Sunday, June 24, 2007

What Favourable Economics In Your Business Are Not

(This is an extract from our newsletter - if you
would like to find out more check out the resource
box)

Not understanding this one key point is a major
reason why many network marketing don't make it.

So many get into their first business full of high
hopes and an open mind and are quickly given some
of the worst advice imaginable.

It happened to me.

What was that advice?

Go out there and let's get some leads so you can get
a team under you as fast as possible to cover
your costs.

This advice cost me over $7,417 over the course of
seven months, which I never recouped in any way
shape or form.

Bad advice on two points:

1. Buying leads takes a major point of control in
your business away from you as a marketer. You're
paying someone to give you leads, and you have no
control over where they come from, how they are
delivered, or how many people those leads are
distributed to. This is bad.

2. Trying to recruit your way to a situation where
your cost are covered in full is not something that
can or will happen quickly. The money you earn in
your network marketing business is cut up into 100s
of different little pieces to suit your compensation
plan. Of the money you bring into you company you
really only get a small portion of it. This is not
necessarily a bad thing, because this leverage
swings both ways. Once you have a big team under you,
those little pieces start to add up into
something significant. You're just not going to make
much money quickly trying to recruit your way to
covering your costs.

That's what most network marketers are taught is a
favourable economic situation - Recruiting your way
to the break-even point. It can happen, but only the
strong survive.

What happens to most is also what happened to me.

You spend hundred on leads and get no results. The
next month you do it again. The next month you do
it again. Etc.

Now you not only have your company's membership cost
to recoup you've also got this big advertising
debt to recoup AND to make matters worse you're
trying to do it with recruiting.

This is a situation that's literally going to take
you years if ever to recover.

It's like trying to dig a hole and every time you dig
out a scoop of dirt someone else with a shovel
twice the size of yours fills in your hole and adds
another scoop of dirt for good measure.

Now you got a little hill growing in front of you and
you started with flat ground.

You look over at your sponsor and say, "hey this
doesn't look like it's going to work."

He says "just keep digging, that how it works. If you
dig long enough and fast enough you'll make it
work."

You keep digging and that, once, flat ground is now a
full grown hill.

You look at it in disgust and realize you've only
made the problem worse. Either you did something
completely wrong or you were not told the most
effective method for handling the issue of digging a
hole.

You didn't do anything wrong.

You just used one of those yellow plastic shovels
children use at the beach when you should have used
heavy artillery!

Favourable economics occurs when you have a flow of
leads that pays for itself and will continue to
pay for itself forever NOT exclusively when you have
covered those cost with your companies check.

There is a much faster and better way to get past
that break even point in your business.

You want to attack the situation head on, here's how
. . .





What if you could learn the secret to covering the
cost of your advertising completely and actually be
in profits in your business within the next 24 hours.
Imagine never paying for a lead again, or having
to worry about where your next months advertising
budget is coming from. Now imagine having instant
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