Negative Cash Flow Right At First Why most Quit MLM
The negative cash flow that most network marketers face right off the bat, when they first start their mlm business can be a crushing blow. Fact is, nobody really even told them to expect it. (Were we maybe afraid they wouldn't sign on if we told them?)
It really is an unanticipated part of the business that just grows insidiously. We expect to pay for our "kit". They did tell us about that.
But the little things really start to add up. The $10 "contribution" for the hotel meeting. The gas. The phone bills. And then we discover we cant get the higher commisions until we meet certain personal sales goals. Guess what? One way to do that is to buy more stuff for ourselves! (This, of course, is frowned on by the Company - but sure enough, they send the order and bill you for it!)
And, of course, we should keep enough $400 sales kits on hand so that we are ever ready for that new recruit, and can get her going instantly.
Probably lots more examples of negative cash flow that just dont come to mind right now, but the classic is probably having to buy leads.
There are a few hyper-manic individuals out there who probably gain nourishment from bugging others till they "buy or die".
They love leads. They ran out of their 200 "Friends and Family" a long time ago. You know who they are. Two or three cell phones, an ear bud and constant motion.
The problem is, most of us aren't like that. we function in a comfort zone, that for the most part, wont allow us to spend hours hounding people we dont know - and who are likely not even interested in our "great money-making business opportunity" in the first place.
And we haven't even discussed how useless most purchased leads are, anyway.
Most purchased leads are a bust. But many people have driven their credit card bill skyward trying to make them work.
And the income is no match for the outgo. It's a bit like Vegas. You've lost some money, so you bet a little more to catch up.
"Good money after bad."
So there are lots of ways to spend money in an attempt to make money, but in any industry you should have some idea of what you are up against. Planning to become a dentist? school teacher? welder? electrician? You can pretty well predict what your investment in money and in time is going to be.
Foolishness is dumping money indiscriminately into a project.
But what if you didn't even have to spend much money to make your mlm business work? What if there were no negative cash flow?
If you set up your new online mlm business correctly, after a small initial investment of time and money, you can begin to realize an income, a positive cash flow at the same point that the average "uninformed" mlmer is just starting to spend, spend, spend.