How much monthly residual income do you need to be financially independent? Have you solved this yet? What does it mean to be financially independent in the first place?
Financial independence means that the passive residual income that is generated from the downline you have built covers your regular expenses (ie taxes, mortgage/rent, utilities, subscriptions, and food). Therefore, financial independence gives you the divine option to quit your JOB and not have to work another day in your life. Have you calculated the income you would need to have this privilege?
Let’s say a good round figure to live a comfortable lifestyle without having to go back to work is around $5,000 per month. Some may need more, others will need less, but $5,000 is decent enough for the average person with the dollar at its current value (it may well be $10 million years from now, 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 is around 1000 people. Thousand! Or $5 per distributor, if you wish.
The numbers just stack up against people in network marketing. The vast majority of network marketers, probably 99%, will never build an organization 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 is the problem. The network marketing industry has a 95% attrition rate. Most of the new distributors will leave within 3 months, after 5 years only 5% of the distributors you sponsor will continue with you building the business.
In order for you to build a team of 1,000 distributors, each earning $5 per month from regular autoship purchases, you and your team must sponsor a LOT of people. To build a team of 1,000 active distributors, you and your team must sponsor at least 20,000 because 95% of these people will not stick around and build the business.
Thats not all. If you were building a traditional, warm market, belly-to-belly network marketing business, how many people would you and your team need to talk to to sponsor 20,000? Again, on average, 95% of the people you talk to will not be interested in building a business from home. Out of every 100 people you talk to, 95 of them are going to say “No!”
So, to sponsor 20,000 people to retain 1,000 who will be active and bring you $5,000 per month in income, you and your team will need to talk to at least 400,000 people about the business opportunity. I have to tell you that’s not smart. That’s a lot of wasted effort.
And tragically, that’s why so many people give up on their dreams. Rejection and attrition just wears them down. They think it’s their fault: they did everything their upline told them to do and they failed, so it must have been their fault.
They then turn to their upline for help, only to be told that they don’t have a big enough dream and need to go out and get more “No’s” and do more of what doesn’t work.
It’s time to stop the madness. You and your team don’t need to accept 380,000 “No’s” and 19,000 churns to get the 1,000 that will build the business with you. The answer is destination 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 is 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 your dreams. You need to position yourself as a leader, mentor and coach who can help them achieve their dreams and the right people will come to you.
There are thousands of networkers trying to convince 400,000 uninterested people to join them. They are dying for your leadership.