How to Get
Rich with Network Marketing
By: Daegan Smith
Network marketing is a marketing strategy
being increasingly put to use by hundreds of
home business owners nowadays. Network
marketing is basically retailing products by
using independent distributors. These
distributors build and manage their own
sales force by recruiting others to sell
products. Each person in this downline is a
distributor in his own right with his own
sales team. This way a
“network”
of sales people for a particular product is
formed. The upside is that the originating
product manufacturer or marketer does not
have to bear costly overheads of recruiting
and maintaining their own sales team.
Compensation for each distributor or sales
person includes one’s own sales and a
percentage of the sales of his or her entire
downline.
In a way Network marketing is the same as
MLM or Multi-Level Marketing…a term that has
been thoroughly abused by ‘scamsters’ and
frauds, mostly on the Internet. Though a
whole lot of less than scrupulous people
have caused some damage to the standing and
credibility of this form of business, it
nevertheless figures as a very cost
effective revenue stream for a new
entrepreneur. Another benefit of Network
marketing is the training you get in
operating a business; like selling, time
management and keeping yourself motivated in
the face of rejection.
Also see:
http://www.entrepreneur.com/article/0,4621,298535,00.html
So how do you get started?
The first thing you would have to do is to
select the right MLM Company. That is half
the job done. With all those scams doing the
rounds, it can get a little overwhelming
trying to pin point the MLM company where
you would want to participate. A lot of MLM
companies fail because of various reasons.
Some are not well financed; some don’t have
a good, saleable product or haven’t been
able to innovate to meet new customer
requirements. Still others have shut shop
because the federal government got wind of
their less than holy dealings and acted
fast. Even after those MLM guys who had to
wind up, there are still some left that are
the Real Mc Coys. These are the guys you
need to fish out.
Here are some tips for selecting a good
(read ‘Safe’) MLM company for starting your
Network marketing business.
- Participate in an MLM company that
has a proven track record for at least
five years. We insist on the figure
5,because if the company has survived
half a decade and made money, they would
have a good product, enough capability
to innovate and would be able to provide
their downline with good back-end
support.
- Look for selling a product that you
believe in. Imagine yourself selling
weight loss pills when you know for sure
that a doctor would never recommend most
of these pills! Bottomline is, you can’t
sell a product if you don’t have faith
in it.
- Seek out a company that provides
solid backend support and marketing
infrastructure to its downline. It can
rip the shirt off your back to develop
new marketing literature for your
customers and for your downline.
What next?
Once you have selected the right MLM
company, the next logical step would be to
decide your
sales strategy.
Devise a plan for lead generation for the
product you will be selling. In your plan
include what targets you need to set to
break even, what sales literature you will
use and yes, most importantly… how will you
develop your downline. Don’t forget that one
part of your income will come from them. It
is a better idea to have 3-4 quality agents
in your level-I downline, than to recruit
everyone and their cousin and not have a
single dime come at the end of the month. At
this point of time, It is usually a good
idea to focus on the primary product you
chose for marketing rather than include a
host of other lucrative offers. It is easy
to lose focus and spread yourself out thin
that way.
Finally, how to get rich with Network
marketing?
Even with all those bad apples in the bunch,
Network marketing is still a very effective
marketing strategy. Al you have to do is
chose the right company and avoid the ‘scambags’,
get the right mentors and then build a solid
downline of effective sales people. You can
get some information on how to avoid
fraudulent ‘MLM-ers’ at these websites:
http://www.stopspam.org/faqs/mlm_vs_pyr.html
http://www.ftc.gov/bcp/conline/pubs/alerts/pyrdalrt.htm
One of the biggest reasons (and there are
several; take a look at: http://www.powerhomebiz.com/vol4/MLMsurvival.htm)
why Network marketing runs out of gas is
that your MLM company hits the ground.
Though it doesn’t have to happen to you, if
you’ve been careful in choosing company, it
is still a possibility. You can pre-empt
this situation by “Diversifying”. Join
several MLM companies which sell similar or
related products and you will not only have
multiple income streams but would have also
spread out your risk.
Another big reason for failure in Network
marketing is poor or ineffective downline.
Some trouble areas that you could experience
with your network are:
- New members find it difficult to sell
- New members are unable to generate new
leads
- Selling techniques being used are not
suited to the medium
- There is a high outward mobility of new
members
The trick to succeeding is to tackle these
trouble areas at the time of recruitment.
When you recruit new members, provide them
with ample literature on the company and the
product, train them on sales techniques by
example and keep your team motivated. They
are, by themselves a strong revenue stream
for you.
I remember a couple of lines from a song I
heard once, “ Chance is not choices, Noise
is not voices”. If you look carefully, two
of the biggest secrets of success in any
business lie in there. “Chance is not
Choices”… There is difference between
falling upon a lucky clover and growing them
yourself. So plan your business carefully,
choose a good MLM company and build your
sales downline with care.
“Noise is not Voices”… the world is out
there “revealing” secrets of sure shot
success “just for you”. That’s just noise.
Listen to your own experiences; what they
have taught you is invaluable. And when you
teach the same to your downline, you enhance
the possibility of your business’ success.
Network marketing may not work 95% of the
times, but there are still those 5 chances
out of a 100 when it will work. So plan for
success in Network marketing and reap the
benefits. Daegan Smith is the Ex-NCAA
Wrestler Turned Webmaster of
Perfect Home Based Business Opportunities
- The Net’s Top Growing Source for Home
Business Information
