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Creating Success with Newbies in e-Business. Category: Online Business

There are hoards of people fed up with their current lack of success who are desperately seeking fulfillment in the seemingly endless parade of too-good-to-be-true business opportunities on the net. Unfortunately, most things that appear too good to be true generally are.

The inexperienced online marketer seeking the ultimate opportunity must not only sort through tons of garbage to find a single gem, but is also faced with the choice of a low cost bizopp generating meager returns, or a high cost high maintenance one that is likely to take many months attain a financial break-even, let alone make a profit.

The happy medium would seem to lie in an opportunity that has a proven track record (stay away from startups and prelaunches), costs about $100 a month (affordable, yet income-generating), will provide a short term break-even, and can generate a significant income in the first year.

That single opportunity continues to elude me.

The $20-$40 a month opportunities just don't generate enough income. At $2-$5 a month per customer (downline member) it takes forever to create even the tiniest positive cash flow. This causes a high dropout rate and thus a two steps forward one step back effect.

The $50-$100 a month opportunities often have additional startup costs and additional monthly overhead such as leads or co-op advertising. They tend to be expensive and risky for the newbie. Attaining a financial break-even often takes the newbie many months. The upline support is often inadequate to coach the new affiliate, which again results in a high dropout rate.

My solution to this dilemma has been to scrutinize some good entry-level opportunities ($20-$40 a month) and use them to build up to sold $100+ a month opportunities. This allows the novice marketer to get his feet wet, make some money, and build up to a more lucrative program. By bringing others into the entry-level programs, the online marketer uses those opportunities as a feeder into his more expensive program.

I searched out some good companies with a proven track record and devised a system where the new marketer commits to investing $100 for several months. The newbie starts with a couple of entry level opportunities, then builds up to the higher investment and higher profit ones.

By analyzing monthly costs and compensation plans you can develop such a system where the new marketer invests $100 a month out of pocket plus profits for four months, profits only for another four months, and has a positive cash flow of $6000 a month by the end of the first year. This can be accomplished by each new member bringing only two new people into the organization each month. If you factor a couple of leads programs into your group of opportunities, this assures the affiliate will have plenty of new people coming in to fulfill his two per month recruiting requirement.

Setting the monthly investment at $100 a month will weed out those who aren't serious, but will keep it affordable for the entry level marketer. By beginning with entry level programs you keep the learning curve gradual. By laying the system out in black and white, explaining what programs to join and at what point, you reduce frustration and confusion. By using multiple programs you create multiple streams of income. By keeping the recruiting goals at two per month, you keep it realistic.

Develop your system, test it, put it in e-book format, and give the book away. Create branded copies for your downline to give away. This is a great way to bring new people into your existing business, get some money in their pocket quickly, and create a large and loyal downline

.

You may get a copy of the system I developed using this method at http://www.homebizphd.com

About the author: John Rogers is an online marketer who calls Western Washington home. At the time of writing this article he is serving with his National Guard unit in Kuwait. Note: copyright 2004 John Rogers


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