I received an e-mail the other day from a friend asking me if an “opportunity” she was being recruited for is good.
My answer was: do the math.
Here’s a formula that a Network Marketer shared with me years ago which I’ve used every time I was presented with an opportunity:
- Calculate how much will you make if you sell 10 products a week and recruit 1 person.
- Know the requirement (such as sales volume) you need to meet, in order to get paid.
When all the fees and purchases are calculated, the result is often higher than our income.
But most of us don’t see it, because we are not used to “adding up” our business expenses. The result is the illusion that we are “making money” when in fact, we are losing money.
You are in network marketing to make money
It is therefore important to keep track of your expenses against your income and be honest with yourself.
I wasn’t making any REAL money until I started keeping track of my income and expenses on a monthly basis. This allowed me to make more than I spent. If my monthly expenses to keep my business going were $300, I would have to “minimally” make $500 or it’s not worth it.
In the business world, if you are spending more than you are making, you are heading for bankruptcy.
That’s when you either step-up your production or quit.
Is it possible to have a lucrative network marketing business?
Many people are doing well in this business. But you have to know how to sell and promote.
Here’s something to help you grow your network marketing business.