This article is touching on the how long you can expect to see any profits when you are starting your own home business. It will give you some ideas on how long you will expect to wait.
With the exception of some not for profit organizations most people go into business in order to produce revenue (income) and profit. Unfortunately, when it comes to a home business, and especially network marketing, many people forget this important point.
It doesn't matter if you are a sole trader, partnership, corner store, or a multi-national corporation... you must keep an eye on your 'numbers'. If you are not in profit, then you won't last much longer and will go out of business.
Most home business fail because the distributors fail to treat them like a real business. It doesn't matter if you are drop shipping, network marketing, affiliate marketing, etc... you will fail if you don't treat your business accordingly.
Two things commonly happen:
1) A low initial investment is paid, thus there is no real sense of urgency to act accordingly and make that money back in the shortest possible time frame. This low perceived value turns into a self-fulfilling prophecy... and by now, I'm sure you can guess what this is!
Just as an example, a $40 monthly investment earns many network marketers in excess of a million dollars a MONTH because they treat it like a business... on the other hand, there are just as many people who paid that initial investment and treated it as a fun hobby who are either losing money, or simply not a part of the organization anymore. Which yould you prefer?
2) Because the entry cost can be so low people overlook the cost of not making money, and also have a tendency not to pay attention to how much their other expenses associated with their business (such as trips, conventions, and/or buying extra products or services over and above what you really need) add up over time.
Let's say you spend $200 to get started... this is peanuts compared to the initial capital required to start a traditional bricks-and-mortar business.
You spent so little to get started, so even if you make no money in the first few weeks, months, or even years... you are not worried because of the low initial investment.
With some companies though, this investment doesn't include the products... so you have been paying extra for those too. Nothing wrong with that, unless you are buying more than you need to qualify for the certain commission levels, providing you start earning in the future. Then you might be attending meetings, using the phone and internet to run your business, and even placing a few newspaper ads.
So, even though you really havent paid much attention because you only invested $500 to begin with, if your business hasnt yet started making you money then you are really spending AND LOSING $2,400 a year, in this hypothetical example. And, here again, in reality many people often end up spending much, much more.
Looking back at the traditional bricks-and-mortar business example before, their operating costs are much much higher than you could imagine. If you where to run a McDonalds or a Starbucks... it wouldn't be uncommon to be in business for a year before you make your money back and then only starting to make a profit.
In contrast, running an MLM home business will allow you to build an increasing residual income in a relatively short time... if you treat it like a business! You won't become a millionaire overnight, but the possibility is there for you if you wish.
It doesn't matter if you are one of the people that rolls up their sleeves and gets started immediately... or if you spend some time learning about your new business before you implement a well thought out marketing plan first... both are acceptable as long as you end up taking action and then improving as time goes by. The beautiful thing about MLM is that you may start earning as early or as late as you wish!
In no more than 6 months time, you should positively start to see income coming in. In fact, ideally, you should try whenever possible to not only earn enough money to cover your original startup costs, but you should be making a profit (in other words, extra money) within this time. If you are not, check your numbers and see where you need to improve.
If you don't start making money, get some help and evaluate your business so you may fix those leaks and get some positive traction.
In summary:
1) All expenses related to your business must be included in your 'numbers', this includes your initial investment and anything else to keep your business in business... such as products, services, advertising, travel, and the list goes on.
2) Determine by how much you are in profit or loss.
3) To repeat: If after 30 to 90 days, 6 months maximum, you are not making a profit, you should seriously reevaluate!
Dont continue down the same path if you are only spending more money than you are making, and not making any profit in return.
The purpose of you starting a home business is to be in profit, so that means earning more money than you are spending.
With the exception of some not for profit organizations most people go into business in order to produce revenue (income) and profit. Unfortunately, when it comes to a home business, and especially network marketing, many people forget this important point.
It doesn't matter if you are a sole trader, partnership, corner store, or a multi-national corporation... you must keep an eye on your 'numbers'. If you are not in profit, then you won't last much longer and will go out of business.
Most home business fail because the distributors fail to treat them like a real business. It doesn't matter if you are drop shipping, network marketing, affiliate marketing, etc... you will fail if you don't treat your business accordingly.
Two things commonly happen:
1) A low initial investment is paid, thus there is no real sense of urgency to act accordingly and make that money back in the shortest possible time frame. This low perceived value turns into a self-fulfilling prophecy... and by now, I'm sure you can guess what this is!
Just as an example, a $40 monthly investment earns many network marketers in excess of a million dollars a MONTH because they treat it like a business... on the other hand, there are just as many people who paid that initial investment and treated it as a fun hobby who are either losing money, or simply not a part of the organization anymore. Which yould you prefer?
2) Because the entry cost can be so low people overlook the cost of not making money, and also have a tendency not to pay attention to how much their other expenses associated with their business (such as trips, conventions, and/or buying extra products or services over and above what you really need) add up over time.
Let's say you spend $200 to get started... this is peanuts compared to the initial capital required to start a traditional bricks-and-mortar business.
You spent so little to get started, so even if you make no money in the first few weeks, months, or even years... you are not worried because of the low initial investment.
With some companies though, this investment doesn't include the products... so you have been paying extra for those too. Nothing wrong with that, unless you are buying more than you need to qualify for the certain commission levels, providing you start earning in the future. Then you might be attending meetings, using the phone and internet to run your business, and even placing a few newspaper ads.
So, even though you really havent paid much attention because you only invested $500 to begin with, if your business hasnt yet started making you money then you are really spending AND LOSING $2,400 a year, in this hypothetical example. And, here again, in reality many people often end up spending much, much more.
Looking back at the traditional bricks-and-mortar business example before, their operating costs are much much higher than you could imagine. If you where to run a McDonalds or a Starbucks... it wouldn't be uncommon to be in business for a year before you make your money back and then only starting to make a profit.
In contrast, running an MLM home business will allow you to build an increasing residual income in a relatively short time... if you treat it like a business! You won't become a millionaire overnight, but the possibility is there for you if you wish.
It doesn't matter if you are one of the people that rolls up their sleeves and gets started immediately... or if you spend some time learning about your new business before you implement a well thought out marketing plan first... both are acceptable as long as you end up taking action and then improving as time goes by. The beautiful thing about MLM is that you may start earning as early or as late as you wish!
In no more than 6 months time, you should positively start to see income coming in. In fact, ideally, you should try whenever possible to not only earn enough money to cover your original startup costs, but you should be making a profit (in other words, extra money) within this time. If you are not, check your numbers and see where you need to improve.
If you don't start making money, get some help and evaluate your business so you may fix those leaks and get some positive traction.
In summary:
1) All expenses related to your business must be included in your 'numbers', this includes your initial investment and anything else to keep your business in business... such as products, services, advertising, travel, and the list goes on.
2) Determine by how much you are in profit or loss.
3) To repeat: If after 30 to 90 days, 6 months maximum, you are not making a profit, you should seriously reevaluate!
Dont continue down the same path if you are only spending more money than you are making, and not making any profit in return.
The purpose of you starting a home business is to be in profit, so that means earning more money than you are spending.
About the Author:
Peter Werth is a mlm business guru that may help you succeed with your MLM opportunity. If you are looking to grow your business, and to be in profit, then visit Peter's homepage for more information. Visit the Uber Article Directory to get a totally unique version of this article for reprint.
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