This is part of a series of articles on the dirty secrets of network marketing.

I wrote in #2 about income claims. Well I want to address that even further.

Most of the income claims you see are bogus.

Most companies seem to be designed around a monthly volume of approximately $30. Some maybe $100 or so.

Keep in mind that most of your distributors aren’t going to do anything. They won’t even use the product. Or they’ll use it for a couple of months and give up and cancel their orders. So you can’t count on their volume.

In reality you’re going to make about $1 per distributor.

YES that’s right. $1 per distributor.

At least that’s been my experience in several companies. Maybe there are some high end companies out there that will break the mold… But starting out you’re going to make about $1 per distributor on recurring income.

5% of $30 is $1.50 right?

But seeing as many distributors quit and will cancel their auto orders. A few will get several customers and they might have $200 in volume… But most will be right around the minimum.

It really doesn’t matter what company it is. You can be talking long distance or vitamins or greeting cards. You’re overrides always seem to end up being around $1 per distributor. In some cases LOWER than this.

That is the real income claim for your first few months or first few years… Until you begin to work your way up the compensation plan. As you work your way up the bonus money kicks in and that is where the real income is.

Just don’t believe the hype that because you personally sponsor 20 people you’re going to have a downline of 20 x 3 = 60 x 3 = 180 x 3 =540… and that you’re going to making thousands a month off these guys… You’d be lucky to make $540.

HOWEVER $540 is a lot of money… recuring every month. You know how much money you’d need in the bank to make that at 7% interest? Hundreds of thousands of dollars. So you’re little business has equaled a very fat savings account in just a couple of years worth of hard work.

But don’t be misled to think you can turn it into $10,000 a month in 3 months… Thats just hype. Start with the $1 a distributor calculation. And as you work your way up you’ll see those numbers grow. The bonuses and overrides will kick in.

(I’m talking actual recurring income, not signup or coaching bonuses which are one time payments.)

- Ben Fitts

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