Our Tip Sheets:

Tip Sheet One: How to Calculate Residual Income

Tip Sheet Two: Top 25 Ideas for MLM Collaboration

Tip Sheet Three: Review Your Home MLM Business

Tip Sheet Four: Change the Focus to Strategic MLM Management

Tip Sheet Five: The Many Myths of MLM

Tip Sheet Six: The Eight MLM Performance Indicators

Tip Sheet Seven: Be Honest to Yourself

Tip Sheet Eight: Key MLM Stakeholders

Tip Sheet Nine: Which Product Should You Promote?

Tip Sheet Ten: How MLM Collaboration Really Works

Tip Sheet Eleven: Beyond Attraction Marketing

Tip Sheet Twelve: Creating the Right Environment for MLM Business Success

Tip Sheet Thirteen: The Future of MLM

Tip Sheet Fourteen: The Art of MLM Collaboration

Tip Sheet Fifteen: Hoorah for MLM

Tip Sheet Sixteen: MLM Home Office Business Building Guidelines

Tip Sheet Seventeen: The Money is in the List (... or is it?)

Tip Sheet Eighteen: We're in Business for Ourselves and Each Other

Tip Sheet Nineteen: How to make the BIG Money in MLM

Tip Sheet Twenty: Care enough about MLM to start to change it for the better?

Tip Sheet Twenty-One: Let's get MOTIVATED and MAKE some MONEY!

Welcome to our complimentary MLM Friends Platinum Club Advanced Thinking MLM Tips Sheets.

Tip Sheet One: How to Calculate Residual Income

The most important asset that we Network Marketers have is each other. We need each other to build the Teams necessary to generate the revenue from which our income is paid.

Assuming that the product costs are $100 per month, every distributor in your growing downline pays $100 to receive their beneficial product.

In this example, we'll assume that the commission breaks down is as follows:

  • Level 1: 5% or $5
  • Level 2: 25% or $25
  • Level 3: 10% or $10
  • Level 4: 3% or $3
  • Level 5: 6% or $6
  • Level 6: 9% or $9
  • Level 7: 12% or $12

Now let's assume that you sponsor three people personally, and then showed those people how to do the same. Let's assume that each of the three people you enrolled also enrolled three people of their own, who in turn enrolled three people, all the way through your 7 levels.

If this happens then you can see the amount of revenue and income generated would be as follows (assuming you meet any other commission criteria):

  • You- (figures exclude your contribution)
  • Level 1: 3 people, $5 each = $15 = cumulative income $15 (revenue $300)
  • Level 2: 9 people, $25 each = $225 = cumulative income $240 (revenue $1,200)
  • Level 3: 27 people, $10 each = $270 = cumulative income $510 (revenue $3,900)
  • Level 4: 81 people, $3 each = $243 = cumulative income $753 (revenue $12,000)
  • Level 5: 243 people, $6 each = $1,458 = cumulative income $2,211 (revenue $36,300)
  • Level 6: 729 people, $9 each = $6,561 = cumulative income $8772 (revenue $109,200)
  • Level 7: 2,187 people, $12 each = $26,244 = cumulative income $35016 (revenue $1200)
  • Total in organization: 3,279, Total monthly income = $35,016, (revenue $327,900)

OK then.

You want to earn $500 a month, so based on this Compensation Plan… you would need to have a downline of 39 people who each spend $100 on product EVERY MONTH.

Your Group would generate $3,900 revenue and you would be paid a commission of $510 or 12.8%.

Now you want to earn $2,000 a month, so based on this Compensation Plan… you would need to have a downline of 606 people who each spend $100 on product EVERY MONTH. Your Group would generate $60,600 revenue and you would be paid a commission of $2,211 or 3.6%.

Lastly, you want to earn the big money… $35,000 a month, so again based on this Compensation Plan… you would need to have a downline of 3,279 people who each spend $100 on product EVERY MONTH. Your Group would generate $327,900 revenue and you would be paid a commission of $35,016 or 10.6%.

The BIG Questions

The key questions you need to ask yourself now are:

  • Which product could satisfy each of my Downline over the long term e.g. cost, benefits, performance?
  • How soon would it take me to build this Organisation?
  • What's in it for my downline apart from the product e.g. how soon could they earn a similar amount?
  • What would it take for all of these 3,279 people to see value in joining?
  • How can I quickly develop such a Team?
  • What would 3,279 people need to think like to join my Downline?

Now clearly, if you want to earn $2,000 a month, it wouldn't be unreasonable to expect the 606 people in your downline to benefit in the same way, would it?

In which case, you would need to consider how to develop a Team of 606 people x 606 people, which = 367,236 people in total.

Mmm?

Food for thought?

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