Have you ever thought about the fact that most people with a “home” business
You probably spend more time away from home working on your business than you actually do.
being at home?
With the exception of certain types of home-based businesses, most, whether in
businesses of the traditional variety, such as real estate agents, mortgage brokers,
etc., or network marketers, spend a lot of time away from home in an effort to
to build and maintain their businesses.
When it comes to network marketing, the number one activity that takes place
outside the house is probably the classic hotel and/or conference room
where people meet at least once a week to bring prospects to hear the opinion of your company
Business presentation.
Of course, industry veterans know that these gatherings often turn into mother socials.
meetings, because the same people (representatives who are already in the
business) tend to keep appearing week after week, unlike the new
prospects that are supposed to come into the business.
Many home business owners routinely meet with prospects at prospects’ homes or
offices, or have the prospect come to them to do business
Presentation.
Another popular practice is to take your prospect out for lunch or dinner to discuss
your business proposal over a meal. Prospects often love it, because they get a
food, generally without obligation to accompany him in his business.
For some types of transactions of high monetary value, such as in the type of business that is often
carried out between larger companies and organizations, taking their prospectus
out of town customer, client or new business partner may be justifiable.
However, especially if you are involved in network marketing, the amount you
standing to compensate if a new prospect signs up can range from as little as
nothing, to perhaps a few hundred dollars.
For the sake of example, let’s say you are with a company where at your level in your
compensation plan earns $100 every time someone new joins their
business and qualify for whatever your initial purchase of products/services
The requirements are. As always, it is the consumption of the product that is being
paid.
And let’s say for every 10 prospects you take to lunch, 1 prospect typically signs up.
until. Again, this is for example, as your actual close rate may be higher.
However, especially for someone new, it is reasonable to assume that he or she can
register as few as 1 lead in 10.
Let’s further assume an average lunch bill of $25. Once again, this is being very
conservative, as a typical lunch, even for two, can easily be superior.
Ok, let’s do the math. He takes 10 potential customers to lunch at $25 each and 1 signs up for
your business, earning you a commission up front (when your check arrives)
of $100. $25 x 10 = $250 so you now have a loss of $150 for your efforts. That is
not including gas money, wear and tear on your car, or any sales aid or samples
which you may have gifted to each prospect as well. So conservatively, at this rate
you will LOSE AT LEAST $150 for each person you bring to your
business!
Again, your close rate can be higher than 1 in 10, and your initial
the compensation can be higher, perhaps even hundreds of dollars. However, if you
are like 9 out of 10 typical home business people or network marketers, the
the above numbers are probably very realistic. Lots of network marketing rewards
plans pay considerably less than $100 up front.
If you are holding meetings in a hotel conference room, then your cost may be lower as
it is likely that you, along with all other representatives in attendance, will share the costs
of the room and facilities.
The above examples assume you are working with prospects and/or
representatives who are located in your immediate local vicinity. Many network marketers
travel out of town to grow their businesses. Sometimes this can be to register a new
perspective. However, it is usually to provide support and assistance to newcomers.
people from the city who have joined your organization. One thing that quickly
learning as your business grows is that even if you only recruit and sponsor people
locally, because they will have friends and family in other states and maybe even
other countries, it will not be long before any organization of any size spreads
quite far geographically.
Almost every network marketing industry or company also has at least one annual meeting.
company event or meeting, which all representatives are encouraged to attend.
These events require even more expense, time away from your main occupation
(unless you’re working your business full time), and even time away from your
primary business. Sometimes you will recruit someone along the way using the old “3-
Foot Rule”, (prospect anyone who comes within 3 feet of you) which is absolutely NOT
one of the methods advocated here at ABCIncome.com. But otherwise, when you
attend company functions that you normally do at the expense of taking up time
activities that actively generate money.
It may be true that you will gain enough new information and knowledge about your
business that what you learn in these business functions can help you build your
even better business, but such can rarely be counted on even to guarantee
dollars in your bank account. Over the years, I have seen countless people pass
money they did not have in their budgets to attend such events. That is
because most of these events cost you money, instead of making you money.
There is nothing wrong with company conventions, seminars, etc., as long as you
you can easily afford it, enjoy it, and most importantly, you can afford to pay for it with
PROFIT! If your business does not generate enough money to pay for such a trip, then
wait until it does, unless you can already do it easily and comfortably.
pay for the trip with your current budget (most likely with the income of your
Workday).
Without straying too far from the main topic of this article, but the key rules for
Always remember in your business to grow your business from profits, spend as
little money possible on things that don’t make you money, and what money
spend try to invest wisely in those things that will make you money.
Lastly, be reasonable about how many shows you attend. some groups of
network marketers (usually not an official company-sanctioned position) encourages
or even require their representatives to attend pep talks and rallies as often as possible.
once a month or more. Follow the guidelines already mentioned above: Can you
pay for it, and what impact will attending that function have on your business? It is
Does it cost you money or make you money?
Going back to our original topic, even if you can afford activities like that
discussed above, do you want to spend as much time away from home and
family? Many people find that they are away from home a lot, commuting to work
with groups from out of town and attending functions, who are tired and barely
recover after returning from one before leaving for the next.
Even if your efforts are profitable, the above methods may be among the least
efficient ways to build a business. That’s not to say it can’t or won’t work, many
have built organizations of thousands that way, including me (in years past, since I use
better and more efficient methods today). But ask yourself, if you could build a
organization just as effectively, if not more, while still being able to spend as much
time at home with your family as you would like, wouldn’t it be better?
Sure, you can always take people out for lunch, dinner, and travel, to socialize, but,
especially with all the tools you now have at your disposal like the
telephone, conference lines, Internet, fax, etc., it is simply not necessary to do it in
to build a successful and profitable business.
There are some people who just love and enjoy being always on the go, or
socialize etc There too such things become a matter of personal preference. I
You know people, for example, who, especially in previous years before online bill pay etc.,
they love to pay almost all their bills in person. For a stay-at-home parent, or someone
don’t work full time, or are a retired person, etc., they often see it as a way out
out of the house and stay active. However, if you use the types of training and
techniques that are available to enable you to build a growing, successful, and
profitable business, from the comfort of your home, you will be busy with
so many new prospects and reps you’re unlikely to get bored
sitting at home with nothing to do!
So if you’re happy with the way you’re currently growing your business,
which may include some of the above methods, that’s fine. Some people still enjoy
building their businesses the traditional way, in person, one person or several at a time
hour. However, if you would like more information on some of the things that
you can change, and the techniques you can employ, to start growing your
businesses effectively from home, then please take a look at programs that
we offer at ABCIncome.com. They enable you to achieve better results, faster, than
using any of the less efficient methods mentioned above.