An important attribute of each successful businesses is that of the management of margin. The money cash is oxygen, or the life giving the blood of each businesses. Without them, businesses cannot survive. Unfortunately, much of purchasers of network 't put earn money simply because they put 't include/understand the concept of the management of margin.
Glance left 'of S to a very bad example of management of margin. General Motors. General Motors was very badly controlled during a completely certain hour. In this moment, because I write this, it is on the edge of the bankruptcy, in spite to receive approximately $20 billion in the federal assistance. Without entering too much detail, problems of GM 'of S come from its satisfaction and the continuous payment of the wages and the advantages to people who are not employed any more.
This automatic giant had gilded himself too a long time in his successes passed, he did not embrace and did not adapt to change and did not give to purchasers the cars which they want. Cars of GM 'of S are simply not good enough. Consequently, in recent years, it hemorrhaging literally money. In November 2007, the GM brought back the larger second quarterly loss in the history of the USA of $39 billion, or roughly $427 million per day. When you 'about the money losing who fast, you are extinction of the businesses!
I the 'VE learned how to read Robert Kiyosaki 'books of S which when it buys investments or companies, it must earn money starting from these investments of the day one. In other words, it invests for the margin, by its own definition of a credit and a liability. I.e., the capital feeds you (the money gives you, whether you like it or not) and the responsibilities eat you (takes your money, whether you like it or not).
This must be same philosophy that the purchasers of network apply to their companies. To enter the benefit as soon as possible. Afterall, you 'about the test to build capital of margin which feeds you right?
As a contractor must evaluate each activity to you your make, money that you are expenditure and which returns they produce on your business. This is called comprehension of your metric of businesses.
Let 's tell you 'about a traditional purchaser of network, establishing your business like the majority of the other purchasers of network. You 're on the monthly program of autoship for your company 'produced S, which is calculation of the costs you money. You 're on the monthly educational program, which includes Cd and the books of motivation. That 'calculation of the costs of S you money. You go diligently to the meetings each week, which cost you money. And you attend an important function every month, which costs you money.
Now let 's say that you 'the VE fixed an appointment face to face with a prospect to show him your action plan. Maintaining this prospect, as the majority of the prospects for MLM are right a researcher of commercial opportunity. In other words, him kickin tires of Sright. He 's not a serious contractor.
Thus you meeting it for an appointment. You whip outside your MLM of confidence prospecting the system, your materials of support for the companies which could include Cd, books and a DVD of the people taking of the pleasant holidays. These materials have naturally, cost you money. But nevertheless, they the 'VE worked. After revision of the material, your prospect is excited and joint upwards.
In weeks first, it tests some of the products and likes them. It shares commercial opportunity with his friends, using the same MLM prospecting the system that you made. None them wants to join it. Like the typical researcher of commercial opportunity, when it has with aucuns results for the first several months, it stops.
Now, think of the return on investment you the 'VE last of this prospect. Money obviously lost to you 'of the VE. What 's worse than this, think of every hour and energy you 'the VE spent recruiting this prospect. Time that you will never return.
This is why it is so important exposure your business to the people concerned. Prospects which you qualified. People who want seriously to make a modification during a better life.
Now, I 'm not indicating this autoship, your monthly educational program, meetings, materials of support for the companies is not and similar important. They are. But you must objectively move back and evaluate your returns on your expenditure.
Here 's where the purchasers of network should take a sheet of the books of the marketing of direct answer. The successful purchasers of direct answer find initially the good market for that which they must sell. That 'council of large SA. Then detect the costs of each little announcing of them make and then evaluate how much they the 'VE spent on announcing by acquired customer.
They also learned how to evaluate the value of life of a customer. I.e., the return on their investment of publicity of each customer. They always examine in order to try to reduce the cost to acquire a customer.
I 'm not stating that you must go to the nth degree to evaluate your costs, but making a certain objective analysis in the costs run your business can really provide you some perspicacities in the long-term profitability of your efforts.
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