Why Having An MLM Calculator Today Rockets Team Enrollments

network marketing calculator

Why The MLM Calculator Is Powerful:

After looking at quite a few online MLM calculators my partners and I decided to put together a pretty powerful online network marketing calculator for our team and here's why.

mlm calculator

Have you ever enrolled a new person and then simply not had a game plan for them when they asked you: “how do i get to $50,000 a year in this business, exactly.”

Do you know your company MLM comp plan well enough that you can tell a person with certainty the number of people they need to talk to, the number of calls needed to make, and signups required to hit a given income target?


It's ok, most people don't.

That's why you're reading this article though, so you can figure out how to do those things.

And it's important you do.

The worst thing you can do to someone after enrolling them into your business is fail to layout a game plan that involves real numbers and real income targets over the next 12 months. An MLM Calculator helps you do that just like a third-party tool helps you show the plan.

Now I know what you're thinking… “well you can't either Jason. No one can. Everyone's skill varies which is why it's impossible to figure out.”



Here's why.

You can absolutely work with percentages and give people expected numbers based on where YOU believe their skill level to be.

Obviously it's important to add a disclaimer in that their results are their own, but hey, even the best laid plans require minor course corrections.

So here's what we do immediately following enrollment in what we call our “Game Plan Strategy,” or GPS for short:

  • Figure out how much they want to earn annually. Typically people will tell you a number that equals their job income since their first goal tends to be replacing that boss and getting more time back with the family.
  • Set a realistic goal at least 6 to 12 months out based on the amount of time they commit to working the business each week. A good rule of thumb is 1, 10, 50. In other words, for a 1 year target it's realistic to assume they can hit $50,000 a year working 10 hours a week in most MLM comp plans (not all, but most). If they wanted to hit $100,000 a year in 12 months, they'd either have to commit to 20 hours a week or working 2 years at 10 hours a week if that makes sense. I'll show you in the video how this works using our MLM calculator.
  • If you don't have an online MLM calculator, you can use these thumb rules, or whatever works for your comp plan numbers, but it's important to know your numbers when you do this planning with your new rep. Remember, at the end of the day the most important thing is to get them taking action immediately! This planning can occur for example, after they contact their warm market leads. Most people simply won't have the success required to hit a full-time income with JUST their warm market anyway, so when this exercise is done, it is done with the cold market in mind (people the new rep doesn't know).
  • I always explain to new folks that their conversions on the phone will hover between 5-10% and lower if they don't complete their training. However, if they complete training they can get them as high as 30%. I've never seen anyone bat higher than 35-40% max, anyone telling you they have is flat-out lying; unless of course they generated the lead through attraction marketing and have a relationship with the lead in which case it's possible to bat 70-80% or more. By explaining the training aspect of the business it helps the new reps to understand the impact of conversions. Simply put, an unskilled rep has to dial 5-10 times as many leads to achieve the same result as a skilled rep. Complete your training. Sell it to them and you'll be happy you did.
  • Work backwards from the annual income target you set for your new rep. Figure out how many distributors and customers on autoship it takes to generate the income target the new person desires. Then calculate the number of signups it takes to hit the target, including one time bonuses the company will pay out. Typically the number of signups required to reach the desired goal will be lower than the standing autoship number to maintain it. This is simply because the one-time bonuses add up to a lot more than the residual income does on the front end.
  • Now that you know the total number of signups needed, divide it by 52. This is the number of signups needed per week.
  • Calculate the number of leads needed each week required to reach those signups using 20% as an average for both invites and follow-up calls. Thus, if 100 people are called, 20 will look at the business, and of those 20 4 will join. You can now calculate the front end value of a new signup. If the average one-time bonus for a signup is $75, then you would be able to make $300 a week with these numbers in bonuses. If there are other payout metrics you can add those in as well to get the total.

The whole goal in doing this is to determine the exact amount of work required to reach the income target.

Once you have that figured out I would provide the new person an activity tracker sheet to complete each week and turn in to you as their sponsor. This helps maintain a level of accountability that most organizations just don't have.

Activity tracker sheets can be electronic or hard copy, I prefer electronic using excel, but whatever is easiest for you and your team.

Be sure on the tracker you include all 7 days of the week, and an entire month's worth of activity. Do your best to tailor it to the new person's schedule based on when they work and how much time they have available to work the business.

I like to add additional boxes to each day where the business builder can place an “X” when the daily actions are complete. This makes it easy to scan at the end of the week when they turn in their sheet for review.

The powerful thing about an activity tracker is it allows you to quickly identify any fear-based lack of behavior that may exist for a new person that's failing to build their business. Once the issue is identified it becomes easier to work through.

Until that point it's difficult to tell what is preventing action in a new business partner.

Don't take their word for it when they tell you it's “XYZ,” usually it's not. I say this from experience only because most people HATE to admit their fears and it's fear that usually stalls forward progress, nothing else except in rare circumstances.

How We Built Our MLM Calculator

Before you take off I'd like to personally walk you through some things to consider if you're a leader intent on designing your own MLM calculator.

First, keep in mind it needs to be simple.

As always in our industry it needs to be point, click, and duplicate.

Second, it should cover all the bases in terms of income goal planning. There's nothing worse than giving someone incorrect numbers and having them engage in a ton of work only to be disappointed.

Third, please vet your calculator with your network marketing company. In fact, make sure you aren't violating some policy that tells you you're not able to do this. I'm sure there are companies that exist out there that would not let you do this unfortunately.

Lastly, something we have not done yet, put a capture form on your MLM calculator page! It should be simple and non invasive. But in case it ranks, which it probably will, people looking at your company will want to reach out.

It's a sure-fire way to land targeted leads looking for compensation plan calculations on your company!

Be sure to leave a comment below and let me know if this article helped you. Building an MLM calculator for goal planning has been one of the simplest forms of brand building, lead generation, and team goal setting accomplishments we've ever done.

I can't recommend doing this highly enough.

If you aren't sure who to hire to help you do this, our company would be more than happy to help.

Simply give me a shout on Facebook personally, or visit us at Social Webnet and we'll get you a competitive bid that will probably crush any other company out there in terms of price and quality.

One last thing, after you build out your calculator, be sure to integrate it into ALL your training material. There's nothing worse than a disorganized training organization with a bunch of Rambo-reps doing their own things.


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