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The conference calls, the 3-way with your upline, the seminar, the presentation, are all methods designed to bring new people into your magnificent online opportunity. It might be the best thing since sliced bread or the greatest invention since the light bulb but if you don't explain how a business works in comparison to a job, then you face some hard times ahead...

Never forget that the majority of people you talk with are employed by a company that pays them a wage. They are used to exchanging time for money. A business is not a job, it is a building process where re-investment must over-ride all else. It is vitally important that a new prospect is made aware of this process and that they understand what must be done to sustain growth.

If there is no re-investment of profits in your online business, you are killing your future. Your profits should be put back into your business for sustained growth and not buying a new car.

So you need a new motor and you have been made this fantastic offer... But hey... Stop and think a while here... Is the dealer who sells you that new car going to spend the profit he makes on something frivolous? No, he is going to put it straight back into more new cars and find more people just like you. Then, when his stock level starts to overload, he will sell those cars and take all the profits, without affecting his business.

You might have started an online, part-time business and you have another source of income. That is great but you need to initially invest and then re-invest most of your profits back into your business. Re-invest for growth. When your online business grows, then you can start thinking about a new car and probably one that is classier than the great deal you were offered previously.

The concept is simple when starting a new venture: Keep your living expenses low. Cut back on the things that are not necessary. Fuel your business as much as possible and look to the future.

This is a culture shock to those who have always relied upon a paycheck. Someone who is already self-employed will accept these things as normal. So, changing the mindset of an employed person at the inception of a business, will better prepare the newly self-employed for what lies ahead.

Here is some advice about re-investment:

1. At least 50% to 70% of every dollar you earn should be spent on advertising.

Profits are not a ROI (Return on Investment), until your business can sustain normal growth. If you want your business to grow, you must re-invest in your business. Perhaps you spend $1000 a month on leads for your business. Those leads may result in $2000 in new sales. Instead of taking the $1000 profit and spending it, what if you re-invested it, and bought $2000 worth of leads for your business? You could end up with $4000 in new sales the next month. Re-investing your profits this way can grow your bottom line, but you must be patient in the meantime and not be tempted by self-gratification.

2. The Best Investment - Helping your downline grow their downline.

In a downline program, such as a Network Marketing/MLM program, where you earn residual and leveraged income, you can re-invest by spending time helping members of your downline grow and improve their businesses. This will take more time than money and as they improve, you will see a direct result on your bottom line. Call or email someone in your downline and ask how you can help them grow their business. Never be afraid to invest in your downline, because their success is your success. If they do not move, you are stuck! It is far easier long-term, to be a responsible sponsor. You don't want to become a recruiter...

3. Communications and Marketing materials.

Today, communications can be established easily and quickly. VOIP services are mostly free when used peer to peer and most VOIP providers also offer a cut-price service for phoning someone PC to landline. If you have proven marketing materials, or a system that works for anyone, that can also be incorporated into your USP, Unique Sales Proposition. Again, investment in this area can also help you maintain and grow a stronger online business.

4. Performance Related Benefits.

Running a competition amongst your downline can sometimes be a great incentive. Making it worth their while is essential, so look for what is working best in your online business and make it a prize worth winning.

Michael A Fowler, M.B.A.
Helping people to succeed online since 1999.

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