Once when I was discussing the details of one of my favorite marketing techniques - newsletter marketing a student made a comment that elicited a much needed observation.

She said . . .

"After doing newsletter marketing your way I ended up doing it at a profit for the first time, but I only made $10."

And she didn't say it full of excitement, so I stopped the call right there to explain something incredibly important to everyone on the line that I'm going to explain here.

The internet has many people hypnotized. Many new marketers think that unless they make a killing in every advertising campaign they're doing something wrong when. In fact, they could be creating huge success without even knowing it.

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Here's what I mean.

In any business the most expensive portion is the acquisition cost of a new customer. In network marketing this correlates to the acquisition cost of a recruit.

Many of the best marketers in the world will actually go deep in the whole to acquire a new customer because they know something that the general public doesn't.

If they can literally buy a customer and have systems in place to convert a portion of those customers into multiple purchase buyers they will overcome the initial cost of acquisition and still create great profit margin.

For instance, a typical situation may be that the company has a front end product that cost $97, but on average it cost them $150 to get each one of those $97 customers, so they are actually paying $53 per customer on the front end.

But they know on the backend over the course of a year each new customer they create is worth on average $300. So paying $53 to acquire a customer is actually a smart move over time because in the end they actually make $150 over time.

The key is having systems in place and knowing how to do the math properly to know what's called the "life time value of a customer".

Many more multi million dollar businesses are built this way than you know. The money is not on the front end, it's extracted over time.

In network marketing you would equate this situation to the acquisition of a new recruit.

The money you really earn, in most situations, is not on the initial fast start that's paid out immediately, but in the duplication of a subset of those you recruit over the course of time.

Again systems are key to this process.

I say all this to say to you . . .

If you are making a profit on the initial acquisition of a recruit or customer, jump for joy. If you just keep that system rolling and you are at least breaking even you've got a priceless vehicle for wealth that you may not even be aware of.

It doesn't matter if that income is $10 or $100 or $0.01 on the front. If you're in the green you keep that sucker running as long as you can and you will create a thriving organization.

Where others go wrong both in business and network marketing is not understanding the power of having a backend duplication or profit system and simply try to survive on what they make on the front end.

This is much more risky than losing money on the front and having a reliable system for backend conversions, but on the surface it would appear the opposite.

Remember this.

Work just hard enough to break even on the front end. Keep the recruits coming, and put all you got into creating and using duplicable systems on the back end and it's only a matter of time before you're rolling in the dough.

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