Would you get in your car right now and go pick it up?
Probably not. And yet, at the same time, there are thousands of people who will drive 5 miles out of their way to save $.05 per gallon on their next tank of gas. Mathematically, there’s no difference.
This illustrates a very simple concept that — if you understand it — will save you HUGE amounts of time and money….and will allow you to earn a huge income in the process.
In fact, since we’re talking about money lying on sidewalks, let me give you another example, one that you probably have heard of.
Have you ever heard the old joke about how much money that Bill Gates makes? Imagine Bill Gates were walking along the sidewalk and saw a $1,000 bill lying on the ground. If he had to stop earning money long enough to bend over, pick up the bill, and put it in his pocket…..he’d be better off just leaving it lying there.
It’s basically just a fun way to point out that, at one point, Bill Gates’s net worth was actually worth more than $1,000 every few seconds.
Whether that particular claim is true or not, one thing IS true: both of these examples illustrate a concept that most people have never heard of. It’s called “opportunity cost”.
What is “opportunity cost”? It’s the value of what you give up by not doing one thing in order to do something else.
I’ll give you an example that might assist you in understanding what I mean.
Years ago, I used to mow my own lawn. Why? Because that’s what I’d always done. We had a lawn-mower and it seemed silly to pay someone to mow my lawn when I had a perfectly good lawnmower myself. Besides….all my neighbors mowed their lawns on Saturday morning. Everything in my environment pointed to the idea of me mowing my own lawn.
A little while after I got involved in the home business industry, I got a different perspective. It went something like this:
1. It takes me about 3 hours to mow my lawn, run the weed-eater and then cleaning up.
2. It takes me about 3 hours to earn $1,000 in my home business.
3. Hiring someone to mow my yard will cost me about $70.
4. Doing it myself will save me $70….but it would COST me $1,000 in lost income.
Read that #4 again. That’s what I mean by “opportunity cost”. Sure, I can mow my own yard and save $70. But what does it cost me to do that? In my case, it costs me the ability to earn $1,000 or more in my business.
Opportunity cost is not something new. It’s actually a common concept taught in any economics class. But it’s not something that is taught in most American schools. Nor do parents always pass it along to their kids. But, if you understand this, you can absolutely get RICH.
Why? Because getting ahead financially is all about engaging in high-value activities and delegating low-value activities. If you can earn $1,000 for your family in just three hours…..why on earth would you spend those same 3 hours doing something that pays you far less? The opportunity cost is much too high.
Here’s another example: how much does your JOB cost you?
Most people — when they think about their job — they view it as a source of income. But, what’s the opportunity cost of your job? In other words, how much money do you LOSE every day by choosing to spend 8 hours working for someone else?
Moms are good at spotting this problem in their own lives. A mom can often look at the income at her job AND the money she pays out for child-care and immediately thinks:
“Why on earth am I doing this? If I do the math…..by the time I pay the daycare, the gas, the wear-and-tear on the car, the cup of coffee in the morning, grabbing a sandwich at lunch, the snack in the afternoon,….my dry-cleaning, etc………I’m only bringing home $20 per day in personal net income. I could work from home AND be with my children all day and earn WAY more than $600 per month.
Read that again. That’s someone who understands the concept of “opportunity cost”.
Here are some other examples for those of you who are already IN the home business industry.
No one can answer these questions for you. But, when I understood the concept of “opportunity cost”, I started making a LOT more money. I quit my job. I stopped mowing my own lawn. And I was able to earn a multiple six-figure income in less than 3 hours a day and spend the rest of my time living the lifestyle of my dreams.
So, the question is: what low-value activities are you engaged in that you can delegate elsewhere? What high-value activities can you start spending MORE time on?
If I can assist with these questions, feel free to post your questions or comments below!
To set the table for this question, let me share with you some comments made on my Facebook wall earlier today:
since there’s a more than 95% FAILURE rate in this industry, I’d say that means that there’s something VERY wrong with it… companies are NOT set up properly, the role of a sponsor is VERY important to new and inexperienced people…
For far too many “sponsors”, their idea of “training” is to throw a bunch of worn out email and pdf’s at the new recruit and tell them to “get on the corporate rah rah” call… … which can be great… but are more like eating Chinese food… awesome while it lasts and, 20 minutes later, you can’t remember what you ate (heard) and you are hungry all over again.
Let me first say that I believe any sponsor worth his salt is going to provide training and support to his team. It’s not even a statement that needs to be made because….well, it should go without saying.
With that said, though…..how much support does a new distributor need? Obviously it’s a question that will have many answers depending on who you ask. But it makes me think about how things were when some of us joined the industry years ago.
When I got started in my first serious endeavor, I went home from the meeting with
– a company catalog
– an 8-page booklet packet of 8 1/2×11 sheets that looked like it was a 10th generation copy of how the pay plan worked
– the “pink copy” of my enrollment form
– a cassette tape about the company
That was it. And that was probably more than a lot of the old-timers got when they joined the industry 10 and 20 years ahead of me.
And yet, I made it work. I enrolled 6 people in my first month. Within 90 days I was earning enough to quit my job. If I needed something and didn’t have it, I either figured out how to do without it….or I create what I needed.
Back in the old “Dead Doctors Don’t Lie” days, thousands of people got started and received little more than I did. Maybe a few copies of the cassette tape to hold them over until their own order came in. A booklet that explained how the tape system worked. A price list for products. That was about it.
A friend of mine joined Excel telecom in the 90s. He got a few nicer materials than I did but it was still nothing to really write home about. Most of it was company “propaganda”….no real sales tools or instructions on how to start building a business.
Fast-forward almost 20 years. Even the most LAME network marketing company offers 10X the amount of support that I (and many of you) lacked when we got started. And, from what I see, it seems that most companies offer at least some or all of the following:
A full schedule of conference calls
Weekly webinars and “over-the-shoulder” video training
Replicated squeeze pages
Company sponsored promotions
Social media tools
And I understand that some of the things that we offer are a bit more complicated than the old days of “make a list of people you know”. But, at the same time, whenever I hear people who say they “couldn’t make money because they didn’t have any support”……
….I find myself thinking, “Really? You honestly think you didn’t have any support? You’ve got 100X the support that many of us had when we got started. And yet we had more desire than excuses. ”
So it all begs the question: are people in our industry REALLY lacking support? Or are they lacking in self-reliance?
What do you think?
What if you could instantly have a conversation with someone who’s on the same page as you?
What if you could see the moment that someone arrives at your Facebook Profile and send them a hello message?
Or, what if you could have a chat with anyone who visited your lead capture page, just to make a personal connection?
In other words, what if EVERY single website on the Internet allowed social interaction, even if the website wasn’t set up for it?
Well, it’s already available (in beta) and it’s free. It’s a new browser plug-in lets you interact with any other users who are visiting the same web page as you. The only catch is that you can only see people who have also installed the browser plugin. So, it may take some time to reach a critical mass.
Still, passing the word to your own friends is a great way to start……and you’ll be interacting with people that you already know and like!
Get started at WhoIsLive.com
And use the Share buttons to pass this along to others!
Got your big-boy or big-girl pants on? Let’s go ahead and get the awful truth on the table right off the bat….
FACT: 99 out of 100 “home business” entrepreneurs will not make $500 this month.
FACT: 99 out of 100 “home business” entrepreneurs will not make $500 this YEAR.
FACT: 99 out of 100 “home business” entrepreneurs will not make $500 in their LIFETIME.
QUESTION: Where are you in those statistics?
For most people, the the “Going Out Of Business” sign is hanging on their door and they don’t even know it.
Here are some tips you can use to avoid being a statistic…..and how to crash the party at the top of the pay plan:
I will typically show my business to 20-30 people per WEEK. Most network marketers don’t do that in a year. Some, but not many, might do that in 4-6 weeks.
Where do you get these people? Doesn’t matter. They might be friends and family. They might be people you meet during the day.
The easiest way is to ATTRACT them. Just run some ads and invite your prospects to contact you for more information.
Think about it: would you rather talk to 100 people who have NOT asked for information on your business……or 100 people who HAVE?
I don’t care if your sponsor doesn’t do it that way. I don’t care if no one else in your company does it. Show your business to at least 4-5 people per day. You’ll probably wind up as the #1 enroller in your company
If that sounds really difficult, you’re going to find out how easy it is in Tip #2:
When I got started in MLM back in the early 90′s, my sponsor had me sitting down and doing one-on-one presentations for prospects. I met people at the mall. I met them at coffee shops. I met them at restaurants. I met them in their living rooms.
And it worked. But the problem is that it’s horribly inefficient. I spent 40-60 minutes doing a presentation for ONE person….when I could have doubled my productivity by just having an extra prospect at the table. Hmm….if I had 4 people at the table, that would have quadrupled my effectiveness. What if I’d had 10 people at the table and I could spend 40-60 minutes doing a presentation for TEN people? Wow! Now, that’s leverage! I’m presenting to 10 people at once.
Oh, wait. What if I’m not that good of a presenter? What if I SUCK at presenting? Plus, how eager are my new prospects going to be to join my business if they think they have to sit around and explain this business to people all evening. In homes, in coffee shops, in restaurants.
Answer: they don’t have to. When I started plugging my prospects into a conference call or (nowadays) a webinar…..BOOM…..my income exploded.
Why? Because a.) I didn’t have to do the presentations and b.) Depending on how many prospects I invited to attend that presentation, I was showing my business to anywhere between 3-10 people PER PRESENTATION! And we did multiple presentations per day!
I think the most I ever had on a single presentation was 79 people. That one presentation put over $20,000 in my pocket in earned commissions.
It is SO easy to stay busy. After all, there are lots of things to learn, aren’t there?
Search engine optimization. Designing websites. HTML/CSS. Setting up a blog. Writing articles. Making videos. Encoding videos. Uploading videos. Figuring out how to get Google and Facebook to approve your ads. Learning pay-per-click.
No doubt: you can stay really busy.
Here’s the problem: NONE of that makes money.
Think about it: there’s only a handful of things you can do in this business that actually contributes to earning an income. Here they are:
That’s about it. Anything else is secondary to that.
In other words, if you’re spending the lion’s share of your time doing ANYTHING but inviting prospects to a presentation and following up…..then you’re not focused on income-producing activity.
And there’s nothing wrong with doing those other things. But they are SECONDARY to the income-producing activities. You’ve GOT to prioritize your time.
So, again….I don’t care if all the “gurus” are telling you need to learn how to put HTML code on your website….or how to write 20 articles a week for SEO…..etc.
Save that stuff until AFTER you’ve called your prospects.
Personal story: when I got started in this industry, I didn’t know anything about business. I was just excited because the people telling me about the company were excited. So, I got excited. I looked at the cost to sign up….but didn’t look very much at what I’d have to do to hit my financial goals. Heck, I really didn’t even have any financial goals. I just “wanted to make some money”.
Needless to say, after I’d been in business for 6 months, I was really confused why I wasn’t making more money. I’d been working my butt off. I had a good sized-team for six month of work. But I wasn’t really seeing the results I expected.
The average person in my organization was spending $100 a month on products. And I was earning about 5% commission on MOST of the people in my team.
In other words, all the time and effort I spent to enroll someone in my company was basically increasing my income by about $5 per month.
Or, to put it another way, if I wanted to earn a simple $1,000 income……the person I enrolled had to stay with the company for over SIXTEEN YEARS for me to earn a simple $1,000 on their purchases.
Oh, and we all know the argument, right? “Well, it’s residual income! You keep getting paid over and over for work you did one time!” And, “Yeah, but think if that person goes and gets three people who go and get three people who go and get three people…….those $5 commissions can really add up one day!”
Yeah. I know. Sounds great. Looks great on paper.
But when you consider that it doesn’t take any more time, effort or energy to earn – say- $1,000 as it does to earn $20…….then it begs the question: why am I not earning what I’m worth?
Residual income is great. In fact, I suspect that one of the reasons we all got involved in network marketing is because we love the idea of getting paid over and over for work done once. And we love the idea of getting paid for other people’s efforts. It’s called “leverage”.
But, I believe one of the biggest problems that keeps people BROKE in this industry is because they join companies that just…….don’t……pay……very…….well.
Learn to think like a merchant….not like a consumer. Don’t buy into the idea that you need to postpone all your financial success to some undetermined date in the future.
It’s fine to delay SOME gratification to the future….but not all of it. You’ve got bills you want to pay right NOW. You’ve got things you need to get done in the next 30 days. You don’t have time to Mickey-Mouse around with $4 commissions or $10 commissions or even $50 commissions.
Once upon a time, it took 3-5 years to make a decent income. Those days are OVER.
If you want to make $5,000 in your first 30 days….that’s possible. (It’s not only possible…it’s being done every month by brand new people in our company.)
Heck, when I made the switch from “nickel-and-dime commissions” to a business that paid what I was worth….I earned over $15,000 in my first 30 days. I hit $40,000 per month before the end of my first year.
THAT is what you deserve. THAT is the kind of income that’s possible for you right now. But you have to get out of the mindset of thinking that everything is supposed to take 3-5 years and that you’re supposed to be happy to earn small monthly commissions.
Plus, let’s be honest: the currency that we get paid in is DECREASING in value. Making $240,000 THIS year is going to have FAR more buying power than earning $240,000 in five years. You’re much better off to be in a pay plan where you can earn serious money NOW than to take your earnings in bits and pieces over the next several years.
Making a large income from home isn’t as difficult as most people think. But, to borrow a phrase from Wallace Wattles, you have to do things in “a certain way”.
You have to have the right mindset.
You have to have the right tools.
You have to have leverage in your work (not just the pay plan).
You have to be in a business that pays you a solid “now” income while you’re building that long-term residual.
I’ll say it again: making a ton of money from home isn’t as hard as you think. If you have questions how I do it….let’s talk! You can contact me through my website at http://www.tonyrush.com
To your IMMEDIATE success!
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