Network Marketing Business Plan
What is Network
Marketing?
In network marketing,
we have a company who has already developed the products and the successful
business plan. Once we register as a representative, there are 2 ways we can
make money. We can sell product and make money on retail just like a store, but
we can also make money by finding other people who want to do the business,
bring them in and train them and then we get a percentage of their business.
Since you get paid on
sales volume, and only sales volume, your initial objective is clear. Generate
the highest possible volume in the shortest possible time. This is best done by
using the concept of leveraged sales techniques.
The Power of leveraged sales
Network marketing is really no mystery, you get paid on sales
volume just as in any other type of sales. The critical difference here is that
you can acquire more customers and volume through leveraging yourself than
through doing it yourself.
To better understand this concept think of franchising. If you bought one
hamburger franchise you could earn a living by working the business, however if
in addition to selling hamburgers, you could sub-franchise the business and your
earned a small percentage of each sub-franchise you would make much more than
just selling your own hamburgers.
Since you can create volume either by setting up customers or
by setting up other distributors and having them set up customers, what is the
best plan to follow? Here is a quick example that should give you some ideas:
Example
If you need to make
$15,000/mo in income and you get paid 30% commission on retail sales if you find
the customers yourself or 10% commission on the wholesale price if you hire
sales reps to do it for you.
Scenario 1: Do
it yourself
You would need to
generate $50,000/mo in sales, and if your average order was $100, that would
take 500 customers.
500 customers X
$100/month in orders = $50,000 in Sales X 30% commission = $15,000/month income
Scenario 2: Leverage
Using leverage we
would focus on introducing the opportunity to others and teaching them to do the
same and let the process of duplication and leverage work for us. Since you
receive 10% on the volume of your downline if they are in your higher commission
(weak) leg of production, You need to generate $150,000/ mo in sales.
Here is how you do it:
1.
Recruit 2 reps a month into your group
2.
You teach each of those 2 reps to recruit 2 reps (a 2X2 duplication)
3.
Each rep uses $100/month of Synergy Products
4.
Each of your reps finds 2 retail customers (average order $100/month)
5.
Do the above for 10 months
You now have
$15,000++/mo in income
The Math
It seems almost too simple but here's the math
- Your recruit 2
reps and each of them recruits 2 reps for 11 months= 2048 reps
- Assume that your
organization only achieves a mere 5% of the above example = 100 reps
- Each rep has
$1500/month in volume ($100 in consumption, $200 in customer orders,
and $1200 for 2 executive kit sign ups a month)
- 100 reps X
$1500/mo = $150,000 group volume. This equals $15,000/mo in basic commission
income
- This example does
not account for mega match commission. If you figure mega match into this
example it would be approx $30,000/month in income
Total income
$15,000 to $30,000/month.
Leverage + Megamatch = $$$
Its
quite a bit easier to use leverage to generate the sales than to try to do it
all yourself. One of the most exciting parts of the business is Synergy’s
revolutionary compensation plan. One powerful part of the plan is the Mega Match
bonus structure. It pays you a matching bonus on anyone your personally
introduce to the business. Lets say the people you introduced to the business in
the above example were even more successful and they built their income up to
$5000/ month. You would now be making $50,000/ month in mega match! Can you even
imagine if you helped your sales team to achieve and income of $10,000/ month?
This is the true power of leverage.
For a complete overview of the compensation plan
click below
*
These income projections are used to illustrate the income potential of the
Synergy Worldwide business. They are based on a perfect geometric progression
and assume no dropout or attrition ratio, which of course there would be.
Actual results could vary significantly. Success takes hard work and depends on
many factors. These projections in no way represent a guarantee of success.