Goofy MLM Stories An enthusiastic networker named Al called us recently to discuss one of our articles and pump us for his new deal, a company selling information, CD’s, ebooks, training, etc.  He admitted that his product cost little or nothing to produce, so the company could pay out huge commissions.  We let him know we weren’t interested, but offered to help him calculate his 10k answer.

“How many active people do I need in my business to generate a walkaway residual income of $10000 a month?”

Al:  Oh, that’s easy!  With the Wonderful 100, you can earn $100000 a year.
Us:  Okay, that’s $8333 a month, right?
Al:  Right!  We’ve got information to help people with their finances and their health and …
Us:  Slow down a bit, Al.  Let’s just stick to the math, okay?
Al:  Okay.
Us:  So what is the Wonderful 100 that generates $8333 a month?
Al:  You have 100 people in two legs with helpful information and ebooks about dieting and saving and …
Us:  Hold on, Al.  We don’t need to know about the products.  Let’s just do the math, okay?
Al:  Okay.
Us:  So that’s 200 people generating $8333 per month, right?
Al:  Right.
Us:  If you divide 200 into $8333, that’s $42 to you per person on your team, right?
Al:  That sounds about right.
Us:  How much is each person spending per month?
Al:  Well if they get the full information package, that’s one price, but if they choose separate parts, they …
Us:  Al?
Al:  Yes?
Us:  How much?
Al:  Oh.  $50 per month.
Us:  So let’s see if we have this right.  You’re in a binary where many people get paid on the same volume, right?
Al:  Right.
Us:  And each person is spending $50 per month, and you and many others are each making $42 from that sale, right?
Al:  Right.
Us:  So how many people can get paid $42 from a $50 sale?
Al:  What do you mean?
Us:  $42 is 84% commissions.  You can’t even pay two people 84%, let alone a bunch of people in a binary, right?
Al:  Well, it doesn’t work quite like that.
Us:  So how does it work?
Al:  We have really useful information for health and finances …

We’ve included this story in the ‘Goofy’ category, but we really should have a sad section.  It’s sad how Al trusted the information he got from the company.  It’s even sadder that when faced with the facts, Al could not allow them in.

If you’d like to avoid the trap that Al has put himself into and the inevitable frustration he will face, you’ll want to read this free report Big MLM Lies.

Bob and Anna Bassett
Skype bobbassett