By Kevin Ihrig

Mike Dillard has been an active author of late writing books and partnering in several trainings over the last few years. His book Magnetic Sponsoring is fast becoming a new standard in the MLM industry, and covers how to build a thriving MLM business. In writing it, he has covered several subjects, but left out an important item that often trips up new network marketers in many companies. This article explains what it is it and why so many find it of great importance.

Business Success
For you to have a growing network marketing home business, you will need to put together a budget, for any opportunity. Mike Dillard mentions that you will spend some money, but doesn”t ever put it all together and explain how much it will be. He covers well the opportunity seeker leads he bought and his belief that training is very important - he spends a great deal himself on training.

The Trap
Many distributors sign up, but some product, go to a training, then find they don”t have the resources, or specifically the money to run their business. They can”t get marketing tools, the don”t have product to sell, they already use all of their cell phone minutes.

Now what?

To get started, you will need to spend on a few important categories:
1. Autoship: You need to buy a certain amount of product every month. Usually about $100 or less.

2. Leads: After you run out of your closest 500 friends to call, you will need more. Where will you get them? Read Mike’’s book to learn his answer, and plan on a budget of a couple hundred, $200 or whatever you feel comfortable with for the first few months until you can turn a profit.

3. Meetings, trainings, books, marketing materials, demo kit: Many companies have all these things, and you will need them in abundance. One hint: don”t buy everything until you need it, but don”t be chincy.

Your business will need tools and equipment. You could spend $200 - $3000 for this category. Depends on you.

4. Product to sell: If you have joined a plan that can generate retail profits, and all should, then expect to buy product. At least $500 for this, but some spend up to $5000. Careful! You don”t want a garage full of product you can”t use. Start a bit small and sell it, then order big.

5. Tools not from the company: a cell phone, a computer or laptop, gas for your car, an internet connection, and so on: these you probably have already. You may have to spend more money on these items to reach success in your opportunity. If you plan for $100 in this category, for some gas, your internet connection or cell phone minutes, at least you have something in place.

A side note about conventions:
I have been to several conventions and large events for various companies. These can be expensive, such as when I have flown or driven across country to go to one. I won”t tell you not to go, since conventions can be a great boost and help you get to know people to work with and who can teach you.

Just consider whether you need to go to a convention on credit. If you can handle the cost easily, I”ll tell you I enjoyed the ones I went to. If I had to go entirely on credit, I”d be more skeptical. Think about a large regional event instead.

Why think about a budget? Don”t I just need to believe in myself?
I can tell you just watched the Secret, right? Yes, the Law of Attraction is powerful, but you still need a place to sleep. Set yourself up for success by seeing what resources you have.

An Example
Let’’s say you want to go on a vacation. Would you pack your bags and show up at the airport on belief alone? Not that you couldn”t, but I”ll bet you have to be flexible with your destination and traveling companions.

Instead, you might think about how much you have to spend. You would look at how much hotels cost, or where you can find good campgrounds to keep the cost down.

You”d look at how long you want to be gone and what you feel like doing. Do you like mountains, the beach, expensive jewelry, heli-skiing, scuba diving and underwater photography in Fiji or Cozumel, or off road racing like Mike Dillard in Baja California. You have a hundred options, but each costs a different amount and takes a different amount of time.

Budgeting for your new mlm business works the same. How fast do you want to succeed? Really fast? Then maybe you want to quit your job and spend your inheritance on great, fresh leads (if you can find them).

Do you have the resources to make that work? A budget answers that question.

An MLM Success Story
I recently listened to the mlm experience of a very successful leader in mlm, Mark Wieser, Mike Dillard’’s recruiter. He had time in his car to make phone calls during his 2 hour commute. He used his drive time to recruit by cell phone. He spent a couple hundred extra on more air time for his phone to make it work, and he bought leads.

He became an excellent recruiter, but he spent months to improve and build a business of loyal distributors. Also, adding 20 hours a week to the time he spent in his business helped immensely.

Other than the cell phone, he had product on autoship, and the cost of the leads. Just estimate this at about $400 per month. Would that work for you? Can you spend $400 or so and 20-30 hours a week for a year to become successful?

The End Game
If you have an idea of what is required, you will do better. Even if you have only time and no money, you can start, you just need to use different methods. Mike Dillard wrote a good book, and with some information on budgeting, you will be better prepared.

About The Author

Want to learn more about how to be successful in MLM? Come to MarketingCusp.com.

This entry was posted on Monday, December 22nd, 2008 at 12:55 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.