You might wonder how the company itself makes any money when there are all these people taking a portion of the sale. The first thing to realize is that a multi-level network (in this example) does not overlap beyond five levels. In other words, your upline will not earn a commission from a sale made by someone in the 5th level of your downline.
Also, notice that if you add up all of those percentages, you don’t reach 100%. This holds true no matter which level the sale is made on. The company will earn a minimum 13% profit, even when paying out commissions to all 5 levels.
Now, let’s take a look at what an average day’s sales could bring you if you were to build your downline all the way to the 5th level. We’ll pretend that the product the company is selling has a retail cost of $100.
If you made 1 direct referral ($50), 10 sales on the 2nd level (10x$20=$200), 5 sales on the 3rd level (5x$10=$50), 5 sales on the 4th level (5x$5=$25) and 3 sales on the 5th level (3x$2=$6) then you would earn:
50 + $200 + 50 + 25 + 6 = $331 total commissions
Not bad for a day’s work, right? The size and depth of your downline has a cumulative effect on your income, and this is why MLM programs can be so profitable when you understand how to work them. The key word here is how.
It is not simply a matter of referring as many people as possible. One of THE single, biggest mistakes made by MLM newbies is recruiting un-targeted and unmotivated downline members.
In order to succeed, you must learn how to:
º Target the right market for the product.
º Target the right opportunity-seekers for the business opportunity, and get them into your downline.
º Train and motivate your downline to do these same two things as well as you do! That’s how you get the big pay days in MLM.
In the remainder of this eBook, you’re going to discover how to accomplish all of this with less effort than you ever imagined.
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