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Old 07-07-2008, 11:08 PM
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Default Re: MLM Mathematical Question

Yeah it definitly takes capital, but if you have it and half of something between your eye balls you could easily make a couple hundred k a year.
Quote:
Originally Posted by artswerdstone View Post
I am not familiar with GDI but I know some other MLM systems. You have to understand that in order to get commissions, money has to inflow from somewhere.

That's why each MLM system has its own requirements for regular purchases by its members.

Because not every member is able to sponsor new entrants into the system, and not every member will be active (some will be active for long time, some for a while, while others at all), and inactive members will drop out from the system after a certain time of inactivity, the growth of an MLM group will never be exponential in real life.

There is a rate of recruitment and there is a rate of attrition, same as there is natality and there is mortality in a population. The balance will be the real number of members.

In a successful MLM system you may experience a rate of growth of about 25-35% per year, which appears to be almost linear along passed years.

This doesn't mean MLM wouldn't be a very good marketing system. MLM is a great marketing system, and you have to handle it as a normal business. It is not a wonder solution to earn millions after the first 1-2 years, but you can earn with it millions after several years of hard and smart work.

What sponsors (mentors) usually forget to tell you is how much you have to invest regularly into this business in order to succeed.

Without a serious investment you will be eventually a good consumer, but not a good earner in this business.

With an investment of about $10,000 cash and 15-25 hours a week you may get break even within one year or one and half, and within 4-5 years you may retire with a nice accumulated capital in the most of the good MLM systems.

Of course, if you know what you have to do and if you do whatever you have to do.

The problem is many of the noobs want to get rich quick and they give up after a couple of months, after they see no explosive results but only hard work and the need of more and more investments.

You shall not seek to be suddenly rich, but you shall seek to be very rich.
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