Lately, I’ve been reading The Warren Buffett Way by Robert G. Hagstrom. Hagstrom writes about the fascinatingly simple principles that have guided Warren Buffett’s decision making in investing over that past 60 years that have allowed him to accumulate such immense wealth.
Warren Buffett’s formula for investing fundamentally has not changed since his first fund was established over 50 years ago. Buffett never gets distracted by fads or promises of explosive returns. So called experts have often criticised him for his stubborness and his “old fashioned-ness” and yet he’s always had the last laugh when their bubbles burst. [click to continue…]
If you want to create long term residual income in network marketing and have that support your desired lifestyle, avoid MLM companies with high overhead.
The more overhead an MLM company has, the less chance of success you will have in the long term, because the less commissions it can pay you for the hard work that you do as a distributor. The less commissions it pays, the more people you’ll need to sponsor.
The more you’ll need to sponsor, means your recruits will need to sponsor more as well, increasing their likelihood of quitting the business as they’ll realise little return for their efforts. [click to continue…]
Does your MLM company encourage endless recruiting? Or does it encourage you to sell its products to end consumers? Which is better? Recruiting or Retailing?
A steady residual income in the long term requires a good balance of both. Residual income in network marketing is your reward for building a sales force or distribution channel where large quantities of your company’s product gets into the hands of many happy, loyal customers.
Endless recruiting IS NOT a sustainable business model. If your company emphasizes recruiting, you’ve got a tough job ahead because you’ll be recruiting for the rest of your life just to combat the attrition that will plague your downline. Here’s why… [click to continue…]
