Tuesday, July 8, 2008

It's Not Magic --- It's Only Math

I just received another call from someone offering me this wonderful biz op. I was told about a cure-all product that would magically make me lots of money. This person was truly excited about the income possibilities.

Well, I can relate to how they felt because that used to be me. Great products have enticed me in the past. After all, I just knew everyone else would feel the same way. Of course I was wrong. No one felt the same way. And so, very soon my bubble burst because of the difficulty in selling the product and/or selling the business opportunity.

That was before I got educated. Products no longer excite me. I fully understand without an excellent product, a company won't stay in business. But, I also fully understand having an excellent product is not enough to keep me in business.

Okay, back to this business opportunity. After I was offered this wonderful biz op I asked a simple question (well two questions actually but I'll discuss the second question at another time). The question was this: How many customers/affiliates will I need to earn a $10,000/mo income? The answer was this: You can earn $10,000/week with only 200 people. Well had I not been educated, had I not been able to do the math, I would have been excited about this. BUT, I am educated, I can do the math and I am a critical thinker. I knew there is no way (unless by magic) a product selling for only $60.00 with a 5% commission payout could possibly produce $10,000/week with 200 people. In fact, in doing the math, I calculated it would require over 3,000 people to produce a $10,000/mo income.

I mentioned I got educated. My education started with a free ebook. The fact is I had to get educated. I was tired of spinning my wheels. I was once in a company where I needed 5,000 people to earn a $10,000/mo income. I got involved because the product was exceptional. But, I soon realized it would be almost impossible to reach my income goal. Companies know this. They know all they have to do is provide a good product to suck you in, no matter how poor the compensation plan is. I call that cruel and unusual punishment.

So, if you have a great product, before you get excited about the income possibility, DO THE MATH on the front end. It will save you a lot of failure and frustration on the back end.

Be empowered to prosper!

Irma White
A Mentor with a Servant's Heart

1 comment:

JenniferF said...

Wish I'd known to do the math in the many companies I've been in. I know I am not the only one who never knew this information - thanks for sharing - keep spreading the word.