Let’s use the network marketing industry as an example to determine a target market in business, which is one of the most important characteristics of an entrepreneur. As a network marketer, who is your Target Market? Well, people in most MLM companies will tell you that your friends, family, and everyone you’ve ever met are your target market. Your up-line will usually say that because there is trust in your relationship with people close to you that they are the easiest ones to recruit into your business. There is some truth to the trust concept, but the problem lies in the fact that your friends and family are usually not a group of people who have all been seeking business opportunities. Most amateur networkers will respond to that by stating that you only need two or three. Well, if you’ve been in the network marketing industry long enough then you know that you need dozens, and sometimes hundreds, of personally recruited representatives before your business will take on a life of its own and really kick out that residual income and make you wealthy, which it will, if you can jump that hurdle.
So if not your friends and family, then who? People looking for home based businesses on-line? That is a little closer, but these are still people you have to convince that your company is not a pyramid scheme or a scam, and that multi-level marketing is a valid business model. Our society, since the onset of the industrial revolution, has been programming its citizens to believe that the only valid way to make a living is by working for a corporation that someone else owns. Individual business ownership is a very foreign concept to most people today.
Your most effective target market in the network marketing industry is actually other network marketers, for the following three reasons. First, there will be no convincing necessary about the validity of this industry. Network marketers are not opportunity seekers; they are opportunity buyers. The difference is that they have already taken action and purchased a business opportunity. They are not people who are pondering the idea of it but who might just decide to stick with being underpaid in a job they don’t like and the government taking 40% of their income in taxes for the rest of their lives unless you can convince them that a business opportunity is worth the time and cost.
Second, this industry, with the exception of the top ten MLM companies, desperately needs professional marketing training, which is something that your sales funnel can provide in its affiliate programs (see article: Characteristics of an Entrepreneur Part 5: Sales Funnel). You can give network marketers something they want and need, which has nothing to so with trying to sell to them.
Third, most network marketing teams fail when it comes to leadership (see article: Characteristics of an Entrepreneur Part 1: Leadership) and many people are dissatisfied with the particular MLM that they are building. If you provide leadership with your knowledge and expertise, which will be apparent in the internet marketing system and strategies that you promote (see article: Characteristics of an Entrepreneur Part 4: Tools to Succeed), a percentage of them will want to work with you because of what you can do for their success, no mater what your business opportunity is. As for the ones who do not, you will still make commissions from helping them learn about marketing for their own business. That is called a funded proposal.
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