The Importance of Leverage
A different perspective on 5LINX®

This is Michael Roy Gardner II of Team Royalty and I want to address one of the biggest objections in Network Marketing… “Is this a pyramid?” Instead of addressing it the usual way of giving you some clever comment to say like “corporate America is really a pyramid” I want to give you a couple of different ways to think about and explain MLM. I believe this will be useful to anyone that is in Multi-Level Marketing, and people that are considering joining Team Royalty & 5LINX®. Being a “C” student I have the gift of not over-complicating things so here goes…

Example 1
The Bucket Story

Sometimes in life we have experiences that change our life, most of the time we don’t realize how powerful these little experiences are until we look back and reflect on them. I had a situation like this almost 10 years ago and it has allowed me to “tough” out the years in MLM. I was getting my shoes shined at a local place in Atlanta, the shop was at a strip mall and while I was waiting for my 2nd pair I struck up a conversation outside with this sharp looking older guy. After a bit of small talk I asked him what he did for a living (I was about to recruit this guy!).

He said “do you see that bucket?”
I said “yea” (there was a guy washing the windows to the strip mall)
“That’s my bucket, it makes $20 per stop and it makes 10 stops per day, how much money is that?”
“That’s $200 dollars per day”
“I split that 50/50 with that guy”
(I was pretty impressed, $100 bucks per day and he didn’t have to lift a finger)
“I have 10 of those buckets”

Well, I ended up finding out that he made over $250,000 per year from other people washing windows. That’s the importance of leverage. Think about it, it’s no way he’d make that much personally washing windows. Now think, if he can do that with 10 buckets, what could you do with 10,000 reps in your organization?

Example 2
McDonald’s

One of the things I’ve learned throughout my business career is to emulate the successful traits you see in other people. In other words if you want what someone has, do what they do. If you are involved in network marketing then your goal is to build a huge distribution channel (aka huge team) in order to move whatever product or service that your company offers. One of the best distribution companies I’ve ever seen is McDonald’s.

Think about it they give away more ketchup than Heinz sells, they sell more chicken than KFC, and they move more toys than Toys R Us. How do they do it? They do it through a huge distribution channel, they don’t have one store, they have over 30,000 franchises (aka reps) all around the world.

Owning a McDonald’s franchise costs roughly $1/2 million, long hours and months of Hamburger University. After all of this you now have a franchise, let’s say you get 97% of all the revenue that comes into that McDonald’s. After all of the overhead you’d earn roughly $100,000-$150,000 per year, pretty impressive. Or would you rather be the McDonald’s corporation earning 3% off of the business of 30,000 Franchise owners? That is the importance of leverage and that is the opportunity you have with a Network Marketing business. With 5LINX® and Team Royalty the possibilities are endless.  

Example 3
The Early Billionaires

Another quick example of learning from the best would be to learn from two people that became Billionaires when the cost of bread was less than a nickel! Imagine what their net worth would look like today. J. Paul Getty the world’s first recorded billionaire made one of the most powerful statements when he said “I’d rather earn 1% of 100 people’s efforts as opposed to 100% of my own efforts”.

If having leverage made sense to him, shouldn’t it make sense to you? Henry Ford revolutionized the auto industry and became one of the world’s earliest billionaires by having his employees use an assembly line. This was an ingenious concept that allowed everyone on the line to do a little, this is what allowed cars to be massed produced at an affordable price, this “leverage” changed the way all of us live today… And Henry didn’t do too badly financially as a result.

The opportunity we have in Network Marketing far surpasses any of the examples I just gave for one simple reason. We are not the oppressive hand of traditional entrepreneurship that forces other people to work at a low wage to increase our profits. We have a chance to uplift thousands of people by giving them the same exact opportunity that we have.

Not only do we give them the opportunity, we train them step by step on how to do it, cheer them on, and help them along the way.  In the process, many of these people “under” us will go on to earn more than we do. I’d like to see J. Paul Getty, Henry Ford, McDonald’s or the bucket guy say that!

Hopefully this has been helpful, stay tuned because I will be releasing several more reports including; “Advantages of MLM even if you suck” and “Why you should be in direct selling.”

Michael Roy Gardner II has been in the industry of Network Marketing and direct sales for over 10 years. During this time he has built teams throughout the country and even internationally. He has been fortunate enough to walk away from working in corporate America and now spend much of his working time developing his team and coaching others in the industry on Mindset, Leadership and Marketing. To get more training or booking information please visit www.MichaelRoyGardner.info  or call 1-773-931-7735. 

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