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Tips, tricks, ideas, and tools for building your SmartWay business! . . .
TRAINING TIPS FOR OUR SMARTWAY MEMBERS
September 3, 2003
Dear Marketing Partner,
I want to apologize for how long its been since we've done a
newsletter.
We've spent the summer doing a lot of major upgrades on our
website, expanding our co-op advertising program, and many
other business tasks that had piled up. And like many of
you, we were hard-hit by the Blaster and So Big viruses.
Unfortunately, when some members don't hear from us for
awhile, they jump to the conclusion that we're no longer
working the business. Nothing could be farther from the
truth, folks! :-) If you visit our website, you'll notice
dozens of new MLM training articles and resources. This is
our full-time business, and we are as close as an email any
time you have questions or concerns.
One of the most frequent emails I get from people,
particularly when they are new, has to do with how long it
takes to start making money.
If you believe some of the hype you get in your email box
every day, you may be under the impression that if you're
not making lots of money in just a couple of months - then
the MLM program must not be working.
Nothing could be farther from the truth! MLM has never been
a get-rich-quick-business. It is more a "get-rich-slow"
business, IF you approach it right and understand how it
really works. That is true for SmartWay - or any other
program you care to examine.
I wrote the following article several years ago to address
just this subject - and it's just as apt today as the day I
wrote it!
If you are patient and just keep putting one foot in front
of the other, you can expect to make a lot of money in this
business.
Linda J Bruton
Your SmartWay Upline
"MLM Success: How Long Does it Really Take to Make Money in an MLM Program -- And Why?"
We've all seen the ads that tell us if we sponsor just two
people and each of our two sponsor two, and each of their
two sponsor two, etc. - we should have a couple kazillion
people in our group by the end of the year!
There is nothing wrong with the math in such projections.
The major reason that this doesn't happen is that we are
dealing with people, not numbers! And people bring with
them their unrealistic expectations, their biases and
beliefs, and their impatience, as well as all the qualities
that could make them wildly successful.
Many people never stick with an MLM program long enough to
see this natural growth occur - which is really hard to
understand, since it is really the only way an MLM group CAN
grow!
I get emails all the time from people who wonder why they're
not making money in two months, or why they have to put out
money and effort to make anything happen, or who have
recently lost their jobs and are joining our group so they
won't have to get another one.
If you've been in this business for awhile, you may be
smiling and shaking your head at this point. But for many
of you, these are very serious questions.
You see ads all the time that promise that you'll be rich in
a few months without any effort, and you may be quite upset
to hear that it "just ain't so!" In fact, you may decide to
quit and join someone else's program, only to find that what
I am trying to tell you is just as true in any MLM program
as it is in the ones that I've chosen to work.
Let's talk about what you can realistically expect from
network marketing.
One of the big reasons people become disappointed in MLM is
not because it doesn't work and isn't a wonderful way to do
business - but because their expectations don't meet the
reality of how MLM really works.
We have all heard a lot of hype and outright lies about this
business. And as experienced as some of us are, we still
want to believe it. But I believe that this is often what
gets in our way of being as successful as we are meant to
be. We are much more apt to do what it takes and to keep
working if we know that we are making the kind of progress
that we can realistically expect.
My heart goes out to those of you who have have lost your
job and need money now, or you are on Social Security or a
fixed income and need more money coming in. These are very
difficult economic times for many people.
But I also want to make it very clear that the idea that you
are going to be making a lot of money right away is not
grounded in any kind of reality that I know - not unless
you immediately have a lot of money to invest in promotion
and advertising. MLM is a business, and like any other, it
takes time and a continuous input of effort and money to
grow into a successful venture.
That certainly doesn't mean that you can't make a lot of
money in MLM. Many people have and will! The point is that
it is not going to happen tomorrow.
I certainly wouldn't recommend that anyone quit their job or
give up their income UNTIL they've replaced it with their
MLM earnings.
I don't know why it is so easy to believe the hype and to
just keep jumping from program to program in the elusive
hope that the next one will mean instant riches.
The reality of the situation is that MLM is a wonderful
business! The longer I'm in this business, the more I love
it.
It gives you the chance to build a business for a lot less
investment than any other that I can think of, but that
certainly doesn't mean that it takes no investment at all.
It also allows you to be your own boss, to create your own
method of operation, to do it the way that "feels good to
you!" It allows you to be independent, to work when and
where you feel like. But that doesn't mean that you won't
have to do any work at all.
For most people, it is going to take at least six months to
a year for you to really start to make money at this
business. And that is if you are putting out some
consistent effort each and every month.
What do I mean by consistent effort? I mean that
you are consistently advertising or buying several hundred
prospect leads every month, and then you are working those
leads to the utmost!
Consistent effort is not placing 1 ad in a small, obscure
ezine 1 time and then sitting around waiting for the money
to roll in. It will never happen!
Consistent effort means doing a reasonable amount of
prospecting every month. It also means contacting each and
every new person that you sponsor and helping them get
started. It means treating your MLM activities like the
business that it most surely is!
Part of the reason for this is that there is a time lag
between when you place an ad or buy leads, and when they
actually sign up for your program. As most email marketers
are well aware, it can take 8-15 followup letters to
generate a signup.
Another big reason is that the time you will really start
making money is when your downline begins to grow
exponentially. And that isn't going to happen until you
have quite a few people in your group AND you've spent some
time training them.
Think about the claim that I mentioned earlier - that if
you sponsor two, and each of them sponsor two, and each of
them sponsor two . . . and on down the levels of your
program.
Let's look at how that works on a month to month basis.
Let's say, just for sake of example, that everyone sponsors
two each month. That means that at the end of your first
month in your MLM program, you will have two people in your
downline.
At the end of the second month, you will have 8 people -
the 2 you originally sponsored, the 2 each of those 2
sponsored, and the 2 you sponsored the second month.
At the end of the third month, you will have 26. If
everyone continues this trend, you will have 80 people in
your downline at the end of the 4th month. After 5 months,
you will have 242 people. And this is where things really
start to grow exponentially.
Six months will show 728 people, seven months 2,186, and
after 8 months of this kind of growth you should have a
grand total of 6,560 people in your group!
Is this really how it happens? Most assuredly not! As I
mentioned earlier, most people quit long before they have
allowed this kind of growth to happen. And you must realize
that everyone won't sponsor their 2 people each month. Some
people may never sponsor a single person into their group.
You will find others who will really go to town and sponsor
10 or 20 or more every single month.
What our model does show you is how MLM actually works. You
will notice in the first few months that the growth is
relatively slow. That means that your commission check is
also going to be low those months. It's not until after 6
months that things really begin to take off and hundreds of
new people get added each month.
The problem with quitting in your second or third month is
that you will never give this a chance to happen!
Unfortunately, this is when most people quit. If they had
only kept working a few more months, they would have seen
the results they had already given up on. People who stay
with a program long enough and keep doing the work seldom
quit.
Why should they when they are enjoying the fruits of their
labor? It is an old MLM cliché that at first you do a
lot that you don't get paid for. But eventually, you get
paid for a lot that you don't do.
One of the best things you can do to keep yourself on track
is to sit down and put together a personal business plan and
a plan of action. Decide just how successful you want to be
and put down what it will take on paper.
Most people don't have the foggiest idea what it will take
to create a specific income for themselves. But if you will
work this out for yourself on paper, I can guarantee that it
will keep you much better focused and will give you a
measuring stick to gauge your progress.
Let's take an example. Suppose you would like to have an
income of $500 a month in your MLM program. The very first
thing to do is to take out your commission schedule and
figure out how many people this will take.
Let's say that your particular program will pay you $10 per
month per member. That means that if you want a $500 per
month income, it would require 50 people in your downline.
You could spend the next few months prospecting like crazy
to sponsor your 50 people. And there is certainly nothing
wrong with that.
However, this is definitely not leveraging yourself. If you
are training each of your new members to also sponsor, you
will find that the number of people you have to sponsor on
your own will be significantly less! And you will reach your
goal a lot faster, and spend less doing it.
If you do some exceptional training, you should be able to
reach your goal by sponsoring a few people, then training
them to sponsor a few. For instance, you could sponsor 5,
then train each of those 5 to sponsor 5. Then help them
train THEIR new members. 5 is a much more reachable goal
then going out and sponsoring 50 people all by yourself.
Even better, it gets every member of your group sponsoring
and achieving their goals. And when that happens, your
income is going to grow well beyond your $500 per month goal
very quickly!
Once you know how many people you need to reach your goal,
you can start working out a plan of action. And please keep
in mind that your goals will change as time goes by. Once
you reach one goal, you may then decide to set another one
and start a new plan.
One of the most valuable reasons for setting up a plan and
checking on your progress is that you will begin to really
understand what it takes to be successful in this business.
So many people have the idea that if they just send one
email out to a cheap list, that they should sponsor enough
people to be making some money. As you can see from our
example, it takes time and work and money to build an
income. And it takes training the people you sponsor.
You will have to do some of your own testing to see what
kind of response rate you will get from your advertising and
your email prospecting letters. If you do some great
followup work with your leads, you will get a much greater
response rate than someone who doesn't. And if you really
work at helping the people you sponsor, your downline will
grow quickly from the work your group is doing.
You may find that it takes you $500-$1,500 to build a $500
per month income. You may be able to do it for less. If you
take the time to plan what you are doing and figure out what
works, you'll save a lot of money.
You may never have thought about this before and be totally
shocked at these figures. You may think that a $500-$1,500
investment is way too much money to build a $500 a month
income.
But I believe that it is very, very cheap compared to the
alternatives. If you invested that same amount of money in
the stock market and you did a great job of picking your
stocks, you might see a 10-20% return per year - or
$50-$300.
Your $500-$1,500 investment in your MLM program will
eventually earn you $500 PER MONTH - and pay you back in
1-3 months time!
If you were starting a traditional business, it would most
likely cost you upwards of $50,000 just to get started -
and that's before you ever saw your first customer!
An MLM business is much cheaper in the long run, and has
much more potential. And you can spread your investment out
over time. Another plus is that eventually, a lot of the
investment will come from your downline. Once you have a
good group, you can spend your time working with them and
your downline will continue to grow, whether you continue
investing that kind of money or not.
You will find a similar investment required no matter what
program you are working. Jumping from one program to
another won’t change that. It will just waste your
investment in the programs you’ve dumped along the way.
If you are seriously strapped for money, I would strongly
suggest that you realize that it is going to take you a
little bit longer to build an income than someone who has a
lot of money to invest. That doesn't mean that you won't
get there. It will just take you a little bit longer. But
the reward is a business that will continue to grow, year
after year, and bring you far more security than any job!
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