From the desktop of Al Sims, Rich LifeStyles Network Team Leader
This MAYBE Why You Continue to fail…
As someone who has been involved in some form of Network Marketing or another for the last 14 years as a distributor, author, and trainer, I have seen all levels of success.
I initially got my start in business with traditional Network Marketing or Small Ticket Programs. This is where I learned how to prospect, train, and grow a global team. I'll be forever grateful for all the training, exposure and inspiration I received while being at the big company conventions and trainings.
However… I DID NOT MAKE THE SUBSTANTIAL MONEY I WAS AFTER until I began marketing Big Ticket programs and, it cost me less money and less time to recoup my investment and get into profit (less then 30 days).
Stick with me here because it will all make sense…
The problem with small ticket programs (your basic $100 start-up fee then the $100-$150 monthly auto-ship) is threefold.
1. The first problem is the majority of the prospects that are attracted to and join a traditional Network Marketing company will not have the finances necessary to sustain their business until it gets into a substantial profit position. Most of the people who get started will need their investment back within their first 30-90 days. Most will not even continue their monthly auto-ship purchases beyond the second month if they have not yet seen a profit and guess what… at least 90% of them will not see a profit that fast. Most will then quit.
2. The second problem is with most compensation plans. You need too many people in your organization to make a decent profit. Most people simply never survive the process. The attrition rate and constant turnover eventually sinks the ship. In most cases, you see your distributors jumping off of the ship just as fast as you can recruit new ones.
3. On average, with most Network Marketing/MLM compensation plans you average about 5 dollars per person in your organization monthly (example: $100 auto-ship with 5 percent commission would equal 5 dollars a distributor monthly). So if you had 200 distributors in your organization where you earned an average of 5 percent that would work out to 1,000 dollars. But as we mention above, most of the people who get started will need their investment back within their first 30-90 days. Most will not continue their monthly auto-ship purchases beyond the second month if they do not see a profit regardless to how good your product is or opportunity may be. Most will not be able to afford to continue. Remember they joined with you to make money as fast as possible.
Now take a typical Big Ticket Program where the commissions are at least 1,000 dollars a sale. Let’s say you write an informative article like this one and you receive 50 FREE highly targeted visitors to your website as a result of them reading your article and just one of the 50 visitors join you with your program – you just made 1,000 dollars. You make one more sale for a total of only 2 new sales / recruits and you have doubled your initial investment making 2,000 dollars and this is an example using a simple and free advertising technique of writing an informative article on a home business specific website such as betternetworker.com.
So with only 2 people in your organization you have already made 2,000 dollars.
Follow The Leaders…
If you look a little closer, you will notice that a lot of industry leaders are upgrading their business models to Big Ticket Programs. Why…
Look at all the headaches you are missing... It only takes a few people to make substantial money versus hundreds and even thousands. The other thing to consider is once someone spends the money on a Big Ticket program, you know they are serious to begin with and will most likely have the funds necessary to build a stable business.
The other question that comes up is... Aren't High Ticket Programs hard to sell?
Answer: Nothing is hard to sell when it makes sense.
Here is what I mean... As we mention above, with the average Network Marketing / MLM compensation plan you earn on average 5 percent for every distributor in your organization. So once you have 200 distributors in your organization where you earn an average of 5 percent of their 100 dollar monthly auto-ship, that would work out to be 1,000 dollars. Now, consider how many people you will have to go through to actually get 200 people to commit with you in your business.
Now compare this with a Big Ticket program where you will earn 1,000 dollars for every new recruit / sale. It will only take you 1 new recruit / sale to make 1,000 dollars.
But, here is what is going to shock you the most….
Initially having the same concern about marketing big ticket programs because them seem to be a hard sell, I quickly learned that it's just as easy to sell a high ticket program as it is a small ticket program. And the much bigger financial rewards (1,000 dollar profits) will jet-fuel the growth of your business.
Just Remember This…
You will have to talk to the same amount of people, make the same amount of phone calls, expend the same amount of effort, and spend the same amount on advertising so why not make 1,000 dollars on every sale instead of 20 dollars?
Feel free to leave your comments and opinions.
Yours In Success,
Rich LifeStyles Network Team Leader
Get your questions answered by other leaders in the mlm & home business industry on any topics, as well as share your ideas and be recognized as a home business leader.
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