A friend in another network marketing business is experiencing rapid growth in his team, and I’m very happy for him.
He posed an interesting question last week. “How do you know when you have a successful business?”
In my opinion, running a successful network marketing business is not about earning a specific amount of money nor judging by the size of the distributor team.
Here are four basic guidelines that popped into my head.
When your residual income is equal to or greater than all other income you receive from that company.
My primary reason for joining network marketing in 1996 was to create long-term residual income, so I am more interested in the residuals than comparing who makes bigger one-time bonuses.
If I wanted to emphasize one-time bonuses, I would have stayed in the 9-5 workworld and maximized my salary.
When people on your third or higher number generations are getting promoted.
This means you taught your people to teach their people to teach THEIR people how to build teams.
This is a positive signal that you are teaching a duplicatable system which doesn’t depend on your presence or personality.
When a charismatic leader leaves your organization.
You might be thinking, Wait a minute, that’s not very uplifting!
Well, you’re right… and I’m being realistic. Stick around long enough in this profession, and some people end up leaving for another company… or leaving the network marketing profession altogether. Each of us is an independent agent, so simply understand some people quit.
If the majority of that person’s organization sticks with your company, that’s a healthy sign that you have a supportive and growing culture.
In any case, don’t take it personally. Stay committed and keep building your team.
When surviving a shakeup at the corporate level in the personnel, comp plan, or product offerings.
A growing company will need new leaders with different or more advanced skillsets at the corporate level. This change of personnel is not necessarily cause for alarm.
For example in your own life, as you (likely) changed from being an employee to running a growing business and began buying investments with your profits, you needed more sophisticated tax advice. So you stopped filling out your own tax forms and hired a CPA instead.
Because the business legal environment keeps changing, your Founder or CEO might need to adjust how bonuses are earned, pull a product that has troublesome ingredients, or make a stronger distinction between wholesale customers and full-fledged distributors. Smart CEOs make such changes early, to keep well within the regulatory boundaries.
But that might mean your teammates have to complete more requirements to trigger bonuses or need to inform customers their favorite product is no longer available.
A team that can survive such a shakeup and keep growing… well, that’s a team that will keep producing for the long run.
Residual income, anyone?
To your long-term success,
–LYnn Selwa, “The Rocket Science Coach” ™
#lynnselwa #lynnselwaTRSC #therocketsciencecoach #success #networkmarketing #mlm #residualincome #DoYouHaveASuccessfulBusiness