Network Marketing is also called Multi-Level Marketing or MLM. If you are cosidering a Network Marketing Home business, then this will help you. There are items to think about in a Network Marketing Home business that will keep you from just spinning your wheels and getting nowhere. It is true that almost entirely all Network Marketing Home businesses fail. That is what happens to most any business in their first five years. But if you understand what you are doing, then Network Marketing is the best business in the world!
One of the first things to remember is that you should start your business with as little cost as possible. Don’t pay high frontloading fees, or spend thousands of dollars to start. You should also not follow any company guidelines that tell you to purchase enough to get to a “top level pay plan.” You should not need to sell innumerable products in order to get a paycheck. You should not have to stock inventory, either. If a particular company requires that you do these things, find another.
You also must know that if you want to make money with MLM, you’ll need to do some selling. It’s just not possible that you’ll have to do no selling. This is what’s called “spillover,” if distributors above you are working and your pay plan is a forced matrix or a power leg binary. However, if you join this type of setup, you won’t be happy. You should also not get involved with an MLM business that offers you an income opportunity with no product or service available. Before you sign up with any company, go online and search with that particular company name and the word “complaint” or “scam.” This will bring up any previous difficulty this particular company has had so that you know to avoid it.
Simply put, to get involved with any company, you need to do sales and distribution. Of course, there are also direct sales, which are what most of us are familiar with. With these types of arrangements, a salesperson sells products and then gets a commission, which is a percentage of the cash generated by the sale. This is the most commonly accepted sales approach. Some salespeople can also be paid on salary, or even per lead as long as they meet a particular sales quota, but any business derived from sales is always sales-driven.
Network marketing home business is perhaps a better way, both for the companies and the people who work for them. With this type arrangement, you are still selling a product or service for the company, but you’re also looking for others who want to be in business, and you’re selling the company’s product and making a profit from it yourself. In short, you are assembling your own team, which in turn will help you generate profits of your own. This takes sales one level up, because once you sponsor other people, you help the company get new distributors, so that you get paid not just on your own sales, but also on sales generated by any others brought to the company by you.
This is where the term “multilevel marketing” comes in. If you as a first level manager get a new distributor for your particular company, you’ll get paid from the work of the new distributor, and for someone above them who is your subordinate. As more and more distributors under you sell more product and bring in more distributors, you’ll generate both second and third level income, which means that this is product revenue earned by others for you. They are doing sales for you, which is making cash for you. This type of selling doesn’t take any effort on your part, because you’re not actually doing it. Instead, you’re using the company’s product or service and recommending it to others. You’ll need to be enthusiastic about it in order to be really successful. The company may also give you materials such as sales letters, brochures, recorded messages, recruiting calls, websites, magazines, DVDs and movie presentations. These types of journals should encourage others to buy and should tell potential buyers want the benefits of the product are. There should also be plenty of customer testimonials included in these materials.
The service or product offered should be valuable and coveted. It should be something people really want. It should be one of a kind, and the company should manufacture it. If what you’re selling is a service, it should be a continuing monthly type of service; if the product is sold, it should be a consumable, for best results. This means that you get existing customers to receive product every month, which means more residual income for you.
With MLM, you’re not just making one-time sales as you do with direct marketing. You’ll have residual income that keeps coming in whether you’re working or not. This is a great way to build a retirement income, so the company you decide to work with for should be well established and have a good reputation. Check out the company carefully, including its marketing systems, time in business, and management.
Once you have found these things and have decided to sign on, you present the product to as many people as possible. It helps to start with what’s called your “warm market,” meaning people who know you. This includes coworkers, family and friends. You can also advertise or buy leads of people interested in starting their own business, or interested in your type of service or product.
Finally, you can get targeted lists for multilevel marketing called “multilevel marketing genealogy lists.” These people have already joined a multilevel marketing company before and may be open to joining yours. Do an Internet search with the term “MLM genealogy lists,” and you should find many sources that have these types of people on them. These lists aren’t expensive and those on them have already done some work building a business. And of course, you want experienced distributors on your team.
Author: joe cotroneoThis author has published 11 articles so far.