The Case of the Shrinking MLM Check

I have often heard that if you stop building your MLM your check shrinks. Of course it will shrink some if your company pays recruiting bonuses. But since most of us dream of retiring with an ongoing income, I had to investigate how you can do that!Everyone ends up with 3 types of people:Those who start building right away
Those who have some issues to work through, then they build
Those who never will build itThis being true, no matter when you decide to retire you have:Some building
Some getting ready
Some who never willSo why would your check shrink too much to live on when you stop personally recruiting?People drop out
Your compensation plan pays more on the front end than on the back endIt is said that the dropout rate is over 90%. But who are these people that drop out? If someone is making money, or believes they can, they won't drop out unless:They find out something disturbing about the company
The company terminates them
They aren't loyal to you or the company and something "better" comes alongWe can prevent the first 2 by being in the right company in the first place (unless the distributor gets terminated for just cause.)We can prevent the third by building strong relationships, and by educating our team members on what to look for in an MLM company. If your team members have formed a bond with you, they won't leave at the first sign of trouble. They will look to you for guidance. If they truly understand the 5 pillars of success in MLM, most of the new opportunities they see will not measure up.What about compensation plans that pay mainly for recruiting? These plans pay heavy on the front end each time you sign someone up, but they don't pay much for ongoing purchases (back end) and the back end is what creates residual income. So it looks like you are doing great, right up until you either can't work for a while due to personal circumstances, or you decide to retire.Luckily you can spot this by examining the compensation plan before you join. Of course, you must also be vigilant in case the company changes the pay plan. What you want to ask yourself is:How much monthly residual income do I need to retire
How much volume will I need on my team to get thatWhen you calculate this, you need to ignore all sign-up bonuses, bonus pools, and matching checks and just focus on what they pay on shear product sales volume. Of course your check will shrink somewhat without the front end money, but if the number of active people you will need to generate your desired income is too high, you might never get enough people on your team to be comfortable retiring. If you want to make $10,000 monthly the numbers run anywhere from needing 400 people on your team to 27,000 (variable of course by how much each person orders.)One more thing to consider: read your policies and procedures carefully and make sure they allow you to retire and keep your check. Many companies do not! I've written other articles which cover this.Of course there are those who are having so much fun they never want to retire.But if you might want to retire some day, make sure you join the right company and build a loyal team!