Network Marketing

With so many network marketing companies out there to chose from it can be fairly easy to get lost at sea when it comes to choosing the right network marketing business for you. This article will take a look at what options you have and provide five simple steps for you to follow in order to make the right decision when setting sail on the network marketing ocean. Ready to get going? Okay…

Company History

There are literally thousands of companies out there using a network marketing model to build their business through an army of distributors so you won’t be spoilt for choice when searching for network marketing companies but what should you look for?

Annual growth is a good indicator – look for gradual growth across a number of years which will indicate solid profits and stability.

Research the CEO or founder of the company also to see what their own history is. Some network marketing companies have literally pulled the business away from people after years of work and changed the marketing model overnight so don’t get caught out by this one and if it looks as though the CEO has a history of turning a business model around and then moving on in a couple of years then perhaps you should pass this network marketing company by.

Product

Everywhere you look right now someone is shouting about the next best product to stop you from growing old, getting fat, losing hair, losing your memory or feeling like the world is going to fall in on you and network marketing companies are no different. They will all say they have the most essential product but how can you tell truth from fiction?

Look at the trends first of all – what are people searching for right now when looking for products to either improve their health, looks or finances?

Look at the pricing second – does your product (or the network marketing company’s product) seems well priced in the marketplace or way over the mark?

Look at the competition for the product last of all – this is the one which will make or break the deal. There are hundreds of network marketing companies selling nutrition products for example and in the United States alone over 50 telecommunication companies using a network marketing model to increase their customer base so before you jump onboard with what looks like a great company check out the competition.

Training and Support

This is arguably the most important area to research. MLM companies have a history of teaching a ‘belly to belly’ approach to building a business. What I mean by this is a big emphasis is placed on introducing friends, family and other ‘warm market’ contacts to your business model. Some will still argue that it’s possible to build your business in this way and with time it probably is but only a certain type of person can do this and not everyone has a ‘warm market’ who will accept your network marketing offering in good faith (trust me, I’ve been there!). So what’s the alternative?

The alternative is to understand and develop marketing skills such as branding, advertising, copywriting and link them to effective sales skills to build your network marketing business with people looking for your opportunity. They’re out there! You just have to know how to put your network marketing business in front of them.

Compensation Plan

This is what MLM companies call the payment model which allows you to receive a commission based income for the work you have done on their behalf. This might seem complicated at first and it’s very easy to get lost in the small print as different network marketing companies offer different ways to generate an income and numerous bonuses for the work you do to attract customers, build your business and help your team but pay attention to this point or it could prove pretty painful. So what do you need to consider?

You need to look at several areas to make sure your work will be rewarded. Don’t get stuck with a compensation plan which prevents you from earning because nobody in your team is pulling their weight. You should be paid for your work and if the people you recruit work with you to build their network marketing business you should start to receive earnings from their efforts also. That’s the power of this business model after all.

Marketing Model

More and more MLM companies are beginning to recognize the need to move online and offer you the opportunity to leverage your time by building your network marketing business on the internet. This is good news as it allows you to increase your outputs in advertising and marketing across a vast online marketplace and leverage your time whilst doing so but it can also be expensive and there are several pitfalls to consider if using paid online advertising. So what can you do?

You need to develop a good understanding of internet marketing and if this means investing in self development then invest! This is a business you’re building so treat it as one and budget for training and development as part of your network marketing plan.

The second part of the equation is in the marketing model your business has in place. If you are going to build online you need to have a streamlined marketing funnel in place which will support your efforts, automate a lot of the work and develop an additional revenue stream for you as you build your business. This is done in many different ways and can be as simple as offering a sample pack of your product for a small price at the outset which the company will subsidize or asking the prospect to pay a small amount for a business report or company information. Either way, the idea is to generate an income stream and additional revenue for you when building your network marketing business from the marketing model even before people join your business. Why? Because 95% of your leads will NOT join your company and if you keep paying out for leads who walk away from your opportunity you will run out of money fast. Cashflow is the name of the game in any successful business model and network marketing is no different.

As you can see, there are a number of things to consider before rushing into the MLM world and my advice is simple; take the time to look into all areas of the business before putting your money and time on the table.

Don’t forget; multi level marketing works! It may take several months or years to start to see a return on your investment, commitment and dedication but when you do start to turn the corner you can look forward to a bright and prosperous future in network marketing.

The bottom line is that this business is not for everyone. It takes focus and determination to acquire and develop the skills needed to market your business effectively and if you want to be one of the 5% of networkers who do build a successful network marketing business you have to be prepared to work hard over a period of time for little or no reward before you can start to leverage your efforts into a growing income.