MLM Training – Allocating your Advertising Budget

MLM Training – Allocating your Advertising Budget

One of the most difficult concepts for people to understand regarding their MLM business is that you almost always need to fund your growth. While there are many free ways to generate leads, you will need to start allocating some money to marketing and advertising if you want your MLM business to grow quickly and get to a size that can provide a great residual income.

There are many good MLM Training courses that will show you exactly how and where to run ads to generate leads for your MLM business. I generally use an MLM Training offer in my advertising as this gets me better prospects that are more suited to my style and approach to my MLM business. By ensuring that I am recruiting people who are looking for MLM Training and want to learn, I can increase the likelihood that they will stay with the business long enough to get results. What I am interested in here is giving you some guidance as to how to allocate your funds to maximize your results. Given that many people don’t have a lot of money to waste; it’s essential that you focus your advertising dollars in areas that will bring the best possible results.

Some of the various advertising methods include buying leads, running pay-per-click ads online and running newspaper ads. No matter which method of generating leads that you choose, you will need to determine the cost or revenue associated with each activity. You need to know how many dollars you earn from recruiting people into your business. If you are using a Funded Proposal for your lead generation, you need to know what your profit margin is on a per lead basis for that portion of your business. If you are participating in any supplementary programs (such as a autoresponder, MLM Training System or recruiting system) where you are paid commissions for introducing new members to the system, you need to know how much you earn (gross and net) from each system. You should try to find a quality commission paying system that includes things like an Autoresponder and MLM Training as part of the package. Not only are these essential to your business but each and every new member you enroll will need an Autoresponder and good MLM Training courses to have any chance to succeeding. You might as well direct them to some good ones right away.

After you have reviewed your revenues and expenses for each recruiting source, you need to determine how many people from each source you are actually able to enroll in your business. You may find that some methods are less expensive to generate leads but those leads do not convert as well to your main MLM business. By using a spreadsheet format you can calculate which methods are the most profitable for you business and then focus your advertising dollars in that area. You do need to be careful about putting all of your eggs in one basket though so you should generally use at least the two best methods to help diversify the risk.

Newspaper leads can be problematic to track but if you have a good system for ensuring that you know where they can from (i.e. a separate website where you can track your hits) then it can be very profitable. Pay-per-click advertising is very popular for people who are recruiting online. You need to make sure that you monitor your conversions from each place you run ads to ensure that they are profitable for you. Buying leads can be very profitable for you business as well but you need to be very careful about where you get them from and how much you pay for them. You should ask your mentors or peers for recommendations of lead companies they have used and try to develop a relationship with the company you are working with. This will allow you to make sure that your needs are properly communicated to the lead company.

Although it takes a bit of work to collect the data and run the calculations, you will find that having a good handle on your advertising expenditures will enable you to have great success with your MLM business.