Sample of an Monthly MLM PNL Statement

This is an example of the a Profit and Loss statement for a fictional network marketer named Joanne Networker for May 2009.

Most network marketers talk about how much money they make, but how much you keep is what determines if you really made money (profit), or if you didn't (loss).

Simply put, revenue (money that comes in to you) less expenses (money that you pay out) should equal profit (income).

If your expenses exceed your revenue, as is the case with Joanne Networker, you are in a deficit -- you loss money.

Please review the spreadsheet while listening to the audio.

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CLICK HERE for the spreadsheet

DO NOT delete anything from the following cells on Tab 1 -- PNL: Total Revenue (B11), Total Expenses (B33), or Profit or Loss (B35). From Tab 1 - 4, don't delete anything from Line 18, column B through Column T.

They contain formulas that calculate totals automatically.

This is not the holy grail or anything like that, but make sure to use this tool as it will help you monitor your cashflow.

For your convenience, there are also tabs in the spreadsheet that serve as weekly expense reports so you monitor your expenditures on a weekly basis.

Kind regards,

Huh? Speed Networking Over the Phone?

Whoa! This is hot!

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As you know, your business success has a lot to do with how effectively you network. New referrals, ideas, and opportunities all come from the people you know. But to increase the power of your network it needs to constantly be growing.

Unfortunately, traditional approaches to networking can waste time and money without delivering results to your business or new contacts to your network.

Has this ever happened to you at an In-person Networking Event?

Have you ever gone to a networking event where you made no new connections, or you couldn't break into a conversation with someone you really wanted to meet, or you couldn't break away from a conversation that went on and on and on?

Even worse, have you ever paid an annual membership fee so you could then pay for gas and parking driving to an event where you then paid to enter and met nobody new?

But what about Online "Social Networking" sites?

With the explosion of social networking sites over the last few years, we found it a bit ironic that none of these sites is really "Social" (i.e., instead of interacting - you type something, hours later I type a response, you respond, etc, etc, etc...)

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As Zig Ziglar would say, "See you at the top!"

Don't take fashion tips from naked people

I'm writing this because I don't want people to get duped into buying into systems that don't work or listening to people who have no track-record of success.

CLICK ON THE PLAYER BELOW TO LISTEN TO THE COMPANION AUDIO (3 minutes, 56 seconds)

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A couple of year's ago, I came across a CD featuring a successful financial products sales agent named John Addison called Don't Take Advice From Anyone More Screwed Up Than You. That CD changed my life. That CD has really had a heavy influence on my life and has shaped the way that I look at the world and business.

For the life of me, I just don't get the popular show American Idol. I get the part about people working hard to live their dreams, but why do people listen to Simon? I saw an interview on 60 Minutes about a year or so ago and by his own admission, he has less than no talent. However, he is an authority in identifying talent. Perhaps that works in the entertainment industry, but not in grassroots business. If you are a sole proprietor, a home-based entrepreneur, a sales agent looking to achieve and exceed quote, or a small business owner, you need to learn from those who have walked a mile in your shoes. You need proven strategies and how to information that really works. Not theory.

Please, do not take fashion tips from naked people!

I am so sick and tired of coming across people who are self-appointed (and self-anointed) "gurus" or "experts" getting away with blowing smoke up - well you know where.

When you go for a job interview or you're looking to retain the services of a professional (e.g. doctor, photographer, etc.), you want to see their resume´, right? Well, make sure that same standard is applied to the "gurus" you come across on the Internet.

I can NEVER give a woman any tips about how to deal with menstrual cramps or the pains associated with childbirth. I am a man and have never and will never experience those challenges. I wouldn't dare try to give any advice other than referring them to another woman who could speak to her with empathy.

When someone presents him/herself as being an expert, ask them two simple questions:

1. What in your experience qualifies you to be an expert?


AND


2. May I have three references, please?

They better be able to give you a work history with references. Don't think of them as show-offs if they can provide this information to you, because Will Rogers said, "If you really did it, it ain't bragging."

Don't take fashion tips from naked people.

In network marketing, affiliate marketing, and direct sales, oftentimes it is the blind leading the blind when looking for short-cuts to success. Yes there are faster ways to become successful, but their are now proverbial "magic bullets" that will solve everything for you. It is all about putting in work. As Vidal Sassoon said, "The only place where success comes before work is in the dictionary".

There are a lot of pretenders pushing systems that are supposed to help you "explode your business", however, all that really happens is that you end up imploding your business instead. The marketing systems can become expensive and may promote things other than your primary product or service. You end up conveying a confusing, not very unique message to your prospects.

Also, just because someone was successful in one thing, doesn't mean that they would be successful in something else. For instance, Michael Jordan was an awesome basketball player, but a below average baseball player.

Please don't accept anyone's success theories as gospel. If they haven't done it themselves, they are experimenting and guess who the guinea pig is? YOU!

If you're a network marketer that is looking to grow her/his business, here is what I recommend:

• Make sure that you're working with a company that meets the 7 criteria of a good home-based business. For insight, go to my blog post entitled "The 7 Wonders of Home-based Entrepreneurship"



• Make sure that your sponsor will make herself/himself available to mentor and coach you. If they won't commit to helping you have success, don't sign up with them.



• Subscribe to Networking Times

The reason that I mention Networking Times is because it is THE journal/trade publication for network marketing. There are FREE weekly webinars and articles posted on their website. You even get more with a subscription that is only $47.77 per year. There are successful network marketing legends and rising stars who contribute to the content. There are people like Tom "Big Al" Schreiter, Mark Yarnell, Doug Firebaugh, Randy Gage, Karen Phelps, and tons of others. Also, referral-getting gurus like Bob Burg and Ivan Misner also contribute. Folks, you can't get any better that having these experts as resources. It takes a village to raise a child, and business is a team sport. Refer to village elders and pick your team wisely.

Don't take fashion tips from naked people.

Thank you for your attention.

To your success,

Follow Your Dollar

Where do you spend your money?

Wherever and with whomever that may be, that is where you should start to ask for help to promote your business.

Ladies and gentlemen, if you are regular customer at someone's place of business, why not ask them if you can leave flyers, brochures, or a stack of business cards? You spend good money with them, right?

If you don't want to be so forward and would rather take a more indirect route, how about handing or mailing them a "Who Do You Know Who Letter."

Here is how the letter goes:

##### BEGIN #####

[Date]
[Prospect’s Name]
[Prospect’s Mailing Address]
[Prospect’s Mailing Address Line 2]

Dear [Prospect’s First Name]:

This is just a quick note to say thank you for your business and support. Just to refresh your memory, I market [products/services, or a family of products/services] that helps people to [describe a few of the benefits]. I am expanding my business and I need your help. Who do you know who matches one of the below customer profiles? I would be thrilled if you would take a few minutes to make a list of acquaintances and friends who could benefit from my services; people and companies who you believe want or need the quality service and follow-up I will provide.
Here are some memory joggers to help you identify the ideal customers for the [products/services or family of products/services] that I market:

• Who do you know who [identify niche #1]?
• Who do you know who [identify niche #2]?
• Who do you know who [identify niche #3]?
• Who do you know who [identify niche #4]?
• Who do you know who [identify niche #5]?

If you know anyone that fits any one of the above, please forward their contact information to me. I’ll call you in a few days to chat, okay?

Thank you in advance.

Kind regards,

[Your signature in BLUE ink]

[Print your name]
[Your Title]
[Mailing Address]
[Telephone Number(s)]
[E-mail Address]
[Website Address]

##### END #####

One hand washes the other, right? If someone wants to retain your patronage, they should at least be willing to keep their eyes and ears open for you. If they can't do that, perhaps you should take your business elsewhere.

Go get 'em tigers and tigresses!

Kind regards,

The 7 Wonders of Home-based Entrepreneurship

Well, a more appropriate title would be "The 7 Things Home-based Entrepreneurs Should Worry About".

When a person takes the entrepreneurial plunge by starting a home-based business, be it MLM, direct selling, reslling, or something similar, there are some things that you should consider so you can see the light at the end of the tunnel - and it won't be an oncoming train like the one pictured above!

Let's get right to it...

1. Company is owned and/or managed by those who have done it successfully, or are doing it successfully in the present
   
   This is very important. For the life of me, why would people follow someone that talks theory and not proven fact. When you select a company to invest your time, energy, and money in, make sure that the leadership understand your pain - they have walked the road that you now want to travel. If they didn't, how can they empathize with and advise you? For instance, I could never teach a woman how to deal with menstrual cramps or childbirth because I never experienced either one. Make sure that you pick an income opportunity where the company's owners and/or management has been successful in doing what you're endeavoring to do for profit.



2. Company's "old", and market is "young"
   
   Newer companies tend to go through growing pains, and a lot of other changes as they find their way. According to Scott Shane's book, Illusions of Entrepreneurship: The Costly Myths that Entrepreneurs, Investors, and Policy Makers Live By, literally half of start-up small businesses fail within the first 5 years. While fortune favors the bold, it would be best to invest your time, energy, and money in a business that is "old" -- been around for more than 5 years.
   
   The market should be "young", though. I don't mean young in age, but young in the sense of having a growing, expanding market. You want to be positioned in an industry that has a lot of growth potential. For instance, selling 8-track tapes is NOT an expanding market.



3. Must have a good, competetively-priced product that is consumable or subscription based
   
   I remember looking at a film called The Pirates of Silicon Valley that was a historical dramatization of the rise of Apple and Microsoft. It is a little-known fact that Bill Gates used to work for the owner of Apple, Steve Jobs. When Steve Jobs found out that Bill Gates was using some of his technology to market Microsoft's Windows that was what Steve Jobs considered to be a "watered-down" version of the Apple operating system, he laughed and mocked Bill Gates. Bill Gates said, "You just don't get it. It is NOT about what is better, but which product can best capture market share".
   
   Let that sink in.
   
   Most people I know can make a better burger than McDonald's. Quick question though. Can you sell more burgers than McDonald's?
   
   Okay, back to the point. The product or service that you decide to market doesn't necessarily have to be great, but it has to be good at a competetive price. If it is great, but over-priced, it will collect dust on your shelves.
   
   Also, the product should be consumable or subscription based. That is to say that when people get to the bottom of a box, bag, or bottle they must reorder from you. If it is a subscription-based service like cable television, insurance, a discount medical plan, or a legal expense plan, the consumer must reoder to keep enjoying the benefits of the service. Ideally, the product is on auto-ship or the service is on automatic debit (to the customer's bank account or credit card).



4. How much, how often, and how many ways will you be paid?
   
   It is paramount that you know this. For instance, if you're a network marketer or an affiliate marketer, how many ways can you generate revenue? Can you retail? Can you get override commissions from your sales team? Can you generate performance bonuses? How often are you paid? Daily? Weekly? Monthly? Also, how much volume has to be moved (i.e. how much must you sell) to achieve your income goals? This can best help you determine the return on investment of your time and energy.



5. Training and support are provided
   
   Folks, you cannot buy a business in a box. Most of us don't know a thing about running a business, so we need mentoring and coaching. If there is little to no training and support, the likelihood of you succeeding are next to none. Enough said on training and support.



6. Are you passionate about the company's mission?
   
   Your love of the game will help you through the trials and tribulations that you WILL face as an entrepreneur. If you are not in sync with the company's mission, you will not have the mental toughness and endurance to succeed in your chosen endeavor.



7. What is the company's culture?
   
   Is the company that you're working with demand that you are Internet-savvy? Do you have to do door-to-door sales? Must you advertise? Do you have to cold call? Are you encouraged to attend conference meetings? Are you encouraged to do home parties? How about trade shows? Also, what restrictions are placed on you marketing your business?These are things to consider about the culture of your chosen business.

Did this blog post help you at all? Please let me know as I am aiming to help. Thanks.

To your success,