The Incredible Nature of Compounding Interest – Doubled a Penny Everyday For Thirty Days

The network marketing industry is built on the concept of power of compounding. You have most likely heard the old example, how much money would you have if you doubled a penny every day for thirty days? If not, this video will help you understanding how powerful compounding can be for your business growth.

What might surprise you is that on day 10 you are only at $5.12 and it takes 18 days to surpass the $1,000 barrier. So it’s difficult to believe that by day 30 our single penny as grown into millions. But that is the magic of compounding – it feeds on itself!

The most important element to understand is that it takes time to take effect. For example, if you spent your thousand dollars on day 18, instead of keeping it working for you, you would never reach the 5 million dollar end result. You would have to start from the beginning with a single penny and a fresh 30 days.

Network Marketing works in the exact same fashion. The work you invest into your business feeds on itself. If you invest 10 hours one week on your business, 20 the next and none the following two weeks, your results will not be very good.

Why?

Even though you may have averaged 10 or 15 hours per week, you were starting and stopping and not devoting a consistent effort. You would not be giving the compounding a chance to take hold and work in your favor.

Not investing consistent time and effort in your business each week, would be exactly like spending the $1,000 on day 18 – you would always be starting over from zero!

Everything worthwhile takes some time and effort. Owning your own home business is no different. Network Marketing can pay you for the rest of your life, but you must be willing to pay your dues. Imagine investing just 10 hours per week consistently week after week, for 2 to 5 years, and then being financially secure for the rest of your life. Would it be worth it?

Would it be worth it to have a better quality of life for you and your family? To be able to do anything you wanted whenever you wanted? Of course!

But, be careful of one sneaky pitfall.

If you treat it like a hobby, it will pay you like a hobby. If you treat it like a business, you can make a fortune! Take it seriously, never quit, have some fun and you will reap a windfall of rewards!

Compounding is the cornerstone of Network Marketing. Your consistent efforts each week and the efforts of your group will provide the foundation for your success. The “compounding” of these efforts over time will produce enormous results.

Let’s take our penny example of compounding and apply it to an illustration of you building your networking organization.

If you recruited just one new member into your business each month and you taught that new person to do the exact same and the duplication continued, you would have over 4,000 people in your group in one year!

In other words, if everyone just recruited “one” new person into the business every 30 days and each member duplicated, the compounding effect would produce a networking empire of over 4,000 entrepreneurs in 12 months. Imagine what your paycheck would be by having 4,000 members in your organization!

Now, of course, the numbers do not work out exactly like this in the real-world. However, compounding works in degrees. You certainly do not need 100% of your team members to duplicate in order to realize amazing results through the power of compounding.

 


4 Responses to “The Incredible Nature of Compounding Interest – Doubled a Penny Everyday For Thirty Days”

  1. Ben Linley says:

    This is the best website for anybody who desires to find out about this subject. You notice so much its almost onerous to argue with you (not that I truly would want…HaHa). You undoubtedly put a brand new spin on a topic thats been written about for ages. Nice stuff, simply nice!

  2. Kevin DeRoo says:

    Hey Arnold,

    Excellent article on the true power of compound interest.

    I can still remember the first time that I heard the “Penny Doubling” story … it does indeed change the way you see things … and once one understands it’s true power it will change their lives forever.

    The concept of compound interest is indeed the wonderful magic behind the network marketing industry. Unfortunately for many, they would take the quick and easy million instead of opting for the penny and some work as you illustrate in your article.

    Thanks so much for sharing this very important message Arnold, Love it!

    Kevin

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