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Imagine if You Only Got 10% of That Result

by Rayven
(Stay a Stay at Home Mom)

Gimme a break!

My biggest network marketing pet peeve is when companies show you a "perfect world" example of their compensation plan, and then use faulty math to demonstrate how much you would make with only 10% or 1% of the effort or result.

Let me explain:

Let's say that Company ABC offers a product with a $5 commission. For simplicity's sake. Lets say that that commission is split down 5 levels at $1 a level.

Company ABC says that if you enroll "just 10 people you can make $111,110 a month!" Why? Because those 10 people will enroll 10 people who enroll 10 people through the whole line.

So, that breaks down as follows:

Level 1: 10 people = $10
Level 2: 100 people = $100
Level 3: 1,000 people = $1,000
Level 4: 10,000 people = $10,000
Level 5: 100,000 people = $100,000

Total all 5 levels: $111,110

Ok. So in a perfect world that could happen. (Though I promise you it won't. But you can still make decent money working this biz.)

My pet peeve is when they go onto say something like:

"But what happens if you only get 10% of those results? That's still over $11,000 a month! Could you live with $11,000 a month? Or even just 1%? Thats over $1,000 a month! What could you do with an extra $1,000 a month?"

Um, no, that's faulty math.

It annoys me when they do this. They imply that you only need to do 10% of the work to get this $10k a month. So wouldn't that mean that you would only need to sign up one recruit? Then that one would sign up one who would sign up one, etc.

Let's look at this:

Level 1: 1 person = $1
Level 2: 1 person = $1
Level 3: 1 person = $1
Level 4: 1 person = $1
Level 5: 1 person = $1

Total all 5 levels: $5

Now, I don't know about you, but I feel $5 is a far cry from $10,000!

The problem with the math is that that 10% only applies to slowing recruiting down ON THE FINAL LEVEL. That is to say, you recruit 10 people who recruit 10 people all the way down to the last level, and then everyone only recruits one person.

But the way the presenter makes it sound, you just don't have to do much work!

Anytime someone in the industry tries to make Network Marketing seem like an easy, quick fix, it boils my blood! We need to recruit people who understand that this is an opportunity, not a lotto ticket.

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Imagine if You Only Got 10% of That Result

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Feb 25, 2010
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Nope...
by: Rayven from Stay a Stay at Home Mom

Nope, not a pyramid scheme. A pyramid scheme is where no product (or no product of value, say, selling a paperclip for $1,000) is sold, only an "opportunity".

The above is an example of an idiot with a calculator, not a pyramid scheme.

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