Do Business Well

This depends entirely on your application of the basics. A small network will be up and running within three to four months, providing a moderate return. A large network with a big customer base requires a few years to develop. Exactly what you achieve depends on the effort you put into your business. It is almost impossible to indicate how successful you will be. The figures that follow illustrate the type of results that can be achieved.

How much work is required? If you make contacts telephonically, you may have to make 200 to 250 telephone calls to get 20 distributors. Of these, a quarter will be active hunters for more business and the balance will be product users giving useful word- of-mouth recommendations, but not actively searching for business.

What will your sales turnover be? Assume an average monthly purchase of R80 per distributor or R960 per year and that each producer (active distributor) introduces 20 prospects per year. At the end of the first year your network would look like this:

HOW A NETWORK GROWS

Year 1	Producers	Users	Sales (p.a.)
			R
Level 1: You get	5	15	19 200

Now what you can achieve in one year, your producers (active distributors) can too, especially if you provide continual motivation and encouragement. We’ll assume each. active distributor introduces 10 new distributors (discovers five people who become active distributors and 15 become product users only). So let’s see what happens at the end of the second, third and fourth years:

HOW A NETWORK GROWS

	Producers	Users	Sales (p.a.) R
Year 1	5	15	19 200
Year 2
Level 1: You get (again)	5	15	19 200
Level 2: Your producers get (five times the above)	25	75	96 000
			115 200
Total
Year 3
Level 1: You get (again)	5	15	19 200
Level 2: Your producers get (again)	25	75	96 000
Level 3: Their pro‑ ducers get (five times the above)	125	375	480 000
			595 200
Total
Year 4
Level 1: You get (again)	5	15	19 200
Level 2: Your producers get (again)	25	75	96 000
Level 3: Their producers get (five times the above)	125	375	480 000
Level 4: Their producers get	625	1 875	2 400 000
Total after four years	780	2 340	2 995 200

Any business with 780 active distributors and 2 340 product users is a successful business!

You may believe that this is impossible and that the growth can’t accelerate like this. There must be constraints. And indeed, there are.

The constraints are twofold: as your network grows, you have less time to canvass for new business because you are spending more and more time servicing your existing clients. Secondly, there is an attrition rate. Some networkers lose interest, try something else and move elsewhere. So, let’s take a more conservative estimate:

HOW A NETWORK		GROWS Producers		Users		Sales (p.a.) R
Year 1		5		15		19 200
Year 2
Level 1: You get (again)		5		15		19 200
Level 2: Your producers get (five times the above)		20		60		76 800
Total
						96 000
Year 3
Level 1: You get (again)		5		15		19 200
Level 2: Your producers get (four times the above)		20		60		76 800
Level 3: Their producers get (three times the above)		60		180		230 400
Total
						326 400
	How Producers		Much Money Users		Will You Make? Sales (p.a.) R
Year 4
Level 1: You get (again)	5		15		19 200
Level 2: Your producers get (four times the above)	20		60		76 800
Level 3: Their producers get (three times the above)	20		180		230 400
Level 4: Their producers get (twice the above)	120		360		460 800
Total after four years	205		615		787 200

Perhaps this is more realistic. You have 205 active distributors and 615 product users after four years and a business generating an annual turnover of approximately R750 000. Surely that’s not too bad?

Bear in mind these words of wisdom: you get what you give. Your own wealth and enrichment is just a pleasant spin-off from your desire to help others.

THE SECRETS OF SUCCESS

• When you look outwards you build up people. Help them develop and grow. Teach them and give them the skills and support so they can become successful.
• When you look inwards you try to sell as many products as you can. You think only of profit. You take a selfish short-term view of growth and fail.

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