Do I love money? No!
Do I love what money can do for me? Yes!
As crass as that may sound, I raise this issue as I have
often found that people have an aversion to money. They don’t want to talk to
people about potential income, they get frightened off by the talk of incomes
that are out of the ordinary, well above the average income people in jobs
“enjoy” – the types of incomes I know
people across a range of networking companies enjoy.
Money does not excite me. I have been in vaults where
millions of dollars were stored – and it did not excite me. It was just money.
Nor was money, I found, evil. The millions in those vaults
did not attack me or induce me with evil thoughts ….. although!
No! Money is just a tool, a medium of exchange, that allows
me to pursue the things in life that are important to me. In this world
we have exchanged one form of payment for one service or product supplied since
man first communicated. A shell would be exchanged for a fish. A pig exchanged
for crops. Coins for drink. Wages for labour.
In all societies, across all ages money, or the equivalent
of money, has been used to purchase those necessities and the better things in
life.
In our society it is the dollar. Want to buy a home – you’ll
need about 600,000 of those dollars. Want a new car – maybe 36,000 of those
dollars. Feed a starving child in Africa – maybe a 1,000 of those dollars.
Eradicate polio from the world (such as Rotary and the Gates Foundation are
working towards) – tens of millions of those dollars.
So why are people so put off by all this talk about money?
The nitty-gritty of this post is to have you thinking about
money – and how much of it you will need in order to make real the dreams, the
needs, the wants of your life in the next 12 months.
Let’s say you do want that new car and, just for the sake of
it, it will cost you $36,000. What you now have is (a) a dream – the car and
(b) a tangible target to aim for as income – the $36,000. Even those companies
that incentivise with a car have dollar targets to reach first.
Now it becomes a simple matter of mathematics to work out
how many people you need in your business, doing what volume of sales in order
that you receive that $36,000 in bonuses into your account. This is a tangible
target to aim for.
Once you know how many people and the volume of turnover you
need in your business you can than work out how many
plans/meetings/appointments/sales you have to conduct/attend/lead in order to
acquire that number of people.
Networking is the simplest business I know of. Note, I
didn’t say easy. There is a difference.
It is simple in that to achieve any level of income all you
need to do is introduce enough people doing enough purchases to achieve the
volume of turnover that gets paid a certain bonus percentage.
The more people you have – the greater your income. The less
people – the less income. No people – no income.
Let’s put this in practical terms. Take the car. We need $36,000
in the year. Let’s say your company pays an average of 10% bonuses (I know your
company pays more than that, but I’m not into who pays more than who in the zoo
– it’s just that my old brain can work easily with 10% that’s all).
Well to have an income of $36,000 means my business needs to
generate a turnover of $360,000 in the year. That’s $3,000 per month – a
tangible target to achieve.
Now let’s say your average “active” business associate places
an order for $150 per month. That means you need to have 20 “active” associates
ordering each month to make the $3,000 turnover. Now you probably see why I
asked all of those questions in the first post. How many active business
associates do you have in your downline? Now, based on your target of $3,000pm,
how many more do you need?
You now have a sponsorship target for the year. In this case
let’s say you have 5 active associates. That means you need to “find” 15 more
in your downline. You can do that in two ways. One is to target 15 “inactive”
downline, find out what their dreams are and bring them up to speed. Secondly
you could work to introduce those 15 into your business (another tangible
target to aim for).
But of course, not everyone you show your business plan to
will join (oh, if only it were that easy I hear you say!). Well, based on your real success rate, say 1
in 5, how many business plans would you need to show in the next 12 months? So,
if you need 15 and you are successful every 4 plans, that means you need to
show the plan 60 times in the next 12 months – just over 1 per week.
One more step and we are done with the planning. How many
people do you need to talk to in order to generate 60 plans in the year? Well,
if your average is that for every 10 people you talk to you get to show one
plan, that means that in this case you would need to talk to 600 people – your
final tangible target for the year.
We now know that we need to talk with 600 people in order to
show 60 plans in order to introduce 15 active associates in order to increase
your monthly turnover of $3,000 in order to generate $36,000 in income just so
that you can reward yourself with your brand new car.
Of course, this is just an example and you have a whole team
to work with, not just yourself. So don’t think you have to do all of this on
your own. That’s the power of leverage.
But the formula for success, which this post is about,
allows you to set targets that are real and that are aimed to give you as much
certainty as can be given of success.
So, what are your dreams and what are the dreams of your
team? Apply the formula and you have something to work for.
Make A Difference – TODAY!
Colin
Do you like this article from Networking TODAY! on Fridays: Thoughts and ideas on
building an outstanding networking business? Feel free to share it with your
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