Is Building Your Network Marketing Business in the Cold Market a Good Decision Or a Stupid One?

Building your network marketing business has never been more confusing. When you signed up in your business opportunity, you never imagined this. But like most people who ventured into the business opportunity realm, you were told that you didn’t need any business skills to build your business. And in reality you don’t…if you build it solely using your friends and family.

Honestly, does the average person have enough people in their circle of influence to build a business entirely this way? Some people do, but the average person may not have enough.

Which is why a lot of well-meaning people who’ve bought into the dream of a home business, venture out into the cold market. If you’re not familiar with that term, it means that you’re going to build your business with people you don’t know…thus the word “cold.”

Warm market or cold market…each has its own pros and cons. In your warm market, you’re talking to people you already know and with whom you have a relationship with. So in a sense, you could say half the battle is already won. The downside is that you may run out of people to talk to. You may even encounter a naysayer or two who will try to talk you out of your business.

In the cold market, you can target people directly who are looking for a business and or who have already bought into the concept of network marketing.

The downside of building a business in the cold market is that you’ll have to learn some marketing skills if you want to build successfully in this area. In addition you’ll have to learn how to build an online relationship with total strangers.

If you already “tapped” out your warm market, you really don’t have a choice…you must venture into the cold market. This is how traditional businesses have been built. What makes network marketing any different?

Of course it’s easier to go up to people you already know, but for those who don’t have a circle of influence, the cold market is the logical next step.

Your upline is offering you some words of wisdom in that they’re telling you the fastest way to get started and that’s your warm market; these are the people you have the most affect over. But it may not be the smartest way to get started if you have no influence or a circle of business-minded friends and family who are open to network marketing.

In the end, you can build your business any way you want, but with each market, cold or warm, will present its own challenges. Be ready to step up and learn a few things to overcome them if you truly want to succeed in your home business.

How to Finance Your Network Marketing Business

As Robert Kiyosaki says in his brilliant new book, THE BUSINESS OF THE 21st CENTURY, “If you want a solid future, you need to create it. You can take charge of your future ONLY when you take control of your income source. You need to own your own business”.

The first step in becoming a business owner is to start to THINK like a business owner. Business owners understand the difference between “price” and “cost”.

When you start a business, the price you pay for the things you need in order to get started is NOT the “cost” of starting that business. The “cost” is what you pay for the money you use to get started until you pay the money back.

For example, when a partner and I started a mortgage company here in Orange County California in 1988 we did a very careful analysis of how much capital we would need in order to make it through the first year. We looked at how much we would need to spend to get started properly, and how much we would need for the ongoing expenses like rent, payroll, phones, marketing expenses, utilities, supplies, and so on; and then subtracted a conservative estimate for how much revenue we would bring in that first year. The result of that analysis showed that we would need $250,000 to get started. In other words, the PRICE we would have to pay to get started and operate our business for a year exceeded our expected revenues by $250,000. That’s not unusual for a traditional business.

We had $50,000 between us when we started and we got a bank credit line for the difference. So how much do you think we had to borrow against our bank credit line by the end of the first year?

Well, our analysis was exactly correct, so if you did the math in your head you know that we owed the bank $200,000 at the end of that first year. The $250,000 shortfall for the first year minus the original $50,000 we had put in.

Were we worried that we were $200,000 in debt after 12 months? Not at all. We were right on track.

Most new business take at least a year to become “cash flow positive”… where your gross profits exceed your expenses… and another 2-5 years just to pay back the initial investment. We went on to payoff that debt, and pay ourselves back, and build what became at one time the 3rd largest mortgage brokerage in the county at that time.

Here’s my point. It did not “COST” us $250,000 to start that business. That was the PRICE we paid for the things we needed over and above what we could cover from the income from our business. The COST for our start up was the price we paid for the MONEY until we paid the money back. So our cost to start that mortgage company was about $24,000 which is the total of the interest we paid on the credit line until we had paid it off from profits in the 2nd year.

Robert Kiyasaki’s new book, “THE BUSINESS OF THE 21ST CENTURY” is the latest in his RICH DAD / POOR DAD series. If you read just ONE book this year, I highly suggest that you make this the one. It can set you free because it can help you stop thinking like an employee and start thinking like an entrepreneur. He also has some great free audios and videos on his website. Check them out at TheBusinessOfThe21stCentury.com

In that book he points out that one of the many advantages of Network Marketing is that the start up cost is so low that you don’t need a bank line of credit to get started.

If you plan to make money, you DO need to treat your new business like a business and start it correctly in order to make the most amount of money in the least amount of time, but unlike a franchise that might require $50,000 to many HUNDREDS of thousands to get started, you can fully capitalized your start up in network marketing for so little money that it would be considered a rounding error in a traditional business analysis.

The “seed capital” you need to start your network marketing business correctly and cover your start up expenses is so small that you don’t need to go to a bank to get a business line of credit.

If you don’t have the money you need in a savings or investment account, you can just use OPM… Other Peoples Money… and you can cover the interest on that money and be “Cash Flow Positive” in your very first month!

What that means is that you can literally get your business started for with NO cash out of your pocket. You can even start your business for FREE if you earn back the initial start up cost and pay off your start up loan before the interest is due.

Here’s how that can work…
Remember, there are two things that you will need to cover each month: Your monthly business expenses, and the interest you pay on the money you used to get started until you pay that money back.

To make the most amount of money in the least amount of time you want to start at level where you can maximize as many aspects of your company’s compensation plan as possible. In most legitimate network marketing companies, you can do that for less than $5000 and the monthly business costs are less than $300 a month.

In the company I’m with, for example, you can position yourself to maximize the compensation plan for less than $2000, and your monthly business expenses are only about $150 a month, so let’s work the numbers….

Cost of $2000 (worst case – 24% credit card) $40/month
Monthly Business Expenses $160/month

Total Monthly Break Even $200/month

This is my “Break Even” point. As long as I earn at least enough to cover my monthly Break Even Point, everything above that amount is profit.

Most companies have a Fast Start Bonus of some kind that pays at least $50 to $200, so it’s easy to cover the monthly Break Even Point just with personal production as long as you are working your business. That means that you can literally use a credit card to start your business and earn the money to cover your Break Even Point BEFORE the credit card bill even arrives.

If you earn enough in that first month to cover your Monthly Break Even Point AND to payback your start up loan in your first month, you will have started your business for FREE because you won’t even owe the interest on the money if you pay it back within 30 days of receiving your credit card statement. A weekly pay plan with a good Fast Start Bonus and a simple effective system for building your business makes that very feasible.

In addition, if you don’t already have a business that is based exclusively out of your home, the TAX BENEFITS are often more than enough to offset your monthly expenses. Be sure to check with a tax advisor who is familiar with home based business tax law.

To quote Kiyosaki again, “In network marketing, instead of earning income directly, you are building an ASSET – your business – and it is the asset that generates the income… Network marketing creates passive income but requires very little cash investment to start up. It has very low overhead, and can be operated on a flexible part- time basis until it generates enough cash flow for the entrepreneur to transition out of his current full-time job.”

To Summarize…

1) The COST to start up a business is not the PRICE you pay to get your business started, it is the price of the MONEY you use to get started until you pay that money back.

2) If you use your own money, the “opportunity cost” to get started is the interest you could have earned on that money which is very small these days. If you use other people’s money (OPM) your cost is the interest you pay on that money until you pay it back. On a 24% credit card that is only 2% per month.

3) Most legitimate network marketing businesses can be fully capitalized for less than $5000 and have monthly business expenses of less than $300. That means that your monthly break even point is VERY low and can be achieved in your very first month if your company has Fast Start Bonuses that pays weekly, and a proven system for building your business.

4) The tax benefits of owning a business that is based solely out of your home can allow you to legitimately reduce your tax liability by converting some of your after tax expenses to pre-tax business expenses. If you are paid on a W-2, you may be able to immediately reduce the amount that is withheld from your paycheck, thus effectively giving yourself a “raise” in takehome pay. Be sure to consult with a competent tax advisor.

5) The start up cost is so low in network marketing that it’s possible to earn enough money in your first month to completely repay your start up loan before your credit card bill is due. In that case you won’t owe an interest at all and you will have started your business for free.

6) Once you have found a network marketing business that makes sense for you, start at a level that will maximize the compensation plan so that you can make the most amount of money in the least amount of time, then follow their proven system for building your business.

Want a Successful Network Marketing Business? Here’s What No One Tells You About Recruiting

Recruiting is the lifeblood of your network marketing businesses because it is the only way to grow it and thus, grow your income. Whether you are new to network marketing or a seasoned MLM pro, you need to be skillful at recruiting people with desire and drive into your home based business.

Does this mean you should show your MLM home business opportunity to everyone? Maybe you should, maybe you shouldn’t. Who joins or doesn’t join your work from home business will often surprise you. But concentrate on finding leaders and they can come from anywhere.

This article points out there are actually three, not two MLM recruiting markets: the well known warm and cold markets, and the lesser known hot market. It shows why you should distinguish between the markets, prospect in all three and focus on the connections recruits have to you and not the reverse if you want to be a successful network marketer.

Your Hot Market

Your Hot Market people love or respect you. That’s how they connect to you. They join your MLM business basically because you ask them and they join quickly. They may not fully understand the business, or care because they have powerful feelings for you. In short, they may not be home business entrepreneurs. However, with proper training and support some may build organizations. But, you may have to accept that a Hot Market recruit, like your grandmother, for example, may never do more than buy products from you during Holidays.

Your Warm Market

A lot of network marketers, particularly new ones, make the mistake of assuming their warm market to be only relatives, friends or people they like or know well. That may be the case, but warm refers to how people feel about you even if they see you infrequently. They have favorable or somewhat favorable opinions of you. They will pause to listen to what you say about your “profitable home based business that provides great residual income” or your “online marketing blueprint” that allows you the freedom to work from home. Family, friends and co-workers may be in this market, but so can the cashier at your grocery store, people at your health club, your mechanic, your dentist, and others.

Your Cold Market

Your Cold Market is people you don’t know well or at all. Cold market prospecting can be daunting, but the world is full of strangers, so introduce them to your MLM business…in due time. First, make the effort to develop positive connections to those you pitch. I call this “warming the market”.

And now to answer the “SO WHAT” question:

“So what if there are three markets and why should I care about people connecting to me?”

It is beyond the scope of this particular article to go into further detail on recruiting, but you will recruit more people if you understand their points of view. Joining a network marketing business is an emotional decision even if justified logically.

Your knowledge of all three markets will diminish your frustrations. You will not expect warm and cold market prospects to be like your hot market recruits and quickly join. And you’ll be prepared if some hot market recruits don’t build networks fast or at all, even with training and support.

You will develop skills at reading people and their connections to you and those are very useful skills to have. You can better tailor your pitches to prospects and while you may still be surprised at who joins, your overall recruitment will improve.

So, know your markets, develop recruiting strategies that incorporate the feelings or attitudes (or your best guess) of prospects toward you, learn as much as you can about recruiting and have fun.

Gera Richardson From my 20 plus years as an attorney and consultant on high end real estate projects and in business and community development, I appreciate the skills and experience I have in presentations, team management and goal setting, all useful in network marketing. I am passionate about such referral marketing: it makes the American Dream available to all.

MLM – A Great Business Opportunity

What are MLM Businesses?

Multi-level marketing which can also be known as referral selling is a marketing structure which is designed such that it creates both a marketing and sales push by rewarding its promoters of their products for both the sales they make and also for the new members they bring on board to market the same product. In this way, a hierarchy of representatives and rewards is created. Products sold are normally sold straight to the purchaser. This kind of marketing can be done via word of mouth or through online services. There are several on-line MLM businesses that one can join but there are some value judgment that need to be done first before joining.

How does an MLM work?

There are entities that are known as distributors, these are not on the producers’ payroll but instead generate their income from the commission they receive upon every sale of products they market to the consumers. The distributor can also recruit some sub-distributors under them and also earn a commission for this too. Distributors can also buy products direct from the producer at a wholesale price and then later sale them at retail price thus benefiting from the profit generated. The distributor therefore aims to have a very large base of customers so as to increase their commission.

MLM Business Opportunities

There are some scrutinise that need to be carried out before one moves in to MLM as most of it is now found on the internet. First of all, they is need to verify the legitimacy of any offer you can find as there are bound to be many hoaxes. MLM opportunities do put much of their focus on the selling of the product as opposed to many scams in which much concentration is put on recruiting other members and they are mostly characterised by a pyramid structure. Choice of the right company and product for you will help in the marketing of the product.

It is easier and more interesting to be behind a product that you know more about as this will help you convenience the buyer with the experience you have of the product. Avoid going for products that require your own marketing plan if you are not familiar with the marketing field. You should take up a product that will match your skills level.

The payment structure should also be considered as it is going to determine the amount of profit you will be getting and the size of your customer base. There should be a reasonable pricing of products that will give profit but at the same time encouraging more customers to be interested in the product.

When proper planning is done and realistic goals have been set, this marketing can pay back good returns. Whoever engages into this should know that it requires patience to grow in the business as it is seen with the most successful MLM contractors who gave it time for their business to grow. When the business starts to grow it’s hard to stop it. MLM users the power of duplication and duplication when used in a business is a powerful thing.

MY name is Theodore but everyone calls me Teddie. I was born in South Carolina I grew up in Brooklyn New York. I now live in Oregon. College seem a distant past where the fun ended and the real life begins. DNA is the future so take a look see. Mortgage Reduction is just one of the product we have to offer.

Empower Yourself With the Tools to Help Beat the Economic Crisis

For those of you who wish to work at home and utilize the internet, to supplement, or fully provide your income, Read on! As with any job, the proper tools and expertise are required to perform all tasks. Making money on the internet is no different. It also requires the proper tools and expertise.

It is very difficult to navigate through all the “get rich quick”,” easy money”,”instant cash” programs offered! Research and knowledge are the key! Before joining or committing to any program,do your research. Read articles like this,written by real people in their own words, and form an educated choice for your “partner/program”

I myself have acquired a few web sites and training programs in search of the on line money making dream. In most cases I ended up with products or services, a smaller bank account and some monthly hosting or training expenses. But no real knowledge of how to market or promote these items.

I did a lot of research before I chose my current “partner/training” program. Be careful out there! Many scam reviews are written by the very group you may be researching!I found the most valuable and honest information, in blogs and articles, written by people like you and I.

The program I purchased, contains very in depth training and teaches one the processes and skills needed to succeed in the internet marketing industry.

You will not get rich overnight! This program will teach you the skills and show you the tools, to build an online income. How big you want it,is totally up to you. Look at the program, bookmark the site, then go do your research.

Are You About to Lose Your Online Business?

No one desires to lose his online business, specially in the time one can still feel the effects of economic recession in his society. Still more than hundreds of online business fail each year and this figure is increasing with the increasing number of online service providers. If you too are losing your market or are not getting enough clients online, this article will for sure help you a lot. If you haven’t still started as an online company, then this article can serve for you as a guideline which will not just help you in taking a good start but also keep up your business in a smooth flow.

1) Don’t over rely on internet: Being dependent completely upon something can be highly dangerous. When it comes to online business don’t lean completely on just one marketing channel: the Internet. You must keep some handy material too as this will also provide you local marketing. Brochures and other forms of personalized printed material increases the credibility of your organization.

2)Make your shop irresistible: The major difference between conventional business and online business is the lack of multiple markets. Yes, you read it right, in online business you can have multiple websites but all the websites are in the same market place, they all start with “www”. So it means there will be an extremely large amount of shops providing the same services and which will ultimately result in extremely fierce competition. How to get a marketing is somewhat hinted in the previous heading. However, more important is making an impressive reputation in your prospective customer and then closing a sale. For that your website must have a unique design, easy to navigate and must give all the information normally required by the customers.

4)Take expert advice: Look for how professionals are working over internet. This will not just help you go through and find solutions for your own problems but also help you to grow your business more and don’t let your current mistakes repeat again. Seek advice from a qualified professional though you have to pay for it. Also reading different articles and blogs posted can also be very helpful as they too contain a lot of advices and tips.

3) It takes time to recover: Don’t get disappointed on your current position. You have accepted that you had a problem means you have already half dealt with it. Now other half can be controlled by looking for the possible solutions and working so. There is no doubt it will take time to get on the flow. But you must continue doing harder and you will see the result. I must share with you a Chinese saying in “Bob Parsons’ 16 rules of success”. It states “the temptation to quit will be greatest just before you are about to succeed”

Cutting Edge Media – Home Business Connections Magazine – Advertising and Marketing Platform Review

Cutting Edge Media Publications is an online and offline pioneer in the home based business advertising and marketing industry. The company’s main focus is on their online and offline publications of Home Business Connections Magazine. Could this direct magazine mailing service be the right advertising online or offline for you? Here is a simple review.

Cutting Edge Media Publications is in the magazine business, particularly in the direct mailing of their publication to would-be home based business owners looking for a solid home business. For those already part of the home based business industry could this be a good way to market your opportunity, products or services?

While most advertising and marketing through printed publications is on the decline, it is a fact that most niche directed printed materials are still in high demand. With a reach of over 300,000 subscribers and new subscribers being added to each month, using such publications as Home Business Connections could be a great way to brand you. Not only is this particular publication delivered to hundreds of thousands of mailboxes each month, but the same magazine can be found easily online…as well as you.

There is a cost however to this which can range from a full blown full page on the front or back for 5K, or you can simply take your best shot with a simple classified for under $300. While this type of advertising and marketing does cost, the fact remains that it is targeted to the group any home based business owner would want to target.

There is a lot to be said about learning to market effectively online through FREE methods, but if you find your business at home growing and have a few pennies to spend, having some banner advertising through such mediums as Cutting Edge Media Publications could be a solid bet. Look to co-op advertising with other individuals inside your own business, this could help to not only cut the price down for this type of marketing and advertising, but help you carry it out longer than on your own.

When is the Best Time to Start Marketing?

As a small business owner, you may ask, how do I know when is the correct time to start marketing? Well, the only answer to that is Right Now! The success of your business depends on you and the sooner you begin to sow the sooner you begin to reap. Understandably, initially you may feel frightened of making mistakes and failing, but don’t allow fear to prevent you from taking action. Not only should you accept that you will make mistakes, you should embrace it. Mistakes are part of the process and each one has a lesson to be learned. You will never feel completely ready, so you may as well begin immediately.

Now that you’ve decided to start marketing today, your next step is figuring out whom to market to. It is crucial to have a plan for your ideal client profile or a target audience because if you don’t know who you are talking to, you won’t know what to say. As a small business owner, it is extremely important to select a viable target audience, meaning it is actually worthwhile to market to these people. Your audience should have a problem worth solving, have the ability to pay for your product or service, can be easily reached in large numbers inexpensively, and congregate often. Even if your target audience is small in the grand scheme of the population, there still needs to be a massive number of these people to stay in business.

Once you’ve established your target audience, it is your job to identify and understand their needs. Never allow yourself to take your eyes off of the customer and make every effort to intensify your relationship with them. This personal touch will lead to authentic marketing and help maintain your competitive advantage over large companies that have too many layers of bureaucracy to offer the same level of attention. Realize that your best and least expensive marketing vehicle is a satisfied customer.

When you are creating your marketing strategy, remember, keep it simple! Clever marketers are cognizant of the fact that the objective of marketing remains the same- achieving conventional goals, such as profits and success, with unconventional methods, such as investing energy instead of money. Keep in mind, a lack of resources and capital should not result in a lack of confidence. As a small business owner, you have the freedom to try new and innovative ideas, a luxury not afforded to huge companies. It is wise to begin your marketing campaign as soon as you’ve decided on a brand name and your product. Establish strategic partnerships or network with related business owners to start spreading the word and creating a consumer buzz around your product or service.

To thrive and prosper in this rapidly increasing world of small businesses, it is sensible to accept marketing as a never-ending process. Think of it as the breath to the life of your business. You could not exist with only one breath, so don’t think that your business will survive with one marketing effort. You keep breathing to stay alive, so keep marketing to stay profitable.

Affiliate Marketing + MLM = Newest Online Business

Can you say one plus one equals thousands? Well hold on to your hat because I’m about to introduce you to some new math. Most of us in online marketing know that two of the best ways to make money online are through affiliate marketing or through MLM, multi-level-marketing.

For those of you that are new let me briefly explain these two methods. First, affiliate marketing is simply selling something for someone else and receiving a commission for your work. Second, MLM is a team effort where you still sell but when someone buys from you, you not only make money from the sale to them, but they then become part of your team and when they make a sale you also make money.

Now here is the new concept that makes addition actually turn into multiplication. You simply find someone who has set up a business model that has combined these two online concepts and sign up for their program. Actually look for a new company with an experienced CEO.

The newer the company the better because as with most new businesses people who get in early on the ground floor are the ones who make the most money.

Look for company that has an entrepreneur CEO with a good tract record.He or she should already have at east one business venture under their belt where they have made at least millions, preferably billions in profits.

The next thing to consider is the sign up fee. Remember we are looking for a company with an innovative idea, We are investing in something that may never have been tried before. Don’t invest more than you can afford to loose. A free sign up is always best, but keep in mind there is always some risk involved. How would you like to have been in on the start up of Google or Facebook?

Lastly, implementation. Find out exactly what it is that you have to do to receive your part of the money. Assuming you lived in Haiti, if you had to sell Cadillacs right after the earthquake to make some money you would have a daunting task in front of you. If on the other hand all you had to do was write down the license plate number of cars that were destroyed in the earthquake and make some money you may be on easy street.

To sum it up, look for a business model that employs both affiliate marketing and multi-level-marketing simultaneously, find a new company with an experienced CEO, find a company with a free to moderate sign up fee, and join a company that ask you to do something that you are capable of doing and making money at the same time.

Double Your Referrals and Upgrade Your Clients With 5 Simple Steps

In studying successful entrepreneurs and professional business people, the most effective ways I have seen for growing your business and increasing your income includes a strategy of following up with your clients and customers.

5 Simple Steps to Double Your Referrals and Upgrade your Clients

Use a Personal Touch – The saying, “they don’t care how much you know until they know how much you care” is true in any business. The more personal your communication, the more effective the message will be.
Communicate a Slogan or Message Unique to Your Business or Service – Successful businesses and service providers understand how important creating a special saying or slogan it is for your success. You want to imprint your unique slogan or message in your clients and prospects mind. So every message you send them should include your slogan or message.
Be Consistent and Frequent – Your goal should be to personally touch your clients at least 18 times a year if not 24 to 36 times a year. To achieve this goal you will need to have a systemized process of staying connected to your clients. My suggestion is to have two systems. The two systems I use are greeting cards and emails. My goal is to send a personalized card once a month and an email twice a month. Without a system this would be an impossible task.
Use a System to Leverage Your Time – The most successful professionals and bussinesses create systems and processes that allow them to leverage their time so they can concentrate on their daily activities to run their business.
Have an Auto pilot System – The most effective referral generation and follow up systems work on auto pilot. When you can automate your follow up process, it produces amazing results with very little effort. If your system is not automated, if you are like me there are days where some very urgent things need to be taken care of and they will replace my follow up.

If you have a goal of increasing your referrals, upgrading your clients, growing your business, or increasing your income take the time to create a unique, personal, automated follow up system.