Multi Level Marketing or Network Marketing is becoming more and more popular these days even in educated communities. Though some of them are working as scams, few of them are genuine and can generate good income in the long term after some hard and smart work. Here are your ultimate guide and success secrets for Network Marketing.
Why Network Marketing?
Though there are millions of people who are joining one or another network marketing company every year around the world, only a few of them are becoming really successful. Though there are many reasons why people fail in these types of businesses, the major and first reason for failure is because of the misunderstanding that this business is only about recruiting or pulling people into their tree structure.
“Network marketing is a type of business opportunity that is very popular with people looking for part-time, flexible businesses. Some of the best-known companies in America, including Avon, Mary Kay Cosmetics and Tupperware, fall under the network marketing umbrella.” – Entrepreneur.com
Network Marketing Benefits
There are many benefits of Network Marketing (NM) especially for people who wants to work from home for an extra source of income and most importantly with freedom. Different NM companies provide different benefits starting with monetary part. If you don’t like to be an employee under someone from a regular boring 9 to 5 jobs, you can have a look at this concept.
Monetary Benefits – Higher Earnings
Robert Kiyosaki and lot of financial advisers says “The amount of money you can make in a job is always limited, unless you make money on some patents (read it as passive income)”. Every person has 24 hours of time and has limited human effort. You don’t have 4 hands to work even if you are extremely ambitious to make money. The best thing to make huge money is leveraging other’s time and effort. NM concept is completely based on that. The more you “leverage” or “duplicate” yourself, the more money you can make.
No Time Constraints – Flexible Schedule
This opportunity allows you to make your own schedule. Ofcourse, the more money you want to make, the more smart effort you have to put. With MLM/NM, you are not confined to particular scheduled of 9 am to 5 pm or you don’t have any swipe in and swipe out. You can plan your vacations, your work timings and sometimes the place you want to work from.
You are the Boss of yourself
This factor is one of the main reasons why most people love this concept. You are your own boss. No office politics. No restrictions. You decide your worth. You decide your appraisal. You have a freedom. Again, like in any field Freedom comes with Responsibility. You are Responsible for your success and your failure. No one to blame.
Opportunity to Grow Personally
This business is not about joining people and making money from them. Its about creating a team and leading it. So, you have lead yourself first to lead others and hence needs a regular activity to grow personally. This is where people fail. Most people wonder why people in their team are moving out. They don’t realize that its them and their personal growth which attracts them and stick to the team.
It gives a tremendous opportunity to grow personally, to understand people, to understand market. Almost all network marketing companies provide sufficient trainings for the same for almost negligible fee which otherwise may cost hundreds of dollars outside.
Risk Free
Most companies requires few hundreds of dollars as investment and hence your risk is loosing the same in the worst case. However, if you want to start your own company you have to invest millions of dollars and anything wrong can drag on to the roads.
Win-Win Strategy
NMs/MLMs work on WIN-WIN strategy. The more money you make, the more money your sponsor/upline/introducer makes. Hence, they are ready to give any kind of help and hence provides cooperative environment.
Traditional Businesses provides competitive environment, but Network Marketing provides cooperative environment.
Network Marketing Success Secrets
Let us analyze the major reasons for why people fail or succeed in this business.
1. Understand the Business Properly and Completely
Most people take a decision to join the business after listening to the business plan for just 30-40 minutes. You can never get the full details of the business in such a short time. The more serious you are about success, the more you would want to understand it. You need to completely understand the business plan, company history, products quality, pricing mechanism, usage of products and benifits, sales plan, sale to commission ratio, competition in the market, return on investment etc.
2. 100% Usage of Products
Thumb rule – Use and Recommend. This looks like a simple one, but 90% of the members do not follow. The common psychology is to sell the products first to someone and then buy the products with the profits.
You can never suggest the products ‘heartfully’ to anyone without using the products on your own. You may get some short term profits but can never ever get long term income without self usage.
To define any network marketing company plan in just 3 simple steps it would be –
1. Use
2. Recommend
3. Teach 2 above steps to team
3. Get into System
This is a team business. You need to login yourself into an existing system which has well set, time tested principles. The business is all about duplication. You do something right, hundred people will follow that. You do something wrong, thousand people will follow that.
You need to be careful at what you are doing, who you are listening to. You cannot teach to every single one. Hence, you need to plugin yourself into a system with some “core steps” or basic rules which you and your team follows. All that you need to do is help your team also to plugin themselves into the same system.
Hope, the above details gave you some insight and can some other way you and your team in future. I will discuss more details in my next article.
Network Marketing Basics
Network Marketing has become a buzz word these days. More and more people are realizing the potential of this industry and are entering in to this to taste big success. However, the rate of success in this Internet Network Marketing industry is not big and hence the doubt clouds are covering lot of hopes. We need to realize that this is a professionally emerging industry and hence a need for a set of principles is needed.
4 Must Basic Steps in Network Marketing Business
Below are the 4 basic steps in network marketing, no matter what kind of company you are working as long as it is under network marketing model. There are lot of network marketing and MLM ‘gurus’ who are there to preach you lot of ‘tips’ and ‘shortcuts’. But, as long as you don’t follow these four steps you definitely will not reach any other stage – forget about making millions.
1. Prepare a list
Prepare a list of your contacts – friends, colleagues, ex-colleagues, relatives, their relatives etc. Its perfectly okay even if you take 1 week to prepare this. Do it with full commitment. Do not judge anyone whether they will be interested in your business or its products/services. When you are asked to prepare a list – just prepare a list. Don’t miss anyone. List is the raw material for this business.
2. Invite them
Take your phone. Call them. Have a conversation. Make them feel comfortable of what you are talking about. Suggest them (do not force) about what you are planning to do. Check their interest. Remember, do not explain your business idea over phone itself. Just give a hint. Do not explain further if they insist. Take an appointment.
3. Show the Business Plan
Explain them the business plan in as less time as possible. Do not eat their time. Do not rush either. Do a good research about your business domain, products and services. Unable to clarify queries about your idea gives a bad opinion to the counterparts.
4. Follow Up
Most of them do not agree (or agrees, but not willing to join you) with your concept. Give them time and space to think, but not too much. You have to follow them up within 72 hours (and not less than 24 hours, you look hurry and conscious).
Searching For The Best Multi-Level Marketing Businesses?
Do not search too much. Most of the clarifications are within you. Just consider 3 very important factors before deciding to join any MLM company.
1. Product
The first and foremost important thing for any business is the product or service they provide. There are some businesses without any products or services. Its not difficult to treat them as money rotation/laundering businesses and be as far from them as possible. Still there are a lot who does these kind of businesses for a quick money. It is left to their understanding, marketing strategies and ethical standards.
One great advantage with product based companies especially if they get repeated business is they product real passive income. Accessibility of the products also plays a major role in attracting and serving the needs of customers.
2. Support System
Support systems do play a prominent role in the success of the individuals and teams. Well, do not see support system as something external. Its you. Support is nothing but a group of like minded leaders who follow certain principles and strategies.
Networking Business is not just about selling, its about improving oneself and helping others in doing the same since most of the people who join the business are not businessmen by birth nor do they have any such experience.
3. Compensation
Well, this is the primary why anyone does a business. Study the business plan thoroughly before nodding your head for it. Understand the percentage of profit you make for the sales you make, whether they are short term or long term profits, the bonuses in terms of foreign trips & vehicles/houses etc.
All the very best to you in making a decision and achieving it successfully.
Tips for Part Time Network Marketing
A vast majority of people across the globe are doing network marketing as part time option. While you have a hectic full time job, a part time income source gives a sense of financial security. The beauty of network marketing business is they do not force any targets. Hence you can try it out in part time and if it clicks out you can do it full time too.
It requires self discipline to effectively manage the limited time you have. You would not have a boss in Network Marketing business, so the only driving ‘force’ is how badly you want the success in the business. The reasons could be financial security or being your own boss or exploring a new business on your own or all of these.
4 Best Tips for Part Time Network Marketing
Below are the best tips for part time network marketing that increases your probability of success with lesser effort
1. Plan the Week in Advance
Plan out your entire next week on every Sunday night. Maintain a journal and divide the entire week’s time wisely as “work time”, “recreation time”, “family time” and “MLM time”. If someone asks you to spend time taking it from your MLM time, you must be able to honestly say ‘Sorry, I already have something important planned’. You must convince your mind first before convincing others.
Your MLM time must be devoted for only 4 important things.
- Prospecting
- Business Presentation
- Follow up
- Training or Learning
2. Use a Duplicatable System
It is very important to have a duplicatable system that uses tools like books, cds/tapes and functions. Use it to yourself and teach it to your team for effective results. Choose right tools for right people. Do not waste much of your time with non interested people. Use your time wisely with effective people.
3. Effective use of MLM time
Use your MLM time effectively and inform your family members how important it is. Though it is understandable that they feel for your extra hard work time, you should be able to explain them what would be the consequences of those little extra efforts. Make them understand about Financial Freedom.
4. Effective Business Presentation
As you have a limited time to do business presentations choose right people (people who wants to succeed and not time wasters) and do an ‘effective presentation’. You must be able to do a presentation within either 10 mins or 20 mins or 30 mins itself. Do not give too much description and in detail presentation. Expect them to be smart enough to understand the details with a good overview of the idea.
3 Steps to build a Successful Downline
Downline building is the most important part of a successful network marketing business. If you have a successful downline, you are almost done with what you want from your business. Also, this is the biggest challenge your business faces.
The answer to build a successful downline is not a new marketing gimmick but has been taught by many successful network marketing systems across the globe but most of them do not follow or at least do not understand the importance of using them on a consistent basis for long term success.
Below are the steps that most of the leaders are already aware of. Looks matters and the business presentation opens the doors, but they are not what keeps the people motivated or interested over the long haul.
Communication
Network marketing is a duplicating business. The more you spend consistent, organized time with your upline the more your downlines do with you. If you are a beginner you may not realize it, but the big certainly do. Communication is the biggest key factor for any business success and network marketing is no different. You cannot teach many people to follow you. The simplest way you can make them follow you is you following your upline.Learn from your upline’s mistakes and do not repeat them.
Commitment to your Business and the Plan
When you are consistent and persistent with your business plan, your downlines also do the same. People don’t follow your words – They follow your actions. No matter how many speeches you deliver holding a mike on dias it is only your commitment towards the business that drives them in your path.
First question to be answered is – Are you 100% convinced about the business idea you are working on before you try to convince others? Remember, you cannot convince others to stay with you for long term. They should only get convinced by your acts not words.
Grow the ones that grow
When you have a decent size business you will have a bunch of downlines and their downlines whom you may not work with at the same time. You cannot ‘mentor’ each and everyone individually. Also there are lot of people who are not very serious in creating a duplicable team but are there only to make some bucks. You should be smart enough to work with only people who wants to grow both economically and as individuals and help them. Its better to work with 5-10 lions than with hundreds of goats.
Why 98% People Fail in Network Marketing?
Are you struggling to make it big in a Networking Marketing/Multi Level Marketing business? You need to understand that 98% of other network marketers also do struggle more or less in this industry though most of them say that they are earning great money.
I personally have seen at least 70% of the starters quit the company (not being active) within the first 3 months itself though they have invested and started with a lot of dreams. Though there are a lot of reasons for the failures like in any other business the below are 4 ‘technical’ reasons why network marketers fail.
Hold on! I am not talking about non-technical and same gyan that lot of other websites talk about attitude, hard work and smart work, communication skills bla bla bla. I am going to talk about the technical and straight forward reasons here.
Reasons Why People Fail in Network Marketing
1. Sponsor
Yes, I keep the sponsor first here. One of the main reasons why anyone fails is because of improper knowledge of the sponsor. Many a times I have observed that wrong or bad information is being taught to the down-lines.
They are not bad people as such. But they are not aware of what they are teaching sometimes. You cannot teach the same sales marketing techniques to a software engineer what worked for sales people. Engineers have a different analytic mindset whereas other professions have other. The sponsors need to train the down-lines based on their family, educational and professional backgrounds.
Keep the things practical. Do not over promise in your first business plan itself. It makes people loose trust in you and vanish in the first 3 months itself.
Mentors are required for successful business group, not just sponsors.
2. Lack of Leads
The raw material for network marketing business in Leads/Contacts. Lot of people fail to provide quality and relevant leads which leads to a very less or very slow progress. It is important to have a FUNNEL of prospects for your business to make your products/services sold out.
If you are not sure on how to do it or if you have any problem in providing quality leads, sit with your ‘mentor’ and take his help. A proven system should help you a lot in this regard.
3. Lack of Cash Flow
Bitter Fact – 90% of MLM members make less than $15 per week !!
If you have to run any business, a continuous cash flow is required. Though MLM doesn’t required millions of capital it requires some money to attend the training sessions, business travel, investment in training material and tapes etc. If you are making only $15 a week for 6 months you are out in the next month for sure.
4. Marketing Techniques
Are you still practicing 3 foot rule? Are you still following the age old marketing techniques like handing out flyers, listing out relatives and their relatives numbers? Are you being updated and using the fastest growing trends?
Remember, If you are not being updated you are outdated.