Wednesday, October 21, 2009

80/20 Rule of Multi-Level Marketing

The 80/20 Rule

What is the 80/20 Rule of MLM [Multi-Level Marketing] /Network Marketing? This is an economic test to understand why there is such a high failure rate in the MLM/Network Marketing industry. As you read this article you will learn why there is such a high failure rate and how to eliminate it.

Now let me make something clear right up front! I know that you get bombarded with information daily about the latest greatest company deal and have developed resistance against the MLM industry because of this. Some of you probably get turned off when you hear the term MLM. I consider myself blessed that you are reading this article, and assure you that when you read this article you will understand the MLM/Network Marketing industry differently.

Now let us look at the MLM industry based on Vilfredo Paretos 80/20 Rule. For those of you who are not familiar with this theory it is an economic theory that proves that a small amount of people will always control a large amount of Wealth or what ever the program is. Let us apply this theory to the MLM/Network Marketing industry.

The MLM industry will grow in 2010 to a 200 Billion-Dollar industry annually, which is not some small industry. It is a very large industry so we must understand that somewhere people are doing this right. Even though we see a high failure rate we must understand why this happens. Lets look at the 80/20 rule and can see that 20% of the people control 80% of the revenue stream. This also shows that 80% of the people control 20% of the revenue.

This is where the problem comes from! The 80% group that are earning 20% of the revenue do not understand what they are doing. They are leading the people they come in contact with astray and down a path toward failure. Why would anyone listen to someone who is only responsible for a small amount of the revenue? The answer to this is because the majority of people do not know how to tell what this 80% group does not know.

How do you recognize this group? This group pushes products first instead of process. Never will anyone be successful in the MLM industry pushing products first. The MLM business model is not product driven; it is driven by process. If you understand the process of how to use the MLM business model, it really doesn?t matter what company you use. Although you want to find a company that is solid, the search for the right company is secondary to understanding the right process.

A great analogy to explain this concept is the following, imagine that you are playing baseball in the World Series and you are given the choice of using Babe Ruths bat or having his ability, which would you pick? I would hope that you would pick his ability! Having Babe Ruths ability would allow you to hit home runs using any bat. Right, you could pick up any bat and hit home runs since you have the ability to swing the bat in a coordinated fashion allowing you to connect with the ball in a perfect way. This holds true with the MLM/Network Marketing business model. The ability is the process; the company that you use is the bat. Without the right process no matter what company you use, you will likely fail.

We teach you the process, we make sure that you understand, how to understand the MLM business model and we work with you until you to know how to use it. We do not focus on the company since that is the bat and only the vehicle to hit the home runs.

The 80% are focusing on the companies and their products [bat] and nothing else. They do not know how to teach what the 20% are doing. They simply do not understand how to operate the MLM business model and consequently lead people astray.

We teach you the ability to understand the MLM business model and make it work. We teach you how to create a better life and make very large sums of monthly income in a short period of time. When working with us you will be come successful. We teach you how to swing the bat.
Learn More about the 80/20 Rule of MLM Marketing HERE...
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