Budget Building for Your MLM, Network Marketing Business

Building your budget can be dull work for many - but this important step is too often ignored - possibly because people don't think of on-line marketing as a real business. So they don't bother to plan it out properly. And failure to budget and understand costs are likely major contributors to why over 90% of people struggle in this industry or fail and leave it altogether.

Now, I don't want to scare anyone away. But people who figure they can just dive in and make money right away, without putting in any cash and hard work, are dreaming.

Even the most basic business requires some up-front spending. Your kids' lemonade stand, for example, requires a table, chairs, lemons, a lemon squeezer, sugar, a couple of pitchers, cups or plastic glasses, a tablecloth, napkins - and, hey, maybe you want to put out a plate of cookies for them to sell too, so you need to figure out the cost of those ingredients also. Perhaps you want to use a water filter too. So, cost it out. And then you'll have an idea how much that lemonade stand needs to sell to cover its costs, hit break-even and reach profitability.

So, here you are at the start of a major change in your lifestyle and career. You're an entrepreneur in social media, mlm or network marketing. You're working on your motivation, your why, your mindset, and trying to figure out what to do next. Well, your question at this point should be: How much do I have to invest over, say, the first six months?

Maybe you've decided you have $500, $1,000, $2,000 or more to invest over the next six months. OK, let's take $2,000. That might seem like a lot to some. But it's not a lot at all, if you look realistically at the costs of establishing a traditional business.

And just to cover that basic $2,000 investment and get to break-even, you'll need to make about $340 each month

Say you've found a business opportunity that interests you and has a product/service that you think offers value to people. So you decide to join this mlm opportunity. Well, you'll probably have to pay anywhere from $30-$50 a month for the company's website. At $50, that's $300 for six months. If you use the old school belly-to-belly, contact all your friends, family and acquaintances, you'll need business cards, promotional flyers, CDs, a consultant business building kit and other stuff to hand out and leave in malls and other stores. By the time you've got everything you think you need, maybe you've spent at least another $300. And if you're promoting a product (juice drink, wellness products, cosmetics or whatever), then you're going to have to participate as a customer too, and buy the requisite items each month - a one-time annual membership (say $30-$50) and monthly orders (say $100 each month). And maybe you want to buy some basic learning books to help you get started. Well, you've pretty well used up your budget right there. And we haven't even got around to the topic of potentially very costly advertising.

And there's more. If you want to really make your presence felt in social media and network marketing, there are other things you'll probably need or want. Domain names (about $10 a pop) personal websites or professional program websites you use - most of the professional sites cost around $50 per month), customizing your Twitter and other site backgrounds and personal websites ($100 or more to get a professional to do this), affiliate programs to help you earn income, an autoresponder (around $20 per month), a link protector such as viralurl.com or listjoe.com (you can join for free, but you'll need to upgrade at a cost of about $200/yr), training courses and other specialized information ($300-$1,000), and so on.

If your dollars are tight, start with just the very basic stuff and expand your budget bit by bit as you begin to bring in some money. But do understand that you'll need to make some investment to get under way.

It's All About I CAN and I WILL

Well, I couldn't find the Little Engine that Could, so I went for the Little Red Train chugging along through the countryside. But if you remember the little engine, it was "I think I can, I think I can, I knew I could." And in social media marketing, that's what it's all about. I CAN, I CAN, AND I WILL. Your mindset is so important. And it's got to be positive at all times. There's no room for "I can't", "I don't really know how to do that", "I just don't think that's for me", and "maybe tomorrow."

I did a deal with my mentor. Every time I say "I can't," I have to put $0.25 in a jar and take him out to lunch on the proceeds next summer (when I hope he'll find time to visit beautiful Saratoga Springs). It's probably going to be at McDonalds 'cause I don't plan on having too many quarters.

So get rid of the negatives in your approach to mlm and network marketing and building your business. Work on developing a positive mindset - I CAN, I CAN, I CAN. And, guess what, YOU WILL.

It's All About You in Social Media - Your Motivation and Branding

In social media, it really is all about you - your motivation and commitment, who you are, whether you're trustworthy, and whether you have something of value to say or offer that will help others.

If your motivation in social media marketing is just about making money, you probably won't be around long. It's why you want to make money: For your kids' education, to change your lifestyle, to gain financial freedom so you can do all the things you want, and maybe to allow you to work at your real passion, which doesn't generate income. You can't survive in this business unless your motivation can keep you going - and you'll be totally discouraged if all you want is dollars. Money doesn't flow in that quickly.

It takes commitment and hard work to develop your own on-line business. To get started, you have to build your presence throughout the major elements of social media. And the first step there is to develop your profiles. Start with a professional looking picture. People want to see who YOU are, not your cute little logo, pets, family, and not even your husband, wife or partner. So get a nice smiley profile picture of yourself - just of you. That's the first - and maybe the most important - step to get your new business efforts under way on-line. I'd recommend you use the same picture throughout the various media sites - it's your identity.

And here's a useful site if your picture is too big and you need to resize it: Just go to http://resizepic.com.

Next set up your written profiles on each site. Focus on making them as complete and interesting as possible - they should describe who you are and what you're about - what you're doing in network marketing, how you can help others, the things that interest you, golf, tennis, theater, animals, movies, books, etc. People should be able to get a clear view of you, your personality and your goals. And add picture albums of your family, friends, pets, trips, and whatever else interests you to share with your new social media friends.

Remember always that people aren't interested in your business. So build your friends lists and build relationships with them - exchange ideas and thoughts, but don't hit them over the head with your opportunities. People buy from people they know, like and trust.

You Can Get to Anywhere You Want in Network Marketing

It isn't as difficult as it looks. Just take a look at Remy. He always gets to wherever he wants to go. He just has to want it enough and then he experiments until he figures out how to get there.

Network marketing isn't much different and it really isn't that complicated. But if you think you can achieve your goals without hard work, then think again. Your new business endeavors will take you through a series of what Dr. Tom Barrett describes as "The Three Psychological Stages of Network Marketing" in his book Dare to Dream and Work to Win.

Stage One is "It's Not Worth It". And an awful lot of people just plain give up right here, or flit off to some other business opportunity. Money doesn't come in and your efforts don't seem to be getting anywhere. No one misses this stage, including the most successful marketers. But that's when you have to reaffirm your motivation and commitment. Keep focused on learning and training to foster your dream, and keep following up on your plan. "In network marketing," says Dr. Barrett, "entrepreneurs are paid for their vision, courage, and stamina." It may take a while but you do eventually move on.

Stage Two: "It Is Worth It." Suddenly, the money flow into your coffers improves and the financial rewards seem acceptable for the effort you're putting in. Momentum builds. Your whole being is uplifted and you begin to feel successful. But, as Dr. Barrett points out, there's an inherent danger here. You become a bit self satisfied, relax, concentrate on other things and take your foot off the accelerator. But you won't enjoy the view for long. Because as you slow down, so does your business - and your income. You have to stay focused on what you did to reach this level, and keep going.

Dr. Barrett describes Stage 3 as "I'm Not Worth This Much." When he wrote his book, he acknowledged that he wasn't there yet. Neither am I. But it sure is a nice place to dream about - and work to achieve. What does it take to get to this level? Motivation, commitment, effort, learning, training, more effort. As Dr. Barrett opines: "Entrepreneurs .... are paid for staring down fear, ignoring fatigue, fighting loneliness, pushing through discouragement, and walking by faith."

All it takes is motivation, commitment, and dogged determination.