MLM ROI - The Best Way To Recover Your Network Marketing Expenses

  Written by Jaz Lai on Oct 7, 2008 3:59 pm

Read More: Discipline  |  Leadership  |  Personal Development

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Are your network marketing expenses burning a hole in your pocket? Expenses are one of the main reasons for attrition in network marketing. So how does a network marketing rep combat attrition? By helping your downlines and yourself to achieve a good return of investment (ROI) in your business.

Read on to find our how it works…

The first thing you need to do is use the internet. It is a great source of free traffic and the only way to tap into the global market that is there for the taking. You can achieve all kinds of success without even having to leave your home. So forget commuting, flash clothing and expensive lunches. Get a web-presence and go for it.

The second way to get a great ROI is to sell generic, front-end products to your network marketing prospects. Yes, you do this over the internet too. This is keys to generating a good return of investment, particularly if you are using paid-for traffic, for example with Google AdWords. If you are spending $0.10 for each click, 200 clicks would cost you only $20.

If your capture page produces a 20-40% opt-in rate, you would have about 40-80 people opting in to your mailing list. And if you have written your web pages well and made it easy for people to sign up then this is an achievable figure. 20-40% is a very moderate rate, it could easily be a lot more.

Say those out of these 40-80 people, 1 decide to buy your product. Now suppose every sale earn you $20. You have now recovered back all your cost, and $20 is really easy to convert product.

Okay, now that you have recovered back your cost.

These 40-80 people are now in your mailing list. Only 1 of them bought a product this time but you have the chance to try again. You can send them all another offer, promotion, sales letter, low or high ticket a week later, and another a week after that. Every time you make a profit you are recovering costs from the same list!

Even better, you can pitch your network marketing opportunity to these 40-80 people. If they decide to join your business, you will have not only recuperated your advertising costs, you will have also generated extra cash flow for your network marketing business which can be reinvested into more advertising and more leads for your mailing list.

So, it is easy to see that one shouldn't focus only on the expenses - that is only part of the picture. One needs to focus on the ROI to get a true picture of the possibilities in network marketing. A business person knows that you need to invest in a good business to make it a great business. You have to spend some money in order to make lots of money. Don't be mean with your advertising budget. Optimize your lead-capture pages and give people relevant offers - you won't have to waste money or time on cold calling ever again.

Jaz Lai is a home business network marketing expert. Download your free white paper and audio on how to use the internet to Double or Triple your organization within the next 30 days. Available for the next 24 hours only, click below for instant access :http://www.HowToNetworkMarketing.com

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