Is The "At Home" In Your Work At Home Business?

Have you ever thought about the fact that most people with a "home" business probably spend more time outside their home working their business, than actually being at home?

With the exception of certain types of home based businesses, most, whether in businesses of the traditional variety, such as real estate agents, mortgage brokers, etc., or network marketers, spend a great deal of time outside the home in an effort to build and maintain their businesses.

When it comes to network marketing the number one activity that takes place outside the home is probably the classic hotel and/or conference room meeting where people gather at least once a week to bring prospects to hear their company's business presentation.

Of course, industry veterans know that these meetings often turn into mere social gatherings, because the same people (representatives who are already in the business) usually keep showing up week after week, as opposed to the new prospects who are supposed to be getting into the business.

Many home business owners routinely meet prospects at the prospects' homes or offices, or have the prospect come to them in order to conduct a business presentation.

Yet another popular practice is to take your prospect to lunch or dinner to discuss your business proposal over a meal. Prospects often love it, because they get a free meal, usually with no obligation to join you in your business.

For some types of high dollar transactions, as in the type of business that is often conducted among larger businesses and organizations, taking your prospective customer, client, or new business partner out on the town may be justifiable. However, especially if you are involved in network marketing, the amount that you stand to make up front if a new prospect signs up may range from as little as nothing, to perhaps a few hundred dollars.

For example's sake, lets say that you are with a company where at your level in their compensation plan you earn $100 each time someone new comes into your business and qualifies for whatever your initial product/service purchase requirements are. As always, it is the consumption of the product that you are being paid for.

And let's say that for every 10 prospects you take to lunch 1 prospect typically signs up. Again, this is for example's sake, as your actual closing rate may be higher. However, especially for someone new, it's reasonable to assume that he or she may sign up as few as 1 prospect out of every 10.

Let's further assume an average lunch bill of $25. Again, this is being very conservative, as a typical lunch even for two can easily be higher.

Ok, let's do the math. You take 10 prospects to lunch at $25 each, and 1 signs up in your business, which earns you an up-front commission (when your check comes) of $100. $25 x 10 = $250 so you are now at a loss of $150 for your efforts. That's not including gas money, wear and tear on your car, or any sales aids or samples that you may have also given away to each prospect. So, conservatively, at this rate you're going to LOSE AT LEAST $150 for each and every person you bring into your business!

Again, your closing rate may be higher than 1 out of 10, and your initial compensation may be higher, perhaps even by hundreds of dollars. However, if you are like 9 out of 10 typical home business people or network marketers, the numbers above are probably very realistic. Many network marketing compensation plans pay considerably less than $100 in up-front money.

If you are doing hotel conference room meetings then your cost may be lower as you, along with all other representatives attending, are likely sharing in the expense of the room and facilities.

The above examples assume that you are working with prospects and/or representatives who are in your immediate local vicinity. Many network marketers travel out of town to grow their businesses. Sometimes this may be to sign up a new prospect. However, typically it is to provide support and assistance to new out of town people who have come into your organization. One thing that you'll quickly learn as you grow your business is that even if you only recruit and sponsor people locally, because they will have friends and family in other states and perhaps even other countries, it won't be long before any organization of any size is spread out quite far geographically.

Almost every industry or network marketing company also holds at least one annual company event or meeting, which all representatives are encouraged to attend. These events require yet more expense, time away from your main occupation (unless you are working your business fulltime), and even time away from your primary business. Sometimes you'll recruit someone along the way using the old "3-Foot Rule," (prospect anyone who gets within 3

feet of you) which is absolutely NOT one of the methods advocated here on ABCIncome.com. But otherwise, when you attend company functions you usually do so at the expense of taking time away from the activities that are actively making you money.

It can be true that you will gain enough new information and insight into your business that what you learn at these company functions can help you build your business even better, but seldom can you count on such an even to guarantee dollars into your bank account. Over the years I've watched countless people spend money they didn't have in their budgets in order to attend such events. That's because most such events cost you money, as opposed to making you money.

There is nothing wrong with company conventions, seminars, etc., as long as you can readily afford it, enjoy it, and, most importantly, can afford to pay for it out of PROFIT! If your business isn't making you enough money to pay for such a trip then wait until it does, unless you are already in a position to easily and comfortably afford the trip out of your existing budget (most likely from the income from your day job).

Not to digress too far away from the main theme of this article, but key rules to always remember in your business are to grow your business out of profit, spend as little money as possible on things that don't make you money, and what money you do spend try to invest wisely in those things that will make you money.

Lastly, be reasonable about how many functions you attend. Some groups of network marketers (usually not an official company sanctioned position) encourage or even demand their representatives to attend pep talks and rallies as often as once a month or more. Follow the guidelines already mentioned above: Can you afford it, and what impact will attending that function have on your business? Is it costing you money or making you money?

Returning to our original theme, even if you can afford activities like those just discussed above, do you want to spend that much time away from your home and family? Many people find that they are out and about so much, traveling to work with out of town groups, and attending functions, that they are tired and barely recover after returning from one before they are off to the next.

Even if your efforts are profitable the above methods can be among the least efficient ways of building a business. That's not to say it can't or doesn't work, many have built organizations of thousands that way, including me (in years past, as I use better and more efficient methods today). But ask yourself, if you could build an organization just as, if not more, effectively while still being able to spend as much time at home with your family as you would like, wouldn't that be better?

Sure, you can always take people to lunch, dinner, and travel, to socialize, but, especially with all of the tools that you now have at your disposal such as the telephone, conference lines, Internet, fax, etc., it simply isn't necessary to do so in order to build a successful and profitable business.

There are some people who just love and enjoy always being on the go, or socializing, etc. There too such things become a matter of personal preference. I know people, for instance, who, especially in years past before online bill pay, etc., love to pay almost all of their bills in person. For a stay at home parent, or someone not working fulltime, or a retired person, etc., they often view it as a way to get out of the house and keep active. However, if you employ the kinds of training and techniques that are available to allow you to build a growing, successful, and profitable business, right from the comfort of your own home, you will be busy with so many new prospects and representatives that you are unlikely to get bored sitting around home with nothing to do!

So, if you're happy with the way in which you are currently growing your business, which may include some of the methods above, that's fine. Some people still enjoy building their businesses in the traditional way, in person, one person or a few at a time. However, if you would like to learn more about some of the things that you can change, and techniques that you can employ, in order to start growing your business effectively right from home, then please take a look at the programs that we offer on ABCIncome.com. They allow you to achieve better results, faster, than using any of the less efficient methods mentioned above.

About the author:

GRPMAX, L.L.C. was founded by CEO Phil Covington in 1979 and is the parent company of ABCIncome.Com. GRPMAX specializes in developing Uniquely Innovative Technologies & Solutions™ and has worked with clients ranging from small business, to government, to the Fortune 500.