Do Business Well

But suddenly, it takes off. In practically no time the building is in the air. Network marketing is very similar.

Your dreams can come true

Pick up an American magazine on networking. What does it tell you? ‘Network marketing will provide you with riches beyond your wildest dreams, a car that is the envy of your neighbourhood, a dream home that looks like a palace or overseas vacations at the snap of your fingers.’ That kind of hype is irresponsible. The figures are grossly inflated and, ultimately, this kind of exaggeration leads to disillusionment and disappointment.

Experience gained from many network marketing organisations shows that the average, seriously committed networker will make the following ballpark figures:

• within three to 12 months: from R1 000 to R3 000 per month
• within one and two years: from R3 000 to R5 000 per month
• within three to five years: from R5 000 to R10 000 per month.

The real network stars do better, but the above figures are reasonable earnings expectations.

Impatience is the reason that there are not more network millionaires. People lack staying power. Especially at first, business is relatively slow. People think that there must be a better way to make money and give up. By doing so they throw away a wonderful opportunity.

Do not be discouraged if results are slow initially. Just keep building your network, day in and day out.

In a sense, building your own network marketing busi- ness is like the construction of a skyscraper. At first, as the builders lay the foundations, nothing seems to happen. It seems to take an age for the building to start to rise.

Pareto’s Law

How quickly will your network grow? Theoretically, you invite five friends to join your network. They, in turn, invite five friends. A simple mathematical formula shows that if this process continues down the line five times, you will soon have a network of 3 125 contacts (5 x 5 x 5 x 5 x 5). Wonderful! Unfortunately, it doesn’t work quite like this.

Vilfredo Pareto, an Italian economist, pointed out that 80 per cent of a result comes from the efforts of 20 per cent of the people involved. This is Pareto’s law, or the 80/20 principle, as it has come to be known. For example, the top 20 per cent of your sales force will produce 80 per cent of the sales, and the top 20 per cent of your product lines will provide 80 per cent of your sales turnover. This ‘law‘ is not absolute. The figures might be 70/30, even 60/40, but the general principle holds true.

In network marketing, you will find that 80 per cent of the people you contact are not really interested in the opportunity. Your attitude should simply be to accept that some will and some won’t. Expect to be turned down by four out of five prospects, but don’t worry about it. Simply move on to your next prospect. Networking is not for everyone, so why waste your time trying to help someone who won’t help herself? However, even if they do not become distributors, everyone can become your customer.

Those who do join can be classified as follows:

• Inactive distributors: They have no real interest in creating a downline but will recommend your products to friends. They like the products and are regular repeat buyers.
• Active distributors: These are people who drive the business. Treat them like gold. They are committed, enthusiastic and determined to be successful. They will createtheir own successful downlines and enthuse others. The ratio of ‘inactives’ to ‘actives’ is three to one.

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