If you want to make your network marketing business profitable, there are two very simple ways to do it…and it goes to the absolute basics of economics.
Income vs. Expense: More Income, Less Expense
Your monthly income has to consistently be more than your monthly expenses. I told you it was basic!!! As simple as it sounds, many people have a hard time adjusting their lifestyle to adapt to their current income levels.
Make more and spend less…and you'll always be profitable. Out-spend and under-earn and you'll find yourself in a very stressful situation, one that makes building a business extremely hard for most people.
Two types of people I see in this business. I find that in extremely stressful, back up against the wall situations, where someone is totally strapped, run out of cash and has no other options left…they either come out swinging for the fences to save their life, OR…they run for the hills (not literally, in most cases!).
In network marketing, people feel the need to “SHOW the money”…as if we have to prove to our peers that what we are doing is actually working! Let me go rent a Range Rover so I can “look” like I'm making a ton…and pull it up to my one bedroom apartment is NOT a good strategy. Apartment “millionaires” are a dime a dozen…and these people spend more time “acting” like they are making money than actually making it.
Better to have money in the bank than in a car, boat or house you can't afford.
Don't Shorten your Runway…Keep it Long
Here's what I mean. If you have limited resources and high expenses, it will eventually catch up with you. You'll run out of runway before your plane has taken off. By limiting your expenses and really LOOKING at and making DECISIONS NOW on unnecessary expenses, you'll maximize your financial runway…and provide yourself enough time to get your plane (your business) off the ground.
The way to make your network marketing business more profitable is by being thrifty and not over-extending yourself. The earlier you catch it, the better off you'll be.
Again…Economics 101, but worth mentioning since so many people over-extend themselves. And…it's not just the smaller earners or those starting their businesses that do it.
It's super easy to get caught up in spending: houses, cars, clothes, boats, trips…stuff. And…I can tell you this. Life rains on everyone. Storms hit all of us, and those that are prepared are able to weather them (financially speaking).
Checks to Grow Forever, 100% of the Time
Understand this right now if you're a full-timer and making good money. Your check won't ALWAYS be on the growth curve it may be right now. Your business could be on fire and incredibly profitable at this moment. BUT…but, if you allow yourself to keep extending and over-extending and borrowing and buying and accumulating…it will eventually catch up with you.
My dad said “save for a rainy day.” My old friend Jack Parr said, “Save your money kid. You don't want to grow up like me!”
Be financially wise and live within your means…better yet, well BELOW your means and keep an eye on the way your business and spending is trending.
Two Way to Make your Network Marketing Business Profitable
It comes down to two very simple strategies.
You control both. This super simple.
Make more by being more engaged, more focused, more intent and more consistent. Make more by getting better, by being humble and willing to learn and try new things. Make more by focusing on revenue producing activities and being smart with your time. Work when you can reach people. Use your time wisely.
Spend less by looking at your monthly expenses. What's necessary? What can you reduce or get rid of altogether? I realize that we may LOVE the boat that costs us $800 a month…but is it really necessary right now? If your business is suffering and you're sliding backwards every month, I'd say it's an unnecessary expense. It's just a “thing” anyhow. Things are everywhere and can be re-acquired at any time.
Your mantra should always be “make more, spend less.”
Live like that every day…and you'll have comfort, calmness and peace of mind.