Get your network marketing business into profit!
If you look at the statistics, you’ll see that not very many people ever make money in network marketing. It’s a scourge on the industry. That’s what the network marketing companies will admit to. I wonder how bad it really is.
The companies publish their statistics in what are called Income Disclosure Statements. They show that 97% of network marketers never make money and if you add in the expenses that every business has, they actually lost money.
I think that every sponsor should make it their duty to help all of the people that they recruit to get into profit as soon as possible. It’s nice to have dreams of $100,000 per year income, but that shouldn’t be anyone’s main focus. I think that most people could survive and thrive in network marketing if they would concentrate their efforts on profitability!
I’ve talked, repeatedly, about this problem. Why am I bring this up yet again?
I was watching a video from one of the many gurus, in our industry and they were giving advice on what you should you do if you’ve worked your network marketing business and you’re still not in profit. Their advice … just keep going.
On the surface, that sounds like reasonable advice. If you keep going after success you stand a better chance of finding that success. Why wouldn’t you just keep going?
It seems as though there are many people who are joining the network marketing business when they really can’t afford to do it. I’ve heard countless stories of people using credit cards to join or scraping together what would be their last $300.00 to sign up. Owning a business and trying to get it into profit is hard enough without having all of that pressure on you. Can you imagine how much more difficult it would be if you knew you just sank your last $300.00 into it?
What happens to these people?
They spent their last $300.00 and the next thing they know, they have to pay for their next autoshipment of products. That’s another $50.00 to $150.00. The new distributor is taught to call their entire warm market. They have no experience and yet they are thrown into this brier patch. Yes, a person’s warm market is a really good place to start as these people know, like and trust the distributor. However, their lack of experience repels this segment of the market.
It may take them as much as 90 days to call through their warm market. It’s not a coincidence that 50% of all distributors quit in their first 90 days.
What happens in that first 90 days?
If they are good or lucky, they’ve picked up a few customers and maybe they’ve recruited someone into the business. That’s the good news. The bad new is that they had 2 more autoshipments of products to pay for. Now they have been in business for 90 days and they have not only spent their last $300.00 to join, now they have spent $300.00 that they didn’t have on products.
The countdown begins.
At that stage, the new distributor has to make a decision. Do they continue to work their business or do they call it quits. It may be a tough decision, but it could be easy for them to decide to stop losing money.
If they do decide to just keep going, how long can they do it? Eventually, it’s impossible to rationalize continuing. Losing money every month isn’t a good idea.
Does this mean that I want people to quit or give up? No, not at all.
I’m just saying that it is easy for a millionaire to tell people who are losing money to just keep going.
It’s great advice, if you can afford it.
My advice has been and will always be to get yourself into profit. If you are at least at break even or into profit, then you can just keep going for as long as you need to.
Sooner or later any sane business person would pull the plug on a business that’s losing money.
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