Learn to Prospect Efficiently

Step 1—Determine your break-even point. Understanding your break-even point is the first step to knowing how to prospect cost efficiently. There are two different break-even points; incremental and fully absorbed. The incremental break-even point is net sales less cost of goods sold, less direct selling expenses, less variable order processing and fulfillment expenses. A fully absorbed break-even point includes all of the previously mentioned expenses plus all overhead expenses.