Learn how to let The Law of Averages work for you!
I wanted to include a definition of exactly what The Law of Averages is.
The Law of Averages as defined in the dictionary.com version of the dictionary:
In English it means that once you have done something enough times and gotten results from those things, you can assume that the next time that you do that certain thing the same amount of times that, more or less, you should get the same results. An example of this would be flip a coin. If you flip the coin 100 times and it lands on heads 55 times, you can assume that if you were to flip that same coin another 100 times that you should get 55 heads again.
I’m just not sure how you can say “more or less” in a Law?? But I digress!
I was listening to a network marketing podcast, last week. The podcaster recommend a Jim Rohn CD. I like Jim Rohn, so I order it. I listened to it over the weekend and I really liked it. I’m not here to do a review of it, but it was called, “Building Your Network Marketing Business.” I recommend it as well.
To me, network marketing is a people business, but it is also a numbers game!
In the presentation, Mr. Rohn discusses a principle known as the Law of Averages. He says that the Law of Averages works for everyone. I totally agree with him. If you know your numbers, you can work out how much work you will have to do in order to reach your goals.
If you do keep track of how well you do in each facet of your business, you’ll know what to do and how long it will take you to get to where you want to go.
I hate to go over numbers in this article, but I’ll try to make it as readable as possible.
If you know that you talk to 50 people month and you get 5 people, who will actually sit down and watch your entire business presentation and you are able to recruit 1 person out of every 10 people who saw your business presentation then you know how much work you’ll need to do.
Let’s say that your goal is to sponsor 100 people into your front line. Knowing that you can sponsor 1 out of every 10 people who saw your business presentation, you know that you’ll need to show 1,000 full business presentations.
That looks like this:
1/10 is to 100/X this is solved to X = 1,000 (10 X 100 = 1,000)
In order to show 1,000 business presentations, you will need to talk to 10,000 people.
That looks like this:
5/500 is to 100/X this is solved to X = 10,000 (500 X 100 = 50,000 then divided by 5 = 10,000)
How much work will you have to do?
To figure that out, you’ll need to divide the 10,000 people by the 50 people that you are able to talk to per month.
10,000/50 = 200 months or 17 years.
I ask you, who is willing to do that much work? Well, judge by the quit rate in network marketing, not very many.
Is there any way to reduce the amount of time needed to recruit 100 people? Yes, there is. Actually, there are 2 ways to speed up this process. You can either talk to more people per month.
That’s actually a good solution. Now, not everyone has the time to talk to 20 people per day, but most people could talk to 2 or 3 people a day without straining themselves. Talking to 3 people per day will have you talking to about 90 people per month. I’ll round it up to 100 to make the math easier. 100 people per month is twice as many as your original work load of 50 people per month, so you would have reduced the amount of time by half. That would have you to your goal of sponsoring 100 people in about 8 ½ years.
Again, how many people are willing to stay in this business for that long. I can tell you that the people who do last that long are the ones who are doing very well for themselves. I’ve read a lot of stories about top earners who took 7-10 years to reach the top level of their company’s compensation plan.
If 8 ½ years seems way too long for you, you can add in the other thing to reduce the time needed to reach you goal.
You can improve your recruiting skills. Over the course of your career, you will find that you learn a lot by working your business. It’s just natural that, if you do something over and over again, you will get better at it. That makes sense, right? Like I always say, “Practice makes improvement!”
Let’s say that you have improved and now you are recruiting 2 people out of every 10 that have seen your entire business plan. That’s two times as many as you were able to recruit before. Now you’ve cut the time needed in half again. That would mean that you’ll need 4 ¼ years to get to 100 people sponsored.
Now I ask you, how many people would be willing to do this for 4 ¼ years knowing that there could be the proverbial “pot of gold” waiting for them at the end of this journey?
I wish I could say a lot, but statistics say otherwise.
Now you should be able to figure out exactly what you need to do to reach any goal that you set for yourself. You can play with the numbers and just know how many people you need to talk to everyday, to get to where you want to be.
Obviously, I can’t guarantee your results. Things may work out better or worse for you and they may not work out at all.
I can guarantee that if you work your business like this, that no matter what, you can say that you gave it your best shot!
Keep in mind that these are statistics and as such they don’t always, well probably never, work out perfectly.
Let the Law of Averages be your guide and work with it and see how different your recruiting turns out to be.
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