The Rule of 20 in Network Marketing

In network marketing, there is what I call the rule of 20.  This is by no means a new concept and many other successful network marketers also talk about it.  The rule of 20 is this: If you sponsor 20 people into your business, six to eight of those people will do nothing and quit, six to eight will do something, but not much, and six to eight of those distributors will build a business.  More importantly, one of those 20 distributors will run with the business and build a huge team of distributors and customers.

Assuming this rule of 20 in network marketing is correct, and I think it is, there are some key takeaway points you should remember.

1.  Most people you personally sponsor will do very little.  It’s true, most of the people you sponsor will do nothing.  Most people won’t even order the products for themselves, let alone sponsor other distributors or get customers.  Just know this upfront.

2.  You never REALLY know who is going to build the business.  I’ve been fooled countless times by people I thought were serous.  The truth is, you just don’t know who will build a huge business.  Some folks will talk a big game, only to disappear a few days later and never be heard from again.  Some folks will look like a wimp, but turn out to be a warrior.  That’s why it’s important not to pre-judge people.

3.  Love on everyone and get them plugged in.  The sooner you can get your team members plugged in to your upline and system the better off you will be.  Get people going to meetings, listening to training calls and webinars and attending events.  This will help build their belief and get them trained.

4.  You will have a hard time achieving success if you don’t sponsor at least 20 people. Don’t fool yourself.  It’s going to be hard to succeed if you don’t have a good amount of people personally sponsored.  MLM is a numbers game and you need to work the numbers in your favor.  I don’t know of anyone in any company who only sponsored 5-10 people and made big money.

5.  If you want three personally sponsored MEGA STARS on your team, you will probably need to sponsor 60 people.  Most top earners have sponsored at least 20 people.  To earn six figures, you will probably need to personally sponsor 30 to 60 people, in order to find three to six superstars who build a big team.  It might take you more than that, and it might take you less than that, but 30 to 60 seems like the magic number.  Remember, three will make you free and six will make you rich.

6.  The faster you can sponsor 20 new distributors the better off you will be.  The quicker you can sponsor people the better.  Never let a month go by where you don’t sponsor at least two new distributors.  Make it a goal to sponsor at least 24 people your first year in the business.  If you can do it quicker than that you will have momentum on your side.

7.  Some people need time to incubate. Many folks who come into the business need time to incubate.  Many of your team members will have a bad self-image, or have no belief in the company, the industry, or themselves.  Some folks will sit on the sidelines for a few years before they do anything.  Some of these folks will become top producers on your team, if you love on them, but most of them will fizzle out and quit.  All you can do is support them, train them and inspire them, and then let them decide what they will do.

Final Thoughts

These are my seven key takeaways from the rule of 20 in network marketing.  What do you think about the rule of 20 in network marketing?  Leave a comment and let us know.

chuck holmes


Chuck Holmes
Network Marketing Professional

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2 thoughts on “The Rule of 20 in Network Marketing”

  1. Great post and very true!
    My favorite part is you never really know who is going to build the business. That is so true! People will surprise you all the time. That’s why its important keep building up your team, because you don’t know who will be “beasts’ and who will do little to nothing or quit.
    Great network marketing advice.

  2. The last point you make about incubation is very true. If we just keep working with these people, without doing the work for them, they may come out of incubation in time. It is as you say, we do not know what has went on in their lives over the years. We just need to show them the system and keep working with them. Some people suddenly come awake and become superstars.

    Very good post. The rule of 20 is wisdom at its finest.

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