How to be successful in network marketing

by Kathleen Joyce

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Published on this site: December 2003 - See more articles from this month

What is network marketing?

Network marketing or MLM shouldn't be confused with pyramid selling.

It is literally marketing products through a network of people. This form of distribution is word of mouth or recommendation.

It's an intellectual form of distribution as unlike retailing the distributors are often very knowledgeable on the products.

Large businesses can be built by sponsoring people and teaching them to sponsor. MLM means multi level marketing and refers to the different levels of compensation provided by the company.

By the 1990's more than 100 billion dollars worth of products were being distributed through Multi level marketing, and that figure is growing rapidly.

The success of an MLM business is based upon the distribution of products. This can be through purchases for yourself, retailing to customers, or sponsoring others to purchase wholesale.

By teaching your distributors to sponsor you can help them build a business for themselves by teaching them to teach others to do the same.

High quality, consumable products with a good compenstion plan will provide a sound basis for a successfull MLM business.

Why network marketing is becoming so popular?

It used to be that people got a job, and probably stayed in that company for life working their way up to the top positions of the company.

Nowdays people feel more insecure in their jobs and worry about being made redundant. With inflation and the rising cost of living, pensions don't go very far.

Network marketing provides an opportunity to create a residual income for life. It can be fitted in around a full time job, and requires no qualifications. There's no discrimination against age or sex, and there is the potential for financial freedom.

Usually there is a minimal start up fee, and with no need to stock up on goods this makes it a no risk investment. The only real investment is your time and perseverance to make it work.

MLM has enormous potential especially now as with the internet you are no longer geographically limited. More and more people are choosing to purchase online.

Products are usually of a high quality as money isn't spent on advertising or packaging. Instead money is put into the products themselves.

Secrets to finding success in network marketing

Although you work on your own you don't work alone. You always have your sponsor and upline to call on if you need help.

Before you start any business you must have a plan. Sit down and work out a plan of action on paper. Get your sponsor to help you do this.

Set yourself long term goals. How do you see yourself in 5 years time? Where would you like to live? What car would you like to drive?

Break up these goals up into short term achievable ones. Organise your tasks for each day and stick to them. This way you won't get despondant and you can see a progress in your business, no matter how small.

Do something each day to help build your business such as making a point of contacting 2 people a day. If you did you would be speaking to 14 a week, that would be 56 a month, or 672 a year. That's a lot of people!!

Network marketing really is a numbers game, the more people you talk to the more chance you have of finding prospects and ultimately big business builders. If you don't do anything then you won't get anything and your business won't grow.

Even if you only sponsor one person a month into your business, by teaching them to sponsor and purchase the products wholesale you could build up a highly profitable business with huge potential.

You don't need to panic at the thought of hundreds of people working in your downline and keeping in touch with them all!

If you have a simple duplicatable system that's teachable to others you can just concentrate on the new people you have sponsored. In the long run it will help your business to grow faster as people won't be put off by complicated marketing techniques.

Hand out business cards to people you meet.

Put flyers up on supermarket customer notice boards and leave some in restaurants and cafe's. Flyers are very inexpensive to print out on a pc. I often print a couple of sheets out and then photocopy them, this saves on paper and is very cheap.

Listen to motivational tapes and read books. I recommend these 2 books "Think and Grow Rich" by Napoleon Hill, and "The 45 Second Presentation that will change your life" by Don Failla

Purchase some of your company's products and try them out. It's better to know first hand about the products before referring them to others.

Make use of your company's marketing tools. Audio tapes, marketing leaflets e.t.c, and hand them out to people who may be interested.

Don't try to sell the company or the products. The audio tapes and leaflets generate an interest.

Don't try and get people to build a business if all they are interested in is buying the products wholesale.

Sometimes you may find that people are just happy to purchase from you and these become your retail customers.

Perseverance is needed as well as belief in yourself and the products. It's very easy to quit at something just before it starts to work. Don't ever give up!!

Kathy has her own mlm online business which you can visit at : www.healthandbeautytowealth.co.uk. She has written several articles on online marketing which you can find at :
www.healthandbeautytowealth.co.uk/articles
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