First thing to do is get clear on Network Marketing & MLM. There is no difference between Network Marketing & MLM. They refer to the same thing. It is 2 different ways of expressing the same business model. By network marketing we refer to the fact that we work within a Network of people. By MLM we are referring to the different levels within our organization on which we get paid. MLM has a negative perception & connotation in the media. Network Marketing & MLM are the same thing.
Today most people refer to it as Network Marketing. Network Marketing is a Business Opportunity. You get an opportunity to start your own business and you need to relate to it as such. Most people who fail in Network Marketing because they do not relate to it as a real business. Most Network Marketing & Home Based Business companies have a startup cost of $500 or less. Most businesses startup costs are $100,000 or more. The fact that Network Marketing business is a bargain should not be the cause of you treating it like it has no value. You need to be the same way as if you had invested $100,000.
It is a relationship business; it is about helping people build a business and focusing on your customers for your products and services. Network Marketing really is an unseen business and it is all about referral sales. Its something we already do everyday but have not been getting paid for. For example: have you ever referred a good movie or a restaurant to a friend? Did you get paid? Well in Network Marketing or MLM you get paid for referring people to your products & services. Every time you refer someone and every time they pay for the service or product you get a percentage.
That is referred to as residual income. You acquired a customer once and then every time they use the service you get paid, month after month, year after year. Its the same as Jerry Seinfeld, he has stopped making his shows yet every time an episode airs on TV he gets paid. Another benefit of this way of doing business is that you have an opportunity to build a team. You recruit others who want to join you as a business partner. Now not only do you make money from your customers, you also make a percentage of your teams customers. There is absolutely no limit to the number of people that can join you and no limit on the number of customers you & your team can have. Some companies have “Bonus Plans” in place where you get a bonus when a new Representative joins your business either through you or indirectly through someone you recruited. It is businesses in which anyone can invest a small sum of money and through sheer tenacity achieve staggering levels of financial reward and personal freedom. But it requires education based on market tested results. The biggest reason why people fail in Network Marketing or MLM is the lack of training. Before joining you must find out what training the company provides and what training & support the person that is recruiting you will provide. Ask them “Are they willing to hold my hand, go shoulder to shoulder and take me through step by step until I am successful”? Network Marketing does not have giant signs or large offices, yet according to the Direct Selling Association (DSA) over 13 million people in the U.S. are working in the network marketing or direct selling industry. They usually offer reasonably priced products and services that people consume in a short time. Generally the commission structure is less up-front then the direct sales companies, but it has a benefit that most direct sales companies do not have and that is residual income.
It costs much less to get involved with this form of business, a few hundred dollars.
Allows more people to become involved.
Builds Residual Income.
Leverages the time of others.
Network marketing is all about sales and distribution, but a different kind of sales. It’s more of a soft sale or recommendation then the hard closing type that you’re accustomed to with the typical salesman or saleswoman in the direct sales. The best approach by far in network marketing is a consultative sales approach. This is used very successfully today. What makes it even more successful is when you are offering services that your customers already use and are able to save them money. Over $30 Billion worth of products & services go through Network Marketing annually.
The 5 keys to finding the right Network Marketing :
Credibility of the Company
Products & Services of the Company
Training offered by the Company & Recruiter
Compensation plan.
Are you allowed to sell your business or leave it your children
Credibility of the Network Marketing MLM company
You want to be sure the company is credible & has integrity. Stay away from companies that are in business less then 5 years. Most Network Marketing companies fail in their first 5 years. Look at the people endorsing the company & owners of the company. Look at the track record & growth of the company for the last 5 years.
Products & Services
If you do not believe in their products and services then you can not succeed with that company. The reason being you need to be true to yourself. If you do not believe in the products & services then how can you possibly refer them to your friends? Remember the example of a good movie or a restaurant. You then need to evaluate the ease of the sale. Ask yourself the following:
“Do you need to get people to change their spending habits or do they already use product & services you offer” …Ease of change
“Do people need to spend more money? …Cost Savings
“Will they automatically stay a customer month after month or do you have to resell them?” …Customer retention
“What’s the future trend?” …Longevity of Products & Service
Training
This is very important. When you get a new job the company trains you. They usually have someone work with you for a week. It should be the same with the Network Marketing Company. What is the training already in place. Do they have online training, Training manuals, Regional Trainings. How much time is the person recruiting you willing to spend with you.
Compensation Plan
You want the time to understand their compensation plan. When you are evaluating a job, do you ask “How much I will make this year and how much in the future?” Well you want to do the same when looking at the Network Marketing company. Ask the person recruiting you to put a plan together and see how much you can make in your first month, first 6 months, first year and so on. Find out what it takes for you to get qualified to start making money, different promotion levels and the money associated to them. See the detailed Compensation Plan. If you get numbers like up to $3,000 or up to 10% then in my experience you should realistically count on half (50%) of those numbers. I am sure some people get the full 100% of those numbers but during the evaluation of a company you should look at 50%.
Selling the business
If you are investing your time to build a business then you should be able to sell it to someone else or pass it of to your children. Find out if there are any limitations put on you by the Network marketing Company. There may be a small fee but a good company will allow you to sell your business.
What Network Marketing MLM Company do I recommend
I am always asked what company I recommend. I do not want to promote any company over another. There are many good companies out there. I have found it easier if the Network Marketing company is involved with services that everyone uses. Telecommunications services is a perfect example (Home phone, Internet, Cellular, Satellite TV or Digital/Videophone). Every month when the customer pays their phone bills you get paid. I have seen the most success with companies that offer trend setting services like Getvideophone.
No matter what company you choose you owe it to yourself to do your due diligence. Use the 5 keys I suggested and be passionate as you build your business. I wish you the very best.
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