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.
It would be fair to say that most people go into business to make money, not lose it! The sad part is that people who work from home often forget this very important point.
In a traditional business, whether a Ma and Pa shop, or a large franchise store like McDonalds, business owners know to watch their numbers. A business must make a profit in order to survive and, if it doesnt, adjustments must be made accordingly.
One of the reasons for the high failure rate in small businesses, home businesses, and MLM (network marketing), is because due to the low entry costs and requirements people often dont treat them like, real businesses.
Two things that usually happen:
1) Many people have the attitude that since they didnt have to invest much to begin with they really dont have to be too concerned about whether they make money or not, or how soon. Of course, that often ends up being a self-fulfilling prophecy. Its not just that way with a business, but with many things in life. If you come to own something that cost a great deal or required a lot of effort to acquire you tend to appreciate it more than something of lesser perceived value.
When you consider that network marketing has made some people just as much if not more money than many other traditional kinds of businesses, with incomes of as much as $1 million a month or more being achieved, treating a MLM as if it isnt a serious or real business is a huge mistake!
2) Distributors have a tendency not to pay attention to how much their business expenses add up over time (such as trips, conventions, product samples, and marketing costs). This is a major mistake, because neglecting these costs means you are not watching your 'numbers'.
For example, lets say that you spend $500 to sign up for a new business. Not a lot of money at all, maybe the price of a cup of coffee a day and some change.
Weeks go by, and then months, maybe even years, and you still arent making any money. Perhaps you dont think much of it because, you think to yourself, I only spent $500 to get started in this business anyway.
But what are the true cost? Lets say that in addition to your startup cost you have also been spending $150 each and every month on buying your companys products and services. (Perfectly ok if you enjoy and use all of the products you buy; not ok if you are buying more than you need simply to qualify for a certain level with your company!) And lets also assume that you are spending $50 a month on meetings, conventions, or seminars (many people spend much more).
If you're business hasn't yet started making you money, or should I say... if you haven't yet started making money with your business, then you are losing money every single day! This adds up over time and you are actually losing in excess of $3,000 per year... and in may cases 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.
Running an MLM home business won't make you rich overnight, but in a relatively short amount of time... you may start building yourself an increasing residual income.
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 after 30 to 90 days, 6 months maximum, you are not making a profit, you should seriously reevaluate!
To summarize:
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) Subtract how much money youve earned from the number above (your total expenses) and this will tell you how much money youve made (profit), or how much money youve lost and/or are losing.
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.
If you are earning more money than you are spending, then that's AWESOME because you are in profit... and that is what your goal should be... get into profit!
It would be fair to say that most people go into business to make money, not lose it! The sad part is that people who work from home often forget this very important point.
In a traditional business, whether a Ma and Pa shop, or a large franchise store like McDonalds, business owners know to watch their numbers. A business must make a profit in order to survive and, if it doesnt, adjustments must be made accordingly.
One of the reasons for the high failure rate in small businesses, home businesses, and MLM (network marketing), is because due to the low entry costs and requirements people often dont treat them like, real businesses.
Two things that usually happen:
1) Many people have the attitude that since they didnt have to invest much to begin with they really dont have to be too concerned about whether they make money or not, or how soon. Of course, that often ends up being a self-fulfilling prophecy. Its not just that way with a business, but with many things in life. If you come to own something that cost a great deal or required a lot of effort to acquire you tend to appreciate it more than something of lesser perceived value.
When you consider that network marketing has made some people just as much if not more money than many other traditional kinds of businesses, with incomes of as much as $1 million a month or more being achieved, treating a MLM as if it isnt a serious or real business is a huge mistake!
2) Distributors have a tendency not to pay attention to how much their business expenses add up over time (such as trips, conventions, product samples, and marketing costs). This is a major mistake, because neglecting these costs means you are not watching your 'numbers'.
For example, lets say that you spend $500 to sign up for a new business. Not a lot of money at all, maybe the price of a cup of coffee a day and some change.
Weeks go by, and then months, maybe even years, and you still arent making any money. Perhaps you dont think much of it because, you think to yourself, I only spent $500 to get started in this business anyway.
But what are the true cost? Lets say that in addition to your startup cost you have also been spending $150 each and every month on buying your companys products and services. (Perfectly ok if you enjoy and use all of the products you buy; not ok if you are buying more than you need simply to qualify for a certain level with your company!) And lets also assume that you are spending $50 a month on meetings, conventions, or seminars (many people spend much more).
If you're business hasn't yet started making you money, or should I say... if you haven't yet started making money with your business, then you are losing money every single day! This adds up over time and you are actually losing in excess of $3,000 per year... and in may cases 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.
Running an MLM home business won't make you rich overnight, but in a relatively short amount of time... you may start building yourself an increasing residual income.
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 after 30 to 90 days, 6 months maximum, you are not making a profit, you should seriously reevaluate!
To summarize:
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) Subtract how much money youve earned from the number above (your total expenses) and this will tell you how much money youve made (profit), or how much money youve lost and/or are losing.
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.
If you are earning more money than you are spending, then that's AWESOME because you are in profit... and that is what your goal should be... get into profit!
About the Author:
Peter Werth is a mlm business guru that can help you succeed with your MLM opportunity. If you are looking to grow your business, and to be making money, then visit Peter's website for more advice. This and other unique content '' articles are available with free reprint rights.
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