Apr 23, 2019
“Work it like a hobby, and you’ll make hobby money. Work it like a business, and you’ll make business money.”
- NiCole Easton
NiCole Easton (1:38 - 1:41)
The difference between a business and a hobby.
A lot of people get into network marketing because they have high income and lifestyle goals. However, they're often reluctant to put in the required amount of work to reach their objectives. Network marketing can certainly create financial stability, but there’s a lot of misconception around what it takes to get there. Just like someone trying to lose weight will fail if they regularly eat potato chips and only exercise once a week, an entrepreneur is most likely to fail if they treat their business like a hobby.
The first thing that most network marketers do when they get started is that they reach out to everyone they know. They try to convince their friends and family to join their businesses. They inevitably face rejection, and they get frustrated. They might gain some initial traction, but selling people on a one-on-one basis is not the way to build a business that is profitable and sustainable in the long term.
“Start investing in yourself. For example, find a great course to learn a skill that will improve a particular aspect of your business.” - Brooke Elder (10:47 - 10:56)
Instead, focus on building a system that allows you to share your message with a targeted audience. When you only work with people that genuinely want what you have to offer, your business will grow more rapidly with less effort than before. But you do need to put in the work to build the initial foundation. You have to create some business assets like a marketing system, branding that speaks to your audience, and a message that they can get on board with.
How to invest like a business owner.
If you want to start a traditional business, like a fast food franchise, you’ll typically spend a few hundred thousand dollars before you make a single cent in profit. In comparison, starting a network marketing company is relatively easy and cheap, and you’ll only need to spend a few hundred dollars for the starter kit and some samples. But don’t let the low barrier of entry fool you into thinking you don’t need to invest time and money into your business if you want to create a substantial income.
You'll have to invest in things that’ll make you a better entrepreneur. You might need to buy a course to learn critical marketing and sales skills, or hire a coach who can help you build a solid business foundation. Your starter kit and samples will help you get started, but you’ll need to invest the time, and some money, to develop a brand and message that is aligned with your unique voice.
The difference between consumer debt and business debt.
When considering making investments, you might be wondering if it’s a good idea for you to go into debt to fund your business. To answer that question, you need to understand the difference between consumer debt and business debt.
Consumer debt is any kind of debt that is not an asset, or something that brings you a return. If you take out a car loan with the sole intention to drive the car for personal use, that is an example of consumer debt. You’ve taken a loan on something that is not only not making you money, but it is also depreciating in value each day. On the other hand, if you get a car loan with the intention to become an Uber driver, now your car is generating revenue that you can use to pay all of your expenses. This is an example of business debt.
So, when you think about investing in your business, maybe a course, a coach, or product samples, ask yourself if it's something that is going to bring you a return, or if it will create income for you. If the answer is yes, then it is most likely a smart business decision.
“When you think about investing in something - maybe a course, coach, or product - is it something that is going to bring you a return?” - Brooke Elder (18:40 - 18:54)
If you’re a new entrepreneur, it is critical that you start treating your company like a real business. Even if you take small steps, you’ll create positive momentum that you can build upon and move forward towards achieving your bigger goals. Take some time today to come up with one thing that you can do immediately to start treating your business like a business, and not a hobby.
How to get involved
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