Any business, whether online or traditional, will have costs associated with it. Initially there will be start up costs and there will also be ongoing operational costs. One of the major advantages of network marketing is that both startup and running costs can be kept to a very low level.

Most people who decide to get involved in network marketing work from home (for many this is their goal) so, as a general rule, there will be no additional cost incurred for business premises, employee salaries, telephone and electricity supply etc.

However, there is normally some cost associated with starting your network marketing business. This is perfectly acceptable provided that you get something of value in return. Some of the things that you might expect to receive are listed below.

• A website for marketing your product/service, the business opportunity or both.
• Marketing materials, brochures, catalogues, downloadable banners, posters etc.
• Training resources - audio tapes/CDs, written material, dedicated training events.
• Any paperwork required to take orders offline (if appropriate). Product samples and demonstration items.

Make sure that you know what you'll be getting for your money and try to work out a rough cost for comparison. Don't worry if the two sums don't balance exactly - perceived value will vary from one person to another. Just make sure that you're getting something of genuine value in return for your cash.

You should also be covered by an unconditional money back guarantee for at least the first 90 days. Regardless of how committed you are and how certain you are that you have found the right opportunity for you, it is still possible that something in your circumstances could change which would make it unfeasible for you to continue.

If you're happy with what is provided in your startup package, then take a moment to consider any other items that you might need and which aren't included. You might need to buy business cards, order stationary, obtain additional webhosting or buy your own unique URL.

All of these costs can mount up and may surprise you if you're not careful. Of course, these are discretionary items and you can control them. Do your best to keep the cost low by spending only on items which will provide you with genuine benefits in terms of new sales or recruits.

Don't forget to make some assessment, however approximate, of your likely ongoing operating costs. You may have repeating monthly costs, website hosting, autoresponders etc. and these should be budgeted for. If you use brochures and catalogues then these will almost certainly need to be replenished at some point. Even if you don't run out of them, product lines will be revised, prices will change etc.

You should also allow yourself some advertising budget, however small. There are many ways to get free advertising on the web but these often require a significant investment of your time - time which cannot then be spent on growing your new business by different methods.

Finally, don't forget that many of your costs will be tax deductible. Keep receipts of all your expenses as you will need these to support any claim you make.