Sunbeams and Rainbows

Frequently Asked Questions

  1. What do I have to do to make $5,000 a month? (answer)
  2. How many people will I need to recruit to create an income of $5,000 a month? (answer)
  3. How many people do I really need to bring into my business? (answer)
  4. Can Network Marketing be done successfully part-time? (answer)
  5. Do I have to sell products to everyone I know? (answer)
  6. Isn't Network Marketing one of those pyramid schemes? (answer)
  7. I'm not a salesperson, so this probably isn't for me. (answer)
  8. Do I have to stock and deliver products? (answer)
  9. Isn't Network Marketing just another "get-rich-quick" scheme? (answer)
  10. I couldn't get involved in Network Marketing. It's not a "real" business. (answer)
  11. What are the costs involved in starting and operating this kind of business? (answer)
  12. I can see how others have become successful, but I don't think I could do it. (answer)

Q. What do I have to do to make $5,000 a month?

A. To answer this question I would need to have information about your compensation plan. Therefore, I will make some assumptions. Lets assume that your commission is always 5%. You will need a total volume in your business of $100,000 per month.

Q. How many people will I need to recruit to create an income of $5,000 a month?

A. Again, this answer needs to be based on your compensation plan. Lets assume that your compensation play requires a dollar value to allow you to receive your commission. Once you achieve that dollar value you are considered active. For the sake of discussion, lets set that dollar value at $1,500 a month of volume. The following table shows a breakdown of how many people you will be required to bring into your business.

People $1,500 x People Total Volume Commission
$7,500 $7,500 $375
$37,500 $45,000 $2,250
$187,500 $232,500 $11,625
$937,500 $1,170,000 $58,500
$4,687,500 $5,857,500 $292,875
$23,437,500 $29,295,000 $1,464,750

Using the above table we can see that a business that has about 150 active people will generate $11,625 in monthly commission. So to generate $5,000 in monthly commission you would need 75 active people of which you personally started five.

Q. How many people do I really need to bring into my business?

A. That depends on the type of people you find. If you can get one out of five to be active in your business, then you will need to find 25. If you can get one out of ten to be active then you will need 50. From material that I have read, you should do better that one out of ten. This is where you need to make a decision, is this worth looking for the five people who will become active? In my case the answer is yes. This really comes down to how many times can you can take being turned down. Lets say that one out of every 50 people you approach on your business start. That means in a worst case scenario, to get the five active people you will need to start 50 which means you will need to approach 2,500 people. Of these 2,500 people 2,450 will turn you down.

Q. Can Network Marketing be done successfully part-time?

A. Absolutely....it's very common in fact. You can start your Network Marketing business on a part-time basis without giving up your current source of income until your Network Marketing business is generating the income you require. And the best part is that you can continue to operate indefinitely on a part-time basis. What would you do if you were financially independent and most of your time was free to do with as you pleased? This is why so many people are flocking to Network Marketing. And that's why we say that Network Marketing puts the freedom back in free enterprise!

Q. Do I have to sell products to everyone I know?

A. No. The object is to promote your business by sharing your products and their benefits. One of the greatest features of Network Marketing is that success is based on building a business of consumers. On a monthly bases, you will consume products as will the people you bring into the business. Over time, your business will be comprised of people who consume between $50 and $200 a month in product.

Q. Isn't Network Marketing one of those pyramid schemes?

A. Definitely not. Though Network Marketing and pyramid schemes do share some similarities, there's a very important difference that makes the latter illegal. In pyramid schemes, income is generated solely on the process of recruiting others into the pyramid, not through product movement. This is illegal. Also, in pyramid schemes, those who get in first make the most, while everybody else loses. In a legitimate Network Marketing company distributors are paid only on product movement, not on recruiting. In Network Marketing no matter where you're positioned, or when you join, you can advance to the very highest income levels and even make more money than those above you in the network.

Q. I'm not a salesperson, so this probably isn't for me.

A. Actually, studies have shown that people with no sales experience do great in Network Marketing. In fact, the studies show that they often do better than those with previous sales experience. This is because Network Marketing isn't about selling; at least not in the way most people think of selling. There's no place for arm-twisting or high-pressure techniques in Network Marketing. Rather, Network Marketing is simply about sharing the concepts and products of your Network Marketing company that you use and you're excited about.

Q. Do I have to stock and deliver products?

A. Most Network Marketing companies today allow its distributors (and often even retail customers) to order direct from the company. The company in turn tracks your commissions, credits your account, and automatically sends you a check for the total amount due.

Q. Isn't Network Marketing just another "get-rich-quick" scheme?

A. No, very few people "get-rich-quick" in Network Marketing. Sure, there are a few exceptions, but they're extremely rare. This is a business of hard work and devotion. In fact, if your dream is for overnight riches, then this is probably not for you.

Q. I couldn't get involved in Network Marketing. It's not a "real" business.

A. It's very real. Network Marketing is now a multi-billion dollar industry involving millions of independent business people and major U.S. corporations like Colgate-Palmolive, Gillette, Sprint, and MCI, just to name a few. And it's a rapidly-growing international force, too, with thousands of Network Marketing companies already in operation in Mexico, Korea, Europe, Japan, Australia, New Zealand, and the Pacific Basin.

Q. What are the costs involved in starting and operating this kind of business?

A. The Network Marketing company that I am with requires you to fill out a distributor application which will get you a distributor kit and allow you to start your business. This will cost about $50. You will want to purchase some product which will range from $0 to lets say $300. Remember, no product consumption, no check. To summarize, less than $500 to start. In addition, just like any business, you'll have monthly expenses for office supplies, postage, advertising, etc. A total of less than $100 dollars. Your ongoing monthly cost will be your office supplies and whatever amount of products that you consume. Anyone can afford this amount of money without jeopardizing their current lifestyle while they're trying to build a better one. And here's some more good news -- most, if not all of that, is tax deductible.

Q. I can see how others have become successful, but I don't think I could do it.

A. People of every age, every background, from every walk of life are making it in Network Marketing today. If you have the desire, you can succeed in Network Marketing. If you don't, you wouldn't


Created by John Gnew ([email protected]) / 5 Feb 1997