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MLM Mathematical Question

Discussion in 'Affiliate Programs' started by wanabe, Jul 6, 2008.

  1. wanabe

    wanabe Registered Member

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    You have 3 signups per week.
    Each of your signups have 3 signups per week.
    After 12 weeks you have 531441 signups.

    If you only pay out to 5 levels how many paying signups do you have?
     
  2. ContentFarmer

    ContentFarmer Junior Member

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    I believe you calculated the total number of 12th level signups for the 12th week, but you tell me: Did I screw up the math? I see 3078 signups after 12 weeks at a maximum of 5 levels deep and 1,195,722 total signups after 12 weeks.
     

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  3. wanabe

    wanabe Registered Member

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    ContentFarmer - great stuff , I can't say I understand it much more , even though I do get that the members must be added up and not just multiplied:)
     
  4. DrJekyll

    DrJekyll Senior Member Premium Member

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    The problem Is you need to signup 100 to find 3 that will signup 3 a week, unless you do it for them.

    So you are really looking at 1200 a week after your first week.
     
  5. loophole

    loophole Registered Member

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    haha... nice one bkdubs. MLMers often forget that.
     
  6. BlackLinks

    BlackLinks Newbie

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    GDI has an infinity level payout if you have 5000 in your downline and at least ten people on your first level have 10 sponsored each or more, so you can earn past five levels at that point.
     
  7. artswerdstone

    artswerdstone Power Member

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    There is also the phenomenon of attrition hat must be considered.
    You know how many new members have to join weekly, and that's fine, but do you know how many will leave weakly?
    In a real MLM model there are conditions that a member must fulfill periodically in order to stay in the system.
     
  8. DrJekyll

    DrJekyll Senior Member Premium Member

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    Attrition, tell me about it. I placed someone under a personally sponcered, they went inactive.

    The person I place under them sponcered 14 in GDI, so I wrote the person above them, and said, You know if you just activate your domain, you will make money.

    They did not become a paying person til now. they would be in profit the whole time. I guess because it would take a few months til they get thier check. But still they would have recieved almost 50% on their investment.

    Some people I cant understand, wont be active even if they are making money.
     
  9. artswerdstone

    artswerdstone Power Member

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    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.
     
  10. cparainmaker

    cparainmaker BANNED BANNED

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    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.
     
  11. artswerdstone

    artswerdstone Power Member

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    That's true. I've just pointed out MLM is not a "get rich quick" scheme. The output depends on your input. And you have no such big risks than in traditional businesses. The biggest risks you have in a well established MLM network is you do too little and too late, or you target wrong people. Seek for people who want to do business, have some money and time to invest and are not lazy.
     
  12. Zubayer Rahman Sayem

    Zubayer Rahman Sayem Newbie

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    I really appreciated with your calculation. If we do a target to do anything everyday with a specific time, It can be huge within 12 weeks.. :)