Do you know how many active distributors (those placing orders or meeting the monthly qualification) you would need to earn $10,000 per month residual income in your business?
Well, here's a simple formula.
1. Determine the required minimum monthly order per distributor.
2. Determine the commission percentage received on the monthly minimum requirement.
3. Figure the dollar amount of that percentage
4. Divide that amount into $10,000
That will give you the number of active distributors needed to earn $10,000 monthly residual income.
If you want to earn $20,000 per month just multiply the number of active distributors by 2: or if you desire $5,000 per month then divide by 2.
Example 1:
Minimum monthly order per distributor = $40.00 or 40 points
Commission percentage = 5%
40.00 x 5% = $2.00
$10,000/2.00 = 5,000 active distributors
In this example 5,000 active distributors are needed to earn $10,000/mo residual income: or 2,500 (5,000 divided by 2) distributors to earn $5,000 per month.
If the commission percentage is 10%, you will need 2,500 distributors to earn $10,000 per month: or 1,250 distributors for $5,000 per month.
Example 2:
Minimum monthly order per distributor - 100 points
Commission percentage = 10%
100 x 10% = $1.00
$10,000/1.00 = 10,000 distributors
In this example 10,000 active distributors are needed to earn the $10,000/mo. At 20%, only 5,000 distributors are needed. For a $1,000/mo residual, 1,000 are needed @ 10% and 500 at the 20%.
The industry average to earn $10,000 is about 2500 people. Wow! Does that seem like a lot of people to you? It does to me.
But don’t be discouraged because there are a few companies out there where you can earn $10,000 monthly income with less than 400 active distributors.
What do you think about that?
Be The Leader You Were Created To Be!
Lidie Gray
Mentoring for Free
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