Break-EvenPoint – Critical to Understanding Cash Flow

Get Cash Flow to Balance Your Business and Family Life

Network Distribution is proving to be the “Global Business Model of Choice” for families and small TEAMS of people who want to gain MASTERY over their economic affairs.

But like any business, Network Distribution (sometimes referred to as Network Marketing) has principles that factor heavily on your success … or lack of success in building the income that you seek.

Understanding “Break-Even Point” is an important factor that cannot be overlooked when evaluating whether the company that you choose, will give you a reasonable return for your time, energy and monies.
Break-Even Point is CRUCIAL to understanding Cash Flow in your business.

Cash Flow Is Essential for Start-Ups

What is the relationship between Break-Even Point and Cash Flow?

Break Even Point Analysis is a measure of how long it will take to …
1 – ReCoup your initial investment in a business.
2 – Have your monthly income in the business to match and then exceed your monthly expenses.

Many people, that get started in Network Distribution, fall in love with the allure of the service or the “claims” of the product … without evaluating the numbers behind the actual business.
They become zealots and go out in a frenzy, evangelizing the benefits of the product as if that alone would be enough to have another person make the “business decision” to join them.

Understanding Cash Flow and the “numbers” behind your offering, will be a big help in providing a clear track to run on , for your contacts who want to really Break Free from trading time for a paycheck.

Here are some guidelines to help uncover the Break-Even Point in your offering …

Front-End Cash Flow

What is the intial investment to get involved in your business?
What commission rate are you entitled to as a new distributor at your level.
What is the Dollar amount of commission awarded to you for each new account?
How many accounts will you need to establish to re-coup your initial investment?

(This last question is CRITICAL … Industry studies suggest that most distributors average only 2-3 signups of new accounts!)

*Remember* This is a TEAM effort. You will be relying on other people to Duplicate.

If the number of accounts needed to recoup the investment exceeds 5 … beware!
Your effort is one thing …. but you cannot predict or control the efforts of another person!

There will usually be some monthly commitment to product or service.
This is how Residual Income is earned.

Monthly Cash Flow

What is the dollar amount of your monthly commitment in your business?
What percentage of that same monthly commitment, from each of your teammates … will come to YOU as “commission overrides”?
How many accounts (people on your team) does it take to COVER THE MONTHLY COMMITMENT in your business?

These are critical questions that will give you SOLID ANSWERS to what your Break-Even Point is, in your business ….
and how much energy it will take for your teammates to achieve break even, and get into POSITIVE CASH FLOW.

Here is my overall financial strategy.

1 – Daily Cash Flow
2 – Leveraged Residual Income (TeamBuilding-Network Distribution)
3 – Wealth Preservation (Precious Metals)

The majority of my energy is in developing a TEAM.
Long term, that is where my residual income will come from.
The challenge with TeamBuilding is … you must find people who are motivated as YOU, and then assist in delivering a clear and simple strategy for TEAM growth.

For people who are new to Entrepreneurship, I am using Empower Network as a funded proposal to get people off the fence and into activity …
and to show them that it is entirely possible to receive 100% daily commissions for the efforts that they make.

Empower Network is an excellent cash flow “affiliate” program.

Empower Network is  not intended to be your primary income stream, but rather a practical “tool” that allows new internet entrepreneurs to experience Positive Cash Flow with their very first online experience, while building valuable disciplines ann on-line skillsets that will help them to prosper.

More important, it allows me to offer a “functional tool” that people can use to:
a – Blog about what’s important to THEM
b- Get in the daily habit of putting out links from their blog to their contacts and associates (to build online presence … small weekly activity is KEY)
c – Experience Break-even” with their very FIRST transaction.
(with EN, your first person covers your initial AND monthly investment)
d – Get into profitability …IN THE FIRST WEEK of business.
(every account beyond your first, is PROFIT … this is HUGE)

Whether your business is “online” or “off-line” … new school or traditional “brick-and-mortar” … knowing your “numbers” is critical to Cash Flow.