The value of doing something small every day to build a network marketing business is an underrated but crucial activity.

If you are going to lead your downline to success at earning residual income you must also add an extra activity. You must simply do something small every day to help the people you have sponsored. Help them build a bigger list, help them make calls, help them do in-home presentations – just do whatever it takes until they start helping those they have sponsored.

It is not enough to talk about talking to others about the products; you have to actually do it. A company we know recently launched an initiative where they asked their distributors to sponsor one person this month. In the same company the top leaders sponsor at least a couple new distributors and sell to a dozen or more new customers every month. That’s how they got to be top leaders by the way.

There is something to learn here. First a lot of network marketing distributors do nothing and expect to succeed. If you work at nothing all day, they will pay you nothing at the end of the week. Companies should not have to ask their distributors to do something as basic as try to sponsor one person. Is this activity not obvious? How else are you going to build a downline so you can earn residual income?

Secondly, leaders sponsor new people as a natural outcome of their work of building residual income.

I was going to say lifestyle but the point of network marketing is not to get a new job or lifestyle, it is to earn extra money to support the lifestyle you want to live.

Leading by example is important, help others up to your level is equally important. Success at earning residual income without a downline is impossible, so you might as well get used to helping others earn residual income if you want to yourself.

One of the main ways that network marketing distributors recruit new distributors is by explaining how easy their program is. But is it really that easy after the excitement of owning your own business wears off?

Our experience with this problem is that yes network marketing or MLM is promoted with a healthy amount of excessive optimism.

The reality of Network Marketing is that there are two things you have to accomplish to be successful.  It does not really matter much what the product you are selling or the company you are involved with. You have to accomplish these two goals, and usually within the first 6 months or you will find it difficult to continue.

First Network Marketing Goal

First you have to become a distributor fill out the forms and send them in. Once you up and running, you have to create an income of about $250 to $300 per month. Ideally this income is derived from the retail sales of your product. Why is this important? Well he answer is very simple and it is very critical that you understand this.

Most of all Network Marketer that fail, fail for a very simple reason. They fail because they do not have the financial resources to stay the course and get the required training to become a new distributor sponsoring machine that can establish a downline. If fact, in my experience the most common issue is that the new MLM business is funded from their current “family budget”. After a couple months the cost is just a bit too high and they have to make adjustments because it is affecting their family in a negative way. The first thing they do is get off Autoship and the next they lose interest because they never made any money.

So to make sure this does not happen to you, when you sign up, pick products that you can sell as your monthly autoship commitment. That way you will get a steady supply of the best and most easily re-sold products from your company.

Second Network Marketing Goal

The second is sponsor enough people so that you being to establish a small cheque each month of what is called residual income. Network Marketing  is all about earning residual income from actions you did once and got paid many times. You need this small income but staidly growing income  because you have to be able to tell prospective distributors, your spouse, your family and anybody who asks that you are truly already in a break even position and earning money.

Network Marketing Potential

Nobody expects a new distributor who is presenting their new business to them to be a millionaire in a couple of months. But what they do expect is that they are in a better financial place, have a better financial strategy then they have. Otherwise why should they bother – you’re not doing better than they are so you obviously do not know something they need to learn.

And that is really the point, people want to know why they should bother and if you cannot tell them why to bother about your opportunity then they will never join you and your business as a partner in your downline.

So in summary it is really important to make sure you can break even quickly so that your family budget is not negatively impacted. Second you have to start earning residual income and keep that part of the your business growing larger and larger every month.