Need To Protect Yourself From A Hard Drive Crash?

Monday, October 13, 2008

The Math Behind J. Paul Getty's Statement And Why Discontinue Frontline Recruiting

Are You Continuously Frontline Recruiting?

Here's what J. Paul Getty said...




This is the math behind J Paul Getty's statement...except that I will expand it up to the 4th level using 3 percent of several people's effort instead of the 1 percent. In fact, some MLM companies have a pay structure that pays 15% at the first level, 10% at the 2nd, 5% at the 3rd...and so on.

Assume that each person in your downline is bringing in $100 worth of business per month. At 3 percent commission, you make $3 per person for that month.

Bringing in 10 people in your group would give you $30 per month - not much money for that effort. This is your immediate downline.

If those 10 people bring in 10 of their own people in their group giving you 100 people in your second level, that's $3 you get from each of these people and that's $3 x 100 = $300. This is your 2nd level downline.

Now if those 100 people bring in 10 people of their own, that means 1,000 people in your 3rd level downline. We're talking $3 x 1,000 = $3,000.

In your 4th level, downline, each of your 1,000 people bring in 10 people. Well that's 10,000 people in your 4th level and at 3%, you be talking about $30,000 a month from that 4th level alone.

We'll stop at the 4th level. In some MLM companies, a 5th level commission structure or beyond doesn't exist.

Well, all you need to do to accomplish this feat is make sure that each member of your downline is maintaining a $100 per month business, 10 people in their immediate frontline, and continue to train them to teach their immediate frontline to duplicate what you're doing.

J. Paul Getty emphasized the efforts of 100 people at 1 percent. Many companies are paying much more than that.

My point here is don't spend too much time frontline recruiting. Spend more time with what you already have in your downline training them in the art of duplication. Come up with a system that helps you do that and here's what I recommend you do:

  • Get your 8 to 12 people in your frontline
  • Teach them how to get their 8 to 12 people
  • Then teach then how to train their 8 to 12 people.
  • Spend more time marketing your product/service/program instead of recruiting.
  • Have faith in this system
Working this system will keep your attrition rate down. Your downline will have faith in this system because it's simple and you don't have to spend your way out of business purchasing leads and doing too much work being on the phone recruiting, recruiting, recruiting.

It also frees your time to focus on promoting the product or service that you're promoting once you achieve mastery of this system.

Want to put this in practice? Work with me and I'll help you put it to work for you.

All you need to do is believe that this art of duplication will work and you're going to be on your way.