I was thinking of doing the title “How to Succeed in Business” because perhaps these tips could apply to any business and not just network marketing (or MLM). Business is business, right? I’m going to write and see if maybe I can come up with something unique to network marketing … if I do, maybe I’ll rewrite it a bit … but in the meantime …

Have your own brand

The first step to being successful in business is having your own brand. If you are Joe, the XYZ distributor, you are promoting the XYZ company. Create your own brand … maybe Joe Smith, Network Marketing Coach or Joe Smith Company; something to differentiate yourself from all the other distributors in your company.

Add value

If you simply say “You can also buy from me,” you are not adding value. You must add some kind of value. For example, a while ago we made great looking baskets and sold them as a product. By rearranging the product the way we did, we add value to the product.

If you deliver, write books, check with other network sellers; you are adding value. Maybe extras you can charge for. The extras are definitely what customers want; otherwise, they will opt for the lowest-cost product, the one closest to home.

Have your own product

In network marketing, we usually represent a company and its products, but … we could potentially have our own product, like a cookbook featuring our products (for example). We have our own “Attraction Marketing” or “Black Box Recruiting” site, which is a free service, but counts as a product unto itself. You could also consider our blog as a product. Brainstorm to see what types of products you could offer to your customers or others who might join your business.

Consider your image

Image is very important in business. Have your own business name. Position yourself as an expert. Being exclusively an expert at something is even better. Have a resume that people want to associate with. Not necessarily a Word resume, but accomplishments you can point to. If you don’t have related achievements, you can create achievement lists over time.

Avoid negative things that can tarnish your image. Treat your customers well. Don’t do illegal or unethical things. Be prepared for the challenges and consider your options carefully.

Make Numbers Matter

While all of the above is the foundation of a good business, numbers are your measure of success. The most important thing is the profit. Profits are the income (income) from your business minus expenses. Without profit … at some point … no business can survive.

Cash flow is also an important measure. While the sales are great (or the commissions), keeping cash in your business is life or death. We often sell on credit, meaning we bill someone, and taking too long to pay can be extremely stressful. If we run out of money, we run out of business.

We can improve cash flow by selling on a certain margin. Margin is the selling price minus the cost divided by the selling price … usually given as a percentage. For example, an item that costs $ 10 sold at $ 15 has a 50% margin. Many items are bought or manufactured very cheaply and sold at a markup of 100% or more. The higher the margin, the better. Especially when it gets to the point of having to cover a slow paying customer.

For example, you sell to a customer for $ 10,000 per month with a 100% margin. That means your cost is $ 5,000. If they pay in 30 days, once they have paid the first time, you will have the cost of two months covered. So your business survives for two months before it needs more cash (just because we’re not considering other expenses, for example). If your margin is lower, you are more at risk for cash flow problems; if it is higher, you have less risk. Your optimal margin is somewhat different from company to company.

Now if you are only earning commissions, the margin doesn’t mean much, you just need to keep your commissions well above business expenses.

If you’re using an accounting package like QuickBooks, you’ll want to keep an eye on your profit / loss statement and your cash flow statement.