Thanks to Beth Heilman for summarizing an excellent training session by Mike Aikins.  Her article gave us several ‘aha!’ moments that we’ll be sharing over the next few weeks.  Here’s one of them …

In traditionally structured programs, it requires at least 10-15 individuals purchasing product … in order for one distributor to break even on their personal qualifying purchase and get into profit. With this extreme approach, there will always be from 75-90% of all distributors not breaking even on personal qualifying purchases or earning a profit. It is vital to your success to understand this principle.

Failure to address this issue has been a major reason that a number of leaders in the industry have not been able to maintain a consistent degree of success. They are always in a rebuilding mode. Our preferred MLM compensation plans only require 4-6 individuals purchasing product in order for you to break even.”

We do not regard our product purchases as a cost of doing business (as we would be buying those products anyway) but many people do.

Let’s look at the two extremes Mike refers to …

In Company A, your basic monthly autoship is 100 points, or about $150, and you look for customers to commit to a 100 point autoship.  If you are paid an average commission of 10%, you will earn $10 per customer, and will require $150/$10 = 15 customers to ‘break even’ by having your products paid for.

In Company B with the same autoship, if your average commission is a more respectable 30%, you will earn $30 per customer, and will require $150/$30 = just 5 customers!

In choosing a company, you have to think about duplication.  If you choose Company A, you will not only be working three times harder than you have to, you will be inviting others to join you to work three times harder than THEY have to.

And that’s another way to spell A-T-T-R-I-T-I-O-N!

Thanks again to Mike Akins for adding to our growing list of questions to ask before choosing a company:  The 10k Question, The Half K Question, The Five Pillar Question and Do I Have a Check Yet?

To read about why these questions are vital to your success, click here for a Free MLM Report.

Bob and Anna Bassett
519-371-1028
Skype bobbassett
bobandanna@togethertothetop.com