Some Numbers for YOUR Home Business

First, I’m not talking about “those” numbers we hear all the time, such as 97% fail and Network Marketing is a “numbers” game. I’m going to talk about real numbers, something for you to think about as you go forward in your home business.

The first set of numbers I’d like to discuss is income. How much income (profit) would you like to make? Would you like to be in the top 2% income earners in the US? That’s about $30,000 a month, actually, it’s a bit more but I’ll just use easier whole numbers. Have you sat down and figured out how many units of whatever your product it to make that kind of income?

Here’s an example. Let’s assume your product and again, doesn’t matter what it is, has a profit for you of $25 per unit. Simple math shows that you’ll have to sell 30,000/25 or 1200 units a month, which is 40 units a day. And guess what? You’ll have to do that each and every month if you want to continue to earn that $30k/month income. Can you maintain that? Can you even get to that amount of sales?

You’re probably now thinking, “Hold on a minute John, I don’t have to do that, I’m going to refer lots of new members who will refer lots of new members and and and. In other words, I’m going to leverage on my team’s sales as well”.

If you’ve been in this industry anywhere longer than about 30 days, you know that’s something that most simply cannot do. Sorry, but that’s a fact.

So I have to ask, do you have a plan in place that will give you that income you desire? What is that plan?  Sit down and figure out what it will take to get you to your desired income.

Now, let’s talk about another set of numbers that most brick and mortar business owners aren’t even aware of, let alone online businesses. The first is, what is the customer acquisition cost (CAC)? In other words, how much does it cost you to acquire a new customer/distributor? Figure it out for yourself. Don’t forget to include all the tools you may be paying for, such as an autoresponder, landing pages, advertising costs, etc.

The last number you should know is what is the average lifetime value (LTV) of your customers? If you are new, you won’t have this number. If you’ve been in your business for about year, you should be able to easily figure that out. And no, you can’t just take one customer’s monthly purchase and multiply that by 12. Remember, 97% customers/distributors will quit within 1 to 90 days.

Putting the two together, it doesn’t take a genius to see that if your CAC is greater than your LTV, you are going to go out of business quickly. This by the way, happens daily, to thousands. And they can’t figure out what happened or why.

Anyway, no pitch for a business here, just thought I’d give you something you should really be thinking about as you take your business forward.

Meanwhile, I’d love to hear your thoughts so email me!  My personal email address is

This article was published on 01.08.2016 by John Hensley
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