Jun 22nd, 2015
BUILDING A PIPELINE
You live at the bottom of a hill where there is a stream.
At the top of the hill is a little village that has a shortage of water
You decide that you will haul buckets of water up the hill and the villagers are willing to
pay you $1 per bucket of water.
On the first day you haul 10 buckets of water and make $10.
You love this because you are a hard worker so you decide after the first week of making $10 a day that you can haul 15 buckets a day so you work faster and harder and the second week you make
$15 a day!
20 buckets a day are a stretch so for the next year you work extra hard and with the exception
of a few days, you make $20 a day. One day you were really tired and you tripped an sprained your ankle. You couldn’t get up the hill for about 3 weeks. No one else that lived by the stream was willing to work that hard and so besides not making money for 3 weeks, the village once again had a shortage of water.
Then one day you had a brilliant idea! You will build a pipeline that would feed water from the stream at the bottom of the hill all the way to the village. Building this pipeline will take a full year. And during that year, you know you are going to struggle financially because you aren’t going to have the time to haul buckets of water. But you also know that the villagers will be so happy once the pipeline is complete. In fact you find out that there is a need for 100 times more water than you have been hauling! And they are willing to pay for it! You are also able to lower the costs of the water which they are happy with. So you spend the next 12 months working very very hard building the pipeline.
Well when some of the other villagers saw you dropped the ball hauling buckets of water, they started to haul the water. And they laughed at you for working so hard to do whatever crazy idea you have!
In fact there were a couple moments where you questioned whether you were doing the right thing, because “your competition” was collecting money hauling the buckets every day, day in and day out. You were broke because you were working on your pipeline!
And once the pipeline was complete, the water began to flow to the village. All day and all night, clean fresh water flowed from the stream to the village. They were so happy because for the first time every, they had an abundant supply of water that they were willing to pay for. And you and your spouse decided to take a 6 month vacation while the water continued to flow to the village. And the village people applauded you for your vision. Some of your friends told you that you got in at the right time. And a few others attributed your success to luck. Other business owners came to you wanting to pay you for your consulting services and even encouraged you to write a book!
How does this apply to what we do? Well, selling the product and signing up customers is like hauling water up the hill. After a while it gets tiring and has some serious limits as far as income potential. The big money is in the distribution. In the beginning it’s important to get some customers that will be loyal long term users but the big money is in the distribution of the product. What we do is build the pipeline. A group of motivated distributors are your pipeline! The bigger your pipeline, the more volume will flow through it! And let’s say something happens and you need to take a break. If you are a customer gatherer, you’ll have a little income stream but if you are a pipeline builder, you can walk away for awhile and still have a substantial income.
Let’s say you could purchase liter bottles of cola for $1 a bottle and could sell them for $3 a bottle. That’s a hefty profit! And you get really good at selling them to the stores. And you start your route. Well you get really busy because you are good and by your second year, you are having to set your alarm clock for 4am to hit your route by 5am. And the demand is so high, that you typically don’t clock out til 6 or 630pm. You’re really happy but you are TIRED!! In fact you are beginning to experience this thing called burnout! Even though you are making great money, you are fatigued, tired and somewhat frustrated. You don’t see any light at the end of the tunnel. Well your friend turns you on to the idea of soda vending machines! So instead of running around like a chicken you can focus on placing machines all over your city. And people will deposit money into those machines every day and night! The machines represent a pipeline. Each machine gives you leverage. A single machine costs about $2000 and you decide to get 10. So for $20,000 you have the start of your pipeline. You find out that 3 of your machines are poorly placed so you go ahead a move them to better locations. Each machine produces a profit for you of $400 a month after paying your expenses including someone to collect the money and create your reports. So from your 10 machines you are netting $4000 a month! It’s not without it’s headaches, but for the first time, you can take a week a month off and enjoy some free time at the beach and it doesn’t really affect your income because people are still putting money into the machines. The machines represent your pipeline. Focus on sales and you’ll make a little money and get burnt out. Focus on distribution and you’ll create lifestyle freedom.
Here’s something else to consider . . . If the soda company wants to add a new product they just put another button on the machine and your income goes up! So if you have 10 machines making you $400 a month and the company adds a new button to the machine that represents 10% of your sales, just by adding the button, your income goes up by $400 a month! What did you do? NOTHING! But here’s where it get’s good . . . what if you had 100 machines and the company adds a button? 100 machines producing $400 a month each is $40,000 a month. A 10% increase represents and $4000 a month increase in income to you!
SO HOW DOES THIS APPLY TO YOU IN YOUR NETWORK MARKETING BUSINESS?
If you have 10 active distributors and the company launches a new service or product that increases your sales by 10%, then your income goes up 10% X 10. But if you have 1000 active distributors and the company launches a new service or product that increases your sales by 10% your income goes up 10% X 1000! What did you do?? NOTHING!!
Let’s say you are excited for international expansion. In fact you know some people in Mexico! And you are waiting for Mexico to open. Three years later the company opens Mexico and you are poised at the border ready to sprint across the finish line! So you go into Mexico and start recruiting like crazy! You are an animal and recruit 10 people in your first month! Well while you were waiting for Mexico to open, your friend in San Diego was building his team. In fact during those three years, his pipleline grew to 5000 distributors (He personally signed up 3 per month for a total of 300 new distributors of which 100 of them spoke fluent spanish! So Mexico is now open and his 100 distributors sign up 5 distributors each! You busted your butt and signed up 10 and the month the company opened Mexico, his team sponsored 500! Why?? Because he had a bigger pipeline!
So do you get it?? The person with the pipeline wins. You can make a little bit of money signing up customers but you can make A LOT of money and secure an income stream building the pipeline! Your lifestyle is in the pipeline! The pipeline represents freedom! Volume flows through the pipeline.
So how do you build the pipeline in network marketing? You show the product AND the opportunity. Some people will want to be customers and some will want to build a team. The more you focus on learning the business of distribution and speaking the language of distribution, the stronger your pipeline will be. It’s fun to help people realize their dreams by showing them how they can be on the distribution side of the business. And once you get your distribution pipeline started it can take on a life of it’s own! Because some of your team members will have the same vision as you and begin to also build the pipeline. Imagine having a pipeline that spans your entire country and eventually grows all over the world!
The internet to 20 years to become what it is today. It represents one of the most powerful pipelines on the planet! Trillions of dollars in sales volume are flowing through the internet pipeline and you get to participate in it! You didn’t even have to invest in building it! It was built for you! You are simply bringing people to the pipeline that has already been built for you! It doesn’t get better than that . . . a worldwide conduit that flows volume and produces income.
A worker bee moves the product and a mogul builds the system. Do you want to be a worker bee or a mogul? It’s important to understand that there is no company unless there is movement of sales volume. Your distributors just by the nature of showing the service and the opportunity will be signing up customers. You will be signing up customers as well by showing the service and the opportunity. This will produce the volume necessary to flow through the pipeline. But never forget, the big money is in deploying a pipeline that will flow the volume. Distribution is the path to wealth in our business.