What comes to your mind when you think about network marketing?
This overview is an extensive, elaborate, exotic first-hand experience research report about Network Marketing success and MLM tips on how to earn a residual income and leveraged outcome through this model and means of marketing.
The Idea Of Network Marketing
If you want to ask around for opinions about Network Marketing, you will probably find hundreds of different experiences from a variety of people and personalities.
In other words, if you want to find out exactly what network marketing IS?
It depends on whom you ask.
That’s the reality.
If for example, you talked to someone who made a decision, joined a network marketing business, took the time to learn the “how to’s” to becoming a pro, and over the years build a life changing income, as their skills gradually improved – They may tell you :
“Network Marketing is one of the most lucrative business models ever create – Don’t hesitate to join one. Do it NOW”
On the other hand – Talk to someone who may’ve tried a few network marketing companies over the years, but never got his “feet wet” the “work done”, require to develop a real solid business.
They will probably tell you :
“ Network marketing is a scam – It doesn’t work – The only people who make money are the ones on the top.
“It’s a Pyramid scheme”
In both of these paradoxical scenarios, who is right?
What Exactly IS Network Marketing?
From Dictionary.com -” Network Marketing is a marketing strategy in which sales representatives of a company recruit other salespeople and earn commissions on their own sales and on the sales made from their team.
This process generates a downline or “network” of distributors – building multiple leveraged levels of compensation within the business.
Let’s make it simple….
Let me give you a practical scenario you may relate to.
You may have come tired of your current job – dislike the hour and lack of time freedom.
You finally realize you will never get rich by working for someone else. You also recognized multiple benefits of having your own business.
• Choosing who you work with.
• Flexibility – Work from home or anywhere
• Freedom – Choose the hours you want to work and how much work to do
• Leverage – Work on a business that can grow over time – gives you a real chance to set yourself financially free.
• Possibly Save $ in taxes
All of these great benefits make the possibility of network marketing, a very exciting one.
The Upside Of Network Marketing
If you’ve ever looked into starting a “brick and mortar” business or a venture on your own – You may notice there are huge overhead costs and usually lots of financial risk when starting a business on your own.
A big upside of network marketing is that unlike starting a business on your own, with network marketing you are in business for your self but not BY YOURSELF.
Joining a network marketing business often involves joining a company as well as a group of entrepreneurs who like you, are working to get optimal results.
If you have investigated joining a network marketing company you may be surprised by the low entry cost, which may range from $400 – $1600.
To get started you “sign up” by making a small investment and usually by completing an Independent Distributor or representative agreement.
During this process is key to point out – You are not getting hired as an employee by the company, hence why you should not have an employee mentality.
Instead you are deliberately volunteering to represent X Company as an independent distributor, representative, business owner or consultant.
As you get started and ON with the business you will receive commissions based on the volume of product sold by you as well as product sold by your team in the organization, “downline”.
In different words, to create a successful network marketing business you not only need to personally sale but also teach and lead your organization “how to sell and present the products / business” since you also earn commissions from their sales and the amount of product moved through out the organization.
Is Network Marketing Similar To Franchising?
It can be thought about that way…
For example, think about big franchises like McDonalds or Subway.
These are some of the most monumental fast-food business restaurants in the world. Combine they have more than 40,000 restaurants that serve millions of people around the world in more than 120 countries.
More than 75% of Subway and McDonalds restaurants are own and operated by franchisees, or independed business owners.
Now lets presumed you are at the head of the operation and at the top of all these “independed business owners”, who have leased the name, business model and good will of the company – In this case you won’t only earn by selling fast food at your own restaurants but also you would earn a percentage of the whole operation including the businesses you don’t own or operate.
This model allows you HUGE LEVERAGED since you earn from the work and inputs of others.
Another great example it’s…
Lets say you can make a $200 Commission from the sale of a particular product, and it takes about 2 hours of your time to generate a sale. Based on this example we can say your time is worth about $100 an hour .
If you were to put in a solid 40 hour “work” week you could make $4000.
Over time you have “recruited” other entrepreneurs into your team, who also have the opportunity to make $200 a sale. Since you recruited them into the business you make $10 per every sale they make.
After working the business over time, you have built a team of 100 people. Each member in your team makes around 20 sales per week, excluding any of your input or time.
This creates huge leverage in your organization:
YOUR WORK INPUT – 20 Sales in 40 Hours = 4000
YOUR TEAM INPUT – 2000 sales in 4000 hours earning $10 per = 20,000
Pretty Sweet – you can clearly see the potential and capacity of the network marketing business model that allows you to earn and leverage other people’s time and work.
The Ultimate Reality Of Network Marketing
The truth is, even thou Network marketing is an amazing business model and the industry has created as many millionaires, as professional sports has created, the majority of people who join a network marketing company, quit before getting any tangible results.
This is because; regardless of how you see it, the only way to build a real and solid network marketing business is by building your own sales and leadership skills.
If you are not good at sales or leading people into action before joining a NM business, you got to have the willingness to learn.
One thing to keep in mind is that network marketing is a form of direct sales, the only way to make money in these kind of businesses is by making an actual sale. No sale, No $ gain.
If you are thinking of joining a network marketing company, join one that really inspires you to push, one where you see people having a level of success that you aspire to have.
Once you are in, put all your efforts to model the successful ones, be open to learn new skills and be willing to step out of your comfort zone at times.
After All What Exactly Is Network Marketing?
To summarize it in a few bullet points:
• Network Marketing is a real career and profession that requires real skills.
• Network Marketing is a way to financial and time freedom when done successfully.
• MLM is a business model that will require you to develop leadership skills.
• Network Marketing can change your life, be exciting and fun.
• Network Marketing is a fully tested “millionaire” business.
How to Succeed in Direct Sales and Multilevel Marketing
The direct sales industry and multilevel marketing are closely intertwined. If you were to create a Venn diagram with multilevel marketing companies on one side and direct sales companies on the other, there would be a huge circle in the middle.
Most direct sales companies use multilevel marketing compensation structures, and most multilevel marketing companies use direct sales to sell their products.
Today, we’re sharing some of the best tips that will help you succeed in direct sales and multilevel marketing.
Many people fail at direct sales and MLMs because they’re not prepared to work hard, invest money, or develop new skills. Whether you’re new to the industry or consider yourself an industry veteran, these tips can help you build enormous success no matter which type of MLM you joined.
Get Ready to Work Harder Than You Ever Did at Your Full Time Job
Multilevel marketing and direct sales companies have a higher failure rate than just about any business in America. About half of all small businesses will fail within the first 5 years. In multilevel marketing, that number is closer to 80%.
The difference between success and failure is the same difference found in most businesses: hard work and determination.
The harder you work at direct sales and multilevel marketing, the more success you’ll have. It’s as simple as that.
Now, what does that actually mean? It means you should approach your direct sales job just like you would approach any full time job. You can expect to work harder when you’re working for yourself than you would working for someone else.
Have you ever heard the quote about how entrepreneurs would rather work 80 hours per week for their own business than 40 hours per week for someone else’s business? Be prepared to put that lesson into practice.
If you’re ready to put that lesson into practice, then you’re ready to absorb all of the following tips.
Know the Phrases that Will Close a Sale
If you don’t have any sales experience, then you’ll need to learn quickly. You can talk about product benefits, product advantages, and USPs all you like, but unless you can convince someone to actually pay for what you’re selling, you’re not going to have any success.
You can take entire business courses on closing a sale. Instead of dumping centuries of business knowledge on you, I’ll just share some good phrases you can use to close a sale.
Use these phrases after you’ve turned a cold lead into a warm lead and informed the lead of the product’s benefits:
“Which do you prefer: the red or the blue color?”
“I can deliver your order Monday – or would this Saturday be preferable?”
“So when should we get started?”
“If we throw in [a freebie] would you sign the contract today?”
“I’d hate to see [negative consequences] happen to you. What can I do to make you a customer today?”
“Will you commit to doing business with me today?”
“Is this something that could benefit you or your family?”
“How much are you willing to spend to protect your family?”
Ultimately, most sales closing statements lead to this: just ask for the sale. Some people will say yes to your question. Others will say no. As you get better and better at this, you’ll notice the “yes” answers start to pile up.
Know How to Neutralize Objections
In a perfect sales world, everybody buys your product after you say some of the sales closing lines mentioned above. In the real world, people are stubborn and difficult. After you hit them with a closing line, they’ll immediately start thinking of objections.
Knowing how to neutralize those objections is one of the most valuable lessons to learn in sales. Here are some of the most common objections – and how to neutralize them.
Objection: “It Costs Too Much”
Responses: “Too much compared to what?”, “What brings you to that conclusion?”, “How much will it cost you to do nothing?”, “Is price the only thing that’s keeping you from making a purchase?”, “You think it costs too much?”, “I understand. I’ve had a couple other customers hesitate about the price at first. But what they found was that…”
Objection: “I’m skeptical about your product and don’t think it can deliver its promised benefits.”
Responses: “Well that’s why we offer our 100% satisfaction guarantee. You can return it for a full refund if it doesn’t deliver”, “I understand. It’s natural to be skeptical. Why not read through some of our fantastic customer testimonials?”
Objection: “I’m going to sleep on it and decide tomorrow.”
Responses: “This deal is only available until the end of the day today”, “I understand. I’ll call you tomorrow.”, “I can’t promise these products will still be available later today”, “I hope you make up your mind quick. A lot of people have been taking advantage of this offer.”
Never Pass Up an Opportunity to Talk About your Business
Direct sales companies and multilevel marketing companies thrive on recruitment. If you can recruit large numbers of qualified salespeople into your downline, you’re well on your way to network marketing success.
Don’t cold approach people on the street and tell them about your business (although some network marketers do this every day). Instead, mention it when you’ve warmed up to people. It never hurts to give your business card to someone whether you’re at a friend’s birthday party or your kid’s football game.
Of course, you shouldn’t be irritating while practicing this tip. See the next tip for more information.
…But Let Family and Friends Come to You
Don’t bug your family and friends about your multilevel marketing business. We’ve all had friends who joined a new direct sales company and tried to sell crap to their easiest leads. The easiest leads are family and friends who feel guilty.
Don’t destroy lifelong relationships for your own monetary gain. It’s not healthy. Pressuring your friends and family into buying your products is a great way to make them never want to talk to you again.
That doesn’t mean you should avoid ever telling them about your company. But if you feel the need to talk about your business to them, make sure they come to you.
The best part about this is that if you’re successful at multilevel marketing, your family and friends will naturally start asking questions about your business. Some might see your success and want to join your downline.
Others might be skeptical about a direct selling company and then become more optimistic once they’ve personally seen you succeed. You’re a living, breathing testimonial.
Dangle a Carrot in Front of Your Customers
If someone told you to come to a presentation at some hotel today at 3pm and made vague promises about becoming rich, would you go?
Most people wouldn’t.
But what if you told people that there’s free refreshments? A few more people would sign up.
What if you gave out free product samples? What if you had an open bar? What if you entered everybody’s names into a draw for $500 cash?
Dangle a carrot in front of your potential future customers. Demonstrate your value to them. Show them you have something valuable to offer.
Of course, there’s two sides to this approach: on the one side, you get more people to come to your events and parties. On the other side, a lot of people will just be coming for the free cookies and juice with no intention of buying your stuff. You’ll need to walk a careful line to make sure you still get warm leads coming to your events.
Build a List of Leads Through your Website
Leads are the lifeblood of your network marketing business and you should do everything in your power to develop good leads.
You can only talk to so many people in a day. But your website can constantly advertise your brand to the world. Build a responsive website and advertise an email newsletter to all visitors. Promise to give those visitors useful advice when they sign up to your newsletter. Foster those leads and then try to convince them to become part of your network – or just sell products to your leads through that newsletter.
Having an email list is always useful. There are few other sales tools that let you instantly send an advertisement to thousands of potential customers free of charge. Email newsletters are an enormously powerful tool. Start building your email list today by adding an opt-in form to your website.
Sell Products You Like from a Company You Trust
You might be a hard working individual and a talented salesperson. But if you’re not careful about choosing a multilevel marketing company, then your business could fail before it even gets off the ground.
Selling products you like from a company you trust is always important. You’ll be a better salesperson if you’ve actually used the products you’re selling. Many direct sales companies also give salespeople free company products as compensation in additional to commission sales.
Of course, I’d be lying if I said every direct salesperson has tried every single product they’ve ever sold and they’re always passionate about what they sell. But the ones that are passionate about what they sell tend to be happier – and more successful.
At the same time, working with a company you trust is equally as important. There are countless scams and pyramid schemes in the direct selling industry. Even the most convincing companies might simply be fronts for an elaborate scam. Do your research before you sign up – it will pay off in the long run.
Is Direct Selling the Right Opportunity for You?
One of the cool things about direct selling is that people come from all different backgrounds. Some people have arts degrees. Some people never graduated high school. Some have 5 kids and others are elderly ladies.
It’s one of those careers that many people ignore until they try it. People don’t grow up thinking they’re going to be a multilevel marketer.
With all that in mind, anyone can succeed in direct sales and multilevel marketing if they…
…are willing to invest time, money, and hard work into their business
….are ready to treat their multilevel marketing business like a real startup business and full time job
….are social people ready to leverage connections or build new connections
….are good salespeople who can convince someone they need to purchase a product
If you’re prepared to meet those requirements, then you could be the next direct sales superstar.