When a person decides to embark on such a venture as network marketing, they do so for several reasons. Among those reasons are worthwhile goals, such as subsidizing their income, or even replacing it. And the one aspect of networking that makes it seem possible is that the cost of running a business of this kind is relatively low, perhaps the same as being a die hard sports fan.
The various costs can be drawn into four categories:
- Weekly
- Monthly
- Quarterly
- Product
Weekly Costs in Running a Networking Business
When a person begins networking, they may not be aware that to seriously pursue this part time venture, it's going to take them out of their home on nights and weekends.
Following the contacting of close friends and relatives, building a network will be done by cold contacting, much like it is for mortgage brokers, and not like it is for realtors, who can gain new clients through walk ins.
For this purpose, it is reasonable to assume that on a weekly basis a person will be driving twice as much as they had been before, making two fill ups where there was just one. If the meetings are being held at diners or coffee shops, then an extra $10-20 can be assumed for lattes and cappuccinos.
On top of this, there is an educational program that is often done through distance learning on books and CDs, as well as through live seminars. Weekly CDs cost $7 each plus tax, and it is common for two to come in each week with one focusing on the technical areas of networking and another on motivation, self-esteem, or relationships, costing roughly $15.
Minimum weekly expenses for building a network can range from $65-115 depending on the gas mileage of one's vehicle assuming that they are working within a 100-mile radius that has no toll roads, such as those on Staten Island or Long Island, New York, averaging to $85 every week, or $4,420 each year.
Monthly Costs in Running a Networking Business
When it comes to monthly costs, a hard charging networker will not find it uncommon to be changing his or her oil every four to five weeks. On top of this increased vehicle expense, there will be monthly training seminars and a book of the month that will serve as professional reading.
Seminars usually cost no more than $20 and the books range from $10-20. In going to the seminars, it should be noted that one should account for both breakfast and lunch if it is going to be out of town, increasing monthly expenses between $0-30 depending on one's tastes and budget.
Since oil changes would have occurred every three months before, eight oil changes would cost between $15-30 each, and the monthly expenses (not including those incurred on a weekly basis) for the year come to a total of roughly $500.
Quarterly Costs in Running a Networking Business
Every quarter there will be a weekend-long event from Friday night through late Saturday, sometimes spilling over into Sunday.
Tickets for these events cost $100. Travel costs can vary depending on where they are held in proximity to where one lives. Someone in California would likely have to fly to an event on the east coast, just as someone living in Ireland would have to take a ferry over to London. Travel in these cases can be from $0-$500.
Then there is lodging for those who do not live, or have relatives, nearby. Rates can be found in some towns for as low as $40, and reasonable lodging does not have to exceed $100 a night. When this is split with another person, it can keep the weekend's lodging costs at $100 or less. Another $100 should be set aside for food if one will not be bringing his own.
Quarterly costs alone amount to roughly $500, or $2,000 a year.
Product Costs in Running a Networking Business
Most people who join a networking company do so with the expectation of buying similar products from another company. Women who sell Avon cosmetics, for example, usually already wear makeup.
But there are some products that networkers will want to sell that they do not normally use. Amway Global IBOs, for example, have exclusive access to XS energy drinks and Nutrilite health supplements. If one does not use these products, it would be unwise not to try them before marketing them.
Part of marketing may include giving out free samples, whether they be cosmetics, supplements, or cleaning supplies. For this, a networker should consider setting aside a minimum of $50 each month.
Total Annual Overhead
Overall, a person working in network marketing can expect to incur a regular overhead of about $8,500 every year, necessitating an income of roughly $710 every month to break even.
This total does not include car maintenance and repairs that will be a direct result of being in the networking profession, but it should be noted that tire wear and tear, as well as those on the belts and other parts, will be increased due to more time on the road.
All in all, the relatively low overhead of operating this kind of business could be a fair argument that network marketing is an affordable pursuit for those who wish to build a business on the side of their full time career.
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