Tweamster's Blog

Rooms For Rent | September 6, 2010

What?

For those of you who weren’t here last week, I made a comment comparing the network you’re building in your business to real estate. My exact comment was: “Think of it like real estate. Once your network reaches a certain size, that network becomes an asset that continues to generate income whether you work or not.” (For the whole article, you can go to Don’t Trash Network Marketing.)

I realized on further pondering that that is actually a very apt analogy. Plus it capitalizes on a very similar analogy made by Tim Sales in his amazing video Brilliant Compensation.

Why Real Estate?

Real estate investors look for properties that can return a positive cash flow, whether it’s a house, an apartment, commercial or industrial properties.

Do you think that real estate investors think that 100% of their properties are going to be fully rented and paid every month? Whether it’s waiting for the right tenant to arrive, remodeling before the tenant moves in, having to deal with a tenant that’s not paying, or whatever, they know that there is a certain amount of time with any property where that property is not generating any income.

The commonest solution is to have enough properties so that if some of them are not generating any cash flow, the other properties keep the cash flow happening.

And?

So if you’re building a network marketing business, the people you recruit are your “properties.” They are what are going to build your cash flow.

Do you think that all of your “properties” are going to produce sales and recruits every day, every week, every month? They’re not, so what should be your solution? More “property,” i.e. more people in your network.

Let’s paint an example. Let’s say that, on average, everyone that you recruit, recruits 2 people, period. But out of 10 recruits, 1 of the people goes to town and recruits 1 person every month. To keep the math simple, let’s say the people who recruit 2 do so in their first 2 months. Further, let’s say you are one of the guys/girls who are acquiring 1 “property” per month. Here’s how the numbers of “properties”  might go. 1st month – 2 (you and your first); 2nd month – 4 (you and your first plus both of you recruit another); 3rd month – 8; 4th month – 14; 5th month – 22; 6th month – 32; 7th month – 44; 8th month – 58; 9th month – 74; 10th month – 92.

After 10 months, you have 92 people in your network of whom exactly one is doing something every month, yourself. But, you had things happening all the time. Every month there were new sales and new recruits. And you had your first “property” that begins generating cash flow every month. At the end of the second 10 months, you’ll have another 184 people plus your 3rd and 4th person doing something every month (another for yourself, one for your first every monther) . At the end of the third 10 month period, you’ll gain another 4 people who do something every month (one for you, one for the first guy, and one each for # 3 & 4).

After 30 months, 2 ½ years, you have 8 “properties” generating cash flow every month. Let’s just say for the purposes of the analogy that each “property” generates $100 in cash. Okay, so after 2 ½ years of blood, sweat and tears, you have $800 in cash flow. I can hear you thinking, “oh, wow…”

Bear with me, after another 10 months, at the 40 month mark (3 year and 4 months) you have 16 “properties,” $1600 a month, better, but really, for 3 years of work? Okay, 10 months later, 50 months (4 years, 2 months) you now have 32 “properties” bringing in $3200 per month. Another 10 months (5 years now) and you have 64 “properties” bringing in $6400 a month. 5 years and 10 months, you have 128 “properties” and $12,800 per month. Stop me when you get excited.

Okay, not bad, but 5 years?

All right, name me some other occupation where, with no education in the business at the outset, you can earn this much or more in that time frame and have it turn into residual income to boot.

And who’s to say that you couldn’t double your efforts or increase your effectiveness and do it twice as fast? It has happened.

So, How Many “Properties” Do You Want To Buy?

If you’re considering joining the network marketing industry and haven’t made up your mind yet, check out the video by Tim Sales called Brilliant Compensation.

If you don’t have a company yet, or you’re looking for a better one, check out www.AlansMLMTips.com and sign up for the (free) “7 Days, 7 Insider Secrets” email newsletter.

If you already have a company, and need tips and how to’s on marketing, check out John Eberhard’s RealWebMarketing Blog.

Here’s a couple blogs that I like that are specifically on network marketing:

http://www.marcus-baker.com

http://karyrogney.com

Hope you’re enjoying your Labor Day weekend! Have a good week.

Quote

Success seems to be connected with action. Successful people keep moving. They make mistakes, but they don’t quit.  – Conrad Hilton

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