand hours. People in jobs who enter network marketing have to go through a shift in mental attitude. Initially network marketing does not pay you by the hour. If there is little patience and perseverance at this stage then there is not only light at the end of the tunnel but full glory of the sun. Anyone who has become rich has passed through this dark tunnel. There is no escaping it.

In network marketing you have to learn and teach people to take a long-time approach to the growth of their business. It takes time to grow organizations. It takes time to create depth and ongoing duplication. It takes time to develop a team and create serious residual income. Those who can develop and maintain a mind set of an entrepreneur understand this and succeed. Those who fail to grasp this simple truth fail in this business.

IN NETWORK MARKETING YOU ARE LIKE A ROCKET THAT BURNS 90% OF ITS FUEL AT THE TAKE OFF STAGE. ONCE YOU ARE IN ORBIT IT IS CRUISE CONTROL. IT WILL TAKE TIME AND EFFORT ON YOUR PART TO SUSTAIN AND GROW YOUR BUSINESS IN THE INITIAL STAGES.

Warren Buffet, one of the richest men in the world, remarked about his wife when he was building his wealth “Susie didn't get very excited when I told her we were going to get rich. She either didn't care or didn't believe me - probably both, in fact.” You can read the biography of any wealth creator and you will find in it the universal truth of the ‘tunneling effect’ and how they wanted to quit but didn’t. In network you will never make it if you quit before you reach the critical mass. Then the real fun starts.

Critical Mass

If you persist and as the time goes on the critical mass kicks in and things get better. Your network becomes self perpetuating. It starts growing under its own steam. The challenge at this stage is not to change course. The problem with the human mind is that it loses focus very quickly. It gets attracted to other thought and ideas. It will start looking at other options. The key here is to maintain focus. Compounding is boring -- b-o-r-i-n-g. It is boring until the money starts to pour in. Then, believe me, compounding becomes very interesting. In fact, it becomes downright fascinating! Compounding if allowed to continue will take your wealth to unlimited levels.

Ninety percent of the people drop out from network marketing because they do not fully appreciate the power of compounding. They get discouraged when facing the tunneling effect and quit. They don’t understand that light is just around the corner. Dogged persistence is a great quality to have if you want to succeed.

Compounding Only Works through Time

The great thing about network compounding is that anyone can do it. Compounding is the royal road to riches. Compounding is the safe road and the sure road. To compound successfully you need the following: perseverance in order to keep you firmly on the path of creating a successful network. And you need time, time to allow the power of compounding network to work for you. Remember, compounding only works through time. Time in fact is the most powerful element in the process of compounding. Nothing comes close to it.
It takes time, effort, practice and patience to become good at network marketing and build a business. Don’t quit when the success is around the corner. Above all stay FOCUSED.

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Praveen Kumar

Online business and lifestyle coach

+64 9 8348585 (GMT+12)

"Believe and it WILL happen. YOU will make it happen!"

The FIRST EVER Fully Branded, Customizable, Lead Generation & Attraction Marketing System Of Its Kind That Combines Attraction Marketing, Affiliate Marketing, CashFlow Programs And Traditional MLM into ONE Super Powered Profit Pulling Machine:

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