The network marketing business is responsible for billions of dollars of sales in goods and services each and every year. You most likely have come in contact with a network marketing company at some point in your lifetime, especially if you have attended a home party at a friend or relatives house. Network marketing is definitely here to stay but the question is “How do YOU choose a network marketing business for yourself?” The choices are endless so here are some ideas for you to consider before jumping in:
1. You want to get in with a company that’s been around at LEAST for 5 years, has solid financial backing, excellent management and a “distributor first” philosophy. The company should also have a long-term goal and not just be out for the quick buck. This may sound a little over-zealous at first but you need to be careful. So many companies have the right intentions but barely make it out of the starting gate. You’re looking for someone who has been through that “first five years” and have proven themselves. So often potential distributors are told to get in on the “ground floor” but often this ground will cave in leaving many people very unhappy. This doesn’t mean you shouldn’t give these companies a look, just go into it with eyes wide open.
2. Look for high quality, unique and reasonably priced products or services. Ideally, products that are consumable so that customers have to purchase them over and over again. Unlike “traditional” companies who have to shell out dollar after dollar in advertising (just picture Super Bowl ads), network marketing companies have their distributors advertising for them. This allows the company to make superior products, all things being equal. And it must be a consumable product. The idea is that the customer will be so pleased with their product that once they run out, they’ll need to buy more
3. A compensation plan that’s fair to both full-time and part-time distributors alike. As mentioned earlier, a successful Network Marketing company will have a “distributor first” philosophy. This should be plainly seen simply by taking a look at the compensation plan. All it takes is some simple math to find out how much you’ll need to sell and how many distributors you’ll need underneath you in order to be profitable. Most people don’t take the necessary time out to do the math and end up getting enamored by the fancy potential income charts put out by the company.
4. Training and support for your team. Many companies do provide training and promotional materials for their distributors but sometimes it’s hard to find that balance between product promotion and training. Be wary of companies that charge high prices for their promotional materials. You are investing your money to advertise for them so the company should not seek to make a profit from you here; however, many companies do.
Keeping these 4 ideas in mind before jumping into a network marketing business will do wonders for your sales and your peace of mind as well.
By: Kristine Wirth
Posts Tagged ‘Compensation Plan’
4 Steps to Choosing a Network Marketing Business
January 17th, 20103 Ways The Internet Is So Appealing For Your Network Marketing Business
January 16th, 2010Most network marketers join a MLM opportunity having the best of intentions. However, since the education that they receive from their companies focuses on their product and compensation plan they never learn how to market effectively. This leads to a success rate that is dismal at best. Some statistics say that fewer than 3% of people who join a network marketing business ever generate a liveable wage.
Network marketing on the Internet has the potential to dramatically improve the success rate of those wanting to build a business.
Here are 3 ways that the Internet can improve your chances for success:
Puts marketing back into the equation.
Old methods include cold calling and prospecting anyone and everyone which is the equivalent of a volvo mechanic going door to door in search of new customers. It also puts you in a position of desperation.
Marketing on the internet results in building a web of content that is specific for your niche market. By speaking directly to an audience that is looking for what you are offering and meeting their needs you will attract lots of serious potential prospects.
In addition, since success at network marketing is a numbers game – with many traffic generation methods in place, you will be in front of thousands and potentially millions of people. No more need to join multiple networking groups to always be in front of new people.
Takes rejection out of the process of building your MLM business.
Because no one likes rejection this is a huge obstacle to building a network marketing business. Using the Internet potential customers opt in to your list and others move on. As good as your product is not everyone in your warm market thinks they need it. You must identify who your target market is, find out what their needs are and then build content that addresses those needs and then they will come to you. No more chasing people who have no interest in what you have to offer.
Offering value makes you stand above the crowd.
To be successful and stand out above the rest you must offer value, lots and lots of value. Many network marketers move to the internet but don’t revise their approach. They continue to pitch their deal.
Offering value is giving without expecting anything in return. It might look like giving away an ebook that you develop that gives away your most worthwhile lead generation secret. Or a newsletter series that educates your potential customer on your best kept nutrition secrets.
This results in trust and relationship building. You’ll stand out from the rest of the crowd. At the right time, when your prospect is ready to buy they will be more likely to buy from you rather than a someone with whom they have no relationship.
The Internet has levelled the playing field for network marketers who are willing to go outside their comfort zone and learn a multitude of no cost and low cost lead generation methods. In the process, you can identify your niche market where people are truly and actively seeking to buy your product.
The days of prospecting anyone and everyone are numbered. Let’s face it the Internet is here to stay and is increasingly becoming a part of all our lives. if you see this fact and position yourself to learn marketing startegies on the Internet before the masses you will be greatly rewarded and experience network marketing success despite the odds!
By: Dianne Thomsen
Building Depth in Your Network Marketing Business
January 1st, 2010in any network marketing business opportunity, you will need to be able to build a big organisation of downlines who are able to teach their downlines who teach their downlines to succeed. In order to be effective and maximise your commissions, you need to understand the compensation plan of your network marketing business well.
There are various compensation plans in the market. Even if you were previously in a network marketing home business, it does not necessarily mean that you will succeed in your current network marketing business by building your organisation the same way. Your efforts will pay off if you study and understand the compensation plan before starting to build your organisation and place your downlines.
Even if you do not like numbers, accounts or mathematics, it will do you good to learn how to effectively maximise your commissions in terms of building your organisation. Failure to do so may cost you thousands of dollars in lost commissions in terms of building your organisation. Failure to do so may cost you thousands of dollars in lost commissions and this is something you definitely want to avoid.
In any network marketing organisation, to succeed by leveraging on your organisation ultimately in terms of time and effort, you will need to build width as well as depth.
Building width is basically placing those personally sponsored directly below you. These people will generally be from your warm market, either family, friends or relatives. You will need to spend time training these downlines to do what you are doing so that they too can succeed. Due to this, it is not practical for you to have too much width as you will not be able to take care of so many people at any one time.
Imagine if you have personally sponsored five downlines. If you are currently holding a full-time job, you will effectively only be able to give each of your personally sponsored downline one night per week to coach, guide and train them. As they are very new to the business, they have lots to learn before they can stand on their own two feet. Meanwhile, they will require your assistance especially so when they have their prospects.
Spreading yourself too wide will cause you to neglect your downlines as you will not be able to effectively help each and every one of them. This will cause a higher dropout rate because when people do not see any success in recruiting new downlines or any money coming in, they will tend to leave the business organisation as quickly as when they joined.
Building depth is very important for the success of your network marketing business. If you are able to build depth, this means that your organisation is very deep rooted and most of the downlines in your organisation are independent and strong, able to duplicate your success.
Targeting the right person to join your business is also important. If you get someone who is a follower and not ready to lead his or her own team, you will need to spend a lot of time and effort with this person. However if you find someone who is highly motivated and has the gung-ho to go all out to achieve his or her dreams and desires, this downline will be like an eagle, ready to soar. All you need to do is coach this person and he or she will easily duplicate what you do.
Training your downlines to sign up their new prospect is important. Training your downlines to help his or her downlines to sign up their new prospects is even more important. Once this system of teaching your downlines to teach their downlines to teach their downlines is in place, your organisation will have more leaders being groomed and your downlines will be independent. Building depth is the basis to success in any network marketing business.
By: Veronica Tan BK
