Thanks Jon. Thought of another way to try and you help you folks grow your business:
This is to help you understand how crucial it is to work you ratios; but I will explain it
from a different angle: How would you like to have an unlimited advertising budget?
For you biz cards, fllyers, or web site or however you introduce your product:
The concept is called Life Time Profit Value (LPV).
First, develop a few concise, preferrably measurable compelling introductory statements about your product.
E.G. "How often do you think people would use a product that saves them 2 to 5 times its cost in
fuel savings, oil changes and engine repairs?" (Or whatever is applicable to your product).
"Do you think a home business introducing that could be profitable"
Now, contact people who are likely prospects and tell them you are testing headlines for your brochure
and business cards etc and would like their opinion as to which is most intriguing.
Next, do an estimate on what the cost would be to run that advertisement statement by whatever number of people
it would take to convert one winner into your business. And do an estimate of the income one winner can cause you.
(You could ask the most successful person in your industry what those numbers are.) Let's say for example
that you find one winner per 300 people you contact; it costs you $3 each, that's $900. And you believe that one winner
will cause a volume of $2,000 per month residual income. How often will you spend that $3 x 30 times, if you knew
you would predictably yield a winner who goes out and causes $2k/mo. That $2k/mo is your LPV (Life Time Profit Value)
and in our example, it cost $900 to garner that person/customer/distributor. This is the exact principle I used to grow my business.
If I spend $12,000 per month on television ads and yields 10 patients who give me $5,000 in business the next month, did I make money?
The answer is, it depends on the LIFE TIME PROFIT VALUE of each patient/customer/etc. If the LPV is $4,786 x 10 patients =
$47,860 that I make in a 5 year period, then I am making a fortune, (though part is deferred). The bottomline is this, if you don't know your
LPV then you are losing money because you don;t know how much MONEY to invest (not spend); so you tend to pull back and settle for poor results.
So, relating that principle to MLM: If you knew for certain you had to talk to 300 people to find one winner who would build a $2000 residual income
per month and it would cost you $3 per person (let's say for biz cards or phone costs or whatever overhead); would you do it? Thus, spend $900 to earn $2k x 12months - $24,0000 per year? You might say "of course". But I am telling you from years of experience, that I have showed other real estate investors and doctors my method above and I get a blank stare (I call it the non-winner freeze). That is exactly why, you have to know your ratios, so you know how many non-winner freezes you have to go through to find the winners. And if you know your LPV then your advertising is free, which means you can contact an unlimited number of people and the law of averages will produce a winner that makes you a lot of money; and the only thing that can stop you is you. I had a real estate as that I had honed and refined over the years; it cost me $147/mo to run and produce an mean of $6,800 profit every month. Why? Answer" Because I had a well-tested compelling statement, aimed at the proper audience (in your case entrepreneurs/winners, not bench-warmers and small minds) and I new my numbers i.e.: I knew exactly what I had to spend (money & effort) to get the larger measurable result. So put the effort and attention in to learn your ratios and your LPV and you cannot fail in any business. Read my prior posts for other ideas. I am starting to get busier than I like and may not be hear as much.