Nov 11
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Multi Level Marketing Companies
The Cost Of Multi Level Marketing
It is impossible to say exactly how much it will cost to run a business on the Internet. There are too many types of businesses each with its own set of expenses. This article will give you a general idea of some of the expenses that you will encounter with Multi Level Marketing Companies
This article is written to help you get an idea just how much out of pocket expense you need to operate a Multi Level Marketing Business also known as Networking. Before you invest in any business venture it is important to know just what you are getting into as far as operating cost.
The problem with Biz Opps and Multi Level Marketing is that the recruiters will not tell you the full story of how much you need to spend to build a business. They will tell you how much you need to start up which can be anywhere from $25 to $500 dollars. But they will be afraid to tell you the whole story of how much you need to operate your business for fear of losing you as prospect.
Before you decide to jump on board with any Multi Level Marketing Company you need to realize that for the most part it will take a least 6 months before you start to make a profit For you to determine if you can handle running a MLM business, you must know how much it will cost you to operate your business on a week to week bases.
The three phases of any business
- First Phase: Operating a business using out of pocket cash to
operate - Second Phase: The business is making an income to support
itself - Third Phase: The business is making enough income to support
its self as well as provide a profit
The rest of this article will concentrate on phase one. Operating a business using out of pocket cash to operate. We will assume that you have already paid into or have the funds available to start up your MLM business venture. Here are some expenses that you need to prepare yourself for.
Monthly Volume
Monthly volume is how Multi Level Marketing Companies make their money. It is also how associates make their money. In order to be in the program you have to commit to purchase a certain amount of product on a monthly bases. This is monthly volume. Also your down line has to make a similar commitment. Your commitment to purchase product for personal use can
be anywhere from $25 to $80 dollars plus every month.
Advertising Cost
If you are promoting a Networking business then you will be in the business of recruiting people into your organization. The main method that you will be using is to obtain leads of prospects. Leads cost money. To get them you will have to pay a lead generation company to get them or pay for advertising.
Advertising can be very expensive but it works. Company’s spend thousands of dollars on advertising every week. One way to get people to come to your website is by doing a solo email advertising. To do a solo email mailing can cost any where from $40 to hundreds of dollars per mailing. When you look for a place to do a solo mailing you might find a place that promises you that they have a mailing list of thousands of people. Before you commit to do an email solo ad be sure to ask how many clicks can they guarantee. You don’t really care how many people will see your ad, you want to know how many people will actually click your link. The email list owner should be able to tell you the answer. Ideally you are looking for a 3%
click thru rate. This means that for every 100 people who see your ad 3 people will click your link.
Lead Generation
To really get your business growing at a steady pace, then you should talk to at least 70 new prospects every week. Lead generating company’s charge any where from $1.00 to $8.00 dollars per lead. I have seen Lead companies charge as much as $25 per lead.
As you can see, this can add up very quickly. Generally the more
expensive the lead, the better quality the lead will be.
The CTSLeadersclub will supply you with 10 fresh leads per day for 30 days. The cost for this service is around $200 dollars. This is not a bad price to pay. Also for around $99 dollars they will provide you with 100 leads for one month , 3 leads per day.
Remember :
Advertising your website or affiliate link using solo ads can cost
you around $40 to $200 per mailing.
Also:
Advertising a classified ad in an off line free magazine can cost
around $20 per week.
Advertising in a good paid magazine that targets Biz Op’s seekers
can cost you $250 + per month.
Radio and television advertising can be very expensive if you
advertise nationwide. But you can start advertisements using radio
and T.V. on local stations at a surprisingly low cost. So don’t rule
out these types of advertising thinking that it is out of your price
range.
Best Regards
Dave Trevino
P.S.
Here is a good place to calculate your expence with a MLM company
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