Been Away Awhile

Not sure where the last 10 months have gone but here I am again.

The latest thing I’ve been up to is Young Living Essential Oils (www.youngliving.us). It’s a network marketing company that sells unique and very effective health and wellness products, most of which include some combination of essential oils. The interesting thing is that people don’t seem to be so inclined to stop using the products. In fact, in opposition to what is usually the case, they seem to be inclined to use a lot of the products and to reorder every couple of months regardless of whether they are deriving any income from the opportunity.

Yes, there is a business opportunity associated with this company. And it seems to be one that is easily understood and implemented by most people. The way it works is: you join for $40 (basic starter kit) and get a couple of sample products, some informational CDs, printed business and product literature and forms, and access to your own Virtual Office (on the company’s website) which contains additional product-oriented, as well as, business-oriented information. In addition, you buy a few of their products to try (from a selection of 350+). That’s month #1 — just studying the printed material, trying out a few products and perhaps listening-in on a few conference calls. However, if you choose to Enroll anyone else as a distributor, you can receive a 25% Enroller Bonus (up to $200 per enrollee) on their first month’s product volume (assuming you’ve ordered $50 in product yourself).
In month #2, you sign-up for the Essential Rewards Autoship Program (minimum $50). This qualifies you to receive the second-month Enroller Bonus of 15% (up to $200 per enrollee) on the PV generated by the distributors you’ve enrolled who order product in their second month.

Unfortunately, there is no Enroller Bonus paid on products ordered by distributors in their third month or beyond. However, there is a “Matching” Enroller Bonus paid when a person you’ve enrolled also enrolls another distributor who buys products. The Matching Enroller Bonus is paid on second generation enrollees who are enrolled during the first three months that the person you enrolled is in business. 

If you like the company and products, make a list of people who you think might also like the idea of 1) using high-quality natural health products, and 2) building a small, part-time business that offers the ability to work from home and, in time, generate residual income. I’m guessing that 70 million of the 76 million Baby-Boomers out there can use one, the other or both.

There are distributors in this company earning more money in one month than most people earn in a year. The most money you will ever have to spend per month to qualify for the maximum commission on your downline’s overall group volume (OGV) is $100. Your earnings will depend solely on the size and distribution of your organization. This is a function of your effort as you apply it over time. Most of the distributors now earning over $100,000 per month have been working at their businesses for over 10 years.

But what if you spent only 8-10 hours a week for two years talking to people about the amazing products and business opportunity. What if your group has only 200 people. Well, based on statistics gathered from my upline’s present organization of ~1,000 people, ~30% of distributors will order each month with an average order value of ~$200. So, extrapolated for a group of 200,  ~$12,000 in monthly group volume would be produced by ~60 people. Depending on which distributors place orders, i.e., their level relative to yours, you would earn approximately $500-$800 in commission. Of course, you would have to have $100 in personal product volume (PV) to qualify for this payment.

This is what my upline distributor (sponsor & enroller) did in 1997-98. And then he stopped actively building his business for several years, and simply placed $100 product orders every month to continue to qualify for his ~$1,000 monthly commission checks. But a funny thing happened. His OGV kept increasing (as his downline continued to grow without his active involvement) and his monthly check kept increasing as well. When his check hit $3,600 (~1,000 people in his downline, 17 levels deep, with ~300 orders averaging ~$200) he called me and said ”you need to get back into this business” (I had dropped out in 1998). That was six months ago and now his check is closer to $5,000 (he started a second leg in his downline). So I re-activated my distributorship last month and now have five people in my downline (TEN as of 1/30/08). I’m building one leg straight down — each new person goes under the previous one. I’m going to continue this strategy until I’m earning $800-$1,000 per month, at which point I’ll start a second leg, ad infinitum.

To be candid, I’m not sure I can see myself making $10,000 per month. But how often does one see the peak of a mountain when beginning the climb? I can definitely envision making $2,000 within 2 years (as I’ve accomplished before in a similar endeavor). That’s about the amount that most people receive from Social Security after working for 40 years.

This time I’m building my organization deep first and wide second. This approach provides support and incentive to new people who aren’t really sure what to do next. Having 10-20 people ordering ~$200 per month in one’s downline can have an amazing effect on one’s focus. That would more than invite the active participation of any sensible person. It’s win-win.

Let me know if you’re interested.

Oh yeah, the only requirement to keep a distributorship active is to place just one $50 product order each year. However, you may choose to spend more as your group (and  OGV) grows — or when you realize how much you like the products.

Note: When monthly OGV is calculated, downlines are compressed to include only those distributors who have placed orders. Fifty dollars in personal monthly personal PV is required to receive a commission on the purchases of your first two levels after compression. $100 in personal PV and $500 in OGV qualifies you to receive a commission on your first three levels after compression. When you have $2,000 in OGV, you get paid on four levels, again, after compression. And when you have $5,000 in OGV, you’re paid on five levels. There’s more of course, much, much more. So leave a comment if you’re interested in learning more about it.

3/25/08 note:  As of today, there are 92 distributors in my group.