Metrics is simply about knowing your numbers. The ultimate purpose of this equation is to know how to make money from your comp plan, set goals and create a plan to reach them. Say you have a goal of generating $5 thousand per month in income. Start by figuring out exactly how to earn $500 each month, then $1000 each month and then you’ll have the formula for making $5 thousand per month and beyond.
Most comp plans have two elements – money you generate from customers and money you generate from recruiting business builders. To make long-term income and almost always, to make bigger income, you need to build a team. A team offers you leverage and leverage is one of the biggest reasons to be involved in a multi-level marketing business.
Leverage allows you to get paid a percentage on the efforts of many people, as opposed to getting paid for just your own efforts. Obviously, in order to get paid on the efforts of others, you need to build a team. We love to quote John Paul Getty, who was the richest man in his time who famously said: “I’d rather have one percent of the effort of 100 people than 100 percent of my own”. That’s what you’re going for.
To get there, you need a roadmap or a blueprint and that’s what your metrics offer you. You begin with the financial goal and then back out the metrics from that goal. Choose an amount – a reasonable amount per month, not your ultimate goal. If you’re seasoned and earning a check, choose a financial goals that’s more than you’re earning currently.
Now, you need to know exactly how many people on your team will bring in the desired revenue. If you don’t know how to figure that out, find someone in your company that understands the comp plan and ask them this: If I want to generate $1000 month in income, how many people do I need to recruit and how many people total do I need on my team? Every comp plan works differently, but these two factors will play in every time.
Once you know those numbers – let’s say you need to recruit 10 people and they each need to recruit three. I’m making this up to demonstrate how you back into activity from your goal number.
Here’s where the metrics become relevant. Do you know how many people you have to talk to in order to recruit 10 people? You must know this to get there. In order to know this, you talk to people and you track everything you do. Over the next three months talk to at least 100 prospects – it’ll give your business a boost and it’ll give you a good working sense of your metrics.
From those 100 people that agree to review your information, how many actually look? How many say no? How many say maybe? How many become product users but not business partners? How many become business partners?
The business partner number is the one we’re after here. Say you recruit 10 people out of the hundred you talk to. Then you know you need to talk to 100 people to recruit ten. You also know that you’re on track to achieve you goal. You should also know that if you need 10 people who each need to get three to reach your original goal, you probably need to recruit 20 to get 10 will get the job done. It’s the way it works and the more quickly you accept that and act on it the more quickly you’ll build a big paycheck. Your job isn’t to recruit and then hope people build a business. Your job is to recruit until you get the people who DO exactly what is needed.
The old adage: there’s no problem in MLM that can’t be fixed by recruiting is flat out true. Love it or hate it, it’s how it works. And it works if you do. Go out and learn your metrics, build your business plan around them and start making serious income in your MLM business.
