There is always a lot of hype about the big money that can be made in MLM.

Presentations showcase income potentials by creating examples of checks that “could” be earned.  They usually have very high $ amounts that get the prospect starry-eyed.

Some examples take a sampling of a downline’s highest monthly earnings and combine them into one hypothetical month. 

Another example is to show a possible 4 or 5 level downline with 2 or 3 superstar builders.

Then the potential commission that could be earned by You, the potential upline sponsor, is shown.

The problem with these kinds of examples is that they do not accurately represent reality for the average person who joins an MLM.

Very few distributors ever create a lucrative downline with a handful of superstar builders, or distributors who make top commissions every month.

Additionally, no one ever mentions to the new prospect that to make a consistent 5 figure income takes several years of dedicated work.

A more accurate example of earning potential is to answer the 10K question. 

How many people (distributors and retail customers) does a distributor need in his/her downline to make $10,000 a month in residual income?

Residual income does not count one time bonuses or superstar 1% payouts.  
Residual income is only the commissions paid on group volume from product sales.

The 10K question also gets prospects starry-eyed since so few people can actually envision making that kind of monthly recurring income.

The demonstration that needs to be made to answer a more realistic question is to show how to make new distributors financially successful in the first 2 –3 months.

Most new distributors walk away from their MLM business because there is no financial reward.

A pay plan has to be structured so a new person working part time can start making a few hundred dollars a month within the first couple of months.

My fellow mentors, Bob and Anna Bassett        , have called this the Half-K Question.

Their example asks how much money will a distributor make if he/she generates $500 a month in sales.

This could mean having one distributor in the downline and a handful of retail customers.

Find the commission the company pays for volume.  It could be 5%, 10%, or up to 40%. 

Commissions are figured counting volume points, but the percentage is paid on the dollar amount of sales.

If the commission is 5%, then multiply 500 by .05 to get your commission $ amount of $25.

A commission of 10% on $500 is $50.

A commission of 20% on $500 is $100.

This isn’t going to buy anybody a yacht just yet.  But it does give a prospect a realistic idea of how hard he/she has to work to make a hundred bucks.

The first $100 is just the first step to achieving the $10,000 a month income.  The next $100 is the next step and so on.

Know your compensation pay plan so you can figure out the Half-K Question.

Know how you will make your first $100 and know how easy or hard it will be for the people you sponsor into the business to make their first $100.

If you need help figuring it out, just ask!

Believe In Your Success, I Do!
Karen
mentor.karen.j.miller@gmail.com

The next habit to develop with email has to do with your business correspondence.

How you and your associates write emails is critically important to how you all can efficiently handle your emails.

Following are some guidelines on writing business emails.

1. When selecting your business email, avoid cutesy names like freedomwings@yourserviceprovider.com. In a group of fifty emails, it is difficult to remember the person who belongs to such an email.
Name brand yourself. You are better off using your name like, joesmith@yourserviceprovider.com or mentormaryjane@yourserviceprovider.com in your email address.
This assures that the recipient will immediately know who you are and is more likely to address your email sooner and not think of it as junk mail.

2. Be specific and clear in your subject line, make it relevant to your topic.

3. Remember to sign your name and include your contact information to the end of your message.

4. Remember that your business associates are as busy as you are and need to keep their time with emails short as well. Keep notes for social niceties and visiting reserved for separate emails, Skype messages, or phone calls. If your upline is particularly busy, that person may have dealings with 100s of people in their organization. Remember to be respectful of that.

5. Keep your communications concise—only a few lines and stick to the facts. This has been a real challenge for me and I’ve needed to practice a lot on this skill….after all, I do love to write!

6. Fix in your mind first, “What is the end result of what I am asking?”, in other words, “What do I want, exactly.” Just ask your question.

7. Remember that your team (your downline) may not have these skills so you need to share with them how you expect emails to be sent to you. Create a document or email draft outlining your expectations.

8. Give them a clear method and time when they can communicate non essential business matters.

9. Tell them if they have a complaint or issue they need help with resolving, they are to send you a one or two line email giving a brief description of the issue and ask you for a time you can discuss it.

10. When asking for your upline’s time on a 3-way call, put “coaching call request” in subject line. In the body of the email, give the days & times your prospective client is available, and time zone. Leave other details for a later briefing with your upline if they so desire.

By keeping your email communications to the point, you will soon notice a huge time savings in this area.

Most people who are building a home business, find the information in this book to be critical to their success…but some don’t.

Wishing You a Lifetime of Success!
Karen
Success In 10 Steps