Self Funding Your Online Business
In corresponding with many of the people who are interested in getting involved in the different business opportunities that I am involved in, one of the questions or concerns that continually surfaces is the prospect of joining or upgrading to a position in the business where it may cost $30 to $50 a month in basic expenses.
One of the primary elements that you need to consider if you are seriously interested in developing an income while you are working at home is the ability to commit to a minimal expense, at least initially, in order to start the income stream.
Many people that are searching around for a home business see a lot of the hype that is out there which indicates you can make money without spending any. After over fourteen years of operating online businesses, I can tell you that it is not so, I don't care who says it. You are going to have to spend some money in order to make money. Think about it. You see an advertisement or read a promotional page that says you can join for free. It also tells you that you can build an income of thousands of dollars. If it was truly free, where would the company get the money to pay you commissions? Yes, there are many businesses that you can join for free. But in most of them you are going to have to upgrade at some time in order to qualify for commissions on sales.
There are some ways that you can start your own business for free. Many companies offer free affiliate membership where you can sell their products/information for a commission. All you have to do is use the promotional link they give you and when you make a sale, you get a commission. However, in order to sell the products you are going to have to do some advertising, maybe even get yourself a web site at some point. That will cost you some money.
So let us talk about how you minimize those monthly expenses by insuring that you become self-funding or in simple terms, profitable in the shortest amount of time. Understanding how this works can insure that you can be successful and then explain this to others who you will want to get on your team and help them to success.
I mentioned above that you need to spend some money in order to make money. That is true in any business. And many of you will say - but I have a minimal amount of money that I can spend on something like this every month and $30 to $50 is a lot. Ok, it is a lot for many people. On the other hand if you go out to dinner once a month or buy 5 packs of cigarettes you are going to spend that much. So how do we minimize the monthly expense.
Let me give you a live example here.
I recently became involved in an online business. One of the membership benefits is 64 to 72 tickets in the Florida lottery each month. You can also become a Team Captain and promote the business and receive monthly residual income. Basic membership to become just a player is $25.00 per month. The Team Captain position is $50.00 per month. If you are looking at it as a business then you would want to join as a Team Captain, so it would cost you $50.00 per month (initially).
How do you reduce that monthly cost to $0 and make this business self-funding?
You can personally refer two (2) Team Captains and at that point you have covered your monthly expense, since you receive $25.00 commission for each Team Captain you refer. Refer more and you get yourself into profit. The cost of your next monthly subscription would now covered and you have funded the expense. Everything you start making above that is pure profit and you are on your way. But even if you have only referred one Team Captain your first month and received only a $25.00 commission, you have cut your monthly expense in half.
Your self-funding starts the minute you make that first sale and earn that first commission. It may take you one month or maybe you will fund it over a period of several months.
Your goal is to get your monthly cost fully self-funded as soon as you can.
In my case with this business, in my first month I referred eight Team Captains so my first month commissions were $200.00. This covered my monthly membership, gave me over 120 free tickets in the lottery on which I could win 10% of the winnings, plus I had a little profit. And as long as these eight remained active each month, that income would be residual, i.e., I get it every month for work I did once. Each new Team Captain I refer each subsequent month will increase that residual plus give me more chances at winning the lottery.
Many people, like myself, will take the funds that I would have devoted to the monthly membership fee plus some of the profit and apply that to advertising to steadily build the business.
The bottom line is, if you have a small budget to work with, concentrate on getting those first couple of sales or whatever it takes to cover your basic monthly expense. Make sure you study the compensation plan and know exactly what it takes to cover them and make that your goal.
One of the primary elements that you need to consider if you are seriously interested in developing an income while you are working at home is the ability to commit to a minimal expense, at least initially, in order to start the income stream.
Many people that are searching around for a home business see a lot of the hype that is out there which indicates you can make money without spending any. After over fourteen years of operating online businesses, I can tell you that it is not so, I don't care who says it. You are going to have to spend some money in order to make money. Think about it. You see an advertisement or read a promotional page that says you can join for free. It also tells you that you can build an income of thousands of dollars. If it was truly free, where would the company get the money to pay you commissions? Yes, there are many businesses that you can join for free. But in most of them you are going to have to upgrade at some time in order to qualify for commissions on sales.
There are some ways that you can start your own business for free. Many companies offer free affiliate membership where you can sell their products/information for a commission. All you have to do is use the promotional link they give you and when you make a sale, you get a commission. However, in order to sell the products you are going to have to do some advertising, maybe even get yourself a web site at some point. That will cost you some money.
So let us talk about how you minimize those monthly expenses by insuring that you become self-funding or in simple terms, profitable in the shortest amount of time. Understanding how this works can insure that you can be successful and then explain this to others who you will want to get on your team and help them to success.
I mentioned above that you need to spend some money in order to make money. That is true in any business. And many of you will say - but I have a minimal amount of money that I can spend on something like this every month and $30 to $50 is a lot. Ok, it is a lot for many people. On the other hand if you go out to dinner once a month or buy 5 packs of cigarettes you are going to spend that much. So how do we minimize the monthly expense.
Let me give you a live example here.
I recently became involved in an online business. One of the membership benefits is 64 to 72 tickets in the Florida lottery each month. You can also become a Team Captain and promote the business and receive monthly residual income. Basic membership to become just a player is $25.00 per month. The Team Captain position is $50.00 per month. If you are looking at it as a business then you would want to join as a Team Captain, so it would cost you $50.00 per month (initially).
How do you reduce that monthly cost to $0 and make this business self-funding?
You can personally refer two (2) Team Captains and at that point you have covered your monthly expense, since you receive $25.00 commission for each Team Captain you refer. Refer more and you get yourself into profit. The cost of your next monthly subscription would now covered and you have funded the expense. Everything you start making above that is pure profit and you are on your way. But even if you have only referred one Team Captain your first month and received only a $25.00 commission, you have cut your monthly expense in half.
Your self-funding starts the minute you make that first sale and earn that first commission. It may take you one month or maybe you will fund it over a period of several months.
Your goal is to get your monthly cost fully self-funded as soon as you can.
In my case with this business, in my first month I referred eight Team Captains so my first month commissions were $200.00. This covered my monthly membership, gave me over 120 free tickets in the lottery on which I could win 10% of the winnings, plus I had a little profit. And as long as these eight remained active each month, that income would be residual, i.e., I get it every month for work I did once. Each new Team Captain I refer each subsequent month will increase that residual plus give me more chances at winning the lottery.
Many people, like myself, will take the funds that I would have devoted to the monthly membership fee plus some of the profit and apply that to advertising to steadily build the business.
The bottom line is, if you have a small budget to work with, concentrate on getting those first couple of sales or whatever it takes to cover your basic monthly expense. Make sure you study the compensation plan and know exactly what it takes to cover them and make that your goal.
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