Sunday, August 8, 2010

TamPogo: Network Marketing Math

The following email is a revisit to a earlier email from Chuck Stebbins on the subject of the math of network marketing. I thought it was worth sharing with everyone that stops by My TamPogo Blog.

From the desk of Chuck Stebbins, CEO
Dear iRep,
Today we are revisiting and updating an old e-mail I wrote on network marketing math.
TamPogo is a fantastic community of people who love the world and wish cooperation and sharing in all endeavors. Being part of this community means that you have the support of like minded individuals and the strength of a growing support network. Even more importantly, you need to know that the reason you have failed to “win” in past networking companies actually has nothing to do with you. It has to do with a flawed business structure. Really, it’s not about you; it’s all about the math.
TamPogo is different and I am going to show you why right this very second.
97.14% of Las Vegas gamblers lose money by placing everything on a single number at roulette. This is the simple math. If you believe otherwise, change your thinking. There is no way around the math on a typical roulette wheel. Whether it is your lucky number 9 or your child’s age 14, placing that entire stack of chips on any one single number will result in total loss 97.14% of the time. That is defined by a branch of math called Probability.
Reputable business studies conducted by independent authorities such as Universities show, on average, 99.95% of network marketers lose money. Again, don’t listen to the MLM carnival barkers, the pirates, this is the numerical fact. There is no way to spin it empirically; it is what it is.
I hope that makes you feel better about losing money in your last few MLM deals. But that isn’t the reason I laid down the math for you. If there is less chance of succeeding in network marketing than there is on a single roulette number, there has to be a reason. And there is. It’s all about the math. I call it closed system implosion. No matter how many computer simulations you run, they all end the same – dismal, abject failure. Closed money systems always implode.
Imagine a fish tank with 6 gold fish and 12 inches of water. The gold fish need at least 1 inch of water per fish to survive. The only way to get water is to bring in new goldfish. Each gold fish brings in 1.25 inches of water. The fish can’t lose – the system works! Wait one second! The problem is that before the water gets added, the keeper of the aquarium takes a percentage, say 40%.
What happens when we add 80 goldfish? We end up with 86 goldfish and 72 inches of water (80 x 1.25 = 100 inches of water – 40% = 60 inches of water. Add 60 to the 12 original 12 inches of water and you get 72). Doom. The more the system grows, the faster the death. There is no way to change the math. Closed money systems always implode. Some faster than others, of course.
The only way that a network system can thrive is if someone is adding water to the tank from the outside. Let’s say a particular real estate tycoon decided to start a network marketing company last November. Let’s pretend it was based on nutrition. That system must fail either sooner or later -depending on a number of variables. There is no other final answer. Now let’s say this tycoon decided that of all his activities in the real world, he would bring 10% of that revenue back into the network. This totally changes the math. As long as the activity in the outside world, made up of potentially billions of customers, is greater than the activity of the smaller network players, the system continues to grow and thrive. It’s all about the math.
Further if the system is to really, really thrive it needs to be based on a premise very different than typical network marketing companies. Think about the normal occurrence. You pay to gain entrance to a business that requires you to buy a lot of over-priced product that you have no hope to ever sell. The only way you make money is to convince others to do like you have done – in other words, become your competition. Think about that for a minute. Someone charges you $1,000 to own your own fruit store. And you need to buy $300 of wickedly overpriced fruit each month. People are not really happy to purchase fruit from you since they can go elsewhere and buy it at a far better price. The “good” news is that when you convince others to open a fruit store, you get $400 of their $1,000, etc. You know the drill. So what have you done? You have made a few dollars from the sale of a fruit store but you have created more competition for yourself. Soon your whole town is full of fruit stores and there are no customers since they are all store owners. Sooner than later you get tired of buying the fruit and watching it rot. So you quit. “Success” causes implosion in this kind of model. It is the total opposite of good business sense.
Now imagine the difference if you were given your fruit store for free. And that the fruit you sold was more exotic, tasted better and was cheaper than other fruit. Now further imagine that the big fruit boss gave you a percentage of all his fruit sales worldwide, just for having your own free store.
I have sat through countless math and statistic courses at top Universities including Ivy League schools. I had my brain bent with courses in differential equations, calculus, computer simulations, etc. I even taught this at the University level in my spare time. All that effort keeps you from having to wrestle with the numerical actualities. All you have to do is follow the logic.
TamPogo offers the exotic fruit at a great price. Further, 10% of the sale of all Pure Chemistry products in the real world come back to TamPogo to all those who qualify by their participation in the President’s Circle. The math works. It will grow the TamPogo network and it will grow mega checks for anyone interested in making TamPogo more than a casual business opportunity. Further, TamPogo recently added the optional Tango program which pays members $899 purchasing a deeply discounted REAL product package and bringing two who bring two who do the same. This one time charge generates a number of payouts for the TamPogo Tango member based on the recruiting efforts of him (her) and their team.
It’s all about the Math. I have done my part to set up a system that is designed to succeed and now I need each of you partner with me in making TamPogo work for you, for others and for all the hungry children in the world that are literally “dying” for a meal.

CEO Chuck Stebbins

Ready to sign up TamPogo or just looking for more info.
Here my TamPogo Tango page if you want a little more info on Tango


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The Reason I am Excited about TamPogo

TamPogo Tango The Beginning

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