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Archive for September, 2009

Creating a Lifestyle of Leverage

September 25th, 2009 3 comments

blackman_at_deskOne of the most powerful concepts developed by modern man is that of leverage. I’m talking about being able to do or accomplish more than you could possibly do or accomplish on your own. While reading a post by a young entrepreneur in Southeast Asia, (Donald Latumahina www.lifeoptimizer.org), I was reminded how success in our business relies to a great extent on understanding and mastering the power of leverage. Donald writes about leverageable assets each of us can build upon like contacts, passion, achievements, money, knowledge and skills. Everyone, regardless of background or experience, possesses at least two of these assets that can immediately be employed to move their business forward—contacts and passion.

Leveraging personal contacts is one of the first principles introduced when you started your NSE business. Although many new distributors don’t think of it in this way, this is why developing a list of your circle of influence is so important. These contacts provide instant, no cost leverage for you. With the advent of social media, leveraging contacts will take on new and expanded meaning—much of which we’re just beginning to understand.

And just as you leverage your contacts, you can leverage your passion—the driving force of why you started your business. Acting like a power source, passion will motivate you to go further and dig deeper than you normally would.

Are you currently using the power of leverage to achieve exponential results? One of the most attractive and powerful aspects of our business model is the ability to leverage the individual successes of a large group of people resulting in the generation of significant income. American business legend J. Paul Getty is known for stating that your goal should not be benefiting from 100% of your own efforts, but benefiting from 1% of 100 people’s efforts. Stop and think about that statement. If you are the only person contributing to your income, (which is the case for most people) what happens if you stop? With our business model that isn’t the case.

For example, if you have a group of 100 distributors each generating $500 that equals $50,000 group volume for the month. The NSE compensation plan pays you, at a minimum, $2,500. Duplicate this with as many breakaway executives as possible and you’ll be right in the middle of exponential growth for your organization and income. Now that’s leverage! It’s a beautiful concept, one that every distributor has the same opportunity to use and build upon.

So which one do you prefer: linear growth or exponential growth? Do you want your business to grow at the same rate month after month based solely on your efforts or do you want it to grow increasingly faster based on the efforts of your entire organization? I’d bet you prefer exponential growth. After all, it enables you to achieve more with less effort over time. And the more you use the power of leverage, the faster your progress will be.

Because leverage is so important you really want to make it a part of everything you do. Starting today, make it your goal to create a lifestyle of leverage!

Lifetime Value Of A Customer

September 13th, 2009 No comments

Online shoppingIt’s no secret that one of the keys to creating a long term residual income with our business rests in creating a base of customers who consume products. Have you stopped to really think about this concept and to realize how important the lifetime value of each customer is to you? (lifetime value equals the total amount a customer spends over the time they do business with you) Once you have an idea of what this number look like you’ll begin to realize what just a 5% to 10% increase in retention of customers means to your business.

Research finds that repeat customers spend, on average, 67 percent more than new customers. (Source: Bain and Company) So how do you get repeat business and earn customer loyalty?

Take a lesson from many small businesses that long ago grasped the importance of building customer relationships. They nurture their customers through personal interaction and over time learn and remember individual preferences and interests. They keep in touch with customers on a regular basis ensuring their products remain “top of mind.” (Craig Bryson’s Nu View technology will absolutely impact this—to learn more go to craigbryson.com and look in NuLab)

Let’s look at a couple of examples. Take a customer who spends only $25 per month. That equals $300 on an annual basis. If they remain your customer for four years that means their value to you without any increase is $1200. Now, let’s look at what happens when they increase the amount spent by just 10% per year. At the end of four years they are now spending $33 per month or $399 annually. (33% more than when they started—isn’t compounding grand) As you grow your customer base to say 100 over the course of a year you’ll see the following results. Total revenue in those four years is just shy of $140,000.

Yr. 1 100 x 300 = $  30,000
Yr. 2 100 x 330 = $  33,000
Yr. 3 100 x 363 = $  36,300
Yr. 4 100 x 399 = $  39,900
Four Yr. Total $139,200

With the introduction of the new ageLOC products growing many of your current and new customers to the $100 per month level becomes a real probability. Even if only 5% – 10% of your customers do this you can see what potential exists. Now duplicate this 5, 10, 20 or more times in your organization and the numbers become pretty impressive.

So the next time you look at that $25 sale to a new customer don’t underestimate what their true lifetime value means to the growth of your business and income.

The Future Is Now!

September 10th, 2009 No comments

network montage imageIf you’ve been following any of the activities of the Nu Leadership Network or the launch of craigbryson.com you certainly understand that something very special is happening. Today marks the introduction of another piece of the ecosystem designed to take all of our businesses into the future. (Those at the August conference got an early preview)

As the saying goes this is not your father’s same old network marketing business. Indeed, what Craig Bryson and his technology team have put together is a set of remarkable technologies enabling distributors to communicate in ways that have only been dreamt about before. I’m not going to try and explain how the technology works, because you really have to experience it to begin to understand the impact and potential. I will say that in my 15 years of working with the Internet, that with out a doubt, the Nu View Network Connector technology is one of the most powerful marketing tools I’ve seen and the beta version is now available to all Nu Leadership Network members.

What does this do for us as distributors? Craig puts it in perspective when he says that the Nu View Network Connector “puts information in front of people where they already go.” This includes social networking sites like Facebook and company sites like nuskinusa.com. The potential for how this applies to our business is limitless. It includes new ways of communicating with team members, increasing retention, and the overall strength of your Nu Skin organization. Add to that the ability to market to customers and stay in touch with former distributors and you begin to understand how application of this tool can magnify your business as never before.

I encourage you, regardless of your technical knowledge or comfort level, to get started today learning how these new tools and sites benefit you. First, register to be part of the Nu Leadership Network and craigbryson.com. Then listen to Craig’s blog talk from September 10th to get a good overview of the market trends and new technologies. To listen to his blog talk click here. What’s important is to stay connected, explore, experiment and increase your understanding every single day.

You really can’t afford not to—because the future is now!