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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.

 
  1. 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.
     
  2. 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.
     
  3. 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


 

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