One concept that is talked about a lot in MLM is the concept of duplication. Duplication is when you have an organization that does the same types of activities that you do. Good duplication is when you are doing positive business building activities (i.e. meeting new prospects, going to events, etc) and your team duplicates those activities. Bad duplication is when you are doing negative business building activities and your team duplicates those activities.
Your override income (that is the money you make from the efforts of your team) is based primarily on your ability to get your organization to duplicate good MLM activities based on the structure of your compensation plan.
For example, if you have a Uni-level plan, you get paid based on how well the people that are within your first 7 levels (or whatever levels you get paid on in your plan) are able to duplicate good MLM activities. If you are in a stairstep plan, you get paid based on how well the people who are not underneath people at or above your level are able to duplicate your efforts.
I participated in a Q&A session hosted by Eric Worre, a million dollar annual earner in network marketing. He talked about a very powerful concept that I wanted to share with you called the 4 levels of duplication.
There are 4 levels that get duplicated in a MLM business. Your override income is dependent in large part on how well you are able to get these 4 level duplicated throughout your organization.
The 1st level is basic duplication. These are the basic activities that everybody does in a MLM business. For example, making a contact list, calling people to share your opportunity, going to meetings, getting on conference calls etc. Everyone, from the brand new distributor to the million dollar earner that is still building does these activities.
Now as you and your organization begin building 1st level duplication, you and a smaller part of your organization will hopefully begin to build 2nd level duplication. The 2nd level is communication & training. These are the people on your team that start to do the game plan interviews, that start to call through the organization to promote for events, that start to take 3 way phone calls for the organization.
Out of the few that participate in the 2nd level, an even smaller number of people in your organization will participate at the 3rd level of duplication. The 3rd level of duplication is called running a marketplace. These are the people on your team that actually run and host events. They host a local weekly opportunity meeting. They host a weekly training. They host conference calls for the team. They host monthly regional events.
Out of the few that participate in level 3 only a small handful will ever participate at level 4. However, if you personally can get to level 4, you are guaranteed to make a multiple 6 figure income. I don't know anybody in the industry that is at level 4 that isn't earning at least $250,000 a year. If you can get to level 4 and get 1 or 2 other leaders on your team to get to level 4, you will earn over $1,000,000 a year in MLM.
The 4th level of duplication is called running an international organization. These are the people on your team that actually run a worldwide organization. These are the people that are on the corporate marketing teams with your company. These are the people that help run and train at the international conventions for your company.
Many of the larger network marketing companies have what are referred to as TEAMS. Some examples include the TEAM organization in Monavie led by Orrin Woodward, The A Team in Agel led by Eric Worre and Randy Gage and Britt Worldwide in Amway led by Bill Britt
For example, Brian Carruthers, the #2 income earner in Prepaid Legal Services runs his own worldwide organization, known as Team Pinnacle. His largest leader is Darnell Self, who runs his own worldwide organization, known as Team NuVision. His 2nd largest leader is Mark Smith, who runs his own worldwide organization, known as Team Freedom.
Brian Carruthers has become a level 4 leader and he has duplicated level 4 twice in his organization, thus the reason why he earns over a million dollars a year in network marketing. As a result, he has hundreds of people duplicating level 3, thousands of people duplicating level 2, tens of thousands of people duplicating level 1 and hundreds of thousands of people that have joined his organization.
By the way, to be a true leader, you need to continue to do the things that you did at the previous levels. Otherwise, you are basically just retired living on the income you built. Nothing wrong with that, but you can't expect your team to do what you aren't willing to do. That means a true level 4 leader still plans area and market events (level 3), they still communicate to and train their organization (level 2) and they still meet new prospects, expose them to the opportunity, etc (level 1).
So now that you understand the 4 levels, if you want to take your business to the next level, here is what you need to do...
1. Identify what level you are at.
2. Identify what level your organization is at.
3. Figure out what levels you need to get duplication taking place in order to grow your income.
For example, I am personally at level 3. I have a couple of people who are also at level 3, maybe a dozen or so people who are at level 2 and then a lot of people who are at level 1. In order to grow my income, I need to build my level 1 levels of duplication in my team outside of my strongest line of sponsorship, so that I can qualify for the higher levels in the compensation plan.
What about you?
By the way, if you're interested in the Q/A session that Eric Worre did, here is a link to the Eric Worre 1st Ustream Question and Answer Session.
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If you are actively looking to join a business opportunity, you can check out the opportunity that I am involved in by visiting http://www.createthelifestyle.com
If you like anything in particular, please feel free to bookmark and share this content. This way, others will be able to learn about it and they will be able to enjoy it as well.
Also, please be advise that the large majority of the links that you see on this blog I do receive compensation if you purchase the products and services that they offer. This includes the links in the actual blog posts as well as the banner ads that you see throughout the blog.
So if you like what you see here and you like one of the link recommendations that I make, feel free to visit and purchase from one of them.
If you would rather just send me money directly, you can do so by clicking on the donate link below. Note that I am a FOR PROFIT organization and while I am doing this to help people I am also doing this to make money as well. After all, isn't network marketing a FOR PROFIT industry?
Friday, May 22, 2009
MLM 4 Levels Of Organization Duplication
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