Legal Law

The magic of compounding in network marketing

When it comes to building wealth faster, many people are turned off by the network marketing opportunity. I don’t know how it all started, but it seems a lot of people have a distorted belief that network marketing is a get-rich-quick business. The truth is that network marketing is designed to generate sustainable but growing income in the long run. The keywords here are sustainable and growing.

By sustainable, it means that your income is long lasting. He always comes on a regular basis for as long as he stays in business. The best thing is that your income will not only flow constantly, but will get bigger and bigger as time goes by, like a snowball effect. But most people just want it big at first and don’t have the perseverance to patiently grow their income.

I have a story that nicely illustrates the power of network marketing. There were two sons who were about to receive their father’s inheritance. In his will, the father gave his children two options on how they would like to receive the inheritance. The first option is to receive $1 million dollars worth of assets in one lump sum and the second is to receive 1 cent of investment that doubled every day for the next month. Both can choose the $1 million equity or the 1 cent investment. The eldest son chose the million dollars, hired the best business consultant in the country, and quickly came up with a plan to grow his money. The youngest son, on the other hand, made a 1-cent investment that doubled daily.

Two weeks later, the two met. The older brother had already made a pure 10% profit from his business, while the younger son only made about $80 on his investment. The eldest, feeling sorry for his brother, begged him to go to the lawyer and ask for an argument to change his decision. The youngest refused.

A month had passed since they received the inheritance. The older brother had done very well and made a profit of about $300,000, but the cost of the consultant is about the same, so he basically had the same net worth of $1 million. Meanwhile, the younger brother had a net worth of over $5 million! This is the power of compound interest, the best discovery of humanity according to Albert Einstein.

So what is the lesson of this story? There are two main points I want to highlight to you. First, in network marketing, you start as one and over time your team grows exponentially. This is the advantage of doubling your effort for your downline. If you are in the regular direct selling business, you will have sold 7 products if you sell one product daily for a week. With network marketing, you have a total of 64 (2 to the 6th power) downlines in the same week of time and effort.

Second, midway through, you may feel like you haven’t gotten that close to your goal, but trust me, you’re on the right track and you’ll soon experience massive growth if you stick to the rule. Just like you are eating a hamburger today, you will not instantly gain weight the next day, but over the long period of time of constant consumption, you will see the effect.

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