Wanna know one of my biggest pet peeves?
It’s such a big pet peeve, that if someone brings this up to me, I likely won’t talk to them anymore….
Are you curious?
Get ready, here it is….
In terms of money to be made:
“At the end of 2009, XYZ company reported it had nearly 60,000 distributors.
For the year, it paid those distributors $4.9 million in commissions or less than $82 per distributor.”
The numbers don’t lie.
Oh yea, super argument there, Einstein….
If you’re doing your due dilligence on any business opportunity, I’d be willing to bet you’ve run across this statement. Let’s explore what these “numbers” really mean, shall we?
What The Numbers REALLY Mean…
Here’s a hypothetical.
Imagine that you’re part of ABC, Inc. The company manufactures and sells widgets. ABC recruits distributors to distribute its widgets. Let’s take a look at the company’s 4 distributors: Alan, Bob, Carl and David.
Alan is a super-star. He is working by 6:00 AM. Doesn’t quit until after 10:00 PM. All of his spare time is spent reading up on the latest widget technology, and researching the companies he will be visiting to sell his widgets. He spends 80-90 hours per week at work.
Bob is a hard-worker, but he has a wife who works, and 4 small children. He would like to work as hard as Alan, but he just doesn’t have the extra time. So, Bob works selling widgets consistently from 9:00-5:00- a solid 40 hour week.
Carl is a student at the local college. He heard about the distributorship through an ad in the college-paper. He was thrilled that he could work part-time to allow him enough time to go to class and do his homework. On a good week, Carl is working about 20 hours.
David is a dreamer, but not so much a do-er. He has heard about the money to be made selling widgets. He started working selling widgets, but he doesn’t really like that he has to study about widgets. He also hates to give up his leisure time to work on his widget business. Every now and again, he’ll talk to a few companies about purchasing some widgets. David ends up spending about 2 hours per week working on his widget business.
Alan, Bob, Carl and David are a microcosm of a company’s, let’s say 60,000 distributors.
By simply dividing the total revenue paid out by a company by the number of distributors, you’re implying that Alan, Bob, Carl and David each earn the same amount of money.
In my opinion, that’s a completely ridiculous result!
Naturally the person who devotes 80-90 hours a week (assuming they are doing the right things to grow their business) is going to make more than the person who spends 40 hours a week, who will make more than the person who spends 20 hours a week. Of course that person will make more than the person who only devotes 2 hours per week to their business! Any other result would just be-American!
Here is the moral of this story…
If you work hard, there is money to be made. But the money you make initially will be disproportionate to the time you spend on your business.
Once you have a solid organization, of course, filled with Alans or even Bobs and Carls- then you will make a lot of money with far less time spent. But, to get to that point, you’ve got to be ready to put in some serious effort!
The good news is, though, unlike your 9 to 5, this business model can set you financially free!
Disagree with me? Got another Perspective? VOTE then Comment!
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