Should you invest money into your
network marketing business?
In nearly all businesses, there will a need to invest some money into it. The same is true for network marketing.
Yes, you have to pay to join the business. I think that’s a good thing. In fact, I wish it was more expensive to join. Some times paying $300.00 to join a network marketing business is a lot of money, but for the most part, it’s a nominal amount. If the average distributor losses their $300.00 it’s probably not going to hurt them too much. If someone had to pay $2,500.00 to join, they’d probably take the business a little more seriously. They be out in the trenches, every day, trying to make sure that they didn’t loss that money!
Not that it’s completely necessary to continually put money into your network marketing business, it will help to speed up the process. Spending money on lead generation and customer acquisition are good things. A constant supply of new people to talk to about your opportunity and your products is essential to your long term success in this or any business.
I had a fairly new distributor ask me a question last week. They wanted to know if they should invest their inheritance into their business. They had a lot of ideas on how they could use the money to buy booths at local markets and vendor shows. Doing that can cost some pretty good money. Spending $500.00 to $1,000 for a weekend is not that unusual.
The distributor had lost one of their parents and that parent had a life insurance policy. They were left a fair amount of money. Not enough to retire on, but it was 5 figures.
Although I applauded their idea of investing money into their business, I had to advise them against it, at this time. Since they are fairly new to the business, they had no real idea where to invest the money. It’s easy to see a problem and throw some money at it. That’s what most people do. Money can solve some problems, but it won’t solve all problems. Throwing money at a business can be a real recipe for disaster. Unless you know what you’re doing, you could just be throwing it all down the drain.
I told them not to spend any of the money on their business! There are way too many people with horror stories, about this industry, to let someone who is new to the business spend a lot of money trying to grow their business. My advice was to generate income through product sales and use the profits from those sales to figure out what will work for them and what won’t.
In the end, I advised them to invest small amounts of the money into several different ideas and see which ideas worked and generated results and which didn’t. This will slow down the process, but it will also keep a network marketer from going broke, too fast.
Once they figure out what method works the best, for them, they could then make a better decision on whether or not to invest any of their inheritance into their business.
If you need your profits to live off of, then wait to try out different methods to generate leads for your business. There are enough people getting hurt out there. You don’t need to be one of them. Reckless spending is not advised!
It’s really not about how much money you invest, it’s about where you invest that money. You can always ramp up the amount of money that you put into your business, once you know where to put it!
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