Saturday, March 7, 2009

Why Buying Leads Can Kill Your Chances For Survival.

So many get into their first business with high hopes and an open mind and are quickly given the worst advice imaginable. It happened to me.
What was this advice?


"Get out there and get some leads so you can get a team under you so you can cover your costs."


Bad advice on two points:


1- Buying leads takes a major point of control away from you as a marketer. You're paying someone to give you leads, and you have no control over where they come from, who they are, how many other marketers have bought them also, and you don't know how fresh they are. THIS IS BAD!


2- Trying to recruit your way to a situation to where your costs are covered is not something that will happen very quickly. The money you earn in your network marketing business is cut up into 100s of small pieces to suit your compensation plan. Of the money you bring into your company, you only get a small portion of it. This is not necessarily a bad thing, because this leverage swings both ways. Once you have a big team under you, those small pieces start to add up into something significant. You're just not going to make much money quickly by trying to recruit your way to covering your costs.


This is what happens to most network marketers when trying to use this tactic.
You spend hundreds on leads this month, and hundreds next month, and then again the month after and etc. Now you no only have your monthly membrship cost to cover, you have this huge advertising expense to recoup AND to make matters worse, you're trying to with recruiting. This situation will take you years, if ever to recover from.


It's like trying to dig a hole and every time you shovel out a scoop of dirt someone puts two scoops back in with another scoop for good measure. Now you got a little mound growing in front of you and you started with flat ground. You look over at your sponsor and say, "hey this doesn't look like it's going work." He says " just keep digging, thats how it works. If you dig long enough and fast enough you'll make it work." You keep digging and that once flat grond is now a full grown hill. You look in disgust and realize you have only made the problem worse. Either you did things completely wrong, or you were just not told the most effective way to dig a hole.


You didn't do anything wrong.


You just used on of those children's yellow plastic beach shovels when you should've been using a backhoe tractor. Profitable network marketing happens when you have a marketing system set in place that actually pays for itself and will continue to pay for itself even when you commission check doesn't cover all the costs. There is a much faster and better way to get past the brak even point in your network marketing business, you want to attack the situation head on.


Also take a look at my primary business that is taking the country by storm: http://www.raydavishomebiz.com/

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