For the uninitiated, multi level marketing is not entirely new to the business. In fact, it has been around the industry for more than half a century ago when it was introduced in the United States by a company, which, at the time was marketing nutritional supplement via this strategy better known as the network marketing. The main concept is to combine direct selling and franchising in one marketing plan. All the participants are encouraged to do both tasks in order to earn more money than by merely selling the merchandise.
How Does It Work?
Basically, the participants need to recruit additional members at the same time as they need to supply the products. By doing so, they earn commissions on top of the sale price. But multi-level marketing does not promise big profit from merely selling the products as members have the potentials to earn more from encouraging other people to signup and work hard to recruit others too until a pyramid-like group is formed. They are typically required to buy the products or services but they have to recruit at least two members to earn commissions from their purchased products.
The person on top earns commissions from their down lines the same way as the second, third, and so on and forth, from their down lines. Obviously, people who join this marketing group have high chances of earning larger profit if they have recruits or down lines or the latter continues to recruit new members too. Existing and the new members are considered the distributors and end users of the products or services.
Criticisms and Issues
Because of the rampant cases of business scams, the true essence of multi level marketing business model has been ignored as a true legitimate and significant marketing plan not only in the United States but in the global economy. The scheme was criticized due to the questionable process of recruitment where the members acquire their profit and revenue. It was in the 1980s when it further built a negative reputation when various companies allowed members to focus on marketing and neglected the need to distribute or stock the products.
It has resulted to the illegal pyramid scams, which resemble the legitimate multi level marketing concept, minus the product. While legitimate multi level marketing strategy has genuine scheme, pyramid schemes often are too good to be true that they inevitably collapse in the end because the company has become unable to compensate the exponential growth of newer investors.
Because of the increase of the people becoming victims to illegal multi level marketing schemes, a major change was seen in the 1980s, when companies have begun performing the marketing strategy in a different way. Nowadays, they do it by recruiting new members, taking their orders, shipping the goods, paying the earned commissions, and then taking orders again from their members or clients.
If you have the intention to be involved in a multi-level marketing business to earn huge sum of compensation, it is vital that you know what company you are trying to become a member of. It would be a wise move to investigate the background and the capability of that company to pay the members. Doing the necessary measures is imperative to avoid you from becoming one of the unfortunate victims of pyramid scams.
Everyone is doing multi level marketing due to promises of financial freedom. There have been lots of stories emerging from different people who have been involved. The concept is very simple and easy to understand. You invest money to become a business owner or distributor of products or services and earn money from commissions or profit from your sales. Residual profit supplements your income as your team or down line makes sales too. The bigger that your team gets over time, the more chances of you and the members earning huge income. Income increases exponentially over the years so long as your team continues to grow.
Multi level marketing companies are often made popular over word of mouth. Friends, family, contact friends, associates, and others are usually prospects that distributors target to become their down line. However, it may sound easy convincing these prospects but it may take more time and hard work. That is why, a course of action must be properly planned before going over and encouraging people to join and sign up. One way to do is to list all the prospects. Then, one by one, or maybe a group, contact them to introduce the product or service and present the business plan. With proper execution of sales talking, plus luck, they will sign up.
As you go experiencing doing these tasks, you will discover and learn other strategies to use to get more prospects signing up. More of them will not interpret the potential of your business model that easily while most end up refusing than signing up. It can be very discouraging at times, and may even leave you believing it is not cut out for you. But it is the real challenge of multi level marketing business.
In reality, you have to work harder and talk to more and more people and show them the plan and potentials. All successful network marketers have endured it all. With hard work and determination, there is no reason that you shouldn’t get that trophy of this game too. It has to be constant and you have to be persistent in encouraging people to become distributors and recruiters. Sitting back at home and dreaming of financial success will never get you there.
1.) Time commitment. It will take time to build your own organizational chart, or more like the pyramid, to get that cash really flowing big time. If you are really serious about multi level marketing business, have one person at the least to talk to and present with your business plans every day. It will just leave you enough time to tend to your other daily responsibilities but still getting that chance of recruits.
2.) Cold contacting. After you exhausted the people close to you, it is time to figure out other people not in the list. You can have referrals and these people may not be of one of your personal contacts. This can be the more difficult as you need to talk to them without looking as if you are hunting them down just to present your business plans and potentials of them earning big money too.
3.) Weeding out your prospects. It is a good idea to contact first those people who you think have the same interest in plunging into the business and dream of achieving financial freedom. Just remember to take note that there are no easy ways to learn unless you talk to them first.
How do you really get started with a multi level marketing business? Are you going to print out hundreds of brochures, flyers, and business cards? Should you distribute them to the people you see down the street? Who are going to be your leads? This article will tell you the efficient way of maneuvering your MLM business venture towards success.
The New Approach
You don’t have to go through the same old school approach of printing out flyers, brochures, or business cards. You are not involving yourself in this kind of business just to stay out in the sun to hand those papers to the passersby. Actually, you can do better than that. Yes, this new and modern approach doesn’t entail you to go out of your home. You can do the marketing without all the unnecessary fuss. All that you need is a reliable computer and a telephone! These systems can be copied by your downline without costing them too much.
Forget about those data capture sites, broadcast dialers, and a lot other tools that some MLM people tell you of. They can’t possibly work without your knowledge of how to get on with things. The first thing that you must learn is to enhance your own marketing skill. If you master everything, then, the rest follows.
The following are the steps that you can keep in mind:
Step #1. Develop your own expertise. You can’t be an effective MLM person if you know nothing about the current market, its trend, and your product or service. Say for example, you are marketing a weight loss pill. It is vital that you educate yourself about calories, dieting, fitness, and the likes. You can achieve the appropriate knowledge by reading books, manuals, and magazines, doing your own research, joining fitness forums, or undergoing some formal training.
Step #2. Design your prospecting and closing scripts. How should you approach your clients? What are you going to tell them? MLM success largely depends on an effective and affective prospecting script. The closing script should be enticing and motivating that calls your potential client to action.
Step #3. Research for your leads. Apart from your family and friends, you need to search for other leads. The best thing to do is to buy a leads’ list from a reliable source. They are the people who are willing enough to avail of your products. As you get hold of their contact details, you may start calling them, emailing them, sending them newsletters, and the likes.
Step #4. Test your script. You can try if you can get invites by calling people from your list. Don’t leave messages on the answering machines. You should be able to talk to the person himself to deliver your piece.
Step #5. Set a quota of invites. You should be able to achieve a certain number of invites within the day. Tracking your progress will let you know how well your business is performing.
Step #6. Train your downline. Each of the members in your downline must have the courage and ability to talk to people. You can help them improve in their craft by coaching them with these steps.
Multi level marketing can truly be challenging. That is why; everyone involved must be willing to learn and willing to do his or her best.
The concept of multi level marketing can simply be associated with the scenarios you see in the normal world of corporate offices – where the top line typically consists of managers, supervisors, and CEOs except that in the former, the pyramid can be the other way around. Sounds confusing, isn’t it? However, that is exactly how multi level marketing is. It means that in the multi level marketing environment, those on the bottom lines can be at the top, depending on how they work hard to achieve the success they want in this business.
The Pyramid Line
In the corporate world, every position in the pyramid has different salary from the others. In order that the person in the lower rank climbs up the top spot, there are obstacles to be successfully conquered. If they don’t do it the right way, they remain in that lower spot and have no chances of earning high salary range like the top bosses do. On other issue, the top position is followed by four slots, followed by more slots, until a pyramid is completed to indicate the work team in a certain corporate office.
In the multi level marketing companies, it is a perfect pyramid line where there is one on topmost position, two on the next, four on the next, and so on and so forth. The person on the top position is actually the first recruiter and the top earner. However, unlike in the corporate world, everyone on the pyramid is their own bosses and everybody has fair chances to earn huge amounts of money, depending on how much work and success they take along the path. This means that even the person on the lowest spot can still reach the top as far as financial freedom is concerned.
Investment, Financial Freedom, and Family Tree
The first thing that you do is invest certain amount of money to build your own line. After a certain time, you can earn money by recruiting down line members and even more money when they too recruit their own down line members. If you work harder, there are more chances of you earning higher. You just need to train and motivate the people on your down line so that they too work harder until your own organization chart is created and has become bigger. The good thing about this is it can keep growing and growing, and your income increasing and increasing too.
The pyramid in multi level marketing is not about the status of the members but their tenacity to claim the financial freedom that they always wanted. Everybody is entitled to become richer, so long as they work hard for it. The best thing about it is there is never an ending cycle to everybody on the pyramid as it continues to grow from generations to generations. And though it is the prime motive of all, it can not be all about the money itself.
As the cycle continues to grow bigger, the bonds between each down line and up line are formed too enabling them to build better relationship; thus, being able to work better with each one.
And so, the concept of multi level marketing can be just perfect for everybody who wants to have financial freedom that can last a lifetime and as well as have a family which supports each other.
Someone who is interested in joining the multi level marketing (MLM) industry is going to do everything to learn the ropes of the trade. Perhaps you have gone to the extent of listening to recorded telemarketing calls and audio tapes, attending company training, reading e-books, sending out business cards, and then learning everything in the website that your partner company has provided for you. You have invested money but unfortunately, you are unable to see the rewards.
Understanding the Requirements
Partaking in an MLM business venture requires you to be motivated, excited, enthusiastic, committed, dedicated, and above all – to be positive. The rewards of your investment are not going to be visible in a span of a week. A lot of MLM investors suffer from the same ordeal. You should never lose hope.
Now if you happen to notice it, those who succeed in this kind of business are armed with the following vital points:
Excellent communication skills. You must do the talking! Communicating with the customers is not only done orally but also through the means of written communication. Not all people are gifted with the excellent communication skills so not all of them succeed in convincing and motivating the customers. You should harness your own skills for a guaranteed victory.
Hard work. Business-minded individuals usually have to sacrifice some things. A lot of them spend little time in sleeping. If you can’t keep yourself awake and moving, then you have lesser potentials of maneuvering your business.
Capital. It is indeed hard to be involved in a business venture without the cash fund. Many of the entrepreneurs have money to start with. Thus, you should realize its importance.
Love for selling. Being a passionate salesperson makes a good businessman. You should be open to the criticisms and rejections that naturally come around in any field of business. You should never lose hope because it is normal to face challenges.
Understanding the Essence of Leads
Who are your leads? Of course, you may start with your friends and family members. The problem is that these leads don’t last a lifetime. You will surely run out of leads and they will get tired of purchasing your products. Certainly, realization will finally dawn on you that you need to find more leads outside your circle. Or else, it means the death of your business!
The leads are your potential customers. There is no business that survives without any leads. Simply put, they are the life and blood of your business. Your success largely depends on how big your number of leads is. When you don’t have them, who will buy your products? Who will let money in?
In the MLM business, it is important that you know how to get to your leads. You can send emails, place phone calls, join forums and chat rooms, buy a leads list, or send newsletters. There are businessmen who have been in the business for so long a time that the leads are actually the ones who come to them. However, for a starter like you, things are a bit different. You have to do the hard work.
One more thing, even with an automated system that can reach out to potential customers, it is necessary to establish personal relationships with both your clients and your networking members. It is by means of a personal relationship that a longer multi level marketing business attachment is built.
Because of the increasing number of pyramid scams, there are many people who exhibit doubts when it comes to joining multi level marketing business groups. But if you are determined to follow the success of other people in this field, you don’t have to be scared as there are actually legitimate MLM companies out there and you just need to know how to distinguish them from scams by doing a lot of research. As for the reasons why you should join a legitimate MLM company, monetary success is always obviously the major motivation among the people who dream of becoming a multi level marketing success.
But though monetary is the leading motivator of the game, it is wrong to think or believe that multi level marketing business can give you instant wealth or overnight success. So, finding the fastest way to build wealth online is the first mistake that most people do; therefore, giving them one hindrance to actually be in their dream status in life. Any company you might stumble in the internet with anomalous claim of getting instant rich scheme by investing big amount of money will put your effort, and money, to shame.
In reality, any business never gets successful in a very short time. Logically, a multi level marketing business concept sounds really good if you change your psychology of thinking that it wouldn’t give you wealth within minutes. The simple truth is that network marketing, whether online of offline, needs time to build you wealth just as any other archaic business models do. Therefore, be sure to manage your expectations and develop proper attitude before joining any multi level marketing company.
What to do to be a Success
Due to the economic crisis, many people are looking for ways to find success with a multi level marketing or MLM online. But if you are just starting it out, you may find it hard where to begin to pick the right ideas and proper information. If it is becoming tough on you, here are some tips to help you find your success with your dream.
Develop the Right Outlook
Just like in any endeavor, it is as always important to develop the right outlook to fuel success. This will help you avoid you from quitting as it gets you to strive no matter is the outcome of your efforts. The right outlook or mindset will always propel you to say yes and move forward even after failing to recognize success until you get one.
Find that Passion to Success
Having a passion to what you really want in life is another key to going on and eventually finding the right MLM business plan for you. Multi level marketing companies do promote products, so it is a good thing to find what products do your passion comes in so that you will actually enjoy what you are going to market to achieve monetary success. In the online world, there is much information you will come about so be sure to research everything before plunging into the business world.
Consistency helps you achieve your success. When choosing for a promotional method or product, be sure that it is what you want and you know you will continue working with on a daily basis. Choosing something because you see it is the easiest and then changing to another because it didn’t work out well with you afterwards is no good way to begin achieving the success that you want.
The multi level marketing strategy has already been proven so many times in the industry, so how come that there are still many people failing while others are making insane amounts of income?
- Just like in any other adventure, only those people who give up that can fail in MLM industry.
They give up because of two things:
- They are not up to rejections; or
- They get easily tired after seeing slow results
Multi level marketing is that business opportunity in which consultants or affiliates (the members/dealers) are being compensated with commissions they make not only from their sales of the products but also from the sales of the other team members who were referred down through different network levels.
However, as brilliant business concept as it is most members end up leaving before they even have the chance to earn huge amount of money. Perhaps, the most common reason for this is that people don’t believe in the marketing part of the MLM. Wherein, in order to become a success in this industry, you have to master the art of marketing, which is keeping people interested and recruiting them so that it is not only but they too earn income.
Rejection and Generating Leads
It is probably a mistake by some MLM companies to miss out the very important part of the marketing at the very start, which is generating leads for more lists of prospects. So, for the reason of lack of good prospects, people get frustrated and not continue with the business.
If the company omits this important detail, it is most likely a sure thing that the members will lose their motivation too at a later part of the campaign. Therefore, MLM companies should be aware that it was never a good move.
Similarly, it is never an effective marketing if people are not trained well in terms of generating leads and orienting them about possible rejections being part of the entire process.
Because of the shortcoming, what normally happens is when the new members start recruiting and hearing rejection after a few phone calls. At first, they may react without hard feelings but as it continues to be like that, they easily grow wary and doubtful.
This is so true even to the people who were very determined at first. If they are not trained or oriented enough, they easily lose that determination and quit thinking multi level marketing is not cut out for them. If they start running out of potentials in the list, they start panicking.
All these scenarios can be eliminated if the multi level marketing company provides all the business resources and tools necessary for the invitation, presentation, and the selling processes. In this way, the members will find it easier to work with the whole program without having the need to quit at any part of the entire game.
Also, it will help them not see rejections as a negative part but a motivation to continue doing the tasks as required to being financial success. If done in the right manner, the MLM members will continue even if confronted with lack of progress at the start because they knew that a steady flow of prospects is available and interested.
A multi level marketing company can have so many effective ways to apply that marketing art. It is just a matter of applying different mediums and making sure the marketing strategy is most useful and valuable to the members so they don’t feel being left out at any part of the business game.
Multi Level Marketing – The Right Way Of Online Promotion
In contrast to what most MLM people believe, the online promotional campaign of any multi level marketing business differs from that of the offline scheme. Some of the campaign techniques that are basically applied to the offline MLM venture are not suited to the online campaign. Thus, you can’t expect the same rate of success.
To set things straight, you must know one fact. The offline promotion follows the one-on-one approach whereas the online promotion is led by the one-on-many approach.
Understanding the Difference of both Approaches
Offline One-on-One Approach
When you conduct MLM offline, it is vital that you have a one-on-one discussion with a potential client. It may be a single individual or a group but what is very crucial is that you have a face-to-face meeting with a possible client. This chance allows you to touch on their emotions, to persuade them, and call them to action. You have a better hold of their need so you will know how to serve them better with your product. At the same rate, you can follow up on them. If they respond, then, presto! You get yourself a downline. When your potential client expresses disinterest, you can move on and talk to another target.
Ideally, online MLM campaign is more powerful. Instead of focusing on one individual or one specific group, the modern technological Internet tool lets you reach out to a larger number of people who are already enticed in MLM. These people are too willing to invest their money to promote the business. With this kind of potential clients, you can train them about how to go on with the MLM program in an instant. An online campaign likewise provides you with more leads in a wink of an eye. As a result, you grow a bigger downline and earn more financial rewards.
Doing it Right
How do you go about with an online MLM business? Take a look at the insights below.
Promote the business through some online business ezine. Ezine is a term used to refer to the electronic publication that is sent out by the publishers on a regular basis. It is sent to the readers through email. The readers of the ezines are those who have fair interest in business topics so they are likely to be motivated to pay attention to your MLM business and partake in its promotion. You can have your ads in the ezine for a specific fee.
Use pay-per-click search engines. As a powerful method, pay-per-click hosts to several successful online MLM businesses. You pay a certain fee for every “click” in your website. If you make use of this method, your own MLM promotional campaign ad will show up on the search result page especially if someone keys in the MLM-related keywords.
Promote through the paid safelists. This method sends your promotional campaign directly to the eager individuals who actually prefer to read all your ads. The paid safelist’s readers are able to receive more ads compared to those who receive the ezines.
Use short, recognizable, and easy to memorize URLs. It will help a lot if your potential customers are able to memorize your URL in case that they want to visit your website once more. When they sign up under you, you will serve as their upline.
Online multi level marketing can be challenging but that is its very nature as a kind of business. Keep these tips in mind and you will surely find a great spot online for your MLM business.
To boost sales of the company’s products, marketers are constantly on the lookout for good business system. If you would observe it, the traditional marketing systems have left an impression that they were having signs of stagnating.
Except for some who have made a phenomenal foundation in the business world, selling products have become pretty difficult nowadays. This is because of the many competitive companies trying to outsell each other. Even the leading brand companies were facing the dilemma of increased sales commissions from the retail chains and distributors.
Because of the faced tough competition, market researchers are convinced that the multi level marketing, or simply MLM, is one marketing strategy that is currently an effective method of generating product sales of today. Now, manufacturers and companies have seen a way to raise their hopes high once more.
Unlike the other conventional business method, the MLM is a cheap and fast way of selling products. This is because the sales agents are direct marketers of the company. They form a network wherein each member is required to buy a minimum amount of the product.
Let’s say the network consists of 100 members. Logically, there are going to be 100 sales from that network. And from the sales made to this network alone, the company is already assured of good turnout. And what if the network consists of 10,000 members? Additionally, what if most of the members of the network buy more of the product?
- Obviously, profits are going to flow substantially from the sales made by the members of the network.
So, what about the profits for the sales agents, who come from the network structure?
- For every recruit of the member, a guaranteed sale is targeted since all network members are required to buy a certain amount of product from the company. For each recruited member, the marketer at the higher level earns commission from them. Now, if the member has recruited many members, it is rational to assume that there is going to be large commission or income from that.
Accordingly, the main core of the multi level marketing method is primarily not on the selling but on the recruiting ability of the people.
Generation of Leads
The problem of most people with MLM method is their incapability to build their own network of members. As they exhaust their potential lists of future sales leaders, they no longer know what to do until they become inactive such that sales of products begun waning as well as flow of income slowing down.
Now, this is where generation of leads comes into play. As the companies do not want to stop the success they got from using MLM business method, the marketing specialists introduced a new system to the method, which is the generating of leads.
The leads are created from the people who were already screened and have expressed interest in joining the MLM business team. The screening process includes testing their commitment and skills. It takes time to create leads, but if you want to yield endless list of potential future sales leaders, it is a good way to go.
Generating leads in a traditional multi level marketing business system requires you to go out and hold the screening process in all major cities and towns. If you have extra budget, hiring a lead generation specialist company to do it for you is another good solution.
Either way, both are viable options to build a robust network team for you.
What if you have already done your best and totally exhausted your leads that you know of? What should comprise your list now? What are you supposed to do? What would happen to your multi level marketing (MLM) business?
You might be wondering how some successful MLM business entrepreneurs manage to get their leads. Believe it, they make use of the tried and tested techniques! Anyone who is involved in the MLM industry should know the right approach. Take a look at the techniques below and apply them in your very own business.
Put up a powerful content. It helps a lot to open an online portal. A website about your business can be more helpful if you feature not only your products but other marketing tips, business opportunities, free tools, free articles, and any other information that talks about what the needs of potential visitors. When you do so, more people will be engaged to visit your website and you can increase the chances of convincing them to avail of your products as well.
Dangle the carrot. As soon as some visitors have been engrossed to reading what you have as a free content, be sure to get hold of their information. This will give you the opportunity to follow up on them and eventually offer them your products. The carrot here refers to a special but free report about email marketing, an e-book on how to create and manage a website, a newsletter, or an e-course that is basically designed to answer their needs on how to start their dream business. Just be certain that what you are going to send them as freebies are directly related to what they originally searched for in your website. When you have their contact details, you already have your leads!
Offer a special email course. You can become an MLM expert in an instant by offering potential clients an email course. You can do this through multiple auto responders. You can always get a copywriter if you think that you can’t write things on your own. Include your business, products, and other opportunities being offered at the end for a more powerful final salvo.
Be sure to rank high. The pay-per-click search engines can help you in this endeavor. Be particular with the keywords and key phrases to use so that your website will be search-able. Also, employ a valuable and convincing content and newsletter that can heighten your sales.
Buy leads. You can buy a leads list but it can be very expensive. However, you can be assured that your investment will be rewarded if you are certain that your lead source is really the best one. If it is the other way around, then most probably, you are just going to waste your money for nothing.
Establish a name in the industry. There are always perfect moments to discuss your business to the right people. If you happen to talk things to some individuals who care less, then most probably they will end up annoyed at you. Always sound like an expert. It is when you pique the interest of the right people that they will surely come to you and avail of your offer. You can likewise join forums and chat rooms wherein you may find those who are fairly interested.
Multi level marketing business progresses only when you have the perfect leads. Thus, know which technique should work best for you!