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Network marketing, also known as Multi-Level Marketing (MLM), is a business model where independent contractors buy into a company and earn a commission on the products they sell. The profession appeals to many people because they can be their own boss, set their own hours, and work towards their own success. It is a big commitment, but network marketing can be a very lucrative career.
Finding the Right Company
Choosing the right company is key to your success. Quick and easy internet searches can usually answer many of the questions you may have. Do some research to determine which company is best for you personally. Some questions you should ask yourself when researching companies are:
- How old is the company? Is it well-established or is it just starting out?
- How are the company’s sales? Are they rising or falling?
- What is the general reputation of the company? Reviews and blogs can usually give you a good idea if the company is reputable or suspicious.
Look up CEO’s and other company leaders. Keep the same things in mind as when you investigated companies. Is the company leadership reputable and law-abiding? If company leaders have been accused of carrying out scams or have had legal trouble, you may want to avoid this company.
Since you’ll be responsible for pitching and selling this product, make sure it is reputable. Some MLM companies market questionable or dangerous products, and you could face legal action if you take part. You should keep the following in mind when considering a product:
- Is this product safe?
- Are the product’s claims backed up by legitimate research?
- Would I use this product?
- Is this product priced fairly?
When you’ve found a company you’re interested in, you’ll likely meet with a recruiter or another representative. Be skeptical during the recruitment process. Remember that your sponsor makes more money if you sign on, so he may not be as open with you as he could be. Don’t get distracted by promises of how much money you’ll make and really think about what you’re about to do.
- Ask direct and specific questions. If you find the answer too vague, ask for clarification.
- Ask exactly what the company will expect of you- how much are you expected to sell? How many people are you expected to recruit? Are you required to take part in training programs?
Read your contract carefully. Don’t sign anything right away. Take some time to read over and understand the entire contract. You may even want to consult a lawyer or accountant to make sure you’re getting a fair deal and that the company is legitimate.
According to the Federal Trade Commission, some businesses posing as MLM companies are actually illegal pyramid schemes. Pyramid schemes scam recruits into buying into a company and almost always result in a loss to the recruit. Some things to look out for are:
- If a company makes more money selling products to distributors than to the public.
- If a company makes more money recruiting members than by selling products.
- If anything seems wrong to you, don’t sign a contract.
When you have a few potential companies in mind, write out your plan for building and expanding your business. Even before you’ve officially aligned with a company, it helps to have this plan figured out early. Thant way you can hit the ground running when you do eventually start at a company. Keep these things in mind when designing a business plan:
- What product or service are you intending to sell?
- Who is your intended market?
- How much time will you dedicate to this? Will it be a part-time commitment or are you planning on working seven days a week?
- What is your goal? Do you want to get rich or just make some extra money?
- Think long-term. Where will you be in five years? Ten years?
- What is your marketing strategy? Will you make cold calls? Use the internet? Go door to door?
- You can update or change the plan as needed, but it helps to have a guide when you’re just starting out.
Starting at a Company
In most MLM models, the person who recruited you becomes your mentor. That mentor will coach you through the early stages of your work. Typically, the more successful you are, the more money your mentor makes, so it is in his best interest to be there for you. In a mentor, you’d want:
- Someone who is available if you need help.
- Someone who you could see yourself working with.
- Someone who will be honest with you if there’s something you can do better.
It’s your job to sell these products, so you should dedicate yourself to knowing everything about them. You’ll need to plan how you will pitch the product to potential customers, how to answer any questions or doubts they may have, and any relevant research or studies that support your product.
Attend company meetings and training calls. These will help you make new contacts and learn new skills. You can leave them better prepared to build your business successfully.
In network marketing, leads are potential customers. You’ll need to keep finding new leads if you want to keep making money. There are various ways you can find new leads, and you should use multiple strategies to attract the largest market possible.
- Social media is a cheap, easy way to generate buzz for your product. Start a page for your company on each of the major social media sites and update them all regularly.
- Buy advertising space online and offline. Websites and newspapers can help build awareness for your product.
- Cold calling, though old fashioned, is still a popular method of finding potential leads.
- Personal interaction is also useful. Always have business cards on you and be ready to talk about your company. You never know when you may come across someone who is interested in what you have to offer.
To turn leads into paying customers, you’ll have to follow up with them and pitch your product.
- Set up your web page with an auto responder designed to contact people who visit your page.
- Manage all your contacts in an organized file with all their information easily accessible.
- Have a sales pitch ready at all times when you contact a lead.
- Try more than once to turn a lead into a customer. Just because someone wasn’t interested once doesn’t mean they will never be interested. Be careful not to overdo it, though- you could easily get a reputation as a spammer, which can hurt your business.
Building Your Business
Recruit new members. Just like you were recruited to a network marketing company, you’ll have to recruit members to your team if you want to be successful. Always be on the lookout for new prospects who you think will be valuable additions to your team. Try recruiting services like: MLMRC. Also, you’ll want someone who is personable, a good salesperson, and a team player committed to cooperating with you.
If recruits are successful, you make more money, so you should be prepared to train them well. This may be a substantial time commitment, even up to several weeks. But you should understand that you’re building a team and it is in your best interest to spend enough time making sure your recruits are competent enough to go off on their own.
Give your team members good commissions. By compensating your recruits well, you’re ensuring that they have a good incentive to sell. That way, they’ll earn more money for you and for themselves. It will also help keep them around longer, which is good for you- you want to keep talented sellers on your team so keep your business successful.
Remember, you are responsible for everything associated with running a business- taxes, laws, etc. It helps to have an accountant and lawyer on hand to help you manage your business in the most effective way possible.
How can I build a team and enhance prospects if I am already in network marketing?
Work with people interested in your business or products. Don’t focus too much on people who are not interested in your business.
How do I convince someone to join a business?
It’s much like selling a product or service. Prepare information about incentives, commissions, future plans for your business, etc. The right people should come to you.
How do I approach new friends?
Give them a short but effective and exciting notice, and ask them to meet you. If they turn up, show them your plan.
How can I find network prospects?
Social media is a good way to make contact, especially sites such as LinkedIn (which is designed for networking) and Facebook.
Where can I start to become a network marketer?
You can begin searching for a position anytime you want! Once you’ve gotten a job, it may take a few weeks or months to get fully trained and ready to begin working, but after that you’ll be able to become a full blown network marketer.
How can I initiate this business?
Once you have decided to join a network marketing business, first decide which company is best for you. Do market research and buy the package. Upon buying package you will get in touch with your upline who is already in the business. Follow your upline to move forward. Just remember one thing always, network marketing is an awesome business which works on the compound interest theory. Initially you will have to work hard and results are less, but as soon as you grow you will have to work less and you will earn more.
Is it necessary for a recruiter to have your photos?
Recruiting can involve any form of communication like email, private messaging and others, such as phone calls. No picture is needed to start a network marketing business or to be recruited by a network marketer.
What are the most important things for success in network marketing?
Commitment, dedication, hard work and good communication skills are what it takes to succeed in network marketing.
How can I convince people to purchase my product?
Know your product well so that you can easily explain to someone how much it could improve their life. Once you know the potential benefits of your product, all you have to do is convince your customer that these benefits would help them.
What is the minimum amount needed to start network marketing?
There’s no minimum amount, It’s an investment that you do for yourself and to help other people. You shouldn’t make a decision based on the amount or what it costs, but rather on what it can bring to you as a result.
How do I generate prospects online?
What would I do to keep my down-lines up and running?
How do I divide benefits when doing network marketing?
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- This is not a get rich quick scheme. It is a substantial commitment, and you should be willing to spend the time required to make it successful.
- Seek advice from those who have succeeded in network marketing.
- Don’t reinvent the wheel. Follow those before you.
- It may help to read books successful businessmen for ideas an inspiration. Do remember, however, that just because something worked for one person doesn’t mean it will work for you. Read these books for ideas, but take advice with a grain of salt.
- Make sure you don’t quit your full time job right away. You should only leave your current employment when you’re certain that you can live on your earnings from network marketing.
- Always keep your business legitimate and law-abiding.
To succeed in network marketing, start by finding an established, profitable company with an appealing, effective product. Organize a meeting with a recruiter and ask any questions you have about the company, and look at income disclosure statements on the company website to see what the average seller makes. Be sure to learn your products well, and build connections with prospective customers. Follow up with all leads for sales, and make an effort to recruit new salespeople. For tips on selling products and recruiting new members, read on!
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