Apr 17, 2019
What you will learn:
-How to handle conflict
-How to identify someone's goals and dreams
-Asking good questions
-Better Listening Skills
-Self awareness about where you need to grow
In the United States, network marketing is a a 34.5 billion dollar industry and over 18.6 million people participate it in it. It is an 190 Billion dollar industry worldwide and 36.9% of the industry are millennials (1981ish-1996) and 34% are Gen X (born 1960-1980ish) and a tiny slice of 1.4% of Gen Z is participating.
There is huge opportunity for you not matter what your age.
The premise of network marketing is that a web of product sales funnels through links in accounts that allow for compensation to an associate for the the lifetime purchasing of a customer. This is different than affiliate marketing where each point of sale is a one time commission for the sales associate and therefore the number of sale contacts in affiliate marketing requires thousands of more contacts than network marketing. Additionally, in Network Marketing, referrals of referrals generate income and learning how to grow a team is one of the most valuable skills you will need. Growing a team though means you will need to learn how to help people navigate through growth which includes conflict and helping people to be the center of their desires.
Growth equals income. Growth equals helping more people.
Let’s break this down.
DISCLAIMER: These amounts are making a lot of assumptions and only meant to be a comparison of industry. Income disclosures for each company vary within the network marketing industry. I have used my company as an example and there are disclaimers with it.
Lisa and Rachel are college besties. Lisa is pursuing a degree in marketing, Rachel in accounting. Both have grown their Instagram following to over 18K and have over 6% engagement, meaning on any given day 1,080 people are engaging in their stories and posts.
Lisa decided to monetize this with affiliate marketing and was contacted by a company to promote their protein powder. They offered to pay her $300 to do a post and also an affiliate link that gives her customers 15% off and her $10 for each order. This excites her! She posted about the protein powder and 10% of her engaged follower purchased, making her $1,080. She never earned another dollar for those same customers who now have their own accounts at the protein company and order through their own accounts instead of her link. She used affiliate marketing to do this.
Rachel decided to use network marketing to monetize her Instagram. I reached out to her. I did not pay her to post but I taught her how to create a residual income using a grass-fed, undenatured protein. She posted on her IG, engaged with her audience about the responses, sent customers links to set up their own wholesale accounts earning customers a 25% off discount.
The same percentage of followers purchased for Rachel as did Lisa.
Rachel earned a $25 commission on each initial order and earned a commission each following month her customers happily ordered. Because my company rewards 2 or more orders in a week with a double commission she actually earned $50 for each customer because each week there were more than 2 people. Her first month she earned $5,400 in initial orders plus a points system on those orders that earned her an additional $1,192 and $810/month residually for the customer’s orders each month after. Additionally, 10% of her customers also referred 2 friends using a link and she earned a commission on all of those orders each month too down to an unlimited depth of referred people.
Lisa’s total income for month 1: $1,380
Lisa’s total income for month 2-12 on those customers: $0
Rachel’s total income for month 1: $6,592
Rachel’s total income for month 2-12 on those customers: $810
Rachel also earned income for additional referrals of referrals up to $13,500/week at which time she opened a new business center to start the process again, finished her degree and started working for a non-profit, paid off her student loans and enjoyed the newfound energy she had each day.
Would you rather be Lisa or Rachel?
Do you see the difference between affiliate and network marketing?
Can you see how it would be important for Rachel to develop skills to grow a referral network and help people do the same thing as her so her potential to make $13,500 a week happens faster and more steady? This week’s episode is with my mentor and we are talking all about how to grow a team of people. This episode ripped open areas of me that needed to grow. I learned about myself about how to better handle conflict and help people meet their goals. I hope it helps you grow.
Join the discussion in our Facebook group this week about this week’s episode and this topic.
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