Understanding The Real Cash Value Of A Downline

by David Ledoux, Founder ILOVEMLM.com

Don't you just love it when family visits for the holidays? You get to see the ugly side of genetics and Mother Nature.

I think my cousin Jonathan might very well be the laziest human on the face of the planet.

This morning, he was lying on the couch at 10 AM, eating a bag of dill pickle potato chips, drinking a Coors Light and watching a Bow-Flex infomercial. He grunted good morning and asked what I was up to.

I replied, "I'm sending a killer offer to my email list. I'm looking for 3-5 partners to work with in 2004 building our network marketing downline."

"Davey Boy, you work way too hard. Them pyramid things never last."

I noticed he didn't offer me a chip. Funny how the choices we make in life create our reality. Jonathan has to leave today (aww, darn!) and drive back home. He has to set his alarm clock for 6 AM and drive to a job in rush hour traffic. His choice.

The real head scratcher is he's lying on a couch in my 3500 square foot country estate on 11 acres. What we call our "cottage". He's seen me grow from broke to NOT broke in less than a decade. In one of them little "pyramid things". And yet he's never joined me...

He made me think of a few dozen people I met like him over the years. One of them was a buddy of mine I call Bud Fox. He was an unemployed stockbroker at the time. I sponsored him in December 1994 into my downline. He quit 4 months later, but not until he had led me to a crazy Irish guy who also quit. But the Irish guy sponsored a guy living on welfare in his mother's basement who also quit, but not before he sponsored a guitar player in a rock band. The rocker sponsored a blind lady before he quit. They all made excuses and said it would never work. Anyhow, you get the idea. Bottom line is I found a leader about 50 levels in depth in that leg.

Today that leg does nearly a half million dollars a year in sales. I figure I have made about $5000 a month for over 8 years just off that leg. It's a little tricky to value parts of a business, but at just ten times earnings, I would probably sell JUST THAT ONE LEG for over $600,000!

It got me thinking. What is the real value of a leg in MLM? Even the little ones have value.

Let's say you have a leg that is rock solid with about 50 loyal customers. It doesn't grow much, but you make a steady $500 per month from that line. How do you value it?

If you went to the bank for a solid investment-grade bond, you'd be very, very happy with 6%. If you locked your $100,000 in for 10 years at 6%, you'd make $6000 per year.... or $500 PER MONTH!

Hey, does that mean a little product-driven leg paying me just $500 per month is worth $100,000? Possibly. If you subscribe to Kiyosaki's Rich Dad thinking, then cash flow is KING!

How many little product-driven legs paying you just $500 per month do you want to create next year knowing that each one is worth $100,000 in asset value?

We all have our own versions of Cousin Jonathan. Once I realized my job in life was NOT to force him into MLM but to maintain a healthy family relationship with him, it took the pressure off of me to convince him of anything.

Beliefs create reality. I hope you believe that next year will be your best year ever!

I appreciate you!

David Ledoux
Founder ILOVEMLM.com

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David Ledoux has been involved in the network marketing industry for 15 years. He is an author, speaker and million dollar earner. To discover more jealously-guarded secrets of making $100,000.00 or more every year through MLM check out his new book, The Ultimate MLM Blueprint for Massive Success. The book and a FREE MLM Training ezine are available online at

http://www.ilovemlm.com
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