Let’s assume for this article that MLM is a real business model and it is anopportunity to make money, which I don’t believe it is, I think it’s a total con. However let’s see how realistic this opportunity is to make you money to replace a real job. How do you know if it is working? One of the most sure fire ways to find out is to track your finances.
This part of your ‘business’ is really important and if you’re really serious about having a go at trying to make your MLM business work, you have to ensure you make a profit.
We’ve stated before, only a very small percentage of people in MLMs make a profit, more than 99% lose money or break even.
There are some people who stay in an MLM and don’t recruit, who purely sell products and don’t buy inventory. That’s how Direct Selling should work, but for the majority of people it doesn’t. It is therefore important if you’re in an MLM, that you track your finances.
Our friends over at MLMTruth have created a special spreadsheet for you to use, free to download, to keep a record of all your income and expenses. You can find it here:
Please use this tracker instead of anything your company or upline gave you, we speak from experience that not all MLMs are as transparent as they should be in their training. If your MLM gives you any ideas on how to reinvest your profit; don’t!
You do not have to put money back in a business. When you have a minimum order requirement to keep your account active and you do not need the products or have sales against these orders, then you’re warned.
This is a sign that you may not be making a profit.
You do not have to keep inventory. If you already have inventory, run it down first. Ensure you don’t buy anything new until you’ve run out of inventory. This is how they get you, try to get away from the FOMO, you are not missing out.
If people want to buy something that you do not have in stock, tell them you haven’t got a product in stock. If they wish to order it through you, that is fine, but you cannot place an order until you have enough to order to make the minimum order volume, this can take a few weeks.
Make a note of what you have in stock, how much it has cost you and how much you’re selling it for.
Good luck!
Comments