THE POWER OF COMPUNDING IN NETWORK MARKETING

If you throw in the towel after just a few weeks or months of not receiving favorable results then there is no chance of you making any money in the network marketing business. It takes time to master any sort of techniques that will bring you an income. People who go “opportunity hopping” rather than commit to learning how to market one opportunity correctly will remain broke.

I have met many “network marketers” who give up on opportunities when they meet slightest amount of problems. They want to make easy money. They jump from one opportunity to another hoping against hope that they will hit a gold mine. They continue to sing the same song and dance the same dance, each time with a NEW company’s name behind their act? The truth is that such people have ZERO INTEGRITY.

By ‘opportunity hopping’ these people sabotage their OWN ability to make any money regardless of what business opportunity they join. They also confuse the people whom they sponsor with their confused state of mind. Either you have to be consistent or learn to accept being broke.


NETWORK MARKETING WORKS ON COMPOUNDING PRINCIPLE

UNFOTUNATELY MOST PEOPLE DO NOT COMPREHEND HOW THE POWER OF COMPOUNDING ACTUALLY WORKS.

Albert Einstein, who had perhaps one of the finest mind in the history of mankind, once remarked “One of the most amazing phenomenon of our universe is the power of compounding”. It is equally amazing that so few fully understand either its power or application.
For ease of understanding let us take an example. Suppose you start your network marketing business by sponsoring one person in the first month. Imagine too that you teach/help this person to sponsor one person. Let us say this teaching and sponsoring process takes one month. In month two if you personally sponsor one more person and the person whom you sponsored in the first month also sponsors one person then you will have 4 people in your team. In month three you will have 8 persons in your team through sponsoring and training. If the same process is repeated month after month your organization will grow in the following manner:-

Month 1: You + 1 = 2
Month2: 2 +2 = 4
Month3: 4+4 = 8
Month 4: 8+8 = 16
Month 5: 16+16 = 32
Month 6: 32+32 = 64
Month 7: 64+64 = 128
Month8: 128+128 = 256
Month9: 256+256 = 512
Month10: 512+512 =1024
Month 11: 1024+1024 = 2048
Month12: 2048+2048 = 4096

If you observe the table you will find that after three months your team has only 8 members. Nothing exciting. You might be subsiding your purchases. But wait…..sixth month you organization will grow to 64. You will be earning a little money to sustain your interest but NO BIG DEAL. Your life and financial future have not changed. On completion of 9 months your team has now grown to 512. Now for the first time you are seeing the fruits of your labour. There is a renewed understanding that the business actually works. The fun is not over …… in the 12th month your organization is taking a life of its own. It has now grown to 4096. Each member of your team is trying to secure his/her financial future. Your organization is not only big but growing at a faster rate without much effort from you. Your passive income is flowing in ever greater amounts each month. You feel rich for the first time in your life. The essential fact is that during the 12 month period you have only sponsored 12 people into the business and trained them to conduct the business properly. The remainder of your network has been created through power of leverage. In the first month your organization had just two people in it. In the twelfth month it grew by 2048 people for the same effort on your part. This is the amazing power of compounding in network marketing.

If compounding and growing a network is so simple then why don’t most people succeed? The reason is very simple but most people don’t get it ………. the power of networking and compounding takes time to take effect.

The Tunneling Effect

In network marketing when you first start out, all the hard work takes place upfront, at the beginning. You have nothing to show for your effort. This is called the ‘Tunneling Effect’. There is darkness all around and little hope. This is where most people give up because they do not see any results for their sacrifice, hard work and effort. Most people who come to network marketing come from jobs where they are paid by the hour. They are accustomed to seeing a direct correlation between the hours they have worked and the compensation they have received. If they worked 5 hours they expect 5 hours pay. In a network marketing business one has to think like an entrepreneur. When an entrepreneur starts a business there is a gestation period. He knows that profits will flow in due course of time if the business is set up correctly. An entrepreneur works one hundred hours and gets paid nothing. And once the business is set up he can work five hours and get paid for one thousand hours. People in jobs who enter network marketing have to go through a shift in mental attitude. Initially network marketing does not pay you by the hour. If there is little patience and perseverance at this stage then there is not only light at the end of the tunnel but full glory of the sun. Anyone who has become rich has passed through this dark tunnel. There is no escaping it.

In network marketing you have to learn and teach people to take a long-time approach to the growth of their business. It takes time to grow organizations. It takes time to create depth and ongoing duplication. It takes time to develop a team and create serious residual income. Those who can develop and maintain a mind set of an entrepreneur understand this and succeed. Those who fail to grasp this simple truth fail in this business.

IN NETWORK MARKETING YOU ARE LIKE A ROCKET THAT BURNS 90% OF ITS FUEL AT THE TAKE OFF STAGE. ONCE YOU ARE IN ORBIT IT IS CRUISE CONTROL. IT WILL TAKE TIME AND EFFORT ON YOUR PART TO SUSTAIN AND GROW YOUR BUSINESS IN THE INITIAL STAGES.

Warren Buffet, one of the richest men in the world, remarked about his wife when he was building his wealth “Susie didn't get very excited when I told her we were going to get rich. She either didn't care or didn't believe me - probably both, in fact.” You can read the biography of any wealth creator and you will find in it the universal truth of the ‘tunneling effect’ and how they wanted to quit but didn’t. In network you will never make it if you quit before you reach the critical mass. Then the real fun starts.

Critical Mass

If you persist and as the time goes on the critical mass kicks in and things get better. Your network becomes self perpetuating. It starts growing under its own steam. The challenge at this stage is not to change course. The problem with the human mind is that it loses focus very quickly. It gets attracted to other thought and ideas. It will start looking at other options. The key here is to maintain focus. Compounding is boring -- b-o-r-i-n-g. It is boring until the money starts to pour in. Then, believe me, compounding becomes very interesting. In fact, it becomes downright fascinating! Compounding if allowed to continue will take your wealth to unlimited levels.

Ninety percent of the people drop out from network marketing because they do not fully appreciate the power of compounding. They get discouraged when facing the tunneling effect and quit. They don’t understand that light is just around the corner. Dogged persistence is a great quality to have if you want to succeed.

Compounding Only Works through Time

The great thing about network compounding is that anyone can do it. Compounding is the royal road to riches. Compounding is the safe road and the sure road. To compound successfully you need the following: perseverance in order to keep you firmly on the path of creating a successful network. And you need time, time to allow the power of compounding network to work for you. Remember, compounding only works through time. Time in fact is the most powerful element in the process of compounding. Nothing comes close to it.
It takes time, effort, practice and patience to become good at network marketing and build a business. Don’t quit when the success is around the corner. Above all stay FOCUSED.



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+64 9 8348585 (GMT+12)

"Believe and it WILL happen. YOU will make it happen!"



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Robert Kiyosaki explains The NETWORK BUSINESS

Robert Kiyosaki who is perhaps the best financial educators of our times explains Network Marketing as being the Perfect Business. He encourages all would be entrepreneurs to join a network marketing company to improve their business skills. Please click HERE to enjoy this beautiful video.


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Praveen Kumar

Online business and lifestyle coach

+64 9 8348585 (GMT+12)

"Believe and it WILL happen. YOU will make it happen!"



The FIRST EVER Fully Branded, Customizable, Lead Generation &
Attraction Marketing System Of Its Kind That Combines Attraction
Marketing, Affiliate Marketing, CashFlow Programs And Traditional MLM
into ONE Super Powered Profit Pulling Machine:

http://www.wealthonlineguru.com

MONAVIE - PLACEMENT OF BOTTLES STRATEGY

One of the strategies of growing your Monavie business is to let the juice do the talking. MonaVie is such an outstanding product that it will sell itself. This is called the product first approach. You have to get your friends and family, business builders and those who have health issues started on the juice. You can also gift bottles to your clients or friends on festive occasions or when you are invited to dinner/party. Monavie is an excellent gift that is beneficial to health.

The best way to get people started on the product is to make them buy 3 cases of Monavie. This is because it takes anywhere from one to three months to see the effect of the juice on your body. A person may not get the desired results from consuming just one bottle. However selling or gifting one bottle is better than not getting people started on the juice. If you want to make some money in the process……the trick is to buy 12 cases in Bulk so that the cost of each case gets reduced by more than 50% of the recommended retail price. You will not only recover the cost of your juice but will also give a great boost to your business.

Before gifting or selling juice it is important for you to give complete information regarding the product and how to drink the juice to derive full benefit from the product. There are whole lot of documents that give full information regarding the product and you can download from the Team Abundance web site from the following link:

http://www.theabundanceteam.com/content/view/26/77/

I have attached two documents that I give to my prospective clients to get them started on the juice. The important thing is to open the bottle and get them to taste the juice in your presence. If you do not do this there is a good chance that the bottle will keep lying in a closet for days and will serve no purpose. Worst still your client may gift the bottle away to someone else. Next important thing is to follow up the very next day to check if they are drinking the juice correctly. You should then follow up regularly giving to 2 to 3 days breaks in between.

If you get people started on the juice and follow up correctly your business will expand rapidly. This is a tried and time tested method.

The fastest way to grow your business is to INVITE TASTE SHARE this amazing product. SHARING means sharing your experience and giving full information.


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Praveen Kumar

Online business and lifestyle coach

+64 9 8348585 (GMT+12)

"Believe and it WILL happen. YOU will make it happen!"



The FIRST EVER Fully Branded, Customizable, Lead Generation &
Attraction Marketing System Of Its Kind That Combines Attraction
Marketing, Affiliate Marketing, CashFlow Programs And Traditional MLM
into ONE Super Powered Profit Pulling Machine:

http://www.wealthonlineguru.com

HOW TO LEVERAGE YOUR TIME AND EFFORT IN NETWORK MARKETING

Every network marketing company boasts of a compensation plan that creates passive income through leverage. Yet majority of people who join the business fail because they do not understand how leveraging works. Most people fail because their focus is on Recruit, Recruit, Recruit, numbers, numbers, numbers……it is a race against time and others to recruit before someone else does. Now you have hundreds of recruits who don’t know where they are going. You don’t have time either to build relationships or train so many of them. They are left helpless on their own. They start dropping out in hoards. You are back again Recruit, Recruit, Recruit……… This is definitely not leveraging your time or effort.

There are marketers who can recruit dozens, even hundreds, of people through the motivation of greed. But when it comes to something sensible and worthwhile, they shy away from becoming involved. This is because they think network market is just a numbers game. They tell their new recruits that they will have spill overs in their downline. That there is no work involved. Lies, Lies, Lies and more Lies……..With this kind of thinking they will attract recruiters who think the same way. No wonder a culture of ‘no work’ sets into the organization and the network collapses. They are now back to Recruit, Recruit, Recruit through more greed and lies.

If you have to leverage then you have to Sponsor, Sponsor, Sponsor……. and …. Retain, Retain, Retain…….. There is a BIG difference between a recruiter and a person who sponsors. A recruiter is interested only in numbers. The sponsor on the other hand takes upon himself the responsibility for the growth and the welfare of the person he has sponsored.

PEOPLE WHO TREAT THEIR NETWORK AS NUMBERS NEVER SUCCEED IN THIS BUSINESS. TO SUCCEED YOU HAVE TO REMEMBER YOUR NETWORK CONSISTS OF HUMAN BEINGS WHO HAVE HOPES, DREAMS AND DESIRES. THEY HAVE INADQUACIES, PROBLEMS AND FINANCIAL NEEDS. THEY NEED YOUR HELP TO SUCCEED. IF YOU ARE WILLING TO COACH AND HELP THEM WITH A SERVANT’S HEART THEY WILL DELIVER RESULTS BEYOND YOUR WILDEST DREAMS

What is the best way to develop a solid marketing force that never leaves your network? Sponsor a few key people at a time. Give them your full time and support. Build relationships. Help them to succeed in the business and train them to do the same. You have to build your network market on the right principles to succeed. There are no short cuts. Are you willing to take the responsibility to becoming a sponsor? If so then please read on……..

There are people who will tell you “Just recruit a lot of distributors. You’ll get at least a few good ones that way.” Few leaders will emerge along the way and your work is done. You can then have all the passive income you need. Leaders don’t emerge in business. You have to find talent and develop them. Once in a while you can get lucky but that does not happen very often. You can’t leave your business to chance if you wish to succeed.

The bottom line: Leverage is mandatory for wealth creation, and you will NOT become wealthy without it. You are either exercising the power of leverage for yourself, or you are serving as leverage for someone else, and building their wealth for them.

To apply leverage you have to find a network marketing company that has a very strong training and personal development program. Please also look at the credentials of the person who wishes to sponsor you. Is he committed to your success? Does your upline have requisite support systems for your training and success? Avoid companies that boast of automated recruiting system to increase numbers. You never build a network by merely having a recruiting system. Your network will collapse. To increase retention you have to have a proper support organization and training that builds relationships. Do not join a company that focuses on recruiting and numbers.

Next important thing is that people must see value in the product. Many network marketing companies fail because they do not have a product that can sustain the business. You can’t fool all people at all times. Network marketing is a relationship business that is built on good faith and recommendation. You just cannot build a strong belief system based on a weak product. Monavie has gone from zero to over a billion dollars in sales within three years. Even Microsoft took seven years to reach a billion dollars in sales. This is because of the product. The product sells itself because of its intrinsic value and as a result retention rates of distributors in the business are very high. Leverage can work only when retention rates are high.

Lastly and most importantly people want a fair compensation for their effort in the business. There are network marketing companies that distribute only 10% to 30% of the total revenue to the distributors. The success of Monavie is because the company is committed to distributing 50% of the Group Volume (GV) to its distributors. This is unprecedented in network marketing. No wonder people stay in the business because they make money. Some compensation plans are heavily loaded in favor of the ‘heavy hitters’ or the people who reach higher levels in the business. These plans do not adequately compensate the new distributors for their effort in the business. This results in new distributors getting disillusioned and dropping out. This is very bad for the business. For leveraging to work retention is the golden key. To succeed in network marketing the business model or the compensation plan has to work correctly. Initial cost of joining the business, risk involved, return on investment (ROI) and the breakeven point have to be properly balanced out. The new distributors will stay in business if they can recoup their initial investment in the shortest possible time and start making profit from the business. Monavie has an excellent new generation binary compensation plan that pays distributors in eight ways. The plan is not only generous but also very equitable and rewards those who put effort into their business. There is also a very huge potential to build passive income rapidly. New distributors can recoup their initial investment and can be in profit within few weeks of joining the business. This makes great business sense because the retention levels are very high and the leveraging power of the business kicks in.

Leveraging which is the basic principle behind network marketing can work only if the network you create has the power not only to sustain itself through high retention rate but also to expand itself exponentially once it is created and set up correctly. This can happen if there are right kind of training and support systems, belief in the quality of the product and a fair, equitable and generous compensation plan in which new distributors can start earning money in the shortest possible time.

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Dedicated to your success,

Praveen Kumar

Online business and lifestyle coach

+64 9 8348585 (GMT+12)

"Believe and it WILL happen. YOU will make it happen!"



The FIRST EVER Fully Branded, Customizable, Lead Generation &
Attraction Marketing System Of Its Kind That Combines Attraction
Marketing, Affiliate Marketing, CashFlow Programs And Traditional MLM
into ONE Super Powered Profit Pulling Machine:

http://www.wealthonlineguru.com

Network marketing is a recommendation business and not a sales business

Network marketing means sharing and transference of your enthusiasm for a product or service. It is a business that works on recommendation of a product that you use and are excited about. When you see a good movie and have enjoyed watching it you speak about it to all your friends. You transfer your enthusiasm to your friends. They go and watch the movie because of their trust in your judgment. If they enjoy the movie then they will further spread the word to other friends and the viewership of the movie grows. Unfortunately you don’t get paid for spreading the word. Network marketing works in a similar fashion. The only difference is that you get paid for spreading the word.

The fact is you have done word-of-mouth advertising, every day, since you were a child. You told your mom & dad what you loved and wanted, your favorite ice cream, jeans, baseball bat, books, movies, restaurants, all kinds of things. You’ve been promoting products since about age 5. But you’ve never got paid for it. The only difference is that with network marketing you get paid every time you recommend someone the product that you love to use. The best part of this business is that you will get checks from this business 25 years from now for a product you recommend to someone today! Isn't that incredible?

Be a part of our DREAM TEAM

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Dedicated to your success,

Praveen Kumar

Online business and lifestyle coach

+64 9 8348585 (GMT+12)

"Believe and it WILL happen. YOU will make it happen!"



The FIRST EVER Fully Branded, Customizable, Lead Generation &
Attraction Marketing System Of Its Kind That Combines Attraction
Marketing, Affiliate Marketing, CashFlow Programs And Traditional MLM
into ONE Super Powered Profit Pulling Machine:

http://www.wealthonlineguru.com