"It Costs More to Spend Less"

06/22/05

by Jerome Dsouza

Almost everyone starts a home business so they can EARN
money. Often, finances are tight and the temptation is to
spend as little money as possible to get your business
off the ground. While it's a good idea to get rid of
unnecessary expenses, to build a PROFITABLE business
there are certain essential items in which you MUST
invest...

=> The cost of remaining active in your program.

This is the minumum monthly investment you must make to
remain eligible for commissions. It makes no sense to work
a business if you are not eligible to receive payment for
the work you do.

=> The cost of any tools you need to work your business.

This includes long distance phone calls, autoresponders,
postage, etc. If you don't spend money on the tools you
need to work your business, you won't be able to perform
necessary tasks and your business will come to a halt.

=> The cost for advertising.

Advertising is ESSENTIAL to building any type of business.
If you don't advertise, nobody will know your product or
service exists, and you will never earn a profit.

Okay, so you agree that what I've said so far makes sense
but...this month money is really tight. You are thinking
"What harm can it do to skip one month of advertising? I'll
save some money, and next month I'll start advertising
again."

This type of thinking can KILL your business! Let me give
you an example from one of the programs in which I am
involved:

Monthly Program Cost: $ 60
Monthly Tools Cost: $ 25
Monthly Advertising Cost: $150
TOTAL MONTLY COST: $235

With this program, within 6 months people are at the point
where all their monthly costs are covered and they are
earning a profit...IF they invest $235 as outlined above
EVERY month.

Total Cost after 6 Months: $1410

Now, let's see what happens when money gets tight and a
person decides to skip a month of advertising...but,
first, let's be honest. Every person who skips a month of
advertising when things get tight, does it more than once.
In fact, it becomes a pattern: money is tight - skip
advertising this month.

So, let's say, this person has advertised three months out
of six. After six months, they will have spent a total of
$960 -- a savings of $450. But WAIT -- they're not even
breaking even with their expenses yet!

So, they work another six months and, again, they advertise
three months out of six. They spend another $960 and
finally get into profit.

However, they have now spent $1920 to get into profit
($510 more than they would have spent if they hadn't
"saved" money on advertising)...

AND

...they have lost SIX MONTHS of PROFITS they could have
been earning!

I think you'll agree, this is getting EXPENSIVE!!

And this example is for a LOW-COST program -- just think
how much extra money you would spend if you were working a
program that cost $165 each month instead of $60 to remain
eligible for commissions, and you decided to "save" money
on advertising.

I don't know about you, but I would rather spend the money
up front, invest in my business, and get into profit as
quickly as possible so I can maximize the time I am EARNING
the money I got into business to make.

About the Author

Holly specializes in teaching others how to build multiple
streams of income on the internet using automation.
http://www.AbundantLivingOnline.com
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