subject: Mlm Cash Flow Cannot Be Ignored [print this page] The importance of cash flow in you MLM business cannot be understated. Thanks to Robert Kiyosaki, the importance of cash flow has become prominent in the minds of people everywhere, but it is especially critical in MLM. Statistics tell us that the average person stays active in their network marketing business for a period of only 63 days. A lack of cash flow in their MLM business is the number one reason for this short business tenure. Cash flow cannot be ignored if you are going to build a profitable MLM business for the long term.
To illustrate the importance of cash flow, let me use a hypothetical illustration. Mike and Mary join XYZ MLM company, after attending an opportunity meeting at a local hotel. This couple has been given a business building blueprint to follow by their upline distributor that includes the following action steps:
1. Set up an autoship order
2. Attend weekly team meetings
3. Attend quarterly business conferences led by XYZ
4. Conduct one home meeting each week
5. Purchase training materials and motivational resources
Sounds simple enough doesn't it? Now let's consider the cost of those things.
1. Set up an autoship order - $150 per month
2. Attend weekly team meetings - $30 per month for gas
3. Attend quarterly business conferences - $300 for lodging, meals and fuel
4. Conduct one home meeting each week - $160 per month for snacks, handouts, etc...
5. Purchase training materials and motivational resources - $100 per month
Now bear in mind, this is an overly simplified illustration that doesn't take into account things like printer ink, business cards, web hosting, advertising expenses, etc... In this illustration, the monthly expense of operating this business is $540 per month. The funding of this expense must come from the personal cash flow of our couple, and if there is no cash flow it must come directly from their pockets.
Many of those who enter into MLM are entering the business, because they are trying to relieve the financial pressure that is already upon them. If their mlm business is not producing suffficient cash flow, then that money is coming out of their pockets, or even worse causing them to accumulate debt. It is imperative that anyone involved in a multi level marketing business opportunity learn to create sufficient, ongoing cash flow if they are to build a long term business successfully.
It is crucial that you not only understand the importance of cash flow, but also learn to use a monetized marketing funnel for the purpose of generating cash flow in your business.
by: Carl Willis
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