How To Not Drain Your Bank Account When Starting A Network Marketing Business.
How To Not Drain Your Bank Account When Starting A Network Marketing Business.
He spoke about spending approximately $17,000 on massive amounts of products which filled his basement and garage. (That is a story I thought was a fable made up years ago...never did I think I would actually hear it from someone who actually did it.) Apparently the more he bought, the better the deal. He was also encouraged to spend money on Google Adwords and other advertising to help move the product. His expenditure over $3,000, product sold $600.
Not only did he completely drain his savings but he maxed out his credit cards as well.
Could this happen to you? That depends on you and your ability to separate fact from fiction (the hype, the pitch).
If you decide to get involved with a network marketing / home based business opportunity, do not fall victim to the point of a sale upsell. This occurs just after you sign-up and are encouraged to spend a whole lot more for a special offer.
At this point you are at an emotional high and will almost buy anything to enhance your new business. Decline it. If your new business is going gangbusters as is presented to you during your business presentation then you could well afford to make any upgrading purchases AFTER you see it putting money back into your pockets. If, however, your new business does not gain profitability in a timely fashion and you are considering quitting, all you have paid is your original cost of entry...no upgrade expenses.
Another area that you can get caught up in is advertising. Online advertising is usually a better value than any offline advertising medium such as newspaper, tv or radio. Online advertising also has the benefits of being effective and immediate however it can become extremely pricey.
For example when you first start out if you decide to participate in Google Adwords, be sure to set conservative spending on a daily basis. You could be bidding $5 or more per click for some keywords to gain first page Google visibility. If you were to get 5 clicks on your Adwords ad at $5 per click that would be $25 per day or $775 per month. This is only a click on to your website, no guarantees they will linger to read what you have to offer them.
If you are encouraged to buy books, tapes, collateral material (such as brochures, prospecting tools, cd's or dvd's) again, be very conservative in your purchases. Most network marketing companies have excellent online resources to save their representatives from overspending on these items.
Bottom line: be as cautious as you can spending for your new business as you are when you do your weekly food shopping. Remember, however, that it is a business and like any other traditional business, your home based business needs cash to get it off the ground. Just do not overextend yourself and spend yourself out of business.
How To Not Drain Your Bank Account When Starting A Network Marketing Business - To learn more about this author, visit Andy Acciaioli's Website.
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I recently spoke to someone who was seeking a way out of his dire financial situation. He told me that it all started when he joined a network marketing business for a product based company about six months prior to our conversation.
He spoke about spending approximately $17,000 on massive amounts of products which filled his basement and garage. (That is a story I thought was a fable made up years ago...never did I think I would actually hear it from someone who actually did it.) Apparently the more he bought, the better the deal. He was also encouraged to spend money on Google Adwords and other advertising to help move the product. His expenditure over $3,000, product sold $600.
Not only did he completely drain his savings but he maxed out his credit cards as well.
Could this happen to you? That depends on you and your ability to separate fact from fiction (the hype, the pitch).
If you decide to get involved with a network marketing / home based business opportunity, do not fall victim to the point of a sale upsell. This occurs just after you sign-up and are encouraged to spend a whole lot more for a special offer.
At this point you are at an emotional high and will almost buy anything to enhance your new business. Decline it. If your new business is going gangbusters as is presented to you during your business presentation then you could well afford to make any upgrading purchases AFTER you see it putting money back into your pockets. If, however, your new business does not gain profitability in a timely fashion and you are considering quitting, all you have paid is your original cost of entry...no upgrade expenses.
Another area that you can get caught up in is advertising. Online advertising is usually a better value than any offline advertising medium such as newspaper, tv or radio. Online advertising also has the benefits of being effective and immediate however it can become extremely pricey.
For example when you first start out if you decide to participate in Google Adwords, be sure to set conservative spending on a daily basis. You could be bidding $5 or more per click for some keywords to gain first page Google visibility. If you were to get 5 clicks on your Adwords ad at $5 per click that would be $25 per day or $775 per month. This is only a click on to your website, no guarantees they will linger to read what you have to offer them.
If you are encouraged to buy books, tapes, collateral material (such as brochures, prospecting tools, cd's or dvd's) again, be very conservative in your purchases. Most network marketing companies have excellent online resources to save their representatives from overspending on these items.
Bottom line: be as cautious as you can spending for your new business as you are when you do your weekly food shopping. Remember, however, that it is a business and like any other traditional business, your home based business needs cash to get it off the ground. Just do not overextend yourself and spend yourself out of business.
How To Not Drain Your Bank Account When Starting A Network Marketing Business - To learn more about this author, visit Andy Acciaioli's Website.
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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