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When you look at franchises and conventional businesses, they have three important principles, of which a MLM business is no different. In fact, MLM has even greater opportunities for financial security and time freedom. Even for those of us who are working in this profession, these important principles are often misunderstood resulting in failed businesses. Let’s take a look at them:
- The Power of Leverage – when it comes to time and money, would you rather be paid on 100% of one person’s efforts or 5% of the efforts of 100 people? MLM businesses do not require a high investment of your time and money therefore, it is very attractive to many people in these economic times. On average 10-15 hours/week with solid effort, can bring in a very significant 2nd income. As you enroll others into your organization, you are now leveraging their effort and time, giving you the opportunity to increase your income and create more time for yourself. Your vested interest in helping others succeed rewards you amply based on your coaching and mentorship. This is truly the perfect example of a win-win situation.
- Residual Income – this portion of income is earnings (back end) after you have the done work upfront. For example, it is very similar to the royalties that actors, musicians and authors receive. Another example is earnings interest on your bank investments. Consumables offered by a MLM company give you the opportunity to earn ongoing monthly income (residuals) with customers repeatedly purchasing the products on a monthly basis. Many people in MLM give up too quickly because they want instant results and do not understand delayed gratification linked to residual income. It is not ‘get rich quick’, but rather a steady and continuous income stream. However, that being said, numerous people have reached ultimate financial freedom in a short period of time allowing them to live the life of their dreams.
- Growth based on Duplication – in the MLM industry, the principle of duplication is about repeating or carrying out the actions. Massive income potential and long term success can only be achieved by this key point of duplication. Coach and mentor others on this principle and you will be guaranteed outstanding results.
Here is a great quote that I believe puts all three of these principles in perspective.
“You can have everything in life you want, if you will just help other people get what they want.” – Zig Ziglar
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