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Get Paid Today!

That’s what you want right? A business that pays you today and everyday as soon as possible. Furthermore you’d like to be paid as much as possible, right?

Why wouldn’t you?

So now tell me, do you think it is reasonable to put next to no money down on your business and then expect to immediately make $5,000 or more per month ongoing?

MLM Myth #8

It’s not that the $500 price tag of many companies is a reflection of what you can make. To the contrary you can realistically begin your business with less than $500 and go on to build a multi million dollar empire. But to do so you will still have to pay more than $500 in either money or time or both.

Ever heard the saying “You get what you pay for” ? Well that saying rings true in this context as well.

Now, certainly, having a home business radically reduces your expenses and outlays compared to , a traditional brick and mortar business, or even a franchise.

In either of those business environments, you will typically have expenses that run into the thousands if not hundreds of thousands. Expenses like a lease on a building and equipment, stock, insurance and wages. If you are a franchisee, then you will also have the cost of paying for the ‘privilege’ of doing business under someone else’s name.

Forking out money for any of these running costs is by no means a guarantee that you will make any money. There are many brick and mortar business people and franchisees who go out of business every single day, despite having great products and services on offer.

In MLM or Network Marketing your capital outlay will be less than in any other business model, BUT there are still ongoing running costs associated with owning a business.

MLM Truth #8

Here’s another saying “ You gotta spend money to make money” ?

Don’t get us wrong, we’re not saying the more you throw at your business, the more successful you will be. Many people spend enormous amounts of money on their business only to fail miserably.

However, the truth is that running a business does cost money, inlcuding your MLM business.

The key to success is in intelligent and targeted spending.

For starters, spend money on the things that make money and have a good return on investment (ROI). That means for every dollar you spend, you want to earn as many dollars as you can, in return.

So where are the costs?

For starters, there will be a cost to opt in and start your business.

This is where the type of business model you choose is so important.

If you join a company with a low start up costs and a low cost product range, it stands to reason the commissions on sales you make will also be generally quite low. After all it makes sense that you are not going to be paid a commission worth more than what the product is worth. Therefore you are going to have to sell a high volume of products before you will see a high return on your investment.

If you choose this option you want to make sure you have products and services with broad appeal, to make it easy to move the volume required…unless of course you find a really smart company that pays you a residual income as well as commission on your initial sale.

On the other hand companies with a higher joining price and higher value products will cost you more to enter the business but they will yield you a higher commission on your sales, when you are positioned within the compensation plan to collect that commission. This means you can earn a larger sum of money with much less sales volume. Higher commissions position you to earn more money faster.

BUT, your higher cost items may be more nichey and have less of a broad appeal. Both models have their pros and cons so it is important to understand your compensation plan and then do the sums so you know exactly what is required of your business to generate the cash you want.

If you are currently doing a due diligence on business opportunities right now, we suggest that you have these criteria in mind when you go looking:

1. Opt for Top Tier direct sales or hybrid MLM opportunities over “old school” MLM or Network Marketing. Companies that pay good NOW money as well as great long term passive income.

Top Tier simply means that the buy in level is much higher, so while you will invest at a higher rate to get started, your commissions will also be higher and you will be targeting a niche in the market which has the money to invest. With this model it is not an effective business strategy to promote your products or business to people who have no money to spend.

If you go for the lower cost business model look for a company that still offers great bonuses for building your business volume while your residual income grows over time, AND importantly make sure your company has products or services with very broad appeal so you have the greatest chance of success.

2. In both instances Look for a company with a G.P.T. payment plan.

G.P.T. stands for ‘Get Paid Today’. This means that you get paid commissions or bonuses on your direct sales, to compensate you now rather than having to wait months or even years to build up a residual income.
Negative cash flow is particularly deadly for new business owners, and a G.P.T payment structure means that you will have a cash flow as soon as you make a sale.

3. Look for companies which have a ‘dual income’ structure.

A dual income structure is one where you are paid for the sales you make at the front end, but also make a residual income on your sales and on the sales of your team.

Other Costs

Beyond the investment to opt in there are running costs, from membership fees, travel (if it is an International business), to communication and marketing costs, such as auto-ship materials, magazines and DVDs to websites and online marketing costs, just to name a few.

There is another saying that goes like this “Nothing ventured, nothing gained”, and that is highly pertinent to this situation.

From a psychological point of view, if you have no “skin in the game”, if you have nothing to lose, you are going to be far less motivated to lift yourself and do what it takes to get your business going.

We see many people opt in at the lowest level financially (and more importantly emotionally) with an “I’ll give it a go and see what happens” attitude. They never last long. Frankly, it is not possible to make money with this attitude.

You do need to invest your money, your time and yourself to make money.

Get the Real Truth Behind MLM HERE. Learn Effective, Cutting Edge ways to invest in and build your business

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Filed under: Getting Started • Home Business • Income • Internet Marketing • MLM Multi-level Marketing • MLM Myth vs Truth • Network Marketing

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