Understanding Multi Level Marketing
Whether you are looking for a way to bring in additional income or to find out how successful you can become in the form of an entrepreneur, becoming one of the independent distributors for an MLM company is definitely a viable option. The MLMs, which also go by the name of direct sales or network marketing, offer proven marketing plans, proven products, support, training and mentorship. It is described as a type of “business in a box” that provides everything you will need in order to get started immediately.
However, success in MLM is not automatic and usually not easy. One of the biggest mistakes that most of the newer network marketers usually make is that they fail to treat this new venture as the type of business that it is. Even though the MLM businesses are already pre-made with plans, support, services and products, it does not mean that it will automatically run itself.
Understanding The Multi-Level Marketing Companies
You have probably already seen Facebook statuses or even received an email or message about an opportunity from companies such as Vector Marketing or Wake Up Now. Perhaps you have already been recruited by someone to attend a presentation on WorldVentures that comes with the offer of a free pizza. If you are feeling confused or even suspicious about the claims they make about the ability to work the hours that you choose, the ability to take a luxurious vacation, or the opportunity to make $15 an hour or even more, here is some information to offer you with a better understanding.
Multi-level marketing known as MLM is a type of networking strategy whereby IBOs (Independent Business Owners) also called salespeople, receive compensation for the products that they are able to sell, and on the sales associated with new people they bring into the business, which is often called a recruiter’s downline.
What this means is that the individual that recruited you into the business, is going to make more money than you do, which explains the term “multi-level.” MLM, also known as pyramid selling is regarded as legal and the business model has similarities with a pyramid-scheme, that happens to be illegal and associated with a couple of differences.
For example, the pyramid-schemes are reliant on the sign-up fee that comes from the latest recruits opposed to compensation received from selling a service or product. These models are unsustainable as eventually it becomes impossible for the last people that sign-up to receive any compensation. At a certain stage in the pyramid schemes, the last recruits into the business would need to equal a massive amount of people to sustain these businesses, which is unsustainable and impractical.
MLM Marketing – Choosing The Right Company
Many companies today look for unique opportunities to sell their products by mlm marketing, but one such way that has been around for a while is multi-level marketing or MLM for short. MLM is a kind of marketing strategy that uses a sales force to generate sales for themselves which they are compensated for, but they are also paid for sales that other people generate for them.
To do so, a mlm marketing system is a must have. The people underneath you who are recruited is referred to as your downline. This is how you get compensated multiple times in through different levels.
Although MLM can be a great system that benefits many people, there are scams out there which you need to be aware. These are called pyramid schemes where the people on top are only interested in recruiting others to get the sales for them. the recruits are often promised large commissions if they can keep bringing in lots of people underneath them.
The reality is that most of the time the only people that make money in these pyramid schemes are the people at the very top, while everyone else works hard for a short while generating sales for others. They end up getting frustrated and leave the business.
Watch out for MLM companies that charge high fees to join. The best MLM company cares about its employees and will not try to take advantage of them. Unfortunately too many of these companies have received a lot of criticism due to excessive fees and almost cult-like behavior when they train new recruits.
The products are usually fixed at some price, and the entire business model is based on continuous recruitment of others rather than generating as many sales as you can.
Many people join multi-level marketing companies because like the freedom it gives them from a normal 9-5 job. MLM companies allow their employees to be their own bosses and give them plenty of freedom to explore different types of sales methods. Even though you are working for a company, in actuality you are your own boss. You need to treat this as if you owned the company because that is the only way you will succeed.
MLM Marketing Tips On How To Succeed In Multi Level Marketing?
To succeed in this business you need to have a strong work ethic and a proven mlm marketing system because the company is not going to go excessive marketing
efforts for you. In order to sell products and recruit others you need to build up your own business network.
You can either do this by word of mouth, purchasing leads, pounding the pavement – meaning you get out on the street and talk to as many people as possible, or placing your own ads looking to sell products and also recruit others into the business.
When you are trying to recruit others to be a part of your downline, it is very important that you are honest with them. If you tell the truth, show them how they can make money people will give the MLM opportunity a chance. It also is a good idea to show them compensation checks so they know they will get paid if they do well. As head of an MLM downline, you need to be a leader.
A good leader will offer encouragement to the people they recruit and will be there every step of the way. You need to show your recruits that you are there for them and are available 24/7 to offer them encouragement and advice. Remember, your success in MLM is largely depended on how your downline is doing, so why not work hard to ensure they are successful!
MLM is really just like any other business because you need to be a good salesperson. You need to be able to sell your products, but you all need to be an effective communicator to the people you are trying to recruit. If you don’t have the necessary skills to be a good salesperson then you need to learn them.
You should pick up a few books and start educating yourself on how to become good at sales, in other words you need to do your own mlm marketing training. You would be amazed at the things you can learn about sales all from reading a book. Online you can find many sales related courses and study guides to follow. There is a lot to learn about sales, but like anything else in life, all it takes is practice.
It is definitely possible to make an income from MLM companies. If you are the type of person that cares more about developing working experience or the flexibility to work your own hours, than you do about making a salary that is guaranteed every month, make sure you conduct your own research before making this your new venture.
Over and above the standard Google search, use website such as GlassDoor that offers honest reviews on companies that come from their own employees. In addition, the BBB (Better Business Bureau) also assists potential employees and consumers in identifying companies that can be trusted.
Aligning Your Values
There are many companies that are well-known for using what is known as the bait-and-switch technique, in the way of recruiting candidates by promising these people they can make $15 an hour, but in the interview later you are told that these figures are based on commission or performance. When a company reveals such terms in an interview, you need to consider if you feel like they are trustworthy, and if transparency is of importance to you. However, if flexibility and autonomy are more important for your needs, MLM opportunities could be your ideal fit.
While the MLM companies are certainly legal, you need to be aware of the signs that you are being scammed. For example, if a company has sent you a check, and you have not yet completed official tax documentation such as a I-9 and a W-4, there may be a chance this is a scam. You are also at risk of these scammers phishing for personal information such as your bank and financial accounts. The Mystery Shopping positions that offer a way to buy and keep products along with outrageous compensations are also regarded as common types of scams.
Keep in mind that you should never give away personal information like your bank-account information, your credit-card number or your social-security number over email or via phone in the initial stages of the search process. Organizations are allowed to ask you for a social-security number when it forms a part of your formal-application process and they will require this information when they hire you.
However, keep in mind any job, regardless of where you have found the opportunity should be investigated. It is also advisable to email or call NAU Career Development if you are not sure about a position or you are in search of another opinion.
10 Success Tips For MLM Home Businesses
There are a lot of people that shy away, from MLM, also known as network marketing, due to the misunderstandings and myths associated with this business type. A portion of this negativity is derived from the reports associated with the low success rates in MLM. However, it is important to keep in mind that a MLM business is not regarded as destined for failure than any of the other types of businesses. Regardless of a type of home business that you plan to start, success comes about from the work you are prepared to do, in order to make it work. Here are a few tips you can use to improve your MLM as well as your recruiting efforts in the industry of direct-selling.
- Understand The Realities Of MLMs
To keep yourself safe from MLM scams and pyramid schemes, you should find out as much as you can about this industry. This includes learning about the industry of direct sales, researching the different MLM companies and deciding on whether you match up well with a sponsor.
While there is a definite possibility to make a lot of money in MLM, the statistics prove that only 1 out of 100 MLM representatives achieve MLM success. This is not the fault of the MLM business. In comparison, most professional athletes will never progress their careers onto the Olympics, and yet this is not the fault of the Olympics or the actual sport. All great feats require action and knowledge.
- Find The Companies With Products Or Services That You Like
A lot of people make the mistake of getting caught up with the potential of a large income from MLM, that they fail to consider what this company is asking them to sell. You will not be able to share the business or sell products that you are not proud to represent. Conduct your MLM research and then partner up with the business that offers products that excite you. Remember to also find out about the compensation plan before joining to make sure it interests you.
- Be Ethical, Honest And Genuine
One of the main reasons that direct-selling has earned a bad reputation is because many of the representatives make use of deception and hype to attract new recruits. This has resulted in many people believing that the MLM companies are the ones to encourage this negative behavior. In most cases it’s not the MLM companies that encourage these claims. The legitimate MLM companies will encourage you to recruit your prospects with honesty. When you love the business or product, the enthusiasm that you show is usually enough when attracting new people.
- Avoid Barraging Your Family And Friends
Your friends and family will become extremely annoyed with you, when you constantly try to convince them to join up with your new business venture. You should let them know about your latest venture and if they show interest then sign them up, but if they say “no”, you must leave them alone. Most companies make a suggestion that you should compile a list of at least 100 people that you know, and while this may help you on your way to success, keep in mind that the more successful MLMers usually have very few people from this list of 100 people within their businesses. You will usually find that family, colleagues and friends that come into the business usually only join after they see the success of the MLMer.
The success in MLM will come about when you treat your business like any of the other types of businesses, which means that you focus on recruits that are interested in what you are offering them. What this ultimately means is making a decision on your target market on who would be interested in these services or products.
- Identifying Your Target Market
A big mistake to make as a brand new MLMer is to perceive everyone you meet which includes family and friends as your next recruit or potential customer. This is an area where the MLM industry goes wrong. Similar to the other businesses, you will achieve greater efficiency and success, when you are able to identify the target market and then focus all your marketing efforts on these people. For example, a person that is not interested in wellness and health or vitamins, is not the type of person you want bother about your products or business.
- Make The Effort To Share The Business Plan or Products On A Daily Basis
Most of the MLM sponsors will encourage you to focus your intention on recruiting your own line of new business-builders, however, the income that you earn in a legitimate MLM also comes from product sales or service sales.
Furthermore, the customers that enjoy the services or products are a lot easier to convert into a new recruit. Similar to other business models making sure you advertise your services and products can also benefit in attracting your target market and is essential for generating new recruits and customers. These ideas include sharing product samples, starting your own website or advertising on social media platforms.
- Rather Sponsor Than Recruit
One benefit associated with MLM is the abilities to build your own business builders followed by profiting from sales that they later make within the business. In order for your new sign-ups to succeed, your role should not be focused on accumulating as many people as possible as quickly as possible. Instead you need to be a trainer and a leader. This means you should be setting aside the necessary time to train new people, answer their questions and celebrate on their successes as well as be supportive when things are not going well.
- Set Your Goals For Presentations
Keep in mind that MLM is regarded as a person-to-person business. While there are a lot of people that don’t enjoy this aspect, the truth is that a personal-touch is the reason that products sell and the way that a business retains business builders and customers. Your goals and compensation plan will determine the amount of people that you need to show the business or products in order to reach your goals within a specific time frame. This will make sure that your business continues to grow rather than only sustaining it.
- Learning How To Market
Many MLMers prefer to adhere to the 3-foot rule, which means that any people within 3-feet is your next prospect along with other traditional based marketing tactics. However, once again direct-selling is similar to other businesses. It should and can be marketed in several ways as well as consider your specific target market, where you can find it, help it and what it really needs. With this approach you can make use of many marketing tools such as websites, social media and email to increase interest and product sales within your business.
- Stand Out From The Crowd
One challenge that you will face with MLM is trying to convince your prospects to join or buy your products opposed to other reps they already know online or who live in their neighborhood. Keep in mind that you are selling the same product that many other people are selling, which means that consumers are offered with choices. This means you need to focus on something that will make you unique in comparison to others. Offer people with a good reason to choose your opportunity or products over others.
The Truths And Myths About Network Marketing
None of the work-at-home opportunities are more demonized and misunderstood than MLM or network marketing. In most cases network marketing is viewed as something weird that your uncle does to make a side income or a type of unimportant mommy-business. At its very worst, the world of network marketing is associated as being filled with shysters and snake-oil salesmen. But when you get passed these outdated misconceptions and attitudes, MLM is a great way to begin a home-based or part-time business.
One of your first steps to achieve success is to decide on the truth from the myths.
1st Myth: Network Marketing Are Illegal Pyramid Schemes
In an illegal-pyramid test, an organization shape will not determine its legality. If in fact it did, most organizations, businesses and even government would be considered illegal as they all use pyramid structures.
The illegal pyramid schemes offer no services or products and pay out according to the amount of recruits. The legal based network-marketing programs provide services or products of quality which are sold directly to consumers. The recruitment of new members provides a way for increasing your income according to the volume of your sales, with the team-sales volumes and not the amount of recruits that you bring in, this forms an important aspect when it comes to calculating income.
2nd Myth: Only The People At The Top Make Money
This particular argument accurately describes the job type. For example, how frequently does the minimum wage-worker turn into a CEO? It is a known fact that a number of high quality employees will never receive the financial rewards or advancements that their work quality actually deserves.
These arguments also suggest that the people that get in the earliest are the only ones that are going to make money, and this is not true. In fact, many of the ground-floor members will make nothing, while at the same time there are just as many that enter the business a number of years on and end up making a fortune. In the better network marketing businesses, members have the ability to make varying amounts regardless of their current position within the organization. Your income in these businesses if largely associated with the amount of effort you put in.
3rd Myth: MLM Uses People
Most people that make complaints about network-marketing state that they don’t enjoy “using” family of friends in order to make an income. However, the truth of the matter is that network marketing does not reward its members for using people. The success in these business models is derived from assisting others in reaching their own goals.
4th Myth: These Programs Eventually Become Saturated
Saturation is actually impossible there is never a definite amount of people. Each and every day babies are born, or people that turn 18 who are then added into the new pool of the latest prospects.
Tim Sales in the book named “Network Marketing for Dummies” offers one of the better arguments when it comes to saturation myths. He asks the question “Do you know of anyone that doesn’t own a refrigerator? No? Well that does not stop GE from selling more of them.”
5th Myth: Network Marketing Does Not Work
The Direct Selling Association stated that is 2015, the industry for direct sales, which MLM forms a part of, grossed a total of $36.12 billion for retail sales in the U.S. In addition, more than 20 million people across the U.S have involvements in the industry of direct sales. These figures are indication that network marketing definitely works. Failure or success is little to do with network marketing and more to do with by the levels of effort the individuals put into their personal businesses.
6th Myth: No One Really Makes A Fortune In Network Marketing
It is very true that not all people succeed in network marketing. The 2 to 10% of the network marketers that are earning a large income happen to be the same 2 to 10% that work consistently and hard in their businesses. But becoming rich should not be how network marketing should be judged. Instead this industry needs to be measured on the amount of people that have successfully reached their goals. Most of the people that enter into network marketing often find success as soon as they are earning enough to pay off their debts and stay at home with their kids.
7th Myth: Networking Marketing Is A Type Of Cult
There might be a couple of fanatical type network marketers out there, but fanatics are in existence everywhere. The network marketing businesses do not require fanaticism. In fact, the majority work very hard on keeping their members grounded with figures and facts.
Network marketing is associated with a number of issues, but most of these are hinged on misleading and false information. The financial gurus such as Robert G, Allen and David Back both suggest direct selling and network marketing in the books that they have written. This suggests that MLM and network marketing has gained respect within the mainstream business industries.
You are able to achieve success in a network-marketing venture when you are able to avoid the more common MLM mistakes as well as gain a sound understanding about this industry.
MLM Marketing Does Require Sales Skills
MLM Marketing Online offers a tremendous business opportunity if you get with the right company. The best way to find a good opportunity is through word of mouth. If you know someone who is successful in MLM then it becomes simple to join that company and get started.
You can find something that appeals to you, meaning you can find a product that you actually enjoy using. When you like a product and believe in it, that makes it so much easier to sell. Also, read the online reviews of these different MLM companies to see which ones are highly rated and which ones are not. That is the best way to tell if the company is legitimate.
You don’t want to waste your time and effort with an MLM company who only trying to scam the new recruits.
MLM marketing offers people a tremendous opportunity to create wealth for themselves and for others. If this is something that interests you, then why not take a shot at it? Just make a wise decision on the MLM company you choose.
5 Great Ways To Use The Internet To Get The Most Qualified Network Marketing MLM Leads
If you’ve been in the network marketing or MLM business for a while, you’ve already come to the realization that you don’t have enough friends and family to make the business work as well as you want to. By the time you actually figure out the network marketing business, most of time you’ve burned through most of your friends anyway, and the rest are either too busy or not interested in talking with you.
So what you really need is a bunch of fresh people, leads if you will, that are interested in making money, and more than happy to talk to you about your business opportunity. Now that the Internet is available worldwide, there are literally millions of people looking for income opportunities and all you need to do is find them. Let’s examine some great ways to develop leads for your network marketing business.
Using Youtube To Generate Leads For Your Business.
YouTube is a fantastic venue for almost any kind of marketing, especially job opportunities and business ventures that can help people earn money from home. There are hundreds of different ways to make videos, some that you appear in and others you don’t, in order to present your network marketing products, and the business opportunity as well. YouTube is an excellent place to upload videos of all the top professionals in the business above you so they can help teach those below you in the network.
Once you have the top people making a presentation for you, you have overcome the objection of people that don’t have the ability to stand up in front of the crowd and talk, feeling like they shouldn’t get involved in your business for that reason alone, everyone can share the video.
YouTube is also an excellent place to showcase every product in your network marketing business in very fine detail. One of the most difficult parts of running an MLM business is keeping all of your down-line completely informed of the correct way to retail the products, and all of their ingredients, uses, and abuses as well.
Many a network marketing company has fallen apart because the claims made about products are either untrue or exaggerated, however, by using videos, the exact claims and uses of the products can be passed down through the ranks to the newest members without any exaggerations or misunderstandings. There are over 100 different video content directories on the Internet similar to YouTube, that are available for you to use absolutely free.
Article Marketing Is Excellent For Multilevel Marketing.
There are hundreds of article directories that will except an article about your business opportunity, or any one of the products that you have to offer, then drive laser targeted customers directly to your website, who are either interested in your product or business opportunity. Article marketing directories such as E-Zine articles, Go Articles, Scribd,and many others, will post your articles and drive traffic from the search engines absolutely free.
It takes a little bit of effort, but many of your articles can be rewritten from those provided by your company then posted on all of the different directories at the same time. You can include a link at the bottom so the prospects can go directly to either your YouTube videos, or your company website with a cookie so that you get 100% credit for the lead.
Free Online Classified Advertising Like Craigslist.
A lot of people are already familiar with Craigslist, however, what you may not know is that there are hundreds of other services that are similar in nature, each with their own readers available on the Internet. You can run ads in the job section, business opportunity section, or even advertise your network marketing products in the appropriate section as well. While Craigslist is rather restrictive as to where they will allow you to advertise, many of the other classified advertisement companies are much easier.
It’s always better to have qualified people calling you, rather than you wasting your time trying to convince people, like your friends and family, that are not interested. Once you get the ball rolling, and have some money coming in, there is software that can automatically post hundreds of different ads, on hundreds of different classified websites, every single day. This could potentially bring in thousands of new recruits to your MLM business.
You Can Actually Buy Hot Leads Directly From Providers On The Internet.
If your forte is calling hot leads on the phone, but not generating leads on your own, then one of the best things you can do is purchase them from lead companies on the Internet. With a quick search you will find that there are hundreds of companies, that provide high-quality leads with phone numbers, that are ready and waiting for your call.
Most of the reputable companies in this market will offer you a certain guarantee that the numbers are valid, and a certain percentage of the people are interested. This way you waste very little of your time talking to unqualified and uninterested prospects for only a very small fee paid per lead.
If You Have A Little Money You Can Pay For Postings On Many Different Sites.
There are hundreds of different sites that have places where you can post such as Yahoo Answers, forums, YouTube comments, and even in the forums on Craigslist. Just short, helpful comments in a weight loss form for instance, directing people to your YouTube videos, where you can weed out the tire kickers and end up with highly qualified individuals.
These leads will have already learned about the product and the business opportunity from your videos, so most of the work has been done for you by your sales funnel. You can start by posting on these sites yourself, then when you begin to earn money, pay for hundreds of posts by buying a gig on Fiverr to automate your sales funnel.
Recruiting sales associates and business partners has never been easier, due to the internet and all the billions of people browsing it all day long. By setting up your sales funnel and keeping it loaded in the beginning, you’ll have nothing but highly qualified leads coming out the end, with which to build a long term successful MLM business.
What Is MLM?
Multi-level marketing, also known as MLM marketing is a model in which sellers receive compensation for selling products but also for finding new recruits and getting these new sellers to generate sales.
If you are thinking about joining an affiliate program, you need to make sure you will be selling products for a company with an excellent reputation. Check online reviews and look for a company that has been around for at least a few years. If a company uses multi-level marketing or pyramid schemes to make money off new sellers, you should find a lot of bad reviews.
You should be especially wary of affiliate programs that give you the opportunity to sell products such as gadgets, weight loss pills or other weight loss related products, anti hair loss treatments or products you have never heard about. If you have any doubt about the efficiency of the product you are considering selling, you need to do a lot more research and if possible try the product yourself.
Do not spend a fortune to get started with affiliate marketing. Companies that use MLM marketing schemes usually require you to purchase a starter’s kit or to attend a training sessions at your own expense. If you are asked to invest money in order to become an affiliate seller, you are being the victim of one of these scams. You should instead look for a marketing program you can join for free.
MLM or pyramid schemes encourage sellers to find new recruits. These sellers often decide to find more recruits to earn commissions and at least get the money they spent on the starter’s kit back.
If an affiliate seller approaches you and tries very hard to convince that you can earn a nice profit selling products like they do, you are probably dealing with a pyramid scheme. Do some background research on the company the seller is affiliated with before you decide if you want to join the program or not.
Companies that use this type of schemes usually rely on training programs and develop a strong company spirit, which can sometimes look like techniques used by cults. If you join a program and feel uncomfortable with the training process or get the impression that other sellers or management are not being honest with you, try getting out before you have to spend any money. Don’t hesitate to share your negative experience online so other sellers do not fall for the same scheme.
These unethical businesses usually promise high commissions to sellers. Before you join any programs, you should look around to get an idea of how much the average affiliate seller earns for each sale. If a program is offering high commissions for sales or for recruiting new members, they might be using unethical methods. It is best to work with a program that has an excellent reputation even if the payouts are smaller.
If a company promises high commissions but will not give you credit for all your sales, you might end up working for a very small payout. Your time would be better spent working for an affiliate program that treats sellers fairly, even if the commissions are less important.
You should also know that affiliate programs that entirely rely on a multi-level or pyramid scheme often get sued. A lot of unethical programs never get into legal troubles because their size remains relatively small.
However, if you take part in one of these programs and recruit more sellers to build your down line, you could get into legal trouble since you would be participating in an illegal scheme. Even if you have good intentions, recruiting people into an MLM scheme could get you into trouble.
A lot of affiliate programs offer commissions to sellers who can recruit more members. This practice is absolutely legal as long as the main goal of the program is not to recruit more sellers to generate profit, for instance by selling the expensive starter’s kits.
If a program offers reasonable commissions for recruiting more sellers and the main focus is to sell products to clients, it is perfectly safe to sign up as a seller. Use good judgment to determine what the main emphasis of the program is, for instance by checking for fees new sellers will have to pay or by comparing the commissions offered for recruiting more sellers into the program.
It is always best to do a lot of background research before joining an affiliate program. You should read online reviews from sellers and from customers who have purchased the products you are interested in promoting.
A few bad reviews should not be a problem but joining an affiliate program with a bad reputation is not a good investment of your time and resources. Look for a program that offers quality products, treats sellers fairly and has a good reputation. If possible, sell products for a brand that is easily recognizable.
MLM marketing is not a legal practice but a lot of businesses use these schemes without getting into trouble. You might come across affiliate programs with very interesting commissions or even encounter a seller who tries very hard to convince you to join their program.
Be careful and always do a lot of research before you become a member of an affiliate program. Even though MLM programs can offer high rewards if you can convince new members to join, you will earn more with a legitimate affiliate program on the long term and not have to take any risks.
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