Miscalculating Time, Effort, and ROI
The discussion on effort has been made. Just remember that as you consider
which network marketing company you are going to choose that you consider
time and effort when you do your return on investment calculations. There
are three things you need to know about a company’s potential income to
understand the return on investment.
1. How much is the starter kit?
2. How much inventory do you need to keep on hand?
3. What is your time worth to you?You probably have a full-time career. What is your salary or hourly wage?
Do you feel that the money you get paid is what you are worth? A person in
their sixties with years of experience in caregiving is still only hired at $11.50
per hour, yet this same person could branch out on their own and run a
homecare service making $20 or more per hour because of their experience.
Someone selling books may only get $8 to $12 per hour, but the manager
makes $13 to $15 per hour. The point is that wages are set based on
experience, and affordability.
You may feel your knowledge and abilities are worth $20 per hour, but can
you actually earn that much with network marketing. The answer is no. You
are closer to earning minimum wage with network marketing, when you
consider the amount of time you need to put into marketing the products,
going to parties, and selling products.
So, if you feel you are worth a higher rate of pay, you may not see that time
is worth putting into network marketing. If you know you have a good, solid
base of clients before you begin network marketing, you may be able to
figure a bit more worth for your time. Overall, if you are already disappointed
in what your time may be worth, then it will be hard to keep up the effort.
This will directly affect your return on investment.
The return on investment is not only a calculation of time, but the money you
have to put into the kit. Making $100 to pay for your sample kit may be as
simple as hosting one party. Typically, it is. However, if you are not given a
free website to set up, then you need to calculate the costs of setting up your
website, as well as other marketing and advertising options you may decide