You Only Have a 0.25% Chance of Success in MLM But There Is Hope!

How much monthly residual income do you need to be financially independent? Have you worked this out yet? What does it mean to be financially independent in the first place?

Financial independence means the passive residual income that is generated from the downline you have built covers your regular expenses (i.e. taxes, mortgage/rent, utilities, subscriptions and food). Therefore, financial independence gives you the divine option of quiting your J-O-B and never having to work another day in your life. Have you worked out the income you would need to have this privilege?

Let’s say that a good round figure for living a comfortable lifestyle without ever having to work again is around $5,000 per month. Some may need more, some will need less, but $5,000 is decent enough for the average person with the dollar at its present value (it may well be $10 million a few years time, but who knows?)

The MLM industry average for the number of distributors you need in your downline to achieve a monthly income of $5,000 about 1000 people. One thousand! Or $5 per distributor, if you like.

The numbers are simply stacked against the people in network marketing. The vast majority of networkers, probably 99%, will never build an organisation that big. And it’s not because they don’t have the work ethic. It’s because they were trained to do things that just don’t work.

Here’s the problem. The network marketing industry has an attrition rate of 95%. Most new distributors will drop out within 3 months, after 5 years only 5% of the distributors you sponsor will still be with you building the business.

For you to build a team of 1000 distributors, each making you $5 per month by regularly purchasing products on autoship, you and your team need to sponsor A LOT of people. To build a team of 1,000 active distributors, you and your team need to sponsor at least 20,000 because 95% of these people are not going to stick around and build the business.

That’s not all. If you were building a network marketing business traditionally, warm market, belly-to-belly, how many people would you and your team need to talk to in order to sponsor 20,000? Again, on average, 95% of people you talk to will not be interested in building a home business. Out of every 100 people you speak to, 95 of them are going to say “No!”

So to sponsor 20,000 people in order to retain 1,000 who are going to be active and provide you with $5,000 per month of walk away income, you and your team will need to speak to at least 400,000 people about the business opportunity. I’ve gotta tell ya, that’s not smart. That’s a lot of effort wasted.

And tragically, that’s why a lot of people give up on their dreams. The rejection and the attrition simply wears them out. They think it’s their fault – they did everything their upline told them to do and they failed, so it must have been their own fault.

Then they turn to their upline for help only to be told that they do not have a big enough dream and they need to go out and get more “No’s” and do more of what doesn’t work.

It’s time to stop the insanity. You and your team don’t need to take 380,000 “No’s” and 19,000 drop outs to get the 1,000 that’s going to build the business with you. The answer is target marketing – which means getting your opportunity in front of the right people. Target people who already have dreams and goals and believe in network marketing as a vehicle.

And that’s why marketing is so important. Targeted marketing will allow you to attract the last 1,000 people who are prepared to do the work to achieve their dreams. You need to position yourself as a leader, a mentor and a coach who can help them achieve dreams and the right people will come to you.

There are thousands of networkers out there who are trying to convince 400,000 disinterested people to join them. They are dying for your leadership.

To your MLM success,

Wayne Wu
Founder, The Profitable Networker

P.S. I would love your input! If you have an opinion that would contribute to this discussion, please leave me a comment below.

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Tagged as: Attrition Rate, Average Person, Downline, Financial Independence, Mlm Industry