95/5 network marketing principle and rule nwm

95/5 Network Marketing Principle/NWM Rule

The number of people involved in network marketing is not insignificant. And even more so have heard about NWM but don’t really know what it is or how it works.

According to the World Federation of Direct Selling Associations (WFDSA) there are over 120,000,000 people doing NWM, this number consists of customers and/or independent representatives and this number is increasing yearly.

Although that’s not why I’m sharing this information, but rather to give you an actualization of the amount of people who actually succeed and do network marketing full time, or better… it’s their only and main source of income.

Looking at all the people who do NWM; 5% of them achieved passive/residual income, the other 95% have jobs and other sources of income to supplement their NWM venture.

I’m not here to burst your bubble, but those are the facts; 95% of people are striving to achieve the network marketing lifestyle, will they reach the success that the 5% of network marketers have? That answer is up to the person involved. I wish I could tell you why it’s only 5% of the people who succeed here as opposed to those who do not… but the answer is quite obvious… it’s all up to the person. The level of dedication, experience, relentless mindset, not giving up, and/or quitting; simply the base mindset and character is what separates the 5% of those who succeed to the other 95% who do not.

I’m not saying that the 95% are not “successful”, these people may simply enjoy and believe in the products or services they are providing, and they are OK with that, it’s what they love.

When we look at sports for example, whether it’s basketball, football, soccer, hockey, etc. The number of players who actually get on a professional team is much smaller; in fact, it’s between 1% to 5% of all the players who want to play professionally, actually do.

For example in the National Football League (NFL), there are roughly 120 Division 1 teams, each with about 20 seniors or 2,400 possible draftees. The odds of a college player making it in the NFL are between 168 in 8,932 and approximately 654 in 8,932. Approximately between 2 in 10,000 and 8 in 10,000. Per Division 1 and 2 stats. So odds are about 1% to 2% for a college player to end up in the NFL.

How many CEOs are there to an employees ratio? Top level executives to employees? Or managers to employees? Of course it depends on the company size, but to give you an idea, even in the corporate world, the odds are still at 1% to 2% of most money being made from the desired positions to employees.

Franchise stats are as follows:

  • The average initial franchise investment is $250,000; excluding real estate.
  • The average length of a franchise contract is 10 years.
  • Wayne State University Economists paint a very different picture. After 4 years, only 62% of franchised businesses had survived, while 68% of independent small businesses were still open for business. And independent businesses are far more profitable. Profitability was actually negative, on average, for franchised firms over the four-year period.

With franchising, the failure rate is really high, you do not have much to say when it comes to the protocol, marketing, and advertising. The list goes on, there is absolutely a lot of paperwork involved, and not to be overlooked.

Now let’s look at independent small businesses and startups:

  • A third of small businesses get started with less than $5,000 and 58% got started with less than $25,000.
  • Only 50% of businesses with employees survive five years.
  • 82% of businesses that fail do so because of cash flow problems.
  • An overwhelming 93 percent said they calculated a potential run rate of shorter than 18 months. Source.
  • About 90% of startups fail.
  • 10% of startups fail within the first year.
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Looking at network marketing, with all the statistics at hand, we can see that 5% of people who make a significant amount of money is much greater than other industries, and the 95% of other network marketers are making money; it can be part time income, or enough to pay their bills, etc. It’s just not at their full potential yet… but it certainly can be!

Your chances of success with NWM are much greater than with any other profession, because it really comes down to what you do, and your efforts alone. You get to designate your success and your profit margin. There is absolutely no reason for anyone not to enter the 5% NWM lifestyle margin.

I have dedicated myself and VitalyTennant.com to give value to everyone who wishes to be successful with NWM | Network Marketing as I build and expand my company that I enjoy. So be sure to look around the website; check out the blog and the podcast. Contact and/or connect with me anytime. There is plenty of great information here for all involved when it comes to Lifestyle, Success, and Leadership.

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