Assume that we have decided to start our own business on the Internet, participating in an Affiliate Program that operates on the basis of multilevel marketing. The draft Business Plan provides a profit in five levels, with a commission of 50% on the investment made month after month. If this has piqued your curiosity, check out Restaurant Michael Schwartz. So this is a residual income. To find out where to go, we must first know where we are going. Therefore, knowing the amount we earn with this affiliate program, we know the efforts we must do and the time required to achieve the objectives.
We assume that we plan to generate after 12 months U.S. $ 3,000 in residual income. How many members would need to reach this figure? Knowing that the company pays a fee of $ 1 U.S. per member (with an investment of $ 10 U.S.) – would need 3,000 members. If we would have to affiliate all personally (direct affiliate) – have been quite difficult because each month we would have to recruit 250 participants (3000: 12 (months) = 250). But this is an MLM business, which means that we can and we must harness the power of multiplication.
What if we raise the numbers do differently? Provided that we will win not only by our direct affiliation, but also by members of our affiliates, we assume that we affiliate with only 5 new members. It seems much more real than 3000, right? And we set ourselves the goal of helping our 5 direct members to Once enrolled, each to his own five members. What do we get here? We do the math: $ 5 (for direct affiliate) + $ 25 (for indirect members) = $ 30. We won $30 – 16% and 84% self-made team effort. We’re starting to feel the power of duplication. But there is still much to achieve our goal of winning $ 3,000 in 12 months.
This example shows that it personally hard we try – the result of joint effort is always much higher. And the profits, of course, are divided among all participants.