For starters, you may also hear network marketing referred
to as MLM, or multi-level marketing. If
youre wondering about the 90% failure rate in network marketing, it is
true. In fact, the same odds are
against any business starting up, within the first five years of
operation. However, if you can gain the
right knowledge and apply it to your pursuits, youll find that a network
marketing career is highly rewarding.
When looking for a network marketing business, there are
certain aspects to pay attention to that will help you avoid working in circles
and going nowhere. One is the cost
involved. You should not be required to
pay a large sign-up fee or to purchase huge inventory lots to receive your
compensation. Steer clear of companies
that require such things. You should
have an opportunity to start your business with little cost.
Another thing to watch out for is a claim to make money
without selling. There is a method
thats referred to as spillover, but dont expect to get rich this way. You are likely to be disappointed if you go
into it with this mindset. Spillover
happens when you can get people under you with little or no effort if your
upline does a lot of work and the compensation model is a forced matrix or
power leg binary. The biggest red flag
is a company that has no product or service to sell, other than a business
opportunity. The best advice is to
always check into any company before getting involved. Use the search engines to find any
complaints or scam warnings.
The basis of network marketing is sales and
distribution. Basically, you use the
companys product or service and suggest it to others. A hard sell is not a requirement for
success. Its about the referral and
soft sell. If the product or service is
something that you believe in, it will help your business tremendously. Youll find it easy to talk about what you
like about it and what a difference its made in your life. To help aid the recruitment process, the
company will provide promotional materials such as brochures, recruiting calls,
websites, magazines and many others.
They are designed to focus on the benefits of the product as well as
So, as you are selling the product or service for the
company, you are also keeping an eye out for people who have an interest in
doing what you do, earning money off of the sales. Essentially, you are building a team, which is truly what MLM is
all about. As soon as you recruit
someone, and they begin selling for the company as a distributor, you will get
paid for their sales in addition to your own.
This creates another level. The
levels continue as your team members recruit others to be a part of the
company. Again, you will also get paid
for their sales as well.
There are a number of different payment plans
including: binary, breakaway, matrix,
stair-step and unilevel. Unilevel is
the most preferred method because there isnt a limit on how many people you
can have under you at the first level.
You will always receive the most commission from your first level. However, your second level purchases can
accumulate to create large amounts due to the number of sales alone. These are referred to as leveraged earnings,
which is a good way to earn a very satisfying income.
Make sure the company has a product that people want or a
service that interests others. Its
also at an advantage if the product is unique and made by the company
itself. If your service or product continues
on a monthly basis, youll have the benefit of recurring purchases each month. This will create an ongoing income, also
known as a residual income, which is what makes network marketing different
from direct marketing. With network
marketing you will have an income coming in even when youre not
working. This is a good way to
establish a retirement income. But,
make sure that the company you choose has been in business for longer than five
years and is free of debt.
Once you find a reputable and stable company, youll want to
present the product as well as the business opportunity to as many people as
you can. Start with your warm market,
which is made up of people you know such as family, friends and
co-workers. Outside of that you have
the option of advertisement or buying lead lists of people that have an
interest in your product or service.
A really great option is whats called a MLM Genealogy
List. It is the most targeted list
available. These lists are made up of
people who have displayed an interest in network marketing by previously been
involved in it. It is not expensive to
buy this type of list. Just search for
MLM Genealogy Lists. The benefit to
this list is these people already have the understanding of establishing a business. Those are the type to look for in joining