A find that there is a lot of hype in Network marketing. Everyone thinks they’re going to get rich, become a top earner and sail away on their new yacht. Now I’m a pragmatist… I see the opportunities present in starting your own business, but as a traditional business owner for many years, I also know it’s a ton of work to see the elusive fruit. Many times your business can own you instead of you owning it! With that in mind, I ran an experiment over the last year and I want to share the results with you.
Now, I understand the idea of passive, residual income and in our company that is why we do what we do. However, putting that aside, I wanted to test whether my time spent was worth the money I made. So here’s what I did… for one year I became the poster boy of Network Marketing. Let me explain…
- I attended every single company event for one year. National Conference, Regional Conferences, Super Saturday events and trainings.
- I chose a weekly meeting in my area and attended it every week.
- I went to home meetings run by my “upline” and attended other meetings as often as I could.
- I spent virtually every morning for a year by listening to a 5-15 minute video by an industry leader like Eric Worre, Ray Higdon, Dani Johnson or Les Brown.
- I read at least 1 book a month on business and specifically Network Marketing.
- I spent time learning the “business presentation” that my company provided and became adept at presenting it.
- I made myself available to help and train others on phone calls, webinars and in person meetings.
- I plugged in, set appointments and showed the plan.
I just received my earnings statement from my company and so it was time to test my results…
My goal was to tally my hours spent, look at the amount of money I made and then determine what my time per hour was worth.
I calculated my hours using the following criteria:
- I counted actual work time. In other words, if I met with someone for 1 hour and talked about the business for 30 minutes but then hung around and just chatted as friends for 30 minutes then I tallied 30 minutes of work time. If I attended a home meeting that took me 30 minutes to drive to and lasted 1 hour but then I hung around and had drinks for 2 hours after the meeting then I tallied my drive time and the meeting time for a total of 2 hours. In other words, I took into account the hours I spent when I was actually putting forth effort and time to build the business.
- I did not count work hours for times when I talked to someone about the business on the spur of the moment while being engaged in something else. For example, If I met a nice lady in the grocery store line and chatted with her and handed her a business card, I did not included this as “work” since I was already at the grocery store and talking to people anyway.
- I did NOT factor in time spent at extended Corporate events which focused on socialization and training. For example, my wife and I attended an event in Las Vegas over the course of 3 days. This could be counted as work time, but honestly? It’s Vegas! We also went on a Carribbean Cruise that we won for 4 days. Work? Not really.
I did not factor in money that I spent unless it was money I NEEDED to spend in the business. For example, if I chose to go out to eat and have some drinks with some of the folks after a meeting I did not count this in either time or money expended because it wasn’t necessary, it was simply a choice that I made to be social which I would do regardless of being in this business or not. I did however, reduce the amount made by the amount that I NEEDED to spend to run the business.
Full Disclosure….I ran this experiment on 2015 only. I did not start with this company then. I dabbled for a while and didn’t do much and then plugged in and started working in 2014. So, even though I did most of the work in 2015, I DID have some momentum coming into that year and obviously this impacted my results.
My 2015 Results
My completed tally blew my mind. Honestly, I didn’t expect results this good and frankly I got involved primarily for the residual income that continues to grow every month and will pay me forever.
Before I release the results I want you to follow my thought pattern…
What if you could work a couple of hours a week and make an extra $20hr? How about $40hr? $75? What would make it worth it to you?
Many people get a second job part-time to make some extra money to pay down debt, save for a vacation, start building a college fund or pay off medical bills. They rarely make more than $10-15 and hour.
Most of us would love a $1000 raise at our normal job, and a $10,000 raise would make us break out the champagne! But with those raises comes much more work and much more time!
OK, I’m preaching….without further ado…. here are my 2015 results….
$142.79 per hour! Yep…. Good gravy, I had to run the calculations 4 times and then ran around the house as my kids looked at me like I was a lunatic!
Why did I not know this????
A couple of reasons….
- When you get 5 extra checks a month it adds up…. you don’t think it’s a whole lot but over the course of time it’s huge!
- We spent a lot of it as it came in. We took our first vacation in 20 years, we paid off our debt, we invested in our home, bought things for our children and helped other people by giving. It wasn’t all sitting in a bank account building, it simply made our life more fruitful and a whole lot easier. When the AC broke we didn’t have to wait to fix it. When we needed a new vehicle we had cash to pay for one. When a friend needed help, we were able to help.
The other thing that I discovered that cannot possibly be calculated in monetary terms is the opportunity for powerful relationships and growth opportunities to be developed. I have been completely blown away this year by the people I have met, the things I have been able to be a part of and the amount of growth that has taken place. A very successful leader who has become an amazing friend of mine has often said,
“We don’t join this company to sell electricity or mobile phone services. We don’t join this company to get rich and make a lot of money. We join this company so that we can participate in a lifetime course of self improvement.” Billy Franz, you are a wise man.
The caliber of the people I met and became friends with has been amazing. I now have lifelong friends who were successful people in every respect of the word before this company and have now brought that success to network marketing. I have found people who have helped me grow stronger in my faith, taught me about friendship, helped me grow as a business leader, mentored me in my personal relationships and assisted me in becoming a better husband and father. The money has been great and that’s why I started. The reason I will continue is because of all the other blessings and opportunities. The money has become secondary.
Imagine that you had $500,000 in the bank earning interest. You could spend the interest you received each month but you could not take out the original $500,000. Welcome to residual income. I tallied my results based on money received, however, the other more intangible benefit has been that I now have a passive (as in I don’t have to do anything) residual (as in it will continue to come in forever) income. This residual income will continue to grow slowly without me ever doing a thing…. and… it will grow very quickly and abundantly if I continue to work hard over the next year. If you do not currently have a truly residual income then you ought to look at this….
So what are my 2016 Goals?
- Continue to grow and learn
- Put in more hours.
- Raise my hourly wage to even more by increasing my residual income.
- Get the word out and help other families change their lives!
Has Network Marketing made me rich? Nope. Has it been worth it? You bet it has. Does everyone succeed like this? Nope. What did I do to succeed at this? I plugged in, learned and grew in my skill set, did things that made me uncomfortable and pushed me to a higher level and I made a commitment to do specific things for a specific period of time. I challenge you to do the same!
That’s great John, but It’s not for me…
Maybe you’ve dabbled in Network Marketing. Maybe you haven’t found it to be successful. Maybe you just have a block against it. I have no idea… I will tell you what I do know.
- The Vehicle Matters…. all companies are not the same just like all restaurants are not the same. If you ate a bad restaurant then you might not go back, but you certainly wouldn’t swear off eating out all together…. some things work for some folks, some work for others. There is a Direct Selling Association for a reason…
- It’s Just a System…. if you don’t plug into the system and use the tools provided then you won’t find success. This isn’t easy, but it is simple. There are no guarantees that you will have the success I have had. But if you commit to the actions that I have taken over the period of time that I have done them then I believe with all my heart that you will be amazed at the results.
- If Not This, Then What? If you don’t start something like this and simply continue doing what you are currently doing then there is a 99% chance that in a year you will be in exactly the same place you are now…. What could you possibly have to lose?
- The Learning Curve… we always need to learn new skills. you might think, “I can’t do that, I’m not a good (fill in your excuse here).” But the fact of the matter is that it’s not about “can’t,” it’s about “won’t.” When you change your mind set and decide that the fruit of doing it is worth the work to get there then you may change your mind….
This is not an endorsement of any particular company, my own included. Yeah, you could dig deep and find out my company, but I have purposefully left names and links out. This is an endorsement of Network Marketing as a field.
I have no idea if anyone will even read this but if by some chance you’re here you ought to feel free to comment but please follow my lead and don’t put any specific links to your company or mention any specific company names. The goal is to help promote the field in general and to share a real story from an ordinary person with someone who is considering Network Marketing, not “recruit” people into our specific business. Thanks!