In the world of home business most folks choose multilevel marketing (MLM), also known as network marketing. The primary reasons are affordability and the hope that someone else will make them some money. Many people have seen the “big money” examples of what’s hypothetically possible, but almost noone has experienced this big money.

This raises the question, “Is the so called big money of MLM fact or fiction?

Let me challenge your thinking with another question; but first let me setup the question this way. Many people, and perhaps even most people, understand the concept of building a sales team and earning money as a result of their team’s investment of time, talent and money. After all, that is one of the main attractions to MLM.

Let me summarize that in preparation for the question I want to ask you.  If you choose MLM, you are making a conscious decision that most of your income will largely depend on the reasonable success of others.

So, here is my question - if your hope is to earn money largely from the efforts of others, does it make any sense at all to choose an income opportunity that virtually guarantees the failure of your team? Why would anyone waste their time attempting to recruit men and women into a business that they have little or no chance of succeeding with? If most of your team fails, then you will NEVER see the big money – or anything close to big money – and, think of all the people you will potentially hurt.

The “Dropout Rate”, or cancel rate of MLM companies is commonly discussed as if a high dropout is to be expected…. it just goes with the territory….. it is just the nature of the busienss. Well, no doubt it is the norm, but does that mean you should accept the norm – especially if the norm guarantees that you can’t possibly reach your dreams?

What is the price you pay in lost income for joining yourself to a business that guarantees normal or higher than normal dropout?

What if I told you that the difference between a company with normal dropout compared to a company with low dropout can be the difference between complete financial independence in a few years VS possibly not even earning enough to cover your own expenses?

Those words can’t possibly do justice to my point. So, let me “Show You the Money”….. this is a real eye opener.

I am going to give you four mathematical examples to compare. In all four examples every distributor purchases $40 a month of some product. The MLM company in our examples pays commissions down through seven levels – 3% on level one – and 7% on each of the other six levels. We will ignore all bonuses and we will ignore customer purchases.

EXAMPLE ONE
You recruit five distributors and your five recruit five and that continues down through all seven levels. We will assume that NOONE CANCELS. Your annual income would exceed THREE MILLION DOLLARS.

EXAMPLE TWO
You recruit five distributors, but you lose one of them. Your remaining four distributors also recruit five, but also lose one, and that continues down through all seven levels. Your annual income would exceed SEVEN HUNDRED THOUSAND DOLLARS.

EXAMPLE THREE
You recruit five distributors, but you lose two of them. Your remaining three distributors also recruit five, but also lose two, and that continues down through all seven levels. Your annual income would exceed ONE HUNDRED THOUSAND DOLLARS.

EXAMPLE FOUR
You recruit five distributors, but you lose three of them. Your remaining two distributors also recruit five, but also lose three, and that continues down through all seven levels. Your annual income would be less than NINE THOUSAND DOLLARS.

Your income went from over THREE MILLION DOLLARS down to less than NINE THOUSAND DOLLARS. Yet, in all four examples no one had to recruit more than five people….. and, no one spent more than $40 a month. The only difference in those four examples is how many distributors dropped out.

So, the answer to my opening question is that the big money of MLM is fiction unless you either choose a rare company with extremely low dropout – or, you are a recruiting machine. Even if you are a recruiting machine, why would you not choose a company with low dropout for the sake of all those you are talking into joining you?

If you intend to represent an MLM company and to recommend their income opportunity to others, then you simply must spend the time to find a company that has exceptionally low dropout. To do otherwise is a total waste of your time – no matter how much you personally like the company,  its products or compensation plan.

I have written a special report entitled, “How to Guarantee Your Home Business Success”.  It will guide you in how to find that rare company with very low dropout. You can get the report by joining this blog.

If you want some additional help with your existing home business or with your search for a home business, take advantage of my free 30 minutes of business coaching. Just click on “Success Coach” in my “A” List section. There is a short questionnaire - so that I can provide you with  30 minutes of actual coaching -  instead of having to spend the time asking questions.

Obviously, there are no MLM companies that have zero dropout – nothing is perfect. However, choosing a company that empowers you and your team to hang on to just one or two more people than normal will ALTER YOUR LIFE!

Ironically, the rare company that is designed to work well for normal everyday people, will not only empower you and your team to hang on to more of those you bring into your business – it will also empower you and your team to actually recruit more people in the first place.

Here is bottomline – If you choose your company wisely, those you invite to join you will enjoy their experience and consequently they won’t leave you. Remember – the idea is to find a quality business that also has an unusually strong appeal to normal everyday people. If your business works well for the “little guy” you have found the last business you will ever need. A Company with Low Dropout = Your Dream Machine!

Don’t settle for anything less.