Power Recruiting and Getting the Mind Right!
Saturday, May 31st, 2008
Jeff Whenman asked:
People come into the network marketing business from many different places, at many different times in their lives, and for many different reasons. However, the basic concept of the network marketing business, is the generation of additional income on a part time basis, with the possibility of building a business large enough to supply a full time income, passively if you wish to.
So, starting with part time work for extra money, if you did something other than network marketing for extra money, what would it be? It would need flexible hours to fit around your life. It would need flexible money, so if you wanted to you could earn more one month if you needed to. The ability to earn when you’re not working and the benefit of free holidays and car promotions.
I know Tesco want night staff and many local restaurants usually need people. In fact many of the famous paper hat jobs from McDonalds to Dominos pizza delivery, are still looking for staff despite the downturn. I believe this is because the tasks people are given are so repetitive, and the wages so low, that these companies have a huge staff turnover. In other words, these are not new jobs, these are jobs that others have decided, are not good enough for them.
Therefor, when we look at the part time income market, part time jobs etc, we can see that network marketing for someone in this position, is a far better prospect.
Now let us look at the people who would like to build a large passive full time income. This offers the ability to retire at any age, or just to take it much easier. Let us examine a few of the possibilities that people have used. No pie-in-the-sky stuff, just things that have actually worked for thousands of people.
Firstly, let us look at a private pension. Now unless you are from a very unique profession you cannot receive money from a pension until you reach fifty years of age. For a useful full time income of £50,000 per year, you will need to have a pension fund of over £1,000,000, assuming you wish to start receiving income from the plan from fifty years of age . You probably do not start earning a good income until you are twenty five, so that gives you 25 years with the help of interest to save £1,000,000. This is, if the share values backing this pension do not dive before you transfer it to an annuity. Furthermore, I have only included private pensions as companies are allowed to invest your company pension in themselves, so if the company you work for goes belly-up you loose your pension. This is what happened with Enron, Leamens and MCI Worldcom, which were three of the worlds 500 largest companies.
Secondly, let us look at a rental portfolio. To receive a £50,000 a year pension from a property portfolio net of repairs and agents fees, you will need nearly £2,000,000 worth of un-mortgaged property. The benefit here, is that you have tenant income as you build your portfolio. But here is the unseen part of this equation; if you buy a property for £100,000 you will receive a rent of about £500 a month. The interest on the £100,000 will probably be £500 a month, so you are relying on property values increasing to make money. The tenant is only just paying the interest; you will be paying the letting agent and the loan off. In rising markets and for the long term it can be a good ploy, but you must realise that you will probably end up putting in a greater part of that £2,000,000 yourself.
Thirdly, you could save and invest for growth and retire on the interest from the fund at the end. This is a good long term strategy. You do not have the headaches of being a landlord, and unlike a pension after you die, your relatives get to keep the fund. If you are in a position to put away 20% of what you earn for 40 years with the interest accruing, then you will have a fund that even at relatively modest interest rates with return an income equal to the wages you were living on before retirement.
All of the above methods require you to invest large sums of money over time. The money had to be earned, which took time, in some cases a lot of extra time. The methods above take a long time to bear any fruit, giving you the time to enjoy life once most of it has sadly ebbed away. You are financially able to do all the things you wanted to, but long after your physical ability to do so has gone.
A better way is to build a business, this pays you now, and it will probably pay you well. If you find the right staff they will look after it whilst you are not there, and potentially you can put a management team in and enjoy an income from it after you retire. Unfortunately, the larger your business becomes the more time it swallows, not only at work but even when you’re not at work. For instance, you may be playing with the children and worrying about VAT returns. 90% of businesses fail in their first five years. Staff never cares about your business as much as you do. In fact, I have found that when things get tough and the pressure is on, staff are more likely to call in sick through stress, and now you have to pay them not to work. The bigger the business the bigger the headache! If you do see people who have done this successfully, they usually show the signs of premature aging and stress, in other words it nearly killed them! There are exceptions, the 1 in 1000 examples. I would prefer a better route that does not swallow your life and kill you in the process. Many people build businesses but rarely with a walk-away income.
Lastly, there is network marketing. The ability to set aside five to ten hours a week to build an effort based pension plan, and build a multi-level system of distribution through people. Where the company is already successful and has an experienced management team. All the complicated stressful tasks are taken care of. You can get paid from day one on your own efforts and the efforts of others, without the need for a large capital investment. A system whereby you can leave it alone after a while and it will continue to grow, because the people in this business have as much interest in building it as you do. The company will take care of your customers, and your team will keep building your business. As a normal business gets bigger, more time is required, with the network marketing system the opposite is the case. Many thousands of people have reached a full time passive income in five years, and many people are still being paid these incomes fifty years later.
You need to understand that the people you are approaching as prospects want a retirement plan, they would also like the chance to make some extra money. They have looked at some of the options above and are fully aware of what is required from them. Many people are doing nothing more than putting their heads in the sand. However, many of these people have not had a good look at network marketing. These people could be eternally grateful, as some of my friends were when I showed them a way out. If they do nothing, then in time their options will run out. Frankly, if you meet someone in their late forties who has not been doing one of the above, network marketing is probably the only option left for them.
In summary, most people will end up working until they are 70-75, the state pension will not start until then. All sickness and incapacity benefit will be hugely reduced by 2025, as there will only be two people working for every one pensioner, as opposed to the seven working for every one retired when the system was introduced.
Go out there as the clever one with the answer, not as someone who is begging someone to join their telephone thing.
Jill
People come into the network marketing business from many different places, at many different times in their lives, and for many different reasons. However, the basic concept of the network marketing business, is the generation of additional income on a part time basis, with the possibility of building a business large enough to supply a full time income, passively if you wish to.
So, starting with part time work for extra money, if you did something other than network marketing for extra money, what would it be? It would need flexible hours to fit around your life. It would need flexible money, so if you wanted to you could earn more one month if you needed to. The ability to earn when you’re not working and the benefit of free holidays and car promotions.
I know Tesco want night staff and many local restaurants usually need people. In fact many of the famous paper hat jobs from McDonalds to Dominos pizza delivery, are still looking for staff despite the downturn. I believe this is because the tasks people are given are so repetitive, and the wages so low, that these companies have a huge staff turnover. In other words, these are not new jobs, these are jobs that others have decided, are not good enough for them.
Therefor, when we look at the part time income market, part time jobs etc, we can see that network marketing for someone in this position, is a far better prospect.
Now let us look at the people who would like to build a large passive full time income. This offers the ability to retire at any age, or just to take it much easier. Let us examine a few of the possibilities that people have used. No pie-in-the-sky stuff, just things that have actually worked for thousands of people.
Firstly, let us look at a private pension. Now unless you are from a very unique profession you cannot receive money from a pension until you reach fifty years of age. For a useful full time income of £50,000 per year, you will need to have a pension fund of over £1,000,000, assuming you wish to start receiving income from the plan from fifty years of age . You probably do not start earning a good income until you are twenty five, so that gives you 25 years with the help of interest to save £1,000,000. This is, if the share values backing this pension do not dive before you transfer it to an annuity. Furthermore, I have only included private pensions as companies are allowed to invest your company pension in themselves, so if the company you work for goes belly-up you loose your pension. This is what happened with Enron, Leamens and MCI Worldcom, which were three of the worlds 500 largest companies.
Secondly, let us look at a rental portfolio. To receive a £50,000 a year pension from a property portfolio net of repairs and agents fees, you will need nearly £2,000,000 worth of un-mortgaged property. The benefit here, is that you have tenant income as you build your portfolio. But here is the unseen part of this equation; if you buy a property for £100,000 you will receive a rent of about £500 a month. The interest on the £100,000 will probably be £500 a month, so you are relying on property values increasing to make money. The tenant is only just paying the interest; you will be paying the letting agent and the loan off. In rising markets and for the long term it can be a good ploy, but you must realise that you will probably end up putting in a greater part of that £2,000,000 yourself.
Thirdly, you could save and invest for growth and retire on the interest from the fund at the end. This is a good long term strategy. You do not have the headaches of being a landlord, and unlike a pension after you die, your relatives get to keep the fund. If you are in a position to put away 20% of what you earn for 40 years with the interest accruing, then you will have a fund that even at relatively modest interest rates with return an income equal to the wages you were living on before retirement.
All of the above methods require you to invest large sums of money over time. The money had to be earned, which took time, in some cases a lot of extra time. The methods above take a long time to bear any fruit, giving you the time to enjoy life once most of it has sadly ebbed away. You are financially able to do all the things you wanted to, but long after your physical ability to do so has gone.
A better way is to build a business, this pays you now, and it will probably pay you well. If you find the right staff they will look after it whilst you are not there, and potentially you can put a management team in and enjoy an income from it after you retire. Unfortunately, the larger your business becomes the more time it swallows, not only at work but even when you’re not at work. For instance, you may be playing with the children and worrying about VAT returns. 90% of businesses fail in their first five years. Staff never cares about your business as much as you do. In fact, I have found that when things get tough and the pressure is on, staff are more likely to call in sick through stress, and now you have to pay them not to work. The bigger the business the bigger the headache! If you do see people who have done this successfully, they usually show the signs of premature aging and stress, in other words it nearly killed them! There are exceptions, the 1 in 1000 examples. I would prefer a better route that does not swallow your life and kill you in the process. Many people build businesses but rarely with a walk-away income.
Lastly, there is network marketing. The ability to set aside five to ten hours a week to build an effort based pension plan, and build a multi-level system of distribution through people. Where the company is already successful and has an experienced management team. All the complicated stressful tasks are taken care of. You can get paid from day one on your own efforts and the efforts of others, without the need for a large capital investment. A system whereby you can leave it alone after a while and it will continue to grow, because the people in this business have as much interest in building it as you do. The company will take care of your customers, and your team will keep building your business. As a normal business gets bigger, more time is required, with the network marketing system the opposite is the case. Many thousands of people have reached a full time passive income in five years, and many people are still being paid these incomes fifty years later.
You need to understand that the people you are approaching as prospects want a retirement plan, they would also like the chance to make some extra money. They have looked at some of the options above and are fully aware of what is required from them. Many people are doing nothing more than putting their heads in the sand. However, many of these people have not had a good look at network marketing. These people could be eternally grateful, as some of my friends were when I showed them a way out. If they do nothing, then in time their options will run out. Frankly, if you meet someone in their late forties who has not been doing one of the above, network marketing is probably the only option left for them.
In summary, most people will end up working until they are 70-75, the state pension will not start until then. All sickness and incapacity benefit will be hugely reduced by 2025, as there will only be two people working for every one pensioner, as opposed to the seven working for every one retired when the system was introduced.
Go out there as the clever one with the answer, not as someone who is begging someone to join their telephone thing.
Jill
