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Are You Stuck At Ramen Noodle Income? (How To Get Past It)

I chat with network marketers and affiliate marketers every week through email, on Facebook and Twitter… and most seem to be stuck at Ramen Noodle income.

What does that mean?…

It means that they are putting in the work in their business, but making a very small return… many not even profitable… barely enough to support a Ramen Noodle diet.

Now the biggest reason of course is that many join businesses and simply don’t do the work required to get any results… they don’t work on themselves, they don’t do the inner work that allows them to become the person that others want to join… I go into detail about that in this post about how to succeed in network marketing.

However, this post is focused on those that are actually building their businesses, consistently getting sales… but the sales are just not adding up to the income they expected… or wanted.

I recently spoke to a woman that is marketing a health and wellness MLM. She is regularly recruiting 6-7 new reps into her business every month… doing exactly what her company trains and promotes. She’s been doing this for 4 years and is considered a leader in her company, and has even presented on stage at a recent company event.

How much would you expect someone to be making that has been doing this for 4 years and is a recognized leader in her company?

The truth is she’s having a hard time covering the expenses of her business. Even though she’s making around $2300 per month, she’s spending about that same amount on advertising, gas, attending events, etc.

Now it’s all perfectly normal to have operating expenses for your business, but let’s break down why she’s stuck in “Ramen Noodle” territory.

When she brings on a new rep and they buy even the highest package in her company, she makes a commission of $250. As long as they keep their monthly autoship of the products, she will earn an additional approximate $24 per month, per personally sponsored rep or acquired customer. When those people begin to make sales, she can earn an additional override income on some qualified sales to make another $1-3 per month, per customer. There are also some bonuses in there that are hardly worth mentioning because they don’t make much difference.

So to reiterate… by bringing on 6-7 new reps each month… she’s making around $1700 plus team overrides and bonuses… a total of around $2300 per month, while spending around that same amount to keep her business going and keep bringing in 6-7 new reps every month.

So why does she keep doing this?… Simple. It’s because that’s what she’s been trained to do, and is continually told that eventually her team will get so big that she will make the big dollars from team overrides.

I’ve been in this exact same position… a couple of times actually. It’s really hard to take a step back, self-analyze, and really look at what you’re doing… really do the math. The emotional attachment to your team, the leadership and the company can be stronger than common sense at times.

It really all comes down to what YOU want…

Some people are perfectly content with a part time business that earns an extra few hundred per month, it’s a socially fun thing for them… and they’re really not motivated to go much beyond that. It’s not really a business… it’s a social club… and if that’s what you want, that’s perfectly fine.

But others, like the woman I spoke with, truly want to create something bigger, and eventually get tired of being told year after year to just keep going.

The 2 missing ingredients…

There are really 2 major things that are missing from most business models that when added can completely change the numbers… and the lifestyle you can create.

1. Effective Marketing Systems

Now many in the industry try to add 3rd party systems to what they’re doing. These 3rd party (front-end) marketing systems can be very attractive and promise the ability to generate leads and make additional commissions on system sales…. but, here’s what happens pretty much every time…

You join a 3rd party marketing system / lead generation system and start marketing that instead of your primary company. Since it’s easier to get sales of a marketing system, you begin getting leads and some sales of that system. You are told that you can promote your primary business on the backend… but very few ever actually join your primary business… and those that do become focused on promoting the 3rd party front-end system… just like you.

Now you’ve given up the power of leverage with network marketing for a straight affiliate commission on a 3rd party marketing system.

I watch this happen all the time.

What you really need is an effective marketing system specific to marketing your network marketing company or offer, but unless you have the knowledge, financial investment and technical expertise to create that yourself, it’s just not possible.

But there is a solution (more on that in a minute).

2. Higher Ticket Commissions

As you saw in the math above… it’s incredibly difficult to get to a significant income when you’re only able to make a small amount per customer. This is known as your customer LTV (Lifetime Value). With most network marketing and affiliate models, there is an extremely low LTV, which makes is virtually impossible to scale your business using any form of paid marketing (if your customer LTV is only $150, you cannot spend more than $150 to acquire a new customer without going in the red).

So how do you overcome this?…

You MUST have the ability to earn more per customer… have higher-ticket products and earn a larger percentage of sale.

Many in traditional MLMs try to overcome this by creating their own products, doing paid speaking engagements, etc… but wouldn’t it make a lot more sense to just be able to offer higher value products that your existing customers really need and want?

Here’s the thing… everyone in this industry who’s going to become successful, is going to spend a few thousand dollars over time on marketing training, additional courses, systems and tools…

What if you were able to actually offer your customers EVERYTHING they need to build a successful business… get paid high commissions on it… and have it be part of your primary business?

One Really Cool Solution…

The best way to me to explain this is to show you an actual “real life” example as a visual. This is a screen shot taken this morning from my backoffice showing the past 7 days of activity in my business.

Income Disclaimer: These are my personal results and they are not typical. Typical results in anything pretty much suck because the typical person joins and fails to commit and take action.

ipas system stats

Here’s the breakdown:

Hits: 2326 people that saw my business opportunity capture page here.

Leads: 438 people that subscribed by putting in their email address here.

Sales: 44 purchases of basic system and/or upgrade products.

Here’s how the “Sales” break down:

iPAS Basic: 23 total sales (12 were brand new system members, the rest were recurring members). You make $25/month per sale.

iPAS Pro: 12 total sales (5 were brand new members, the rest were recurring members). You make $50/month per sale.

6-Figure Shorcuts: 1 new sale. You make $100 per sale.

Here’s where it get’s interesting…

Because this system offers the exact solutions you need to successfully build a business all under one roof, many members will take their business very seriously and purchase additional products that pay much higher commissions.

iPAS Bronze, Silver, Gold, and Black: Because I had 2 Black level sales this week, I earned an additional $3,000 commission on each of them, for an additional $6,000 of income this week… without doing anything additional!

You can see how that really ads up… and how it allows you to scale your business up to whatever level you want.

If you’re one of those people that think that entrepreneurs won’t buy high-ticket products… think again. Make no mistake… people will buy products that represent massive value and provide them with what they need to build a thriving business.

Click Here… watch the video and get started. Everything is explained in detail once you join, and If you’re serious, I’ll personally guide and mentor you to get the results you want.

If you’ve had experiences like the woman mentioned in this post, please share them below in the comments. I look forward to hearing from you… and thanks in advance for sharing this post on Facebook and other social sites.

2 comments… add one
  • Great post Jon. I talk to people like your lady often, in fact my wife used to be one of them.

    So glad we found this system

    Reply
    • Thanks so much Mark. Yes, it is a very common scenario. Appreciate your comment 🙂

      Reply

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