|
 |
Blog |
|
Wednesday, 26 August 2009
There are three major components in MLM--leverage, residual income, and duplication. Today, I'm going to talk about leveraging yourself in your network marketing home business.
What is leverage? Leverage is your effectiveness to position yourself so that you maximize your results with the same amount of effort. (In my science classes, this was called torque.) By increasing your lever arm upon the point of rotation, you achieve greater results even though you are exerting the same amount of force or effort.
In MLM, leverage comes in the form of building a team of partners who are exerting the same amount of effort as you in building their home business. Each time a business partner is added to your team, your lever arm increases and you receive greater results.
A great example of this is franchising. A franchisee purchases the right to open outlets and pays the franchisor royalty fees. The franchisor leverages their time because there are thousands of stores working thousands of hours. The franchisor alone couldn't possibly work the same amount of hours that all the franchisees work combined. Yet, the franchisor makes more money each time a new franchise opens. With each new franchise, the franchisor is increasing it's lever arm and achieving greater profits without increasing their personal efforts. That's the power of leverage!
Franchising is great if you have the money to pay the large up front fees and time to wait 3-5 years to earn a profit.
Network marketing works the same way except there are no big up front fees and you have the potential to make immediate profit through retailing. How this works: You start your MLM home business and invest 10 hours a week into working your business. You sponsor Mike who also puts in 10 hours a week for a total of 20 hours combined. The next week, you each sponsor someone so there is four of you working a total of 40 hours combined. This type of duplication continues and by the end of the second month, you'll have over 1280 hours invested into your MLM business and not just by you. You are only working 10 hours. Your lever arm increases with the addition of each team member and you receive greater results even though you are exerting the same effort, 10 hours.
This is the power of leverage in MLM! You are opening outlets and coaching them to home business success!
Expect SUCCESS!
Kendra Rahne
Friday, 21 August 2009
A few years ago before beginning my MLM home business, I began researching the whole concept of network marketing. Other than attending a few home parties and waiting in anticipation as a child for the 'Avon Lady' (who always had fun things to play with) to arrive at our door, I really didn't understand how MLM worked.
So, what is network marketing? Network marketing is basically word of mouth advertising and is something you probably do without realizing it. What do you do after reading a good book, watching a great movie, or dining in an excellent restaurant? You tell somebody about it! That somebody might be a family member, a friend, a co-worker, or reader to an online post. Do you get paid for this referral? No, someone else profits, i.e. the book's author, the movie producer, or the restaurant owner. In network marketing, you receive a commission for referring a product or service to others.
MLM is a form of network marketing where multiple levels of people earn a commission on the sales made by one individual. It pays people not only for the product they sell but also for the sales made by people they've introduced to the company. How this works: as a sales associate, you refer people who also want to purchase products directly from the company. They become a sales associate in your downline. They in turn refer people to purchase products directly from the company who in turn refer people, etc. You earn a commission based on the sales efforts of the person you referred and the sales efforts of the people they referred. These commissions are paid out according to a company's compensation plan.
These definitions of MLM and network marketing are simply stated. As my blog grows, I will dig deeper into these two topics. Having an understanding of what network marketing is and how it works is vital to growing your MLM home business. Understanding it for yourself will help you explain it to others who are trying to decide if a MLM home business is the right fit for them.
Stay tuned for my next blog . . . The Power of Leverage!
Kendra Rahne
Tuesday, 18 August 2009
My name is Kendra Rahne and I'd like to welcome you to my blog. I am a WAHM of two young children and a wife to a wonderful, loving and supportive husband. I have a MLM home business that I started about a year ago. This blog is dedicated to my journey in MLM/network marketing. I will use it to share what I learn as I progress and grow my home business. I began looking for a way to earn money at home when my youngest was a baby because I wanted to be a stay at home mom but also wanted to earn an income to help with the bills. I searched online for different ways to make money at home and found many "opportunities." Although I was leery of most, one concept caught my eye, MLM. I was familiar with some of the big name companies out there that used this concept to market their product but didn't really understand how it worked. I found numerous resources online and at my local library dedicated to MLM, and I educated myself on this topic. What I read made sense to me. MLM is a form of network marketing where multiple levels of people receive commission from one person's sales. The multiple levels come from sponsoring other people who also want to have a home business and they in turn sponsor people. Depending on how a company's compensation plan is set up, you could potentially earn a commission on six levels or more. You basically earn money from the efforts of other people, a.k.a. residual income. (This is the part that sparked my interest most!) The next step was to find a company that fit into my lifestyle. I needed a company with a product that I already enjoyed and could see myself promoting. I also needed a company that was more than a home party plan. I needed something that would allow me to earn an income through several avenues. I finally found a company that was a fit for me. It still took me several months to decide if this was something I wanted to pursue but one day my gut told me to go for it. So I did! This blog is my journey as a WAHM and MLM home business owner. Please join me! I look forward to having you along for the ride! Kendra Rahne http://www.scentsationalcandlebiz.com
 |
|
