MLM, or network marketing, remains one of the best business opportunities available, hands down. Someone with very little money and education can make a 6 or even +7 figure income, if they know what they are doing. Unfortunately, most are clueless and believe the hype of making millions quickly just by recruiting 3 who find 3. These numbers just don’t work that way.

So let’s make sure we’re on the same page together.

I’ll start with the bad news.

Statistically, you have a 99% chance of not making money in MLM and network marketing. Less than 2% ever make more than an average of $110 per year while spending thousands of dollars in credit card debt on product samples, brochures, CDs, DVDs, company websites, trips to conferences, etc.

Only the top 1% earn enough to quit their jobs and survive. And, while everyone gets excited about how they’re going to have 7 and 8 figure incomes, only the top 0.8% reach these levels (yes, that’s point eight percent).

By law, MLM companies have to disclose this information to you now, but these numbers don’t change much from one MLM company to the next.

Despite these odds, making 6 figures in your first year is actually very realistic.

While there are many components to successfully marketing your business, you must first take a step back and look at the simple math of building a downline that will create the level of income you want in a realistic time frame to see if it is feasible for you in depending on your marketing skills.

Let’s say you believe you can beat the odds. After all, everyone knows that statistics can be easily manipulated to prove anything. Also, you will not allow yourself to fail.

Good for you!

So, let’s do the numbers.

Most people would like to retire with at least $1 million in annual income. So we’ll use $1 million to keep things simple and conservative. If you want, say, $2 million, then just double everything here.

Many MLM companies like to say that you can retire in about 5 years of hard work. I agree…if you know what you’re doing and you’re in the top .8% (that’s point eight).

The math gets a bit tricky here because products and services vary greatly from one MLM company to another, as do prices, payment plans, bonuses, etc. However, using a “loose” industry average, each person typically earns around $15 to $40 in monthly residual income from each distributor in their downline. You can enter a number that you think best fits your payment plan.

For our example, we’ll only use $40 per month because it’s on the high end (to try to keep things looking nice).

So for every distributor in your downline, we’ll tell you that you’ll earn an average of $40 per month, every month, forever and ever (although this is never true, but we’re super optimistic).

To earn $1 million a year, you need to have around 2085 distributors in your downline. (Of course, if you want $2 million, double it, and so on.)

If you want to retire in 5 years, you need to recruit about 417 new people per year, or about 8 new people per week.

You need to recruit 1 new person per day, every day (and 2 on Saturdays) for the next 5 years, 365 days a year, no vacations, no time off, no breaks, nothing.

And that’s assuming that 100% of the people who enter never drop out (considering that the “real” average dropout rate is around 50%, this is completely impossible… but remember, we’re being super optimistic here). ).

Even if 100% of everyone you spoke to signed up (which will never happen) and paid in full, and ordered every month, forever and ever, and never quit…

…is it possible to recruit 1 new person every day by using “warm marketing” techniques to talk to people in person or drag them to your house parties or hotel gatherings?

Also, realistically, you’ll probably have to talk to at least 10 people to get 1 person to say yes and sign up…every day for the next 5 years.

Not to mention, since the average drop rate is around 50%, for every 1 you drop, you’ll have to recruit 2.

So you need to present to at least 20 new people…every DAY…for the next 5 years to just reach your minimum goal of $1 million in annual revenue.

Is this possible? In 10 years? twenty…?

Even at the ‘super bullish’ high end?

Now, you’re probably smart enough to think, “But, wait a minute, Mike. What about recruiting my downline? Won’t I run into some superstars with those numbers?”

Good thinking and, yes, you might be lucky if you find a real superstar. However, there is only one in 1,250 people, statistically. So, you will have to recruit 1250 people before you are lucky enough to find your superstar.

‘Hope’, ‘could’, and ‘luck’ are not solid ways to create a business model and foundation for the rest of your financial life (and retirement).

You need to make sure the business model you’re working on is something you can actually do, and take advantage of a trained mentor or coach who can teach you how to put the numbers in your favor.

Doing the math when joining an MLM company will help you gain a clearer perspective on exactly how many people you need to bring in to achieve your goal. You can then set your sights on a game plan to reach that goal in a realistic time.

Most never do this, and probably no one at your MLM company has ever illustrated this to you before.

However, many people earn a large income using this business model. If not, you need to find someone in this industry who can train you on how to put these numbers in your favor.

Here’s his success…in numbers.