A very common mistake that people new to network marketing make is not getting a firm grasp on the concept of “leverage.”
It’s important that you understand this business (this marketing model) is all about “leverage.”
J.P. Morgan said it really well when he said “I’d rather have 1% of 100 people’s effort than 100% of my own.”
It doesn’t matter who you are, what you do, or how much money you get paid for doing it…each of us has a finite amount time allotted to us as an individual each day…24 hours…that’s it…there isn’t any more.
Lets assume for a moment that you make $1000 an hour. There are only 24 hours in a day, and you cannot work all of those hours. If you push really hard, and burn the candle at both ends, you are maybe capable of working 12 to 14 hours a day tops. That means at a rate of $1000 an hour…the most you can earn is $14,000 a day. That is your income cap.
What if you don’t want to work 14 hours a day, but still want to make that $14,000?
What if you only want to work a 1 hour day?
This is where the principles of leverage apply…
You learn how to leverage yourself and your time.
What if I could train people to do exactly what I do…and because I train them…I make $1 a day from their effort. $1 doesn’t sound like a lot of money…but I could literally train THOUSANDS of people…even TENS OF THOUSANDS! All that I would have to do to earn $14,000 a day is train 14,000 people to do what I do.
Leveraging your time is a fundamental concept of Network marketing. If you spend an hour of your time training the people you’ve recruited directly, they can then turn around and take everything that they’ve learned and train their teams. You don’t have to spend an hour training everybody in your downline. You just have to train your direct recruits to train their people. Your one hour of time just became thousands of hours. Every time somebody on your team passes along that information, you have further leveraged one hour of your time.
There is another compelling reason that you want to leverage yourself and your time.
It’s not all about you!
If you build a business that is all about “you,” it’s very hard to leverage your time. As we’ve discussed, you only have so many hours that you can work in any given day. AND…what if something happens to you? If your business depends on “you” and “you” go away…so does your business.
Here’s another story to illustrate the concept.
There were 2 fairly iconic shows in Las Vegas. You’ve probably heard of both of them…”Siegfried and Roy,” and “The Blue Man Group.”
Both were very popular, and both were very successful. The difference is Siegfried and Roy’s act was completely dependent upon…you guessed it…Siegfried and Roy. So when the tragic accident happened and one of them was injured their act was finished. They had built a business that completely relied on their individual performance.
The Blue Man Group on the other hand…is comprised of 3 very similar looking bald men wearing blue body paint. Reality is it could be ANY 3 bald men who “perform” the act. In fact, there are several groups that perform the act all around the world. The original creators of the act were wise enough to know that they wanted to leverage themselves and their time…so they created a system that was not dependant on any one of them as an individual to “perform.” If, heaven forbid, something should happen to any one of them the act could continue.
In network marketing you want to follow the example of The Blue Man Group and make sure that your business is not dependent solely on you.
It’s very important that your organization is able to function without your presence. When you have a group of 10,000 distributors in your downline, you don’t want every one of them to need to speak with you directly every time they want to do something. You would never accomplish anything other than answering the phone…actually, you’d be hard pressed to even keep up with answering the phone!
I believe it was Eric Worre, in Go Pro: 7 Steps to Becoming a Network Marketing Professional, who said your success in network marketing can be measured by “Your ability to get a large group of people to consistently do a few simple things over an extended period of time.”
This is a concept that you must wrap your brain around. You don’t need to find a heavy hitter, you don’t need to find a superstar, you simply have to learn how to get a large group of people, to commit a little bit of effort, over a consistent period of time.
You see, if I leverage myself…if I leverage my time…I just require a little bit of effort from a whole lot of people in order to have just as much or more success.
So, you might be asking yourself…
“Why is this leverage concept so damn important?”
What I’m trying to help you understand is… You need to get out of your own way.
This seems especially true when somebody is new and just starting out…they try to do everything, and be everything, for everybody on their team.
They genuinely want their people to succeed, so they try to drag them kicking and screaming over the finish line. They make themselves the center of their business.
That is NOT leveraging yourself or your time…that is the people you’re trying to help leveraging their time.
When someone new to the industry is first starting out they tend to try to put anybody that they can find into their business. (And, I do believe there is a case to be made for not qualifying anybody that wants to join your team.) But I would recommend that you take a STRONG look at the types of people you DO NOT want in your business. You do not want somebody that is counting on you to do all of the work for them. You want people that pick up the ball and run with it all on their own.
If you’re the one that has to call them, if you’re the one that has to motivate them, if you have to get them out of bed and get their shoes on in the morning, that’s not the type of person you want on your team. If you have to do EVERYTHING for them, you are not leveraging your time…they are leveraging their time.
Your job is NOT to work the business for someone else. Your job is to TRAIN them on how to work the business successfully. You want to train them to be independent of you as quick as humanly possible.
I want everyone in my downline to be WILDLY successful, so I’m going to give them the tools and the skills they need to achieve that success. I can’t make someone successful. I can however teach them the skills, and show them the tools, that they’ll use to become successful on their own. That is how I “leverage” my time and my skills.
I teach my team
I TEACH my direct recruits how to be successful in this industry, and how to teach those exact same skills to their team.
I’m perfectly willing to TEACH anybody in my organization…but I will not work the business for them.
The only way that I can be successful in my business, is to help other people be successful with theirs.…and that simply isn’t going to happen if I do all the work for them.
Time for the cold hard truth
I feel obligated at this point it hit you with another bit of hard truth… And that hard truth is no matter what you do to train your people a very large percentage of them are not going to succeed.
Reality is that 80% of the people that you recruit into your business are going to quit without ever doing anything. Of the remaining 20%, 15%-18% will do a little bit… And only 2% to 5% will actually jump on board and work the business.
Stop and think about those numbers and what they mean.
If you recruit 100 people…80 of them will quit the business without doing ANYTHING…15-18 will do a “little”…and only 2-5 will actually build a business.
You want to make sure that you are spending your time and energy leveraging your time and skills with that last 20%. You make knowledge available to everybody, but you concentrate your time and efforts on that 20%.
Should you make the mistake of trying to drag that 80% across the finish line, you will end up exhausted, frustrated, burned out, and in all likelihood you’ll fail without ever even making your money back. You will end up being in somebody’s 80% group.
This business just like any other sales business boils down to a numbers game. You just have to stay around long enough for the numbers to start working in your favor… But that’s a topic for another blog post.
I started this article with a quote from J Paul Getty, and now here’s one from Andrew Carnegie…another of America’s wealthiest business men.
At one point in his illustrious career, Carnegie had 43 millionaires working for him at the same time. And at that time, a millionaire was a VERY rare individual. A reporter asked Carnegie, how he had hired 43 millionaires to come and work for him? Carnegie laughed and replied, “They weren’t millionaires when I hired them.”
The reporter then went on to ask, “How did develop these men to become so valuable to you that you have paid them this much money?”
Carnegie replied: “You develop men the same way you look for gold. You have to move tons of dirt to find one ounce of gold. But you don’t go in the mine, looking for dirt, you go in looking for gold.”
The point that I’m trying to make here is, if you leverage your time TRAINING your people instead of trying to drag individuals across the finish line, both you and your team are going to benefit. Concentrate on finding the “gold” in your downline…but know going in that you’re going to have to move a lot of “dirt.”
Why do so many people fail at Network Marketing? Find out HERE!