How Long Before You Make Money

How Long Before You Make Money



How Long Before you​ Make Money?
With the​ exception of​ some not for profit organizations most people go into business in​ order to​ produce revenue (income) and profit .​
Unfortunately,​ when it​ comes to​ a​ home business,​ and especially network marketing,​ many people forget this important point .​
In a​ traditional business,​ whether a​ Ma and Pa shop,​ or​ a​ large franchise store like McDonald’s,​ business owners know to​ watch their numbers .​
a​ business must make a​ profit in​ order to​ survive and,​ if​ it​ doesn’t,​ adjustments must be made accordingly .​
One of​ the​ reasons for the​ high failure rate in​ small businesses,​ home businesses,​ and MLM (network marketing),​ is​ because due to​ the​ low entry costs and requirements people often don’t treat them like,​ real businesses .​
Two things commonly happen:
1) Many people have the​ attitude that since they didn’t have to​ invest much to​ begin with they really don’t have to​ be too concerned about whether they make money or​ not,​ or​ how soon .​
Of course,​ that often ends up being a​ self-fulfilling prophecy .​
It’s not just that way with a​ business,​ but with many things in​ life .​
If you​ come to​ own something that cost a​ great deal or​ required a​ lot of​ effort to​ acquire you​ tend to​ appreciate it​ more than something of​ lesser perceived value .​
When you​ consider that network marketing has made some people just as​ much if​ not more money than many other traditional kinds of​ businesses,​ with incomes of​ as​ much as​ $1 million a​ month or​ more being achieved,​ treating a​ MLM as​ if​ it​ isn’t a​ serious or​ real business is​ a​ huge mistake!
2) Because the​ entry cost can be so low people overlook the​ cost of​ not making money,​ and also have a​ tendency not to​ pay attention to​ how much their other expenses associated with their business (such as​ trips,​ conventions,​ and/or buying extra products or​ services over and above what you​ really need) add up over time .​
For example,​ let’s say that you​ spend $500 to​ sign up for a​ new business .​
Not a​ lot of​ money at​ all,​ maybe the​ price of​ a​ cup of​ coffee a​ day and some change .​
Weeks go by,​ and then months,​ maybe even years,​ and you​ still aren’t making any money .​
Perhaps you​ don’t think much of​ it​ because,​ you​ think to​ yourself,​ I​ only spent $500 to​ get started in​ this business anyway .​
But what are the​ true cost? Let’s say that in​ addition to​ your startup cost you​ have also been spending $150 each and every month on​ buying your company’s products and services .​
(Perfectly ok if​ you​ enjoy and use all of​ the​ products you​ buy; not ok if​ you​ are buying more than you​ need simply to​ qualify for a​ certain level with your company!) And let’s also assume that you​ are spending $50 a​ month on​ meetings,​ conventions,​ or​ seminars (many people spend much more) .​
So,​ even though you​ really haven’t paid much attention because you​ only invested $500 to​ begin with,​ if​ your business hasn’t yet started making you​ money then you​ are really spending AND LOSING $2,​400 a​ year,​ in​ this hypothetical example .​
And,​ here again,​ in​ reality many people often end up spending much,​ much more .​
Going back to​ the​ example at​ the​ beginning of​ this article about a​ traditional business,​ like a​ McDonald’s .​
Those kinds of​ businesses often have much higher costs associated with them,​ such as​ a​ store lease or​ mortgage,​ equipment leases,​ payroll,​ etc .​
It isn’t uncommon for a​ traditional business to​ have to​ operate for months or​ years before making a​ profit .​
In contrast -- though networking marketing is​ NOT designed necessarily to​ make you​ a​ very large amount of​ money overnight -- you​ can and should be able to​ generate an​ ever increasing residual income for yourself over time,​ and starting in​ relatively short order .​
Everyone approaches a​ new home business differently .​
Some people prefer to​ roll their sleeves up and dig right in,​ expecting to​ start making money almost immediately .​
While others prefer to​ first spend time learning more about their new business,​ and/or obtaining any available training .​
So it’s acceptable,​ if​ you​ choose,​ to​ take a​ few weeks or​ even a​ month to​ prepare for your new business .​
However,​ especially if​ it​ is​ your goal to​ start making money right away,​ it​ is​ entirely realistic with most networking businesses to​ start earning viable amounts of​ money within as​ little as​ 30 days .​
Certainly within 90 days you​ will want to​ start seeing some kind of​ payoff in​ return for your efforts .​
And no more than 6 months should go by without positively starting to​ see income coming in​ .​
In fact,​ ideally,​ you​ should try whenever possible to​ not only earn enough money to​ cover your original startup costs,​ but you​ absolutely should be making a​ profit (in other words,​ extra money) within this time .​
If after 30 to​ 90 days,​ 6 months maximum,​ you​ are not making a​ profit,​ you​ should seriously reevaluate!
To summarize:
1) Always remember to​ track ALL of​ your directly related business expenses,​ including how much you​ spend on​ leads,​ products and services,​ meetings,​ trips and conventions,​ training,​ etc .​
You must add these expenses to​ your original startup costs .​
2) Subtract how much money you’ve earned from the​ number above (your total expenses) and this will tell you​ how much money you’ve made (profit),​ or​ how much money you’ve lost and/or are losing .​
3) to​ repeat: If after 30 to​ 90 days,​ 6 months maximum,​ you​ are not making a​ profit,​ you​ should seriously reevaluate!
Don’t continue down the​ same path if​ you​ are only spending more money than you​ are making,​ and not making any profit in​ return .​
Remember,​ except for a​ not for profit endeavor,​ the​ purpose of​ being in​ business is​ to​ make money .​
And in​ order to​ make money you​ have to​ actually make more money than you​ spend.




You Might Also Like:




No comments:

Powered by Blogger.