ROI Plan

What is ROI Plan

In network marketing, the ROI is not so clear-cut but still needs to be measured. Unlike traditional businesses, your greatest investment in MLM is your time and effort. There is very little money invested for the startup and ongoing monthly fees. This makes it the perfect business model for any person that is willing to invest their time and effort, with a little money.A network marketing business is a 2 to 5 year plan – meaning that if you learn the skills and consistently implement the daily activities, you have the opportunity to reach six figures or more a year within that timeframe. In a traditional business, if you generate less money than you spend, the business will fold. In network marketing it works a little differently. If you put very little time and effort in or focus on the incorrect activities, your business will fold – no matter how much money you invest in it!

MLM has variables, other than money, that need to be invested. This is exactly what makes it such a powerful business model.

Just because it’s not a monetary investment, you still need to measure the effectiveness of your activities.In looking at the return on investment in MLM, we must understand how our marketing strategies are impacting our business. There is no other way to make decisions as to whether to continue to pursue a particular marketing strategy or change it drastically to have a positive impact.

In every business, return on investment (ROI) is commonly used to measure the rate of return on money invested. “ROI deals with the money you invest in the company and the return you realize on that money based on the net profit of the business.”