The Cash Couple

Here is a classic MLM math model used by marketers everywhere…

"If you sponsor just 4 people who all do the same, on level 7 you would have over 16,000 distributors ... of course that won't happen exactly...some people will quit ..but lets say only 10% remain active…you would still have over 1600 distributors!"

Well, this famous model is flat out math magic.…an illusion.... here is why: Sure 10% of 16,000 is 1600, that is absolutely correct. But to get to the 16,000 we had to assume 4 people sponsored 4 people down 7 levels ...here is the tricky part…to get there, no one could quit.

Here is what happens at 25% retention rate (much higher than the proposed 10%)...

4 people are recruited, 3 quit. Leaving 1 active Distributor. He/she recruits 4 ...3 quit ...that leaves 1 active Distributor on level 1 and 1 active Distributor level 2. The level 2 Distributor recruits 4 people...3 quit ..now you have 1 active distributor on each of levels 1, 2 and 3 ..hmmm only 3 active distributors. we have maintained a retention rate of 25% and it doesn't look like we have any chance of ever getting to 1600 Distributors.

Finding 4 Leaders is the key to this model. You might have to sponsor 10 or 20 to find the 4 leaders you need.

Many Network Marketers spend a lot of time recruiting. They recruit new members, and just as quickly, older members quit. It is much better to recruit a few Distributors and work with them. Teach them the principles they need to succeed. Not everyone is ready to be a Leader and build a business. If they are not willing to learn, then move on. The old saying “some will, some won’t, so what” applies here. If at some point you as a sponsor care more about their success then they do, it is time to move on and work with someone else.

The more time you invest into training new Distributors, the less time you will need to invest in recruiting new Distributors.

In Network Marketing/MLM retention is KING. It is important to sponsor people, its much more important to support, train and motivate the distributors already in your organization.