"How much is it going to cost me?", "I don't have the money to start a network marketing business." "Whoa, that's too expensive for me!" I'm going to share something very interesting about handling this type of ojection that I picked up through my network marketing training. How many times have you heard the "I don't have the money objection" while promoting your network marketing business? You know, when a prospect says "I don't have the money", that's not actually his real objection! What he is really saying is..."I don't want to lose my money, can you really show me how I can make money with this opportunity?" If your prospect really believed that he could make money in your network marketing business, getting the startup money would not be an issue because he knows that he would get it back! So your job as a sponsor is to demonstrate that you are the kind of mentor and teacher that will lead your prospect to the "promised land" of financial freedom. I am not suggesting that you guarantee your prospect's success in any way, because you can't. But your prospect must be able to relate to the method(s) you use to build the business and envision himself being successful using the same method(s). Once you demonstrate that you are and effective mentor and teacher with a viable marketing strategy, your prospect will be perfectly willing to find the money to join your network marketing business opportunity. Many people will not have the funds readily available to start a network marketing business, especially if it is of the high-end 1-Up or 2-Up type programs that I prefer. Most will need to use a loan to acquire the startup capital. Here are some ideas that you could share with your prospects that may be in need of a little creative financing to start their network marketing business. Credit history is going to be an important factor. If you have a good credit history, a bank will be more likely to issue a loan at a favorable rate. It's easy to check your credit history. The major credit unions will provide your credit report for free upon request and most credit card companies will do this for a nominal fee. Try getting a bank loan. A bank's sole purpose for existence is to loan money! They review tons of loan applications and business plans on a daily basis. They are perfectly willing and able to issue loans if they are provided with logical and reasonable supporting information. That's fair. If a bank is going to take on the risk of loaning money, it has a right to know that their risk is well placed! So, proper planning is essential. Make sure you compile as much supporting documentation as possible and that you possess a polished and professional demeanor when you meet with a loan officer. Propound your loan request as clearly and succinctly using logical and reasoned arguments to demonstrate that bank's investment risk is minimal. You'll want to make it quite evident that their money is safe with you and it will be repaid with interest in a predetermined period of time. A secured loan is another possible option. Offering collateral will make it much easier for a bank to issue a loan if your credit history is problematic. Collateral can take many forms -- it could be a house, precious metals, fine jewelry, an automobile. It depends on your bank's guidelines. You must be very cautious about this type or arrangement. You could be putting yourself at great risk if you were to collateralize a loan with your home! The failure rate for startup businesses is high. It would be a shame to risk your house over a bad network marketing business decision! Make sure you are fully aware of the risks and consequences. Maybe Uncle Sam can help. We are fortunate to live in a capitalist free market society where our government actually encourages entrepreneurship by issuing low or no interest loans to small businesses in an effort to stimulate economic growth. An excellent place to begin your research on government loans is fedworld.gov. The competition for government loans is very high and getting one could be even more difficult, in many cases, than getting a private bank loan, but you'll never know unless you try. The excellent terms that typically accompany government loans make them well worth the effort! Consider using a credit card. Credit cards and bank overdrafts offer the easiest way for network marketers to acquire startup funds for a business. There is a lot of controversy about this form of personal debt due to the high interest rates that credit card companies impose. What is more important in my opinion is having a viable action plan to pay back the debt as quickly as possible. Certain business models are more effective than other for generating large inflows of cash to repay credit card loans in a relatively short period of time. Fund your business with a government tax refund. Most people overpay their taxes throughout the year and as a result are due a refund after filing their income tax return. Many people get refunds well in excess of $1,000 dollars. This could be a great source of startup capital for a network marketing venture. Seek assistance from friends and relatives. Friends and relatives can be an excellent source of startup capital if you can convince them that their investment is safe and offer an attractive incentive for issuing a loan. Perhaps you could establish a revenue sharing and/or a joint venture arrangement. As with bank loans, the key is preparation and professionalism. Don't make that mistake of thinking that just because someone is your friend or relative that they don't deserve that same type of consideration and respect that you would give to a bank loan officer. Bad business decisions can make relationships end badly. Don't be reckless. Be Persistent. "If at first you don't succeed, try, try again." There is a lot of wisdom in that old adage. If your loan request is rejected by one source then try another, and another. Just make sure that you learn from any mistakes you make and modify your loan acquisition strategy accordingly. It's somewhat of a numbers game. The more sources to which you present your loan request, the greater the likelihood of it eventually being approved. |
