The Magic of Capitalization in Network Marketing

When it comes to building wealth faster, many people are disillusioned by the network marketing opportunity. I don’t know how it all started, but it seems like a lot of people have a distorted belief that network marketing is a get-rich-quick business. The truth is that network marketing is designed to generate sustainable but growing income over the long term. The keywords here are sustainable and growing.

By sustainable, it means that your income is long-lasting. He always comes on a regular basis for as long as he’s in business. The best part is that your income will not only flow steadily, but will get bigger and bigger as time goes by, like a snowball effect. But most people just want it big at first and don’t have the perseverance to patiently increase their income.

I have a story that beautifully illustrates the power of network marketing. There were two sons who were about to receive their father’s inheritance. In his will, the father gave his children two options for how they would like to receive the inheritance. The first option is to receive $1 million worth of assets in one lump sum and the second is to receive 1 cent investment that doubles every day for the next month. Both can choose the $1 million estate or the 1 cent investment. The eldest son collected $1 million, hired the best business consultant in the country, and quickly came up with a plan to grow his money. The youngest son, on the other hand, made a 1-cent investment that doubled daily.

Two weeks later, the two met. The older brother had already made a 10% pure profit from his business, while the younger son only made about $80 on his investment. The older man, feeling sorry for his brother, begged her to go to the lawyer and ask him for a plea to change his decision. The youngest refused.

A month had passed since they received the inheritance. The older brother had done very well and made about $300,000 in profit, but the cost of the consultant is about the same, so he basically had the same net worth of $1 million. Meanwhile, the younger brother had a net worth of over $5 million! This is the power of compound interest, the best discovery of humanity according to Albert Einstein.

So what is the lesson of this story? There are two main points that I want to highlight to you. First, in network marketing, you start as one and over time your team grows exponentially. This is the advantage of doubling your effort for your downline. If you are in the regular direct selling business, you will have sold 7 products if you sell one product daily for a week. With network marketing, you have a total of 64 (2 to the power of 6) downlines in the same week of time and effort.

Second, halfway through, you might feel like you haven’t gotten that close to your goal, but trust me, you’re on the right track and you’ll experience massive growth soon if you stick to the rule. Just like you’re eating a hamburger today, you won’t instantly gain weight the next day, but over the long period of time of consistent consumption, you’ll see the effect.

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