What is opportunity cost and why is it an important factor to consider when deciding to join or purchase a new business opportunity?
In simple terms you could say it’s the cost your incur by choosing NOT to take up the opportunity Or “The cost of not doing NOT taking a certain course of action”.
Example : If you receive a gift of $1,000 on your birthday and you decide to keep it in your drawer, whilst you’re $1,000 better off than before, the money is lying idle and not generating interest or gaining in value. In fact, many will say that cash in this form loses value by the day!
Lets look at a couple of options of how the money might be used:
Ex 1: If placed in an interest earning account (say 5% per annum) then the opportunity cost would of leaving the money sitting in the draw could be said to amount to a loss of 5% – $50 over the next 12 months.
Ex 2: If you refused to loan the money to a friend who was willing to pay 10% interest then similarly, hanging on to the money could mean your opportunity cost would be $100.
The basic formula for opportunity cost is:
“What you are sacrificing – Divided by – what you stand to gain = the opportunity cost”
Now let’s consider the situation where you’ve heard about the NPN Builder opportunity but for some reason, you’ve decided not to perform some simple due diligence calculations to take up the opportunity but instead decide to continue your normal path, marketing online with no obvious change in results.
If substantial evidence provided from the NPN Builder owners suggest that you could be making an extra $10,080.00 per month as soon as possible,your decision to opt out could mean you’re sacrificing yourself to a (lost) opportunity cost. The opportunity cost being the potential gains you’ve opted out of by not joining NPN Builder.
Let’s face it, in most cases, if you join a program, you don’t make any money in which case there would be no opportunity cost in not joining such a program.
So the ease of making money and the likelihood that you’ll make money are most important criteria.
With most moneymaking programs, when members log into their accounts, they see that “nothing has changed” for days, weeks, or even months. They don’t see any recent earnings and therefore interpret this as “nothing is happening” and it can have a devastating psychological effect on them.
Contrast this with NPN Builder where ‘something happens’ every day.
Any daily earnings are added to your account every day. You can log into your account and see that something has indeed happened; either earnings have been added to your account, or prospects have signed up and your list continues to grow. Most likely, this has a strong uplifting psychological effect on the majority of members. It can also provide a strong motivation to take further action, such as buying more positions and sponsoring people. Learn more….
Every time someone enters your NPN Builder sales funnel, you receive an email notification of that signup and it’s reported on in your back office summary immediately.
Now this is where NPN Builder really excels because an automatic followup system kicks in specifically designed and honed to your new prospect in the loop.
Not only have you recruited a new subscriber to you own list, the system continues to present the numerous appealing offers to them, offers which are known to have an excellent take-up ratio through having been statistically proven over several years.
If your subscriber buys into the opportunity, you get paid and payment is added to your account ,which you can check, in your own back office .
One of the common complaints from people is “finding the right program that will make money for me”. Its something that resonates with me because I know I felt the same way when I started out. so I thought I’d try and shed some light on what I’ve discovered since then.
The fact is most programs – by themselves won’t make you money – just like if you’re learning to become a general aviation pilot, an airplane by itself won’t fly you from A to B. You have first to know HOW to fly then gain experience to be able to fly where you want to.
Same as a recipe in cooking. Several people using exactly the same recipe can come up with different results depending upon their individual skills and competence.
In each case the recipe, the plane or program have been designed to help you accomplish what you want to do but its up to you to apply your knowledge, skills and competence to achieve the best result you can. Each is just one vital part
of the equation – but the crucial factor is you, what you already know and how well you use it.
So it is with most things and Internet marketing is no exception which is why so many people fail to achieve their goals – which by the way are often unrealistic when one considers previous knowledge and experience.
So what happens is people get frustrated and drop out.
Some blame the program and look for another ‘silver bullet’ and usually finish up spending most of their time online repeating the same mistake by chasing ‘new shiny objects’ – I know. I’ve done it myself. I’ve used excuses like,” I haven’t got time to learn”, or “I want to fast track my income..” etc.
What we’re saying here is it behoves you to put some effort into doing things in a specific and correct manner if you want to get the results you dream of.
So in many ways, whilst an individual program or tool may appear to be “the best thing since sliced bread”, what’s every bit as important is a proven system and tools plus the right training to learn how to get the best out of the program or tool.
But it doesn’t end there.
There’are many instrinsic aspects to Internet Marketing and simple rules that need to be understood and applied – to set you on a good foundation.It doesn’t end there either, some basic rules apply all the time – stop using them at your peril!
I watched a training webinar recently by someone who makes zillions online who made this point very well. it concerned placing ads online and, more specifically, the link posted in the Ad and where it lead people to. You see, the way some links are presented don’t work at all well and only drive people away.
However, other links presented in a different pattern are less obtrusive and readers are more likely to give you their email address or subscribe to your list – even buy product!
As old, experienced comedians will tell you “It ain’t what you say its the way that you say it”! Which leads me on to this.
If you’re intent on internet success and feel you’ve lost your way or not getting the results you’ve been seeking maybe its time to “say your message a different way” and learn more about those vital elements that you’ve been missing which, when corrected, make all the difference to how your readers receive your message and deliver better results.
Here’s what I recommend.. take a look now – just click the link and check it out.
My next blog article relating to opportunity cost will cover, in more detail, why NPN Builder is able to provide you with a greater chance of success as an Internet Marketer than other systems and I’ll give you some explicit examples and comparisons.
Meanwhile, here’s some good general principles which, if properly applied should help you make a difference to whatever you’re doing now ;
Consistency in applying the methods and techniques
- Focus on building your list
- Every product should be a sales funnel
- Tell them ” Here’s what I have got” and ….
- “Here’s why you need it!”
- Know and Follow your PROCESS (This is known as your SALES FUNNEL – the process you move people through to achieve some action by them that results in them joining your list.) They will need to be exposed to your offer up to 10 times for them to consider buying from you by….
- Arming and Employing your AUTORESPONDER SYSTEM (to send out emails automatically)
In summary, when we think about it, we can narrow down success in internet marketing to as little as 4 simple steps. Essentially there are 4 “core elements” to marketing online.
- Creating Content
- Sharing and Re-purposing
- Advertising and Building Your List
- Analyzing and Adjusting
Click here to learn How The NPN Builder training videos explain exactly how to implement all of this into your business.
Latest posts by Frank Heath (Posts)
- The 4 Core Elements To Marketing Online - July 20, 2016
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- Early Adopters Will Love This - June 7, 2016