Are you making money?
Are you making money in your direct sales or network marketing business?
Really, truly turning a profit?
Sure, you can point to that party you did last night, or those sales you made last weekend, and show the commission you earned as a result of those sales.
But have you considered what it cost you to make those sales? The postage, the business supplies, the product samples you purchased, etc?
A lot of times detractors to our industry say that direct sellers that make very little. But why do some people make only a little? It’s usually one of two things:
- They’re not putting in the time.
- They’re spending more than they’re making.
If you want to make money in your direct sales or network marketing business, you have to be a good money manager. Just like any other small business, you have to track your income and compare it to your expenses. That will help you make better decisions, and make more income.
For example, if you track, you may notice that you’re spending a lot of your income on product samples and business supplies. By taking a moment to be aware of this, you might decide to host a party yourself to earn free product credit for samples. You might decide to put in a few more hours this month so you hit the level at which you get a credit from your company for business supplies. Those two small decisions might make a big difference in the income you earn that month.
Here’s another example: You’re making some commission on the sales of your team. Yet you’re spending a lot more on gifts and other bells and whistles to motivate them. By realizing this, you might decide to put into place a coaching system, weekly call, or other incentive to encourage greater productivity in your team.
You must get a handle on how much you’re spending, in order to know how much you’re earning. And if it isn’t much, you need to make the changes that will allow you to earn more.
You can’t just guess at how much you’re making. If you’re truly in business, get out a spreadsheet and start tracking. It will help you make better decisions, and make your business more profitable.
How do you keep track of what you earn? Would love to read your thoughts in the comments below.
by Jennifer Fong