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Leaders Equal Residual Income

Every project for residual income (in any Compensation Plan) can be, and should be, converted to a quantity of leaders. Instead of focusing on how much money you will earn, convert the income to how many leaders you will need to create the income. You can create and manage a plan to create leaders much easier than creating a plan to create volume and/or income.

For example:

Your goal is to earn $3,000 per month. Based on your Compensation Plan, you know that can be done by creating $20,000 per month in Total Volume through three separate, successful Established Legs. Therefore, what you will want to do is plan to create three leaders, one in each Leg.

Leaders Equal Established Legs

A successful Established Leg is not created by looking at volume or even the number of active distributors. It is best defined by an organizational leader. Once you have a leader in the Leg, the leader will establish the Leg and grow it from there.

What Defines an Organizational Leader?

  1. They have a clear vision of what they intend to accomplish.
  2. They have created a project and a plan for its attainment.
  3. They are self-motivated by their vision, maintaining their enthusiasm, their persistence, their attitude, and most important, their actions.
  4. They are producing their intended results.
Until you have someone who meets all four of these criteria, you do not have a leader. You may have a nice person who works hard and wants very much to be successful. You may even have someone who will do everything you ask and go everywhere there is to go. But until they produce consistently from their own motivation, they cannot be counted on for leadership.

State the Goal as Leadership

It will serve you well to always express your organizational and compensation goals in terms of leaders. Focusing on Compensation Plan titles and income levels creates a shallow and often misguided approach to achieving the goal. Compensation Plan titles are often achievable, even though you don’t have the organization and leaders to sustain the title. You can temporarily stretch for a title whereby you get the title, but the way you went about it left you with an empty shell of an organization. You have the title, but not the substance. You create an "out of integrity" situation for yourself. When you are out of integrity you lose your power and your energy. You become angry and frustrated. It’s downhill from there.

Make titles and income take a backseat to leadership. Have them be by-products of achieving your goal. Make your goal to develop yourself as a powerful leader and to attract other powerful leaders to your organization.

Richard Brooke

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