This Business is Really
All About Leverage.
Let's say that
I am an insurance broker and I hire an agent to sell for me. He goes
out and sells a lot of policies during the month and he earns a
commission on each one. As his broker, I also earn a percentage on
the total profit from his sales. Why? Well, I hired him, I
trained him, I did some of the advertising, I had the
motivation to get my brokerage license in the first place and I took
some risk to do so. Plus, I helped create this product
volume, in an indirect way, which my agent sold in the first place.
My agent does not work for
me as an employee. He just works with me and we both benefit when he
No one ever seems to have a problem
with how this kind of business model works over the many years
that people have sold insurance. In fact, I don't think they were
ever asked if their business was a Pyramid. So this is a form of leverage for the broker.
However, in this form of leverage, it lacks a lot when compared to
the leverage found in the Network Marketing industry.
As a broker, I can hire many agents and
increase my earnings by doing so. However, these agents cannot
hire other agents and so they are limited on how much they can earn.
Because of this, some of them may end up doing what I
did and become a broker as well. If I taught them well, this
could be bad for me for two reasons.
1) I lose him or
her as an income source and so I now have a drop in my income
2) He or she is now my competitor whom I trained,
and they also know all of my
it gets even worse than this!
He or she now hires
other agents as brokers and teaches them what I taught him or
her. Thus, I indirectly taught my competition how to compete
against me. What if some of their agents want do the
same and become brokers who then turn around and hire even more
agents? Now I have indirectly developed a chain of competition. This
does not only happen in the insurance business, it happens in every
industry and in every conventional business.
industry that this does not affect is the Network
Marketing industry model.
Here is why:
In Network Marketing, I want my distributors to
become business owners just like I did right from the beginning. I
want to work hard to train them to reach their core desires for
building their income ASAP! It may be so they could spend more time
with their family, travel more, pay off all their debts, or whatever
their reason might be for joining me. The point is I want to help
them get to where I am so that they can do the same for their
distributors. In the process of doing this, we both earn on the same
product volume as we did in the model above. However, it continues
to get even better from this point forward!
The big difference here is that they
don't break away from me and become my competitor down the road,
such as in the model above as a broker. Instead, they become
part of my sales organization of which I am paid a percentage on,
based on the product volume their company consumes each month.
This is paid to me by the
Shaklee home office, not out of my downline's
This is the advertising budget that
other conventional companies pay for commercials and big movie stars
to say how great their products are when they may not even use them.
Do you know how much money it cost to run a 1-minute advertisement
on TV? In Network Marketing, this advertising budget is shared with
those who use the products and want to take advantage of this
offer by spreading the news of these great products and
lifestyle opportunities with others.
In this case, my
distributor is now a company owner just like
me and can sponsor and train others to become company
owners like I did for them. When they do, they earn a
percentage on each one, and so do I! They can earn more money
than I do, but I still have an invested interest in their future
success! So I continue to have an
ongoing incentive to always help them do better as well as for their
I help them grow bigger, I grow bigger as well.
This is why you hear of some
Networkers earning over $100,000 per month, every month! It's all
about leverage! But even those of us earning thousands per month,
it's still a great way to earn a living. After all, we get to
help other people earn their living and as we do, we also can have a
life because it only takes part time effort to do
Would you like to earn a great living
without having to go out to work everyday? Would you like to be home
with your children instead of having a daycare raise them? This is
why network marketing is growing so fast; people want more out of
life, such as time/freedom, instead of a 40-50 hour work week
for the rest of their lives.
is where some people ask the question, "Isn't that one of those
The reason they first ask
this is because of the large amount of income potential
one can earn in this industry. They feel there must be a catch in
order for the average person to be able to earn this much money.
However, the main reason is because they think or believe that
the people at the top make all the money and the people down below
do all the work. This is simply a misperception of the
Many get this misunderstanding from
the old illegal chain letters you may have received
in the mail. This is where you place your name on
list that was sent to you and then you send money to the person
on the top of the list. You then mail out a bunch of them so
that your name reaches the top and you make money. Except you never
do, and that is why it is very illegal to do so in the
Network Marketing is Not a Pyramid
First of all,
people at the top do not necessarily make all the money, nor do they
always make more than the people they train in their downline. In
the Shaklee compensation plan, Dr. Shaklee designed it so that the
ones who do the work, are the ones who earn the money.
A person could be a Shaklee
Director without any recap, (other companies that they are paid on),
but yet runs high product volume, and that Director could earn
more than a Master with 50 companies on their recap! It is a very
fair pay out plan, and that one point, out of many, sets Shaklee
apart from many other Network Marketing companies in the
The geometric shape also cannot be a
problem for anyone because it is found in almost any
structure such as your family tree or even the shape of
our government. It is the strongest structure known to man. Every
organization is structured this way so the shape isn't the
problem. It's the misperception that some people have about Network
Marketing--that the people at the top earn all the money,
which causes them to raise this question.
So, let's look at a company
organizational structure that we find in all big businesses
At the top you have the
CEO, Chief Executive Officer. Does he earn more money than the
President earns? What about the President, does he earn more than
the Vice-President? Do you think any of the Vice-Presidents earn
more than the President or CEO? No, not ever. What do you think
would happen if they did?
This whole process is
called delegation. Each level of this structure downward earns less
than the one above it. The staff and employees at the bottom earn
the least but yet do most all of the physical work. The
CEO of any corporation earns off the productivity of everyone in his
or her corporation whether that CEO hires them personally or
whether someone else in the company hires them. The CEO, and
only the CEO earns on multiple levels of that company. The chance of
a staff member or an employee at the bottom level becoming the CEO
is next to nothing.
Do you think any CEO of any company gets asked the
question, "Is this a Pyramid?"
Network Marketing, everyone starts out as the CEO of his or
her own company. As they build their business, their income
increases based on their effort and time invested. Unlike
the corporation model above, everyone gets compensated for the
efforts on the entire organization, not just the
Here is why
leverage is so exciting in Network Marketing when it is built the
What is the maximum amount
of hours per day that you could work..24 hours, right? If you
pulled an all-nighter, you could put in 24 hours. If you never
had to sleep and could do this every day for a whole year, you would
have put in a total of 8,760 hours for the year. So that is the
maximum number of hours per year you could invest, if you did not
die before the end of the year due to lack of sleep.
Now let's say you have a
small Network Marketing organization of only 100 distributors and
each one works an average of only 10 hours for the entire week. That
is 52,000 hours that you are paid on but yet, you are only
working 10 hours per week yourself, like everyone else in your
network! For you to put this same effort into a job, you would
have to work 24 hours a day over the next 5 years without
Network Marketing is simply
the best-leveraged plan out of all other income earning models.
You, as an individual in Network Marketing, are given the same
opportunity to earn on multiple levels, such as brokers do on
their agents or as a CEO of a corporation earns on
all levels of his or her company.
However, when you sponsor a distributor in Network
Marketing, their success becomes your success forever because it is
intertwined with yours. You both have an incentive to put in the
same effort together as a team. You can't be fired and everyone has
the same exact equal opportunely to earn as much income as he or
Thus, it is far better to
be sponsored into a Network Marketing "Pyramid' than into any
Corporation Pyramid. There is a lot more money being made available
to a lot more people than ever before and it has become a true
But if everyone gets in, won't the market get
This is another question that comes up
next, so let's deal with it right now.
A lot of people are exposed
to many things in their life over time, but that does not mean they
participate in many of them. About the time that everyone in the
entire world has been exposed to a concept, there is always a new
assemblage of people who forgot they heard it. Some may
have just moved here, just graduated from school, just
lost their job or changed their minds and are now ready for a
change in their life.
Look at how long TV or
radio has been around and yet they are still selling them and people
are still getting jobs in that profession. What about the
insurance industry? It has been around for a long time and yet
people still find jobs in this field and they still find people to
Many people are exposed to
Network Marketing many times during their life before they ever join
the industry. Some who do join, are only interested in using the
products at discount prices as a member and may never sponsor anyone
else. After all, Network Marketing companies offer some of the very
best quality products on the market. They have to do this or else
nobody would recommend them.
The point is that Network
Marketing has been around for over 50 years but yet less than
1% of the world understands it and so the world is still very wide
Our owner, Roger Barnett,
has committed Shaklee to expand into 50 countries over the
next 10 years. We do over $700 million in sales now and we are only
in just 5 countries today. Do you see why now may be the right time
for you to consider entering this industry?
At the very least, check it
out and ask the person who introduced you to this great industry all
of your questions. It is a business model that is giving birth to
many successful entrepreneurs today, and can offer you a chance
of a lifetime to not only earn an income that most people dream
about, but also the freedom to enjoy it!
Till next time,
PS: You can read any of
our past newsletters if you wish. They are posted on our web
site in our newsletter room at: http://www.youfoundyourfuture.com Please feel free to pass
on these newsletters to others if you like, but please do not
spam them. It is better to have them contact us directly, as others
have done, to subscribe if they wish to do so.
If this is a leadership
business, which it is, and you don't have a business
building process in place, which most people in Network Marketing do
not, how could you ever lead others? To lead others, it is
important for you to first know where you are going and how to
If you like, visit the home of
the RWB business building process to learn a very simple
step-by-step duplcatable process to build you a life-long
repeatable income from home.
Distributors 2006. All rights reserved.
www.youfoundyourfuture.com E-mail: Bob@youfoundyourfuture.com
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