Hi thanks for all these great tips. I just joined a network marketing company about a month ago and I must say that it hasnt been easy. I find point #3 to be amazing because i realize i was loosing all my friends because i always made them feel bad for not wanting to join. After reading this article i have immediately changed from that behavious of chasing and forcing friends and family. this article has shown me i can still make it in this business. plus there is so much bad air about MLMs all over.
Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wednesday on Twitter from 8-9 pm ET. This is excerpted from my recent interview with Sulaiman Rahman, @sulrah. Sulaiman is the founder of UrbanPhilly.com, or UPPN – Urban Philly Professional Network. He was also an African-American Chamber of Commerce Chair. Sulaiman is a Philadelphia native and Penn graduate. He is also currently a Creative Ambassador for philly360 and long-time entrepreneur.
Make money off renting out your home, car, boat, tools, or almost anything with these sites like Airbnb. If you are out of town, make money while you are away. If you have free space in a home you live in, you can leverage that too. You can also choose specifically who you would like to rent to – say, a college sports fan. Check these hosting companies out below.
Leads should come in the form of people that are likely to work with you. When you get leads for free, they may not be targeted. That’s okay though, you can target these people yourself, and it’s free to do if you’re willing to put some time into learning marketing. Don’t just get a logo slapped together and act like you’re an awesome company with all kinds of things you don’t really have in place. However, you can work with leads that you target by learning to make a splash in places like review websites and other places people read more about companies.
First, Elliot, thank you for this article. Your sense of truly wanting to help comes through and it’s refreshing. Like MommyFinance, I too have suffered PTSD from previous runs at MLM but I have been looking for legitimate ways of making extra income and seems I’m being directed toward trying MLM again. Your article gave me hope that there are some good ones out there. What you said about finding the one that fits me and leaving a legacy for family really turned on a light for me and I greatly appreciate that. A wine business is not quite up my alley but I will certainly direct those who might be interested your way.
Hi Ray, All great tips! I love tips no. 7 most. Yes, I agree that it is the biggest of all the Network Marketing tips. We will be forever working on our business if we do not have systems already in place so that ANY new team members can get training and success tips easily. The 'leader' is in trouble. I first learned this from Tom Challan who had found himself trapped in the 'leadership role'! Excellent insights, Ray, about true leadership!
Great listing and especially the honest look at what being in an MLM means. Direct sales is a hard business, especially if you’re not passionately using the product daily. You see too many people who join thinking it will be a get rich quick scheme and don’t actually care about the product or their customers. Genuine lasts and is successful, companies like Avon and Mary Kay have been around for generations because people love their products.
Many companies will tell you to make a list of 100 people you know when you’re getting started. There’s nothing wrong with that, but most successful MLM marketers have very few clients that are from that original list. In most cases, the family and friends only come on when they see your success. You need to treat MLM just like any other business in the sense that you only focus on the people who are interested in what you’re offering. You need to have a target market.
In April 2006, the FTC proposed a Business Opportunity Rule intended to require all sellers of business opportunities—including MLMs—to provide enough information to enable prospective buyers/participants to make an informed decision about acquiring/joining a business venture with information disclosed about the average likelihood of monetary profitability (and the extent of monetary profitability, if any) of acquiring/joining the business venture. In March 2008, however, the FTC removed "Network Marketing" (i.e. MLM) companies from the proposed Business Opportunity Rule, thus leaving MLM participants without the ability to make an informed choice of entering or not entering MLMs based on the disclosed likelihood of success and profitability:
If you recruit a distributor who advances to the final step and breaks away from your group, what happens to your commissions? Yes, your total group volume will take a hit, because you’ve lost one of your best recruits. However, most companies will provide you with a bonus commission, referred to as an override commission, for creating breakaway legs (or recruits that end up breaking away, forming their own group).
Appreciate the hard work studying this… Im apart of the #1 company on there Advocare… have been for 7 years and one of the higher paid single guys in the nation… I just have to disagree with “over priced Products” comment. There is a mark up on every product in the world… Our products actually work which is why those endorsers you mentioned turn down high level incomes with other companies to endorse us for a stipend of products per month. Advocare has numerous people making a great profit and even more just enjoying a product they would pay double what they do for to feel the way they do. Success rate isnt low my friend… Its just the quit rate is through the roof. Highly recommend everyone seeing this and you sir to watch “Rise of the Entrepreneur” by Eric Worre on Itunes to get some serious facts about the MLM industry. Thanks for all the research and blessings!
And the reason is LEVERAGE… or being able to manipulate other people’s effort and time for your own gain. With MLM, the same principle applies. Everyone has the opportunity to become their own boss and has the opportunity to leverage their time and effort to an infinite extent of people down the line, while giving the opportunity for everyone to make money.
Draw up a business plan. When you have a few potential companies in mind, write out your plan for building and expanding your business. Even before you've officially aligned with a company, it helps to have this plan figured out early. Thant way you can hit the ground running when you do eventually start at a company. Keep these things in mind when designing a business plan:
If you think you are too busy to get genuine or laser targeted leads. Think it twice what was the reason to setup this business? You as a distributor should take the responsibility for your business to get more reps to build down line. You took this decision to become successful and achieve financial freedom, to owe it the work done that should be done is much more important than your personal reasons or excuses whatever it may be. Simply hoping won’t work in MLM, you should entice serious laser targeted leads which are interested in doing business under you to build your down line. It’s not difficult to get them as long as you are constantly working. You are yet to face many rejections in this journey; few times you might feel low and doubt whether MLM is Scam? Nothing is terrifying than losing the track what you have dreamed for.
Business Presentation – Once the prospect completes your lead capture page webform and hits the “submit” button, their browser should be redirected to your business presentation. That way they’re getting all the information about your business right away even before you talk to them. That makes your prospecting job easier when you contact them because they’ve ideally already viewed the information. The URL of the business presentation is typically programmed into the lead capture page webform.
6. Be a Team Builder BEFORE you have a team. Maybe you are reading this and thinking “I don’t have a team yet”. Well, you need to start acting as if you do have a team. See yourself leading calls, making shout outs to your team and start acting as if you are leading a large team. The simple act of tricking your mind into thinking you have a large team will attract new thoughts into your head that are conducive to having a team.
In March I joined an MLM company and I’m lost… my first reaction to network marketing was I’m not a sales person, to which I was told it’s not about sales but about building relationships. The other thing that makes me crazy is I see a lot of folks who appear so fake with their bubbly “everything is coming up roses and bubble gum” that I cringe. I’m honest to a fault and happy but not giddy. I feel like I have writers block in that I’m not sure what direction to take to get my business going, the struggle is real right now… Any thoughts or suggestions I can take away.
Be careful when choosing a place to get your leads. Not all MLM Lead companies are created equal. It is going to be the single most important decision you make when trying to grow your MLM Business. Make the wrong choice and you will waste your time and money as well as the time and money of your downline. Make the right choice and you can be building your business successfully for years to come. http://www.abettermlmlead.com
You must select a mentor you respect who has a history of success. If you were an employer hiring a new employee, would you be skeptical of someone who was a job hopper? Make sure your mentor is not an MLM junkie. Look for someone who believes in career MLM opportunities. To consistently earn the type of income you dream about, you must find a solid company, build a loyal distributorship and customer organization, and resist the impulse to jump on every hot new deal. Too many hot deals that fail will simply waste your time and money and leave you cold.
These actions are both business professional and duplicatable — the kind of actions you want to encourage your distributors to model. Imagine how powerful your organization would be if everyone in it could be counted on to do what they promised they would? Honoring your intention to make and keep your marketing promises is an almost 100 percent guarantee of success in a network marketing business.
The Federal Trade Commission warns "Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It's best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products."
Multi-level marketing, abbreviated as MLM, also called pyramid selling, network marketing and referral marketing, is a controversial marketing strategy for the sale of products and/or services where the revenue of the MLM company is derived from a non-salaried workforce (also called participants, and variously known as “salespeople”, “distributors”, “consultants”, “promoters”, “independent business owners”, etc) selling the company’s products/services, while the earnings of the participants is derived from a pyramid-shaped commission system.
Well MLM companies have been a frequent subject of criticism as well as the target of lawsuits. Criticism has focused on their similarity to illegal pyramid schemes (hence the “scheme” reference), price-fixing of products, high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and use the company's products, potential exploitation of personal relationships which are used as new sales and recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members' enthusiasm and devotion. Eesh!
But more than product selling MLM/NM provides a lucrative option to earn great part/full-time money and most importantly passive income. Once you sign up somebody in the business by selling a product and he signs-up someone else and so on, you create a network of people who are recommending a product or offering a business opportunity thus generating sales for the company and also earning 10-125 of the total sale happening through your network. In MLM u get percent of every sale that happens in your group of people directly (when u personally sell to someone) or indirectly (your team member sells to someone). So, if you have a network of 10 people and your team sold product worth $1000 then you would earn $100-150 as commissions. For direct sale u get more money.
It’s estimated that in under 2 years almost 90% of web traffic by volume will be video. If you have the skills, or can hire a good SEO specialist, it is possible to rank a sales video on Page 1 of Google with relative ease depending on how competitive your niche is. Put a visible call to action in the title which appears in the search engine results page, and link the YouTube video through to your web site and with luck you should have a nice flow of leads as long as your video is listed on Page 1.
Unlike many MLMs that sell products directly to consumers, Digital Altitude sells a business system to entrepreneurs in the form of courses and methods that teach them to effectively market their own companies. While many of the packages can cost thousands of dollars, Digital Altitude offers a $1 trial, making the risk to try its product very low for the consumer.
I have a friend who is proposing I join Arbonne? She would be good to work with although I am not educated on all the MLM companies and don’t want to make the wrong choice. I also have a blog which I want to leverage and it seems like most of the health and wellness MLMs utilize hosted parties. Are there any that are more internet based that have had a long time track record! Thanks and sorry for all the questions!
If you build a motivated sales team, you could potentially earn a substantial amount of residual income, which means more free time to grow your business. MLM leverages the power of "word of mouth" to reach consumers. A good product in the hands of a motivated sales team may spread to family members, friends and neighbors rather quickly. In addition, your overhead cost may be minimal under a MLM structure. You may operate as a home-based business, using your own space for storing the product. Much of your operating expenses go toward paying commissions to salespeople, but since this is a variable cost, you only pay when a person completes a sale.
With over 17 years of experience in Lead Generation Training and Systems, Network Leads has established itself as the top lead generation company, offering a full-range of Network Marketing, Business Opportunity, Affiliate Marketing, Internet Marketing and Work From Home lead packages. We also provide you with a FREE online Lead Management System (LMS), Home Based Business Training, Custom Lead Capture Pages, Prospecting Tools, plus a full-service affiliate network.
With so many of the fastest growing MLM companies pushing to have you join, it can get confusing when you’re looking at MLM products, compensation plans, where to get leads, marketing tips, and most of all – can I really make money with this? What you need to remember, is that the best MLM to join in your situation is going to come down to one thing – finding a product and a business you are excited about sharing!
One of my favorite approaches to get my pipeline going is attend a bunch of meetups or local events in my area. I teach what I do on this blog – How to network at events. I love this approach as only people who want something MORE in their life will bother attending events and that is a lot easier type of person to talk to than someone who is NOT motivated to network or build their business.
How many leads do you get for your money? Obviously the more leads you can get for the best price the more leads you can buy at a time. MLM Leads are a great way to not only create activity in your MLM Business, but also find some great people for your business. Want a great way to build your MLM business? Well Co-registration MLM leads are one of the best ways to find new prospects and new product buyers. Multi-level marketing lists generated by quality companies that have the tools and experience to glean true lists for an advertiser's particular marketing needs are also known as targeted MLM leads.
A few people do make big money from MLMs. And these people are often trotted out in promotional videos, celebrated at annual events, and very publicly ‘rewarded’ with prizes like prestigious cars (although these ‘prizes’ aren’t as generous as they first appear – you simply get a discount on the lease which you must take out in your own name, and if your sales fall, the discount ends…). You also need to promote the company on the car they ‘give’ you.
MLM restructures the traditional business model — manufacturer to retail shop to customer — such that sales agents working for the manufacturer sell directly to customers, bypassing the retail shop altogether. MLM companies can then convert customers into advocates for their products and possibly even sales agents. Because there is no retail store for the products they sell, MLM agents typically work from their homes, interacting with customers in the community or, more often, over the internet.
To prove that we give you more in value, than you could ever give us in money, we provide you with MLM Training and Lead Management Systems at no extra cost. In fact, anyone can get a Free Lead Management System, which also includes a Free Phase 2 Customizable Marketing Site, and any package that has email leads gets a Free Autoresponder with Professionally written emails included. (You can even modify the autoresponder emails at any time.)
Perfect reply That’s exactly what gives network marketing a bad name. Sheesh. If you find something you’re passionate about then go for it. But first ask, how many people can you personally find who have replaced their income at such n such a company? I’m grateful to say I have hundreds of dōTERRA advocates who have, and who go about it with integrity. Thanks for all the research, it was fun to read. I’d recommend looking at retention as well sometime.
Great article and you nailed it regarding purchasing leads. I tried a few times talking with various people over the phone but none committed. I often wonder how the greats like Dexter Yager and Bill Britt (both amway reps) built their businesses to such a large magnitude without the use of social media. I certainly believe social media has made building network marketing businesses much easier than back in the day.
Get them to watch a company presentation and then ask them what they liked about what they saw. One of the, if not THE, best question to ask a bought MLM lead is: “What has recently changed in your life that has you open to a home business?” This question is frigging awesome to get them to open up. If your upline has not provided you with a place to purchase MLM leads for practice and to work with, I have a partnership with Responsive Data where you can buy MLM leads on this site. I have personally bought from this site and the leads are good quality but like I said, you STILL have to treat them like a lead, not a laydown sale. My favorite type are the local leads as I think it is a bonus if I can say I live in their area.
Building your network marketing business can be a very busy enterprise. Many of us have a tendency to over-commit in business. Learning how and when to say “No” is a solid expression of what it takes to run your network marketing business in the most efficient and effective manner. And, it will also help to promote your distributors rising up to take responsibility for their own marketing success.
Getting leads is just one step in the sales cycle. Next, you need to qualify them to determine if they're a good fit, then make your pitch, and finally, follow up. Many network marketers don't like the sales process, but it doesn't have to be hard or scary, especially if you start with leads who've come to you specifically to know about what you offer.
Hey Rob, oh no. Definitely don’t have buyer’s remorse. Look at it as an opportunity for open doors. When I started network marketing I began to understand how to sell a product and then found other opportunities which lead me to where I am now. So I am always grateful for having found network marketing and getting started because I would not have been where I am now. I hope that my blog is helpful and that you can learn something.
Once you’ve built a small team through these methods, you will have increased your income enough to be able to reinvest in buying leads and you will also have built up confidence in speaking to people, meaning that your bought leads are more likely to sign up. You can tell these leads about how you’ve got a nice little team earning you a nice income. Hence, these bought leads are now better value.