Math rules the universe. If you beg to differ, I'm sorry to disappoint you. Almost every phenomenon in this universe can be quantified. You may not understand the depth of the mathematics, but that doesn't mean it's not true. Yes, even the success and failure of business…. Prime example: the stock market.
But today I want to share with you the logistics of marketing your home business. Most of my readers are network marketers so, lucky you, you get to be the example today. Let's walk through your numbers…Numbers you need to know:
- Your target income. How much money do you want to make each month? If you're not sure refer, to my magic number system to figure it out.
- Sales and recruit commission. What's your average commission per transaction? For example, and for the sake of simplicity, if you get $50 commission per sale and $150 commission per sign up, and you are pretty one to one on sales and recruits, your average commission is $100. If you are really great with sales and suck at recruiting, stick with your average sales commission, and vice versa.
- Your working number (YES – NO ratio). How many NO's does it take for you to get a YES?
Notice these numbers are totally dependent on you and our direct efforts. Check matches are extra. Down-line residuals are extra. Our focus today is what you must do to make your bottom line. You have no control over other people, only yourself. You can be as duplicable as a copy machine but the system won't work if they don't push the button.
So let's use “Ben” for our $100 commission example. His goal is $1,000 per month. (Awesome, considering most network marketers don't average more than $100/week)
If Ben properly exposes (i.e. show a full presentation) 50 people to his business or product and 40 people say no; that means 10 people said yes. That's awesome! For every 4 people that say no, there's a 5th person that will say yes! So Ben's working number is 5.
We know that Ben needs to deliver about 5 full presentations to get a $100 commission. If Ben wants to make $1,000 per month (30 days), he needs to divide his monthly goal by his average commissions to find out how many presentations he much deliver each month.
Monthly goal $1000
——————— = ———– = 10 YES's per month
Avg Commision $100
If Ben has to deliver 5 presentations to get 1 YES, he should deliver at least 50 presentations each month. (I multiplied 5 times the 10 YES's he needs.)
To determine his daily productivity, we divide his monthly presentation by 30 days.
———————- = 1.67 presentations per day
Ben doesn't do incomplete presentations, so if he commits to delivering 2 full presentations every day for 30 days….
Bill will make $1,000 a month, every month for as long as he's committed to working his winning numbers.
1,000 50 5 2
So now you can fill in your own information to find your own winning numbers. If you, like Ben, commit to working your magic numbers, you will reach your goals. It's the law of averages. Work the numbers.
Peace and Love.