Ways To Fund Your Network Marketing Business

Lack of cash flow can kill your network marketing business before you really even have a chance to get it off of the ground.  In fact one of the primary reasons people quit network marketing is because they are spending more on their business than they are bringing in from it.   Negative cash flow doesn’t work in a household budget and it most certainly doesn’t work when building a network marketing business either.

The Cost Of Running A Network Marketing Business

Often times a new distributor enters the world of network marketing with a very short term perspective.   They are focused on the initial start up cost of joining their company and purchasing a starter kit, but they have given very little consideration to the ongoing expenses of operating and growing their business.   In reality, there are many more ongoing costs associated with running a business.   These costs include fixed costs for things like the auto ship, phone service, web hosting, email autoresponders and domain registration.    In addition to these fixed expenses are the variable and non-fixed expenses like business cards, gasoline, training and travel.   When these expenses are added together they can end up being several hundred dollars per month.   Unless  the distributor is producing that level of income from their network marketing business, they will be in a constant state of negative cash flow, tapping into their personal finances to fund their business.

Creating Funding Streams For Your Network Marketing Business

Words like “diversification” and “multiple streams of revenue” are common in the business world.  Unfortunately, most network marketers have tunnel vision when it comes to how they fund their business.   Their focus is solely upon their primary company and product.   While this can create some immediate funding, especially if the company has a lucrative retail sales component attached to their MLM compensation plan, this requires a substantial amount of sales volume that may not be possible in the early months of a new business.

The real key to developing a solid funding system for your network marketing business is to utilize multiple related streams of income that compliment your primary business.   This not only allows you to generate income from the retail sales of your company’s products and services, but it allows you to diversify the income to create greater synergy for your business.

The easiest way to develop additional revenue streams is through the use of affiliate marketing relationships.  Through these relationships the network marketer offers related or complementary products and services to help not only add value to their customers, but also to create new sources of income for their business.

In the world of network marketing, the real key to success is the growth of your sales organization.   The best course of action is for a network marketer to offer products and services that are beneficial to other network marketers.   This not only creates value by positioning the marketer as a leader, but it also allows the marketer to identify other like minded entrepreneurs, who may be a good fit for their business.

In my own business, I have chosen to utilize MyLeadSystemPro to achieve this outcome.   MyLeadSystemPro has 17 different affiliate relationships built into their system and they provide the training that allows you to profit from those relationships.   These affiliate relationships are with different business building tools that are offered via automated correspondence sent out by the system.   When a marketer utilizes those tools in their business, it creates revenue in mine.   I have been doing this for over a year and a half, during which time I receive multiple checks each month that have afforded me the opportunity to expand my network marketing business and run at a profit month in and month out.

Learn more about funding your business the same way by visiting the MyLeadSystemPro website.

If you are serious about seeing your business succeed, you need to take the steps necessary to fund your network marketing business for the long haul.