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When Numbers Count More Than Words In Home Business Opportunity
Whether you like numbers or not, those simple digits 0-9 are perhaps the closest things we have to rational reality. These Hindu-Arabic numeral symbols have been used for counting and measuring for centuries. Their quantitative mathematical formulas can provide valuable insight into how anything works, including all kinds of businesses. Who hasn’t looked at these meaningful numbers and wondered about market trends, inflation, recession, credit ratings, retirement, resources, bank accounts and consumer confidence?
So how important are numbers to a home business? Consider three important scenarios.
SCENARIO ONE: Here’s the big problem with numbers when you’re employed at a day job.
As an employee, you have a job that can average 40 hours, 5 days a week, 52 weeks a year. That’s a total of 2080 hours per year that you traded as services for the boss.
Now let’s look at a typical business owner who has 50 employees working 8 hours a day, 5 days a week, 52 weeks a year. This represents a total of 104,000 hours worked per year for his company. He may have worked 2,000 hours or less if he also enjoyed fishing or golfing.
Imagine working another 40 years building the boss’s dream and retiring with 40% less money than when you worked full time.
How fair do you think that is? Would you like that kind of leverage? Have you ever done this calculation?
The wealthy have benefited from such a strategy for centuries by investing a few hours a day.
Let’s say you and your team can create an organization of 100 people who only work one hour a day, 5 days a week, and 52 weeks a year. That would total 26,000 hours that you could benefit from. If you wanted to do that much work on your own, you would need to work 3250 8-hour days or almost 9 years!
However, using leverage, you worked an hour, and so did your organization. Now think about it, what if these people worked 2 hours a day?
What are your chances of getting that much work done in a “linear – job style” income scenario?
What if those 100 people had the power to hire 1 new person next month, and those 200 people all worked 2 hours a day for 5 days a week for 52 weeks a year?
Do you see why the rich get richer?
Do the math and decide if your only source of money is caught in a linear income TRAP.
Time leverage is a wonderful thing.
Information leverage is a beautiful thing. You don’t have to spend years becoming an expert in your field. You can share expertise with a video or webinar. Whether or not people understand what big brains are saying. Here is an example :
SCENARIO TWO: Most network marketing compensation plans are based on multiple levels of residual income.
Here is a typical example for a 6 month cash flow projection. It really made a personal difference.
Let’s say that as a serious networker, you enroll 4 new members per month for 6 months at $25 commission per member.
New members per month: 4 x 6 = 24 new members at level one.
$25 commission per member = $600 per month after 6 months at level one.
Assume the 80/20 rule for your new members now on your level two.
20% of new members will be above average and sponsor 10 new members over 6 months.
20% of 24 new members = 5 (approximately) x 10 = 50 new members on your Level Two.
(The assumption here is that the average enrollment rate of the 20% of people is about 2 per month).
80%, or the balance of your new members, just enroll 5 new members over a 6 month period.
That’s 19 X 5 = 95 new members for a total of 195 new members on your second level.
Total number of new members at your second level based on 20% results + 80% results.
Now here is your TOTAL monthly residual income: $2,550 after 6 months.
24 new members at level one = 24 x $25/month = $600.
195 new members at level 2 = 195 x $10/month = $1,950.
Now here’s the BIG financial question: how much equivalent money would you need in your savings account to earn the same (assuming a 2% interest rate)?
You would need around $1,500,000!
Again, you don’t have to be a brain to see how these numbers work.
SCENARIO 3: The most dangerous number for the personal economy is ONE.
It’s a simple fact that every business lives and dies by numbers. But have you ever thought that the most dangerous number for any business is the number 1. What does that mean?
Well, nothing can hurt you MORE than relying on ONE of anything.
Can you rely on a job or income and think it’s perfectly secure? Are you always programmed to think that if you have a “good job” that means long term support and ultimate security?
What if you lost that job? Your income has disappeared and your situation is becoming precarious. Your family is vulnerable. You might be forced to do things you don’t want.
This is a self-preservation reason to have a home business, trying to survive in tough economic times. It’s a really good idea to have a job AND a work-from-home business on the side, so you have more financial defenses and are less vulnerable. You can use business income to help overcome unexpected problems in the worst case. With the right business opportunity, you can even marvel at its simple system for success and enjoy full-time employment, freedom of time and money at home.
In summary, this valuable article examined three scenarios that make sense using simple numerical calculations to justify a network marketing or MLM home business. Numbers are rational and logical and do not allow for irrational excuses.
I hope you have learned more about the values of personal leverage, the multiple levels of residual income, and the power of one to make the right choice for better financial security.
“Fate is not a matter of chance. It is a matter of choice: it is not something to wait for, it is something to do.” William Jennings Bryan
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