Have you ever thought about the fact that most people with a “home” business
probably spend more time outside their home working their business, than actually
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 great deal of time outside the home in an effort
to build and maintain their businesses.
When it comes to network marketing the number one activity that takes place
outside the home is probably the classic hotel and/or conference room meeting
where people gather at least once a week to bring prospects to hear their company’s
business presentation.
Of course, industry veterans know that these meetings often turn into mere social
gatherings, because the same people (representatives who are already in the
business) usually keep showing up week after week, as opposed to the new
prospects who are supposed to be getting into the business.
Many home business owners routinely meet prospects at the prospects’ homes or
offices, or have the prospect come to them in order to conduct a business
presentation.
Yet another popular practice is to take your prospect to lunch or dinner to discuss
your business proposal over a meal. Prospects often love it, because they get a free
meal, usually with no obligation to join you in your business.
For some types of high dollar transactions, as in the type of business that is often
conducted among larger businesses and organizations, taking your prospective
customer, client, or new business partner out on the town may be justifiable.
However, especially if you are involved in network marketing, the amount that you
stand to make up front if a new prospect signs up may range from as little as
nothing, to perhaps a few hundred dollars.
For example’s sake, lets say that you are with a company where at your level in their
compensation plan you earn $100 each time someone new comes into your
business and qualifies for whatever your initial product/service purchase
requirements are. As always, it is the consumption of the product that you are being
paid for.
And let’s say that for every 10 prospects you take to lunch 1 prospect typically signs
up. Again, this is for example’s sake, as your actual closing rate may be higher.
However, especially for someone new, it’s reasonable to assume that he or she may
sign up as few as 1 prospect out of every 10.
Let’s further assume an average lunch bill of $25. Again, this is being very
conservative, as a typical lunch even for two can easily be higher.
Ok, let’s do the math. You take 10 prospects to lunch at $25 each, and 1 signs up in
your business, which earns you an up-front commission (when your check comes)
of $100. $25 x 10 = $250 so you are now at a loss of $150 for your efforts. That’s
not including gas money, wear and tear on your car, or any sales aids or samples
that you may have also given away to each prospect. So, conservatively, at this rate
you’re going to LOSE AT LEAST $150 for each and every person you bring into your
business!
Again, your closing rate may be higher than 1 out of 10, and your initial
compensation may be higher, perhaps even by hundreds of dollars. However, if you
are like 9 out of 10 typical home business people or network marketers, the
numbers above are probably very realistic. Many network marketing compensation
plans pay considerably less than $100 in up-front money.
If you are doing hotel conference room meetings then your cost may be lower as
you, along with all other representatives attending, are likely sharing in the expense
of the room and facilities.
The above examples assume that you are working with prospects and/or
representatives who are in your immediate local vicinity. Many network marketers
travel out of town to grow their businesses. Sometimes this may be to sign up a new
prospect. However, typically it is to provide support and assistance to new out of
town people who have come into your organization. One thing that you’ll quickly
learn as you grow your business is that even if you only recruit and sponsor people
locally, because they will have friends and family in other states and perhaps even
other countries, it won’t be long before any organization of any size is spread out
quite far geographically.
Almost every industry or network marketing company also holds at least one annual
company event or meeting, which all representatives are encouraged to attend.
These events require yet more expense, time away from your main occupation
(unless you are working your business fulltime), and even time away from your
primary business. Sometimes you’ll recruit someone along the way using the old “3-
Foot Rule,” (prospect anyone who gets within 3 feet of you) which is absolutely NOT
one of the methods advocated here on ABCIncome.com. But otherwise, when you
attend company functions you usually do so at the expense of taking time away
from the activities that are actively making you money.
It can be true that you will gain enough new information and insight into your
business that what you learn at these company functions can help you build your
business even better, but seldom can you count on such an even to guarantee
dollars into your bank account. Over the years I’ve watched countless people spend
money they didn’t have in their budgets in order to attend such events. That’s
because most such events cost you money, as opposed to making you money.
There is nothing wrong with company conventions, seminars, etc., as long as you
can readily afford it, enjoy it, and, most importantly, can afford to pay for it out of
PROFIT! If your business isn’t making you enough money to pay for such a trip then
wait until it does, unless you are already in a position to easily and comfortably
afford the trip out of your existing budget (most likely from the income from your
day job).
Not to digress too far away from the main theme of this article, but key rules to
always remember in your business are to grow your business out of profit, spend as
little money as possible on things that don’t make you money, and what money you
do spend try to invest wisely in those things that will make you money.
Lastly, be reasonable about how many functions you attend. Some groups of
network marketers (usually not an official company sanctioned position) encourage
or even demand their representatives to attend pep talks and rallies as often as
once a month or more. Follow the guidelines already mentioned above: Can you
afford it, and what impact will attending that function have on your business? Is it
costing you money or making you money?
Returning to our original theme, even if you can afford activities like those just
discussed above, do you want to spend that much time away from your home and
family? Many people find that they are out and about so much, traveling to work
with out of town groups, and attending functions, that they are tired and barely
recover after returning from one before they are off to the next.
Even if your efforts are profitable the above methods can be among the least
efficient ways of building a business. That’s not to say it can’t or doesn’t work, many
have built organizations of thousands that way, including me (in years past, as I use
better and more efficient methods today). But ask yourself, if you could build an
organization just as, if not more, effectively while still being able to spend as much
time at home with your family as you would like, wouldn’t that be better?
Sure, you can always take people to lunch, dinner, and travel, to socialize, but,
especially with all of the tools that you now have at your disposal such as the
telephone, conference lines, Internet, fax, etc., it simply isn’t necessary to do so in
order to build a successful and profitable business.
There are some people who just love and enjoy always being on the go, or
socializing, etc. There too such things become a matter of personal preference. I
know people, for instance, who, especially in years past before online bill pay, etc.,
love to pay almost all of their bills in person. For a stay at home parent, or someone
not working fulltime, or a retired person, etc., they often view it as a way to get out
of the house and keep active. However, if you employ the kinds of training and
techniques that are available to allow you to build a growing, successful, and
profitable business, right from the comfort of your own home, you will be busy with
so many new prospects and representatives that you are unlikely to get bored
sitting around home with nothing to do!
So, if you’re happy with the way in which you are currently growing your business,
which may include some of the methods above, that’s fine. Some people still enjoy
building their businesses in the traditional way, in person, one person or a few at a
time. However, if you would like to learn more about some of the things that you
can change, and techniques that you can employ, in order to start growing your
business effectively right from home, then please take a look at the programs that
we offer on ABCIncome.com. They allow you to achieve better results, faster, than
using any of the less efficient methods mentioned above.
GRPMAX, L.L.C. was founded by CEO Phil Covington in 1979 and is the parent company of http://www.abcIncome.com “Home Business” GRPMAX specializes in developing Uniquely Innovative Technologies & Solutions™ and has worked with clients ranging from small business, to government, to the Fortune 500. Specifically, GRPMAX creates solutions that automate processes that previously required human staffing and interaction. Mr. Covington’s interest in the home business field started in the 1980s and developed out of relationships with some of the industry’s most talented and highest earning individuals, during which time he has actively pursued the creation of the ultimate home business passive income solution.
