What does one new downline member cost you? Here's how to calculate it in 5 steps...

I have a very serious question for you today. It's a question that gets right at the heart of how successful your network marketing business is ... and can become.

It's a question that every business needs to be able to answer.
But it's a question most cannot.
Here's the question: What does it cost you to obtain one new customer?

Or in the case of network marketers...
What does it cost you to add one new team member to your downline?

Most network marketers don't know the answer to this question.


Do you know why they don't they know the answer? Usually because they're afraid to find out. They're afraid to really look into the costs and time they put into prospecting for new downline members and see what it adds up to. They're afraid that the answer might shock them. They're afraid that the answer might even shame them.

But if you want to be successful, you have to know the answer to this question.

As someone once said, if you don't have goals, how do you know if you're winning? If you don't know how much it costs you to add a member to your team, how do you know if you're getting better at it?

Do me (and yourself) a favor. Print this email out, fill in this calculation and hang it on the wall near your computer...

STEP 1. Over the past year, I have spent ___ hours prospecting for my downline

Include any time you've spent talking to people in public places like the coffee shop or gym
Time spent in prospecting meetings at hotels
Time spent writing ads for newspaper or other media
Time spent cold calling on the phone (family, friends, strangers)
Any time spent prospecting.
ANSWER ______

STEP 2. My time is worth $____/hour. (Take what you made at your "day job" last year and divide it by 2,000. That's what your time is worth per hour at minimum. Now, take that dollar figure and multiply it with the answer you got in STEP 1.)

HOURS SPENT ON PROSPECTING_________ x $_____ /hour =_________

This is how much your prospecting time cost you last year.

STEP 3. Over the past year, I have spent $_______on advertising for my downline.

Include any advertising costs
Include any hotel rental
Include expenses for gasoline or air fare
Now add COST OF TIME (Step 2) _______to the COST OF ADVERTISING (Step 3).______

TOTAL COST OF DOWNLINE PROSPECTING LAST YEAR________

STEP 4. How many new members did you add to your downline last year? ______

STEP 5. Divide TOTAL COST (Step 3) _____ by MEMBERS ADDED (Step 4)_____.

COST OF ADDING ONE NEW DOWNLINE MEMBER___________

Important Note: This does not include the heartache, frustration, shame, guilt, stress and dread that often accompanies cold calling and prospecting if you're not naturally "cut out for it".

Take your answer and multiply it by 2 to factor in this "emotional and mental cost" 

Example. If you earn $50K per year and you spend just 2 hours a week prospecting and you spend just $100 per month on advertising, that's $3825.00 per year.

If you add 5 members to your downline, each new member cost you almost $765.

PLUS THE EMOTIONAL AND MENTAL COST! 

That's $1530 per new downline member once we factor that in.

Now ask yourself...

• What if you could eliminate all the emotional and mental costs? 
• What if you could be assured of dealing with only the highest quality prospects? 
• What if you knew that every time you called a new prospect you were certain they were actively seeking information about business opportunities like yours? 
• What if you knew they were in the market for a business opportunity NOW? 
• What if you never had to make another cold call? 
• What if you knew for CERTAIN that every cent you invested in prospecting and every minute you invested in prospecting was leveraged as powerfully as it could possibly be leveraged? 
• What if you knew your cost-per-new-team-member was as low as it could be...while you add new members to your downline every year, every month, every week? 
• What would all this mean to your business?