MLM Training - Are You Spending More Than You're Making In Your MLM Business?

MLM Training - Are You Spending More Than You're Making In Your MLM Business

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Being a full-time network marketer for the last 12 years, I've seen a lot of people succeed and I've seen a lot of people fail. For the vast majority of network marketers who have failed over the years, an overwhelming majority of them simply didn't to view their MLM business as a "real" business. Now, this can apply to several things.

In this short article, I will focus on a major cause of failure for thousands and thousands of network marketers: Spending more than they make.

Now, let's face it, in business, there will be instances when you have to come out of pocket for advertising, tools, supplies, resources, etc. Most of the time, there's just no way around that. But, as a business person, you have to realize real quick that when you are constantly spending more than you're making, that is a recipe for disaster, in network marketing or traditional business.

If you're wondering what monthly expenses network marketers have to constantly shell out money for (besides the initial cost of joining their MLM business), here is a short list:

1. Monthly Auto-Ship - In order to max out the compensation plan, most network marketers have to get on some sort of auto-ship for their company's products or services.

2. Gas And Miscellaneous Expenses - Driving around your town or city to meet with prospects, not only takes time, but takes money for gas expenses, parking lot fees and things like coffee when you're sitting down with someone.

3. Weekly Events And Briefings - Whether you're an offline or online marketer, attending weekly events is extremely important to your success. But, many weekly events require you to pay dues to get in. And while I'm not necessarily against that, it's still an expense you have to incur while building your business.

4. Travel Costs - If you're building a national organization, chances are you're flying to different cities to build your team. Even if you're not building a national organization, chances are you still have to travel at least once a quarter to get to National Conventions. Well, this takes money to pay for airfare, hotel costs and car rentals... not to mention meals for you and your spouse during the event.

5. Business Building Tools - In order to build your business efficiently and professionally, you''ll want to invest in some tools. Things like DVDs, business cards and product brochures are good to have handy as you build your business.

6. Product Inventory - If you're marketing a consumable product, it wouldn't hurt to have some on hand to give out as samples to people you come across. While it's not mandatory to have product on hand, it certainly puts you over as a professional when you have something for them to take home or try.

Now, there are two ways of handling this situation:

Solution #1: Continue to come out of pocket for every business expense you have and continue to cut into your commission checks.

Solution #2: Position yourself to profit from all your leads, whether they join your business or not. Smart and savvy marketers set up systems to monetize the prospects on their list that say NO to their opportunity. It's from these profits that smart marketers pay for business expenses. They don't cut into their commissions to pay for their business. Unfortunately, the vast majority of network marketers, to the tune of 97%, do not do this or even know what this means. And as a result, they continue to shell out more than they make until they go out of business.

If you're serious about building a profitable MLM business, I want to encourage you to research these concepts so that you can apply them as quickly as possible. I promise you, you'll be glad you did!

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