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I thought this topic would be useful to discuss, especially since home business ads and promoters tend to be silent about it, which I don’t really understand. I mean it is much better to know what to expect, whether it comes to expenses or how much you need to work. Plus, if there are no hidden expenses that suddenly pop up into people’s face, everything is just more transparent and less sleazy. That matters a lot.
The best way to make you face the facts about running a home business is to make a case study out of my personal expenses so that is what I’ve done below. Some expenses are opportunity dependent, some are universal. I start with the universal ones.
Autoresponder: Every online marketer needs it. You can’t build a business without building a prospect list. The list that you are going to develop your own tribe from later on. Your list and the relationship with them is your real asset, not your Facebook fan page or your Twitter account. Your list is like a distribution channel, and the true profits are in distribution channels. One offline example for a distribution channel would be the Subway restaurant chain. My autoresponder costs 14,45 Euros a month which is about $17/month. Until you don’t exceed 1,000 subscribers, that is your bill. Now, you can try other email marketing services, Getresponse is just what I personally found the best.
Blog: Your business must have a hub and a place where you can put lengthy content. The hosting of this blog costs me $12.64 on a monthly basis and, but there’s a bigger yearly recurring payment to it as well, which is around $50. It still gets bombarded by spam though. Once iPas2 and Empower Network are out with the Kalatu blogging platform and passed the beta testing phase, – in which they are now – I’ll probably relocate to Kalatu. There’s no spam there, my blog will instantly get more authority and it is $25/month. There’s also a price for reserving a domain name, but that’s dirt cheap, so I won’t count that in.
Capture page creating service: You’ll need this, unless you want to code all of your webpages one by one. It is not just capture page, but sales page, webinar registration page and everything an internet marketer needs when it comes to page templates. Leadpages costs $37/month for me. It could cost $67, but I use another online service for link tracking and rotation, so I can get by well without the $67/month deal. Obviously, there are alternative options to this as well.
Link tracker and rotator: You have to measure the results of your advertising and do split-tests. That’s why such a service is unavoidable. The marketer’s package is $9/month at Trckme.com. I use them and like them.
Let’s add this up so far: $17+$25+$37+$9=$88 PER MONTH
This was the infrastructure. Let’s move onto the opportunity specific numbers and we’ll end with the marketing budget section.
iPas2 products:
First of all the resale or franchising rights of every products altogether is $19.95/month.
The system itself is $47/month. You can make a 50% commission on this, and 100% on the other products.
Then there’s the Inner Circle Membership that gets you access to a big library of interviews with leaders in the online marketing industry. The library is updated weekly with one more interview. That costs $100/month, but this is a product you can earn $100/month commissions with.
The one time payment products on the product line are $500, $1000 and $3500. You make 100% commissions on these, except for the $3500 one, which gives a $3000 commission.
Taking into account that buying all products is not required for your success – only recommended- and that you can earn your way to the top, I’ll calculate with the $500 product.
$88+$19.95+$47+$100=$254.95 PER MONTH
Minimal one time start-up investment: $500
Minimal monthly advertising budget: $180-200
CONCLUSION:
You need to invest about $950 in your first month (optionally $1950 or $5450) and about $430–$450 ($254.95+$180 to $200) in each following month. The key is to become successful without going broke. If you can handle putting aside about $430 for your business every 30 days, you can do this. We could add online courses into the picture as well, but the educational platform in iPas2 and my Facebook marketing education are enough to get you into profit if you are willing to put in the work. This still pales in comparison to the cost of running brick and mortar businesses.
However if $430-$450 is still too much for you, you can skip the $47/month iPas2 system price in the beginning and simply roll with Empower Network. Then $400/month is enough. Even in that case you can earn up to $5125 per customer, once you get to the top franchising level.