How To Start In The Network Marketing Business
The reason many people are planning to start their own network marketing or MLM businesses today is that they are almost assured of rich dividends at the end of the day. We live in a world of consumerism and because MLM products are always priced lower than their store-sold counterparts (remember that products sold through network marketing do not have staffing and stocking expenses), it is fairly easy to find buyers for them.
Plan out Things Carefully
But though it is easy to start a networking marketing business, there are some things that you need to think about first. You need to think whether you really want to get into this business. You will have to devote time initially. See whether you are prepared for that. Most importantly, think whether you will be comfortable selling some products to people.
Choosing Your Network Marketing Company
You will definitely need to join a network marketing company so that you can take the products off them and sell them to earn your commission. This is the way the business moves. But you will need to do some research on the kind of company you can join. There are tons of them out there and selecting the most appropriate one can be a problem. Here are some tips:-
1. See how reputed the company is and how much spread out it is. Some network marketing companies have an international reach.
2. Go through the products of the company. It is important that you check these out beforehand because you will be selling them to people. Are you convinced about the products? Will you use them yourself? Actually, some companies may insist that you buy and use the products before selling them to other people. That is actually a good idea because then you can have a firsthand experience of the product.
3. How much will you have to spend? There are generally no fees to join into the network, but you may have to buy the product. Most network marketing companies will also provide a kit when you begin. You will have to spend for that. The kit will usually contain a manual, some sample products, an instruction guide (usually in the form of a CD or DVD) and some other paraphernalia.
Start Spreading the Word
Once you have joined the network, you have to try your best to popularize it as much as possible. You have two aims actually – to sell the product to the highest number of people possible and to build an army of people who will join your network and sell it too. Speak to your family and friends about the product and convince them to join your network. You must also not hesitate to promote it to complete strangers. Wearing a pin about the product (most network marketing companies provide it with the initiation kit) is a good idea to create curiosity about the product among the general public.
What Is Network Marketing And Is It For Everyone?
Network marketing has become the new buzzword in the business world. The concept has existed since well over a century now, but it is only now that people are realizing the full potential of this activity. In addition, the great amount of money that comes in with relatively little efforts is something that simply cannot be denied. The advent of the Internet has definitely made network marketing much easier and today people like Donald Trump and Robert Kiyosaki are pronouncing it as the best home based business activity to pursue.
So what is network marketing actually?
The idea behind network marketing is to build a team of people in a network who will all be selling the same product. The person who starts the network will have a product to sell. This person will try to look for more people who can sell the product too. The people who join in will become subscribers to the network. They may even pay a fee to the initiator of the network to be in it. At the same time, they are selling the products, for which they retain a commission. Now, these people will look for more people under them, with the same factors as are applicable to them. In this manner, the chain continues to grow. Each person in the chain sells the same product and keeps a commission. The commission will be higher for the members who are higher up in the chain.
Network marketing is also known as MLM, which is in fact a more popular name for the activity. MLM stands for Multi Level Marketing.
It can be easily understood that the greater the network grows to be, the higher is the profit for everyone involved. Therefore, the primary endeavor of everyone in the chain is to recruit as many people as possible. Simultaneously, they have to sell their product to as many people as possible too.
The money for any member will directly depend on the number of members in his or her downline. For that reason, people at top positions in the MLM networks take their roles as leaders very seriously. They hold several seminars and workshops for their downline members so that they can perform more effectively in recruiting new members and improving sales. These kinds of activities usually move throughout the downline.
Though network marketing is a typically online phenomenon nowadays, it is absolutely wrong to say that it is a very easy activity. There is always something to be done and usually it is about recruiting new people into the network.
You have to keep this point in mind if you are wishing to pursue an MLM activity. The business model is simple enough for anyone to understand it and begin their foray into it. However, to really succeed, you have to devote time, be a ‘people’s person’ and constantly keep yourself updated about what’s happening in your chosen niche.
Top 5 MLM Leadership Rules
Do you think you have it in you to become a good MLM leader? You need to have some qualities in you and have to adhere to some rules if you aim to succeed in this. Here is the list of the top five rules that decide a network marketing leader.
Rule # 1 – An MLM leader must be ahead of his or her downline.
This is the first rule to succeed. You are a good MLM leader only if your goals and aims are bigger than those of your downline. You have to build strategies and popularize them within your downline so that they can implement them too. Without planning new strategies and methods, the network marketing venture is not going to succeed. But the members in the downline will be mostly new entrants, without much knowledge of how the cookie crumbles. It is the job of the leader to explain that to them and to make sure that the right tactics are implemented.
Rule # 2 – An MLM leader cannot sit back and relax at any time.
Any leadership position is fraught with responsibility. The same applies to network marketing leadership also. Your leadership post is an active post; you have to take the initiative in motivating and guiding your downline. Most times, you will need to accompany members from your downline when they go prospecting. You will need to conduct your own seminars and workshops and participate in those that your downline members have organized also. It is important that you stay constantly on the move and that your downline sees this movement.
Rule # 3 – An MLM leader must lead by example.
If the MLM leader sets a target for the downline to have two new prospects a month, he or she must see that their own achievement is better. They must get five new prospects! If you want to be a good MLM leader, you have to lead by example and not just by precept. Only then will you be able to really generate the energy in your downline members to chip in their own little achievements that make the whole network work.
Rule # 4 – An MLM leader must be an inspirer.
This ties in with the previous rule. A person who achieves, inspires. When you are leading an MLM downline, you have to keep motivating them to work harder. There will be some members who will feel that they are not cut out for network marketing – these are the people who will be your toughest challenge. You have to show them that they can work and take the network forward too. You must hold meetings quite regularly where you encourage everyone to sally forth and conquer.
Rule # 5 – An MLM leader must essentially be a good person.
Only a person with noble intentions can be a good network marketing leader. If you think of only your own interests here, you are not going to go much further. You need to be cooperative with at least your downline. If a particular member cannot explain the plan properly to a prospect, you need to give them special guidance, much as a teacher would do to a weak person. You have to have the will to make everyone succeed here. That motive will definitely rub off on you at the end of the day.
Three Top Reasons Why MLM Can Fail For You
You must surely have read a lot of stuff proclaiming how multilevel marketing is the most foolproof business opportunity existing today and how people sitting at home can make five figure incomes a month and even more with such businesses. However, the truth of the matter is that many people are failing at network marketing terribly and are not even able to skim the surface of the vast potential that this amazing business concept can provide. So, where are they going wrong? Let us see that common pitfalls are associated with multilevel marketing and what you can do to avoid them.
Not Learning the Business Plan Properly
You will be committing professional hara-kiri if you plunge into an MLM business without learning properly about it. And if you give up your safe cushy job for this, you are doomed. The biggest rule of the thumb about the MLM business – or any other business for that matter – is that you should know the business plan well. If you are on their website, read through it thoroughly and contact them for any kind of information that is not clear to you. If a representative meets you, insist on a second meeting so that you can think things over and ask the questions that come into your mind.
When you know the business concept well, you are better placed at understanding whether you want to go into this at all or not. Remember that all MLM businesses have a core idea to them – this could be a product, a service or even a concept that they are selling to people. It is vitally important that you are convinced with this object of their marketing. If you are not, you will simply not be able to convince others.
Not Putting in the Right Efforts
MLM businesses succeed only when networks are built; there is no other way. And to build those networks you will need to put in a large number of efforts both online and offline. You have to make time out for this. You have to make sure that you reach out to as many people as you can and explain to them your idea. You have to meet people, hold seminars and meetings, etc. and you have to build your website and blog and participate in various online marketing methods to get the maximum number of people. Only relentless efforts at the outset will keep your MLM ball rolling.
Not Working on Your Personality
MLM businesses are a leadership game. Everyone that enters into these businesses needs to become a leader and guide their downlines. This is not possible if they do not have a charismatic personality. The personality is also important when you meet prospects and try to get them to join the network. There are actually classes where MLM professionals are taught to be more effective with their personality traits.
Using Online Tools To Succeed In Network Marketing
The Internet has been a great big boon for all kinds of businesses and this is especially true about network marketing. If you try physical marketing, you might be able to promote your venture to a handful of people, which was the case in the eighties and the nineties. However, with the amazing power of the Internet unleashed on your promotional strategy, you can make the whole world your market.
There are several important differences between offline and online network marketing, which clearly show that the latter is more effective.
1. With offline marketing, your reach is limited. You can only meet people you know and a few other people, and that too with some kind of reference or contact. With online marketing, the sky is the limit. There are no geographical boundaries.
2. You will mostly waste time when you are marketing your MLM strategy offline. That is because you will mostly be meeting people who will not be interested in the product at all. But on the Internet, it is quite possible for you to meet people who are already interested in your idea. Most times, you will be actually contacted by these people and not the other way round.
3. Internet marketing for MLM businesses is way cheaper than offline marketing. For offline marketing, you need to schedule appointments, hold seminars, meet people and entertain them, etc. None of this is needed when you are marketing online.
It is no wonder then that people are trying to market their network marketing businesses online. There are various ways to actually bring people to your website – people who have already mentally bought the product but only want to make sure. The following are some of the most common ways used:-
1. Social Networking – Joining social networking groups is a way to promote your product. There are special niche groups here where you can make some intelligent posts about your network marketing venture and expand your network. In fact, your MLM network could be a subset of the whole network of the website.
2. Blogging – Making your own blog and writing about your MLM business is a great way of promoting your idea. Blogs also give credence to your concept because it allows people to “converse” with you.
3. Email Marketing – Sending targeted emails to people from a previously selected list is a great idea too. Emails make the communication personal and have a high chance of inducing the reader.
4. Article Marketing – Writing articles about MLM and submitting them to popular directories with the link of your website brings interested people to your website. This is a very good way to bring targeted people to your MLM business website.
What Do They Teach You In MLM Training?
You must have heard about multilevel marketing training in various places, mostly over the Internet. There are two kinds of trainings here actually – one is the training that is provided to people who are already into an MLM business by the expert members of this network itself and the other is the training that is open for all people, mostly those that wish to begin with their own MLM business. Naturally the training provided in both of these is different. Let us look at them separately.
Training for People who are already into an MLM Group
This kind of MLM training is more concerted toward making the group succeed. The people here are already into their MLM activity, most of them already have downlines. These people attend such training sessions from time to time for various reasons.
1. To get updated on matters pertaining to their own MLM company so that they could provide better information to their prospects and their downlines.
2. To learn how to be more effective and presentable in dealing with their downline members so that they can be an inspiration to them and guide them into working better and better for the growth of the network.
3. To learn how they can entice prospects in a better way so that they can convince them to join the network and act for its betterment.
4. To understand new forms of promotion that they can use to expand their networks. These usually deal with Internet marketing ideas. Not everyone that enters an MLM network is Internet savvy right from the start. Such MLM training courses are great for explaining the ideas to them so that they can use them in their marketing plan.
Training for People who are intending to join an MLM Business
These are amateurs who have a lot of questions to be answered before they can think of going ahead with the plan. These are some of the things they will learn.
1. How to choose a fruitful MLM activity suited to their tastes and constraints.
2. How to make the most of the multilevel business they have joined and what they will generally need to do.
3. How to cultivate the personality that is needed to convince other people to join the multilevel marketing network and to be a source of inspiration to their downline members.
4. How much they will possibly earn, what kind of time they will have to put in and such other technicalities.
An MLM training is thus useful for both the amateurs and pros. If you are into MLM in any way, it would be highly profitable to attend such training sessions, most of which are freely available on the Internet or even in physical seminars and workshops.
Why Cold Calling Doesn’t Work In Network Marketing And What Does
The whole world of multilevel marketing is quite deeply engaged with prospecting as many people as possible to join their network. In fact, this is the basis of success in network marketing ventures. That is the reason multilevel marketing companies are going all out to get lists of people who they could communicate with and convince them to join the network. These people are known as leads. MLM companies get hold of leads from lead generation agencies that give them highly dubious leads to follow up and try and convert them into members.
Now, following a lead is generally an easy process. Traditionally, it has been done by selecting any number at random from the list and speaking with them. This is a randomized process, but it has shown results in the past years. The method is known as cold calling.
However, today, cold calling does not work. And that is putting it mildly. The most important reason for the redundancy of cold calling in present times is the fact that you are randomly calling a person from a list. Now this person X could be anyone – there is absolutely no guarantee that the person will be even interested in listening to you. Most of these cold calls are met with abrupt denials and even slammed receivers.
Think about it – the person who takes the call is not at fault. When a person is busy doing something, if they are suddenly called out of the blue with a business prospect, they are certainly not going to be very interested in it. And there are enough pesky people from seedy companies cold calling all the time. If you cold call also, you are automatically degrading your worth.
So, cold calling does not work. What does then? This is the age of Internet marketing. Methods like posting on blogs and forums work. Article marketing is a genre that always receives wide attention. The beauty of these Internet based methods of promotion is that they bring in people who are really interested in the subject. Only if a person is really searching for an MLM opportunity will he or she land on an article you have written about it and visit the website URL mentioned below. Thus, this becomes a more focused way to get MLM prospects than blindly cold calling people off a list. It pays to learn these methods and use them instead of becoming all archaic and cold calling people off some random list.
Spending No More Than An Hour A Day On Your MLM Venture And Still Doing Great!
Some people tend to quantify the success that can be achieved in MLM with the time that they need to put in. They are of the very erroneous notion that they have to put oodles of time in order to do something commendable in their venture. However, the truth of the matter is that it is possible to make a decent success in MLM through spending nothing more than a mere hour a day!
Sounds unbelievable, doesn’t it? But if this sounds too unconventional to you, you are still living in the last decade when the Internet had not taken such strong hold and when businesses were still being conducted in the physical world. In those times, you needed to actually meet people, hold workshops and seminars and such other stuff just to stay afloat in multilevel marketing. But with the Internet, all that has drastically changed.
Let us take a look at some of the great benefits that the Internet has provided to the field of network marketing.
First and foremost, the Internet has provided a great deal of scope for promotion. Promotion can be globally done now with the help of the various tools that the Internet provides. Adopt this strategy to save your time on your MLM venture.
Learn the program fully well before starting anything. This is the most essential first step without which you will not be able to do anything.
Now, build a website about your MLM venture. Cheap domains are available now; select a catchy name that is good for the search engines. Pay for the hosting and you are good to begin. If you have the skills, design the website yourself, or else get someone to do it for you. You have to now open a blog for your MLM business. This is vitally important because most of the interested people will want to check out the blog to see what kinds of discussions are going on there. With WordPress and Blogger, making a blog has become extremely simple.
Visit some social networking websites and go into their ‘business opportunities’ category. Place some intelligent posts on these websites and you will find people beginning to show interest.
You can also create an opt in list for something that you offer through your MLM website, such as an eBook. Since it is free, people will not mind giving their email id for the free gift. Now, you have to pursue these and some other Internet based methods. However, since you do not have to bundle all of the things into one day, you are saving an immense lot of time. You will need to just check into your mailbox and other areas of correspondence to see what new is going on.
Once everything is in place, your MLM network will not require more than an hour of your day. And, you will be getting the expertise of the Internet to expand your network. Together, they form an unbeatable alliance that is sure to take your MLM venture to newer grounds.
Questions You Must Ask Yourself Before Joining An MLM Business
Multilevel marketing has become practically a buzzword for everyone that is looking for some method to make money from home. Even you must be feeling that this work-from-home opportunity is a very lucrative one to be in. The success stories of the various network marketing leaders are surely very inspirational. But before you start counting your un-hatched chickens, there is some thinking for you to do. You need to think whether MLM is really for you.
In order to prepare yourself, you can ask yourself a few questions. The following is a small questionnaire that can help you decide whether you are ready for MLM or not.
(Score yourself 5 points for every option A, 10 points for every option B and 15 points for every option C that you mark. Be honest!)
1. How much do you enjoy communicating with people?
A. I am an introvert actually.
B. I speak only when there is some purpose to be achieved.
C. I enjoy being with people and talking away. That’s my life!
2. Are you a good explainer of things?
A. Not if you threaten me with a gun at my head.
B. I can explain things only if there is someone with me to help me out.
C. Give me anything – anything – and I will make others understand what it is all about.
3. How open are you to innovative methods and try to use them in your life?
A. Not much, I like my life uncomplicated.
B. If it is good for me, I will use it.
C. I like anything that’s new, will try it at least once!
4. Success means to you…
A. Being filthy rich.
B. Being highly popular.
C. Being filthy rich and highly popular.
5. Can you guide people as a leader?
A. No, I like to follow instructions rather than give them.
B. I can do it, but only with people I am comfortable with.
C. Of course! I was born to be the President!
Now calculate your total score and look at the results below.
Score 25 – 35: If you want to start an MLM business, you need to give it some serious thought. Maybe you will have to work on your personality before you plan anything here.
Score 35 – 45: You need the right push. Work on your personality and convince yourself thoroughly you need to be in network marketing.
Score 45 – 55: With a good leader, you can do it. You have some of the qualities needed, enough to get you started. But you will need to learn and improve yourself if you want to subsist here.
Score 55 – 65: The going is quite in your favor. Choose a great MLM business option and you will surely be a winner.
Score 65 – 75: You will be an excellent MLM leader. You have the stuff that takes these people to their multimillions. Channelize your energies in the right direction and do good research on how the system works. You are going to be at the top of the heap very soon.
Offline Strategies To Build Your MLM Empire
The traditional method of promoting multilevel marketing businesses has been through personal people visits and meetings. Further down the line, MLM leaders would organize some seminars and workshops so as to reach out to a larger number of people. This is what people used in earlier years to promote their network marketing game plans and they used to pay off admirably. Of course, today with the advent of the Internet things have changed drastically. Today people are using the various tools that the Internet has to offer in order to promote their MLM concepts to a global audience. But that does not mean the real world strategies have died out. They are still quite effective in network marketing.
Some of the points that go in favor of offline MLM are:-
– These are highly effective because the prospect can actually see the “face” of the business. The Internet is a faceless entity and even if the business is a globally spread out affair, people are apprehensive about it on the whole. Traditional methods are still very good for credibility.
– MLM representatives can convince their prospects in much better ways than they can do online. Any personality expert would tell that the facial expressions, hand gestures, gait, mannerisms, etc. go a long way in creating an impression. This is not possible online.
– Also, it is very convenient to talk with prospects in real time, to take up their questions and provide live answers. This is done through blogging, but the effect of a live discussion is much more impactful.
Of course, that does not mean that online strategies are worthless. On the contrary, as a marketer you have to tap the full potential of online as well as offline methods. The online methods are great for bringing in a large bulk of traffic. If you can supplement them with offline methods too, such as actually meeting people even if it entails a bit of travel initially, it could be a very good idea.
People usually employ the following offline methods to expand their marketing networks:-
– Calling people randomly from a previously generated list of contacts (cold calling) and zeroing in on those people that evince some amount of interest.
– Holding meetings with the interested people on a one-on-one basis and carefully explaining the concept to them and answering their doubts.
– Following up these prospects with phone calls, emails and physical correspondence.
– Inviting interested people for a seminar, usually where an MLM expert (someone from the upline) would attend to explain things better.
– Having workshops to conduct training and orientation sessions for people who have newly joined the network or are on the verge of doing so.
Network Marketing – How To Ensure You Get Your Yacht This Year
You must definitely have heard about the great promises that network marketing companies make. Some of these speak about making you a millionaire within a year while some of these speak about getting you your own home, a luxury sedan or even your own yacht in the next year or two. So how far are these companies truthful in their promises? Is there really a scope for a yacht with MLM? Read on…
The truth is that no business venture can succeed without putting in hard work and that is true about network marketing also. You need to chip in your best efforts. But if you are looking to shoot right at the top, you need to focus on two important things:-
1. How to increase your immediate downline members
2. How to inspire your downline members to relentlessly work at bringing more and more members.
It boils down to this – you need to bring in as many members into your network as possible. As each member joins in and makes the sales that are the center point of the MLM venture (we are not talking about the scamming pyramid ventures here), you stand to gain commissions and this is the only honest way you are earning. Of course, you might be making your own direct sales also but in a successful MLM business, direct sales commissions should be extremely meager compared to what your downline brings in for you as commissions.
Now, let us see what you will have to do to really increase your income. First off, you will have to promote your MLM idea as far and wide as possible. Use all tools of the Internet to do so. Blogging, article submissions, joining social networks, lead generation through opt in lists, email marketing… do all of these. When you do these, you are not going to see significant results for the first month or two. But do not let that bog you down. The initial failure is actually a disguised rite of passage in MLM. You have to move out of this phase.
When the first two months are over, you will see the great amount of traffic coming over to your MLM site and becoming subscribers. All this will depend on the quantity and the quality of the efforts that you have put into the activity in the initial weeks.
However, these weeks also should not be unprofitable to you. You have to use these to market your networking idea to all people that you know – your family, your friends, your colleagues and even your boss! This is where you will get your initial people from. Hold a seminar to explain the idea to all of them at once and you will see how your network really begins to grow.
Perseverance is the key here, but if you are doing everything correctly and diligently, you should not have to wait too long. Never spare a moment without thinking about your new business and you will see that you are getting closer to your yacht every moment you work.
Common Stumbling Blocks In MLM And How To Overcome Them
People who crib that the MLM opportunity is not working for them are actually not doing things in the way they should. Factually speaking, the concept of network marketing is always foolproof to begin with. But it is because of some mistakes that people make that the concept fails. Here is a list of mistakes that people commit and how they can be avoided.
Choosing the Wrong Company
This is the commonest mistake. People who hear about MLM are so much in a hurry to start out with things that they do not care what kind of company they are enrolling themselves in. Do not commit this mistake. Take a lot of time to research on the various opportunities and understand their business plans. Understand how they will pay you. Only when you are thoroughly convinced must you go ahead with the network marketing venture. If you are not convinced yourself, how can you convince others? Select an MLM opportunity that is most suitable to you.
Wrong Way of Reaching Out to People
Remember that with MLM you will have to reach out to as many people as possible and promote your business opportunity to them. Initially, you can tap your family and friends for people to join your network. But soon this is not going to be enough. When that happens, you must start canvassing your opportunity in places that you did not think of before. Speak about your business at parties, your club and even to your football buddies.
Not Using the Internet
This is suicidal when you are into MLM. Today with the vast resource of the Internet, it is not possible that any MLM businessperson does not have enough people in the network. You can use blogs, forums, article submission directories and even emails to promote your business to all and sundry. Invest in a good website about your multilevel marketing product. Spend enough time learning about online marketing techniques if you do not know them. They will be very helpful to you in the long run.
Not Generating Proper Leads
The most important phrase in multilevel marketing is “lead generation”. This is a tactic of getting as much contact information as possible about potential prospects that you can pursue. There are various ways of obtaining these lists where the Internet can help you. Building opt in lists is one of the best methods. You can also give people a free eBook to download provided they give you their email ids. You can then pursue these ids with more information, pitching that you have a grand opportunity for them to get business.
There are, of course, many other such impediments that might come in the way of your progressing with your network marketing. Make sure that you learn about the business thoroughly so that you make as few mistakes as possible.