Most people who become involved with network marketing do not feel that there is a need for a business plan. I know that my husband and I felt this very same way. Our train of thought was that business plans were for those who were needing to provide a business proposal to a bank or loans institution.
A really good plan of action would be to know if the opportunity that you are looking at will be as profitable as you think. BEWARE…The hype videos are just that, hype. To get to the meat of the issue it is important to ask the following questions, preferably before you join the online business opportunity. However it is never too late to make sound, informed decisions.
- 1. What is the amount of your start-up package and what will it take to earn back what your initial cost? Did you receive something in a bag, bottle or a box?
- 2. How much will it take to cover your monthly auto-ship product purchases? Is this reasonable (price) enough that those just starting out without a lot of money can afford this business expense.
- 3. How many and what ongoing business related expenses will you have?
How many customers or partners do you need, ordering products or services every month, to cover your own monthly purchases? How many new partners do you need to sign up to recoup your initial cost? Is there any incentive if you get them quickly?
Some examples of expenses you may incur on an ongoing basis are, but not limited to, the following.
- * Company Brochures, CDs, and other materials
- * Product Samples
- * Advertising and Promotions
- * Lead generation system
- * Paid memberships and event fees for live network training
- * Paid training sites/webinars
- * Attending company events
It is critical to determine how much you will need to spend on these expenses. Most responsible business owners want to know the bottom line. This includes knowing how soon a profit will be made, how much profit and the biggest concern… Is it enough to finance personal dreams?
If network marketing is just a hobby for you, (you are a collector of opportunities and never do anything with them) there is really no need to worry about a business plan. On the other hand if you want to be a full-time professional networker and your goal is to retire some day with “residual income”then consider your options very carefully and with an open mind! Not all is as it seems when presented in the fancy opportunity video or Network Marketing opportunity websites with huge stacks of money, large dream homes and fast automobiles. These are marketing tactics which you need to look past and into the real opportunity. Which is usually found in the Policies and Procedures and the Compensation Plans of the company you wish to join. This is where you will be able to determine if the home based online business opportunity you are looking at will present you with “residual income” which is capable of paying you and your family for the rest of your lives. You will find in these documents, if you read them, if you have indeed made a good business decision. You will also find in these two documents just how the company intends to treat you the affiliate/partner.
One very critical aspect that I learned from Mentoring For Free is, there are network marketing companies where you can make $10,000 per month with 400 or less people in your downline. And then there are companies where you need 4,800 people, or 25,000 people, or even 37,000 people or more! If you were presenting your business plan to a bank or a hired financial advisor, which company do you think they would tell you to join?
Begin your quest for the best possible online business opportunity by finding a 5 pillar company and place yourself in the very best possible position for financial success.
To your network marketing success,
Darlene and Dave Mills
Leadership With A Vision