Tips From The Top

do you already have a million in the bank? (maybe you do…)

What is your downline worth?

No, I really mean it – what is your downline worth – dollars and cents?

I’d like you to consider your downline (and your monthly recurring customers) in this fashion:

HERE is an article on the standard interest rate on a bank account. In general, if you had a million dollars “in the bank,” you’d make no more than 1% on it.

Sure, you could say right now you would have your million in something else that would make you more money than max 1% – but the more money you’re making on it, the more risk  (e.g., you might get a double-digit return if you invested in the next Google…or you might lose it all). So we want the safest possible return here.

If you have a million dollars in the bank, you’re a “millionaire,” right? But the second that you spend a penny of it, you become a “$999,999.99-aire” – so you want to live off the interest.

1% of a million dollars is $10,000. So if you were to leave the million in the bank, and just spend the interest that it earns (and again, this is at the HIGHEST rate of savings return you can get right now!), that’s what you would have – $1,000,000 x .01 is $10,000 which is what a million dollars “throws off” at a 1% interest rate.

How did your million get into the bank? Well, maybe you robbed one bank and put it back in another (joke! joke!) – but, in general, that money is from years and years and YEARS of work.

Let’s think about that. If you are currently working and paying your bills, how much do you have “left over” at the end of the month (if anything?) Take that amount, and divide $1,000,000 by that number. That’s how many months it would take you, if you saved whatever it is you have left over at the end of every month, to have a million in the bank.

I know that sounds simple, but it’s pretty dramatic if you take a look at it. (And we know that many folks don’t have a cent left over at the end of the month!)

In fact, let’s presume that you have some sort of retirement account – so let’s take the amount that you put in that retirement account every month, plus the money you have left over at the end of the month. How much is that?

Let’s just take a number here. Let’s say that the amount you put into your retirement account + the money left over at the end of your month, added together, equal $500. For I’d guess 90% of you, that sounds like a TON of money to be socking away a month, so your number is going to be less. $1,000,000 divided by $500 is 2,000 months. That means, at this rate, it will take you 167 years (2000 months divided by 12) to save up a million dollars.

Sobering, isn’t it?

Under your Compensation Plan in your network marketing company, what will it take for your downline and monthly recurring customers to “throw off” $10,000 of income to you?

How many people would you need to share your product/service with, to get to this number?

It’s different in every MLM – but it’s something you might want to think about.

I know for a fact that without a ton of effort – but with consistent effort – you can get to that $10,000 (which is the maximum interest you would get to live off of, with a million in the bank) in less than 167 years!

If you’re in an MLM now and not particularly happy with what your monthly income is (no one is ever really satisfied, we all know that!), you can also “back out” what your team and customers mean to you as “money in the bank” right now.

Let’s say that you make $100 from your team/customers per month in cashflow. What I mean by that is the money that you get without doing any work – so don’t count money from sales of products at home parties, etc. – only count money that comes in that is not tied to your labor that month.

If you are making $100 a month in cashflow from your team/customers, that is $1,200 a year. This doesn’t seem like much. You might be discouraged.

HOWEVER, to throw off $100 a month, you’d need $10,000 in the bank, at the highest interest rate available today, per the website that’s linked above.

Your team and customers are like a little $10,000 nest egg, calmly throwing off interest for you every month.

Pretty cool, huh?

Let’s say that you are making $1,000 a month in cashflow income. That’s like having a $100,000 nest egg. How long would it have taken you to save $100,000, if it was coming out of the $ you had “left over” at the end of the month?

Many folks get discouraged by the “small amount” they’re earning in network marketing. And then they quit. But even if you “only” made $10 in cashflow, that would be like having $1,000 in the bank, at the highest interest rate available today.

Take a look at your latest cashflow check. In my MLM, we get checks for our actual labor weekly, and our cashflow check monthly. What was your “monthly check” last month? How much would that equate to, as “money in the bank”?

Time to be thankful for this profession, because just a little (consistent!) effort can reap such exponential rewards.

As the saying goes, “it’s like money in the bank.”