If you have decided to go into business for yourself (full or part-time), and have chosen network marketing as your entry vehicle, one of the first things to come to grips with is which industry and what types of products and/or services do you want to represent. Don’t make the same mistake that many (including myself) often make…getting involved on the spur of the moment when approached by a family member or friend.
Take your time…there is no rush. Make a business decision not an emotional one. Find something that you can feel passionate about and, most importantly, choose a product or service that you are going to use yourself. Making your decision based solely on how much money you can make will invariably finish up as a failure. This is one of the biggest problems in the industry and one that often gives it a bad name. If you have the passion and then choose the right company, the right compensation plan, the right structure and the right marketing materials, you have a greater chance of success.
Finding your passion could take time. Is it a favorite hobby or a lifelong dream? If you are conscientious about your health and the way you look, maybe the health and beauty industry might be a fit. If it is your ambition to travel the world but haven’t done so yet, maybe the travel industry could get your juices flowing. If you are very computer savvy maybe a purely Internet-based business might play to your strengths. Believe me, there is something out there for everyone, especially as network marketing is becoming more mainstream and more and more companies are adopting this method of distribution.
Another consideration is the market segment and you want to address. This could be impacted by your own age, for example. If you are 25 years of age it is going to be harder to go after the baby boomer generation and you probably want to stay in your peer group. If you are a boomer and can relate to their needs then you probably want to stay in that group.
Having found your passion and decided which segment(s) you would like to address then we come to the choice of company or companies that are active in your future market. You notice I am adding in the plural form here as I strongly believe it is possible, and often desirable, to have more than one business. This could be more than one (complementary) network marketing business or a network marketing business backed up with one or more affiliate programs…or both! In a later blog I will go into more detail about the strategy of having more than one business active at any one time.
Having come to this point, the choice of company you join is very critical. This choice should be based on several factors. Obviously the product or products is a very important part of your decision but it is not the only one. The company’s background, its management and financial strengths are very important. Does the management have the relevant expertise, especially in the network marketing industry? What is their MLM structure and, very importantly, how is their compensation plan? Are the products competitive in the marketplace? How are they priced? Is it a juice that will appear at Costco in a few months at the fraction of the price? Is there competition and how are they priced? Is it a one-product company or is there a product development plan with new, innovative products in the pipeline?
I have seen companies that had everything in place but their compensation plan was outdated and made it difficult to make good money without jumping through a bunch of hoops. Some companies looked perfect except the management had a history of starting up companies and then abandoning them for the next big trend. Should you join a company that is a start-up in order to get in at the beginning because everyone is telling you “it is only those at the top” that make the big bucks? Or is an established player better as they have a tried and tested system that works?
Making these choices is a vital part of whether you will be successful or not. The bad rap of the MLM industry has been caused by people making rash decisions to join a company on the promise of huge income potential (under pressure from family or friends) and then not working the business. There is a reason it is called netWORK marketing. To be successful in this industry takes a lot of hard work and dedication to be successful. You will get a lot of rejection and we will deal with that in another blog. But the ultimate prize is a business that produces residual income that will allow you to take control of your financial life and maybe fire your boss. Stay tuned!
Tuesday, March 31, 2009
Monday, March 23, 2009
The Secret To Success In MLM
I have already covered some of the reasons why people fail in network marketing ventures...so what are the secrets to success? I will be covering various answers to this question related to different aspects of the business such as: the tools provided, the compensation plan, how to market your MLM etc. But when people ask me: What is the one secret for success in MLM? The answer is quite simple...PASSION!
Many people join the network marketing business because they see dollar signs. They are lured into a venture often because of the compensation plan. The fast-start bonuses, the matching bonuses, the matrix income are the all key components to their decision. There is no time spent analyzing the company, the market for the products/services or the products themselves. Interestingly enough, if the entry cost were to be tens of thousands of dollars (like a franchise) then those would suddenly become the keys factors in the decision making process. What this addresses is the "get rich quickly" mentality that has developed in our society "with little or no investment".
Having spent years in the industry and after trying different types of products/services it became very clear to me what the secret for continued success really is. It is the product and the passion you develop for the product. Part of the reason why health products do so well in this industry is because it is easy to talk about(and see) what the difference the products make. Take weight loss as an example. If you (and others) have lost 10lbs. in 7 days isn't it easy to talk about it? In fact many might say "Well, Bill, you really look good today. Is there anything you are doing or taking?" You don't even have to sell anything!
This comes back to the basics of the industry which should be...word-of-mouth. Now if you join based only on the allure of the big income, then the word-of-mouth concept is weakened considerably. "So, Bill, how much money did you make last month?" is a more difficult question to answer, especially when you first start. Over time this selling point weakens, people start quitting and the company goes out of business. Those companies that make it always have a strong product focus. Think about Mary Kay, Avon, Prepaid Legal, Herbalife and even Amway Global.This is why the core that keeps the juice companies in business is the drinkers.
So the key to a lasting success in your MLM business is going to be the products. You must be a user yourself and then you must be passionate about these products. Word-of-mouth is telling not selling. If you are not a user how can you tell? If you have to revert to the "big bucks" story then you might make some quick money but that perpetual income we are looking for will not materialize.
If you have found a company with the right products for you, then it is also important to take a look at the rest of the equation. We will cover these aspects in subsequent blogs which will include Company/Owner history, compensation plan, available marketing tools and training.
Many people join the network marketing business because they see dollar signs. They are lured into a venture often because of the compensation plan. The fast-start bonuses, the matching bonuses, the matrix income are the all key components to their decision. There is no time spent analyzing the company, the market for the products/services or the products themselves. Interestingly enough, if the entry cost were to be tens of thousands of dollars (like a franchise) then those would suddenly become the keys factors in the decision making process. What this addresses is the "get rich quickly" mentality that has developed in our society "with little or no investment".
Having spent years in the industry and after trying different types of products/services it became very clear to me what the secret for continued success really is. It is the product and the passion you develop for the product. Part of the reason why health products do so well in this industry is because it is easy to talk about(and see) what the difference the products make. Take weight loss as an example. If you (and others) have lost 10lbs. in 7 days isn't it easy to talk about it? In fact many might say "Well, Bill, you really look good today. Is there anything you are doing or taking?" You don't even have to sell anything!
This comes back to the basics of the industry which should be...word-of-mouth. Now if you join based only on the allure of the big income, then the word-of-mouth concept is weakened considerably. "So, Bill, how much money did you make last month?" is a more difficult question to answer, especially when you first start. Over time this selling point weakens, people start quitting and the company goes out of business. Those companies that make it always have a strong product focus. Think about Mary Kay, Avon, Prepaid Legal, Herbalife and even Amway Global.This is why the core that keeps the juice companies in business is the drinkers.
So the key to a lasting success in your MLM business is going to be the products. You must be a user yourself and then you must be passionate about these products. Word-of-mouth is telling not selling. If you are not a user how can you tell? If you have to revert to the "big bucks" story then you might make some quick money but that perpetual income we are looking for will not materialize.
If you have found a company with the right products for you, then it is also important to take a look at the rest of the equation. We will cover these aspects in subsequent blogs which will include Company/Owner history, compensation plan, available marketing tools and training.
- PRODUCTS + PASSION = PERPETUAL INCOME
Sunday, March 22, 2009
Why Does MLM Sound So Negative?
When the letters "MLM" come up in a conversation, most people get very defensive and decide to end the dialog and immediately shut down the communication. It seems to have replaced the subject of life insurance as the number one conversation killer. So why is this?
Well, first of all we don't like being sold something, or being put under pressure to buy something. I guess it is human nature to want to be in control of one's own destiny and the very thought of someone trying to extract money from us "for their own good, not mine" is contrary to our core principles. Of course, it is even worse if these "MLM salespeople" belong to our circle of friends and/or family. Then the peer pressure is jacked up a notch or two to the point it can actually damage or even destroy relationships. And to make things worse, we have all tried one or two of those "schemes" and it didn't work, so why would the next one be any different?
"It didn't work" is the core to answering this question. The fact remains that "word-of-mouth advertising has, and always will be, the most common (and effective) means of advertising. Another fact is, there are several very large and successful companies that use this method to sell their products/services. Ever heard of Avon, Tupperware, Mary Kay or Prepaid Legal? Another fact is, there are many people making a decent and/or substantial income with network marketing companies today. And even better, these incomes are often perpetual and would continue even if they stopped working the business. I have several!
You see, it is very normal that people don't succeed at everything they do. It is estimated that 80% of all real estate professionals don't make it. Does this mean there is something wrong with the real estate industry or that it is a scam? Of course not. The real problem is that we don't want to admit that it was our fault so it is easier to blame the industry. In the case of the real estate industry, those Realtors were not cut out for the job and should never have joined the industry in the first place. If they had done some basic research and had analyzed themselves, they would probably never have joined and wasted all that money on licenses, signs and marketing. It wasn't the industry's fault.
And so goes it with MLM. Just as in real estate, people join because of the lure of easy and huge income potential. The decision to join is based on emotion, often on the spur of the moment, and not a careful analysis of the opportunity. If you believe that network marketing is the quickest, cheapest and most effective way to start a business for yourself (and want to take the advice of such experts as Donald Trump and Robert Kiyusaki) , then spend some time finding the company and products that fire up your passion. If you are overweight, then find the right product to lose weight and you will become passionate about it. In fact, your friends and family will start asking you about it! If you don't like selling ads, then don't sign up for a company that sells ads.
Other than the passion for the products/services there are still a few other factors to be considered in your research. Make sure there is a large market for the things you will be selling. Look carefully at the company and the management. Do they have experience in network marketing and what does their history look like? And very importantly, take a close look at the compensation plan and your ability to earn money quickly. There is nothing better for motivation than a (large) check in the mail!
The key to your success, however, will be your passion for the product. You have to be a user yourself. If you don't use the products, you will have no credibility. You see, word-of-mouth marketing is not selling, it is just letting people you know about things that have had a positive impact of your life. In many cases, the first approach should never be about how much money people can make as that leads to disappointment and failure. If they like the products as much as you do, they will start telling others and they can join your team.
Never start in any network marketing company without this basic research. If you are not able to structure this yourself, give us a call or send us an email and we will try to help you through this very important process.
Well, first of all we don't like being sold something, or being put under pressure to buy something. I guess it is human nature to want to be in control of one's own destiny and the very thought of someone trying to extract money from us "for their own good, not mine" is contrary to our core principles. Of course, it is even worse if these "MLM salespeople" belong to our circle of friends and/or family. Then the peer pressure is jacked up a notch or two to the point it can actually damage or even destroy relationships. And to make things worse, we have all tried one or two of those "schemes" and it didn't work, so why would the next one be any different?
"It didn't work" is the core to answering this question. The fact remains that "word-of-mouth advertising has, and always will be, the most common (and effective) means of advertising. Another fact is, there are several very large and successful companies that use this method to sell their products/services. Ever heard of Avon, Tupperware, Mary Kay or Prepaid Legal? Another fact is, there are many people making a decent and/or substantial income with network marketing companies today. And even better, these incomes are often perpetual and would continue even if they stopped working the business. I have several!
You see, it is very normal that people don't succeed at everything they do. It is estimated that 80% of all real estate professionals don't make it. Does this mean there is something wrong with the real estate industry or that it is a scam? Of course not. The real problem is that we don't want to admit that it was our fault so it is easier to blame the industry. In the case of the real estate industry, those Realtors were not cut out for the job and should never have joined the industry in the first place. If they had done some basic research and had analyzed themselves, they would probably never have joined and wasted all that money on licenses, signs and marketing. It wasn't the industry's fault.
And so goes it with MLM. Just as in real estate, people join because of the lure of easy and huge income potential. The decision to join is based on emotion, often on the spur of the moment, and not a careful analysis of the opportunity. If you believe that network marketing is the quickest, cheapest and most effective way to start a business for yourself (and want to take the advice of such experts as Donald Trump and Robert Kiyusaki) , then spend some time finding the company and products that fire up your passion. If you are overweight, then find the right product to lose weight and you will become passionate about it. In fact, your friends and family will start asking you about it! If you don't like selling ads, then don't sign up for a company that sells ads.
Other than the passion for the products/services there are still a few other factors to be considered in your research. Make sure there is a large market for the things you will be selling. Look carefully at the company and the management. Do they have experience in network marketing and what does their history look like? And very importantly, take a close look at the compensation plan and your ability to earn money quickly. There is nothing better for motivation than a (large) check in the mail!
The key to your success, however, will be your passion for the product. You have to be a user yourself. If you don't use the products, you will have no credibility. You see, word-of-mouth marketing is not selling, it is just letting people you know about things that have had a positive impact of your life. In many cases, the first approach should never be about how much money people can make as that leads to disappointment and failure. If they like the products as much as you do, they will start telling others and they can join your team.
Never start in any network marketing company without this basic research. If you are not able to structure this yourself, give us a call or send us an email and we will try to help you through this very important process.
Monday, March 16, 2009
MLM Comes of Age
For many people the very letters "MLM" conjure up images of scams and ripoff schemes and unscrupulous people creating huge "pyramid schemes" to benefit themselves. Of course, then there are the very reputable companies that have built very successful businesses and have created some of the world's largest distribution networks that have lasted for decades...and are still growing.
Such names as Avon, Mary Kay and Prepaid Legal have been around for decades and use the MLM model to build very successful businesses. The old Amway organization is still one of the largest consumer distribution networks in the world. So why does MLM have such a bad rap? After studying this question for some time now and having experienced a number of network marketing ventures, I think it comes down to a few simple facts. These we will take a closer look at on another "blogday" as it deserves its own detailed analysis.
It is clear, I think, to most people that the phenomenon called MLM is about to change. This is due to several events merging at the same time. Firstly, the evolution of the Internet. It wasn't really around in its current form ten years ago but it now provides a platform for smaller companies to compete head-to-head with the bigger players. People, in ever increasing numbers, turn to the web now for all their information, including shopping and placing their orders.
Secondly, in the current economic downturn, people are losing their jobs left and right and it is getting worse. This means in many cases, millions of unemployed individuals will have to seek out some other form of income. As 90% of the population is still working many of the 10% unemployed will be looking for ways to sell them stuff. For many that will be the only way to create a decent income. Investing in a new business or buying a franchise is not an option for most people. They also cannot find another job. So what is left?...NETWORK MARKETING! Low start-up costs and ready-to-use marketing materials and tons of free training. In fact in most cases for a couple of hundred bucks you are in business.
Lastly, we have all the retailers either going out of business or closing stores and trying to find ways to reduce expenses and sell more effectively. Many are finding out a centralized distribution center, a commission-based local sales force and electronic advertising (the Internet) is a lot cheaper than local stores, labor costs and massive consumer campaigns to get people to put expensive gas in their cars for the privilege of spending their money.
We are on the verge of network marketing (MLM) becoming mainstream. The only question is will you be in front of the curve and profit from a trend that is almost inevitable? This blog plans to explore this question in great detail and help you find the right opportunities. The next posting we will explore why so many of us have not succeeded to date in this emerging giant.
Colin Buckingham - Global Internet Entrepreneur
Such names as Avon, Mary Kay and Prepaid Legal have been around for decades and use the MLM model to build very successful businesses. The old Amway organization is still one of the largest consumer distribution networks in the world. So why does MLM have such a bad rap? After studying this question for some time now and having experienced a number of network marketing ventures, I think it comes down to a few simple facts. These we will take a closer look at on another "blogday" as it deserves its own detailed analysis.
It is clear, I think, to most people that the phenomenon called MLM is about to change. This is due to several events merging at the same time. Firstly, the evolution of the Internet. It wasn't really around in its current form ten years ago but it now provides a platform for smaller companies to compete head-to-head with the bigger players. People, in ever increasing numbers, turn to the web now for all their information, including shopping and placing their orders.
Secondly, in the current economic downturn, people are losing their jobs left and right and it is getting worse. This means in many cases, millions of unemployed individuals will have to seek out some other form of income. As 90% of the population is still working many of the 10% unemployed will be looking for ways to sell them stuff. For many that will be the only way to create a decent income. Investing in a new business or buying a franchise is not an option for most people. They also cannot find another job. So what is left?...NETWORK MARKETING! Low start-up costs and ready-to-use marketing materials and tons of free training. In fact in most cases for a couple of hundred bucks you are in business.
Lastly, we have all the retailers either going out of business or closing stores and trying to find ways to reduce expenses and sell more effectively. Many are finding out a centralized distribution center, a commission-based local sales force and electronic advertising (the Internet) is a lot cheaper than local stores, labor costs and massive consumer campaigns to get people to put expensive gas in their cars for the privilege of spending their money.
We are on the verge of network marketing (MLM) becoming mainstream. The only question is will you be in front of the curve and profit from a trend that is almost inevitable? This blog plans to explore this question in great detail and help you find the right opportunities. The next posting we will explore why so many of us have not succeeded to date in this emerging giant.
Colin Buckingham - Global Internet Entrepreneur
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