When approached with an opportunity to join a Network Marketing Business, you are often presented with a Compensation Plan.
Usually someone in your prospective sponsor’s upline who has reached a high leadership level will explain it.
There are usually graphs, diagrams, and examples illustrated.
The presentation most likely focuses on what you could potentially earn if you build big.
This often leaves the prospect…you…starry eyed and quivering with the anticipation of making enough money to pay off your debts and house, retire early, and buy your own private paradise island complete with a yacht.
One of the tables that might be overlooked in the presentation is the disclosure of Distributor Statistics.
These statistics may tell you the percentage of distributor retention, average earnings, and rate of advancement.
Additional Distributor Statistics
51% of our distributors earn between $126.00 and $646.00 annually.
2% of distributors advance from a development level to a leadership level.
47% of distributors advance beyond the basic rank.
The above numbers tell us important realities.
1. Just over half of the distributors make on average $126 to $646 annually.
That means per year!
That works out to an average of $10.50 to $54 per month.
Most would agree those figures are a far cry from the 5 figure per month incomes we are shown during presentations!
2. Only 2% of all distributors advance to leadership positions.
That is likely the level one has to achieve in order to make those 5 figure incomes.
3. Almost half of all distributors advance beyond the basic level.
This could mean any level of advancement.
It at least indicates that almost half of the people putting in an effort to build a business actually do make some progress.
It is important to pay attention to these figures for one reason.
It helps to get your feet planted firmly on the ground!
The people presenting the comp plan and other aspects of the business opportunity are not intentionally misleading you.
But the fact remains that part of your success in a Network Marketing business is in sponsoring new distributors.
To maximize distributor satisfaction and create a feeling that each person is successful and building their business, you need to sponsor people relatively quickly.
Therefore, business presentations are designed to dangle a shinny object in front of a prospect who is hungry for extra money.
Key elements are presented in writing right in front of your face, but not directly explained in the presentation.
Often these items are not seen or read until after signing on the dotted line…if at all.
Make a point of reading everything before you sign! At least you will be entering your new opportunity with your eyes wide open.
Believe In Your Success, I Do!
Karen
mentor.karen.j.miller@gmail.com
