MLM or Multi Level Marketing offers many business opportunities for business owners, distributors and consumers. There have been many popular myths on MLM. Some of these myths include the potential to earn mega-dollars for little or no effort on the part of the distributor. This is far from the truth.
The multi level marketing system works well for business expansion. The chain of distributors markets the business and products in return for commissions. The consumers can get a better deal by buying at wholesale prices when they become distributors themselves.
The whole concept of MLM is based on the very basics of the term "business". Under the system of MLM, goods and services are distributed via various sublevels in the form of distributors and reach the end-user consumer via this chain of distributors. This system is providing extra income opportunities to thousand of distributors all around the world. Statistics reveal that in the 50 states in America and in over 100 countries world wide, the business model of MLM is successfully functional.
A distributor looking for a business opportunity using the MLM structure may want to look into online MLM options.
Working effectively with an online MLM model, you need to exercise a bit of caution before venturing into a program. This saves you from fraud which is prevalent in this business. Look into companies that have a proven track record. Companies that are debt free and that have been successful in using the MLM structure as their business model for a considerable period are good candidates to consider. Being part of a reputable company ensures your profits and potential loss is minimized.
Bear in mind that this type of business is not for everyone. If you are a self-motivated person who is full of enthusiasm, online MLM may be suitable for you. You will certainly be your own boss in this venture. The personal qualities needed to succeed in this business are similar to that of being an entrepreneur. The challenges of an MLM business are dynamic and a self motivated person will thrive in such a business model.
Finally, this business allows you not only to work from home but also when traveling. You can easily do business using a laptop and an internet connection. If you are person on the go this could turn out to be a profitable venture as your potential to earn is related to the flexibility that the business model provides.
1. Training and support
To do well with an MLM company, you must have the proper education and knowledge. You need to constantly learn to help keep you on top of your game. Constant knowledge will enable you to always get better at the game. Think of any other type of job. That requires education and knowledge, right?
2. Duplicatable system
Some MLM based businesses will teach you a recruiting system that is not duplicatable, for one reason or another. For example, their recruiting methods may be too expensive. They may involve marketing skills like selling on the phone, which is not easy for most people. If a system is not duplicatable, you won't be able to grow your downline quickly. It becomes very difficult to support your downline if they are all marketing in different or non-duplicatable methods.
3. Valuable product
Look for an MLM company that provides a product with value. Find a product that people would buy regardless of the business opportunity. Customers will continually buy a product if it provides them with value. The product may help them lose weight, feel energized, or avoid some physical pain, for example.
4. Reliability and stability
It is important to find an MLM based business that is reliable and stable. Companies that have been around for a while are more likely to stay for even longer. Working with an established MLM company can build you a solid long-term income. If your MLM company keeps falling to the ground, you are guaranteed to have to continually rebuild your business.
5. Excellent compensation
The compensation plan should enable you to reach your income goals. If the payout plan is on the low end, you cannot expect to build a huge residual income in a reasonable period of time. Make sure you can understand the compensation plan, so that you can explain it to others who inquire about it.
Top 3 Things All MLM Marketers Must Possess
Just like any business, you need to devote adequate time for your MLM business in order to be successful.
In MLM, time means having the dedication and love for the business. Time is the conglomeration of all the emotional, moral, and professional attributes of a truly successful MLM marketer.
A true and successful MLM marketer uses a solid and reliable downline. This is because the marketer knows that his or her profits are dependent on the team.
Creating your MLM downline does not necessarily mean recruiting every person you know, even if he or she does not know anything about the real concept of earning money.
What matters most in MLM is that you build a downline that know the importance of the business and eventually you instill in them the love for business.
Keep in mind that persistence overcomes resistance.
Let's start with telephone leads, since this isn't something most Internet marketers and MLM'ers normally use. While you can still purchase telephone leads over the Internet, you will want to be careful to use a professional company that procures databases that are up-to-date with the National "No Call" Registry. This might cost you a little bit extra, but it could also save you the hassle of legal threats.
Ideally, you will want to pick a company that allows you to sort through the database yourself to find your own MLM leads. Many Internet-based companies will allow you to input certain specifications, such as region, income level, age, degrees held, and surveyed interests. Depending on the MLM you are marketing, all or only a few of these will be necessary; however, make sure that you DO target the specifications most pertinent to your given MLM.
Now that you have your list of leads, you can either begin cold calling them yourself; or you can outsource this job to a call center. There are actually dozens of call centers available over the Internet. If you feel you do not have the time to make the cold calls yourself, then have a call center do the work for you.
Mailing Address MLM Leads
This is yet another form of lead that most Internet marketers and MLM'ers do not use on a regular basis; however, it is also one of the most powerful means through which you can generate leads for your MLM opportunity.
As you did with the telephone MLM lead company, you will want to seek out a good mailing address lead company and sort through to your target demographics. Once you have generated a good list of leads, you will either want to hand create post cards yourself which can actually be an excellent way to personalize or you can outsource this task to an Internet-based firm, who will create custom graphics for your post cards, print them out, and then mail them for you to said leads.
With people getting so many advertisements via email on a regular basis, this is one of the better ways in which you can cut through the clutter to get new MLM leads for your downline.
This is the last type of MLM lead we will discuss. This is considerably different than the others. On a per-lead basis, guaranteed signups are usually very cheap when compared to telephone and bulk mailing list leads.
Additionally, unlike the two forms of leads we discussed previously, guaranteed signups will be delivered to your downline and most of the time, you will have little say in terms of where they come from and who they are.
Regardless of which method of MLM lead generation you choose be it guaranteed signups, phone leads, or bulk mailing leads always remember to follow-up. This is the only way to ensure that you will actually benefit from your paid leads.
MLM marketing is a great way to increase your income, make some great friends who view life just the way you do and substitute your current income for your new MLM income. This gives you the opportunity to have time and money at the same time.
When starting out in any MLM venture, it is never easy and one of the most important things that will decide your fate as an MLM marketer is whether or not you do something to bring your goals closer to your grasp.
Many people who try MLM marketing don't succeed and the reason for this is that MLM marketing is not for everyone. If a new person to MLM marketing really wants to make a go of being a great marketer, there are a few fundamentals that can be used to make MLM marketing a lot easier than what other people usually encounter.
The most important thing to focus on is, in order for you to succeed in your business, you need to want others to succeed. When recruiting prospects this must be kept in mind at all times. When you decide to recruit a person, think about the approach that you are using. Ideally the prospect has a problem and you have a solution. By simply going up to a person and telling them how they can be rich or be a part of some phenomenon will not interest them unless you first have their attention. Watch the person, listen to their concerns and problems. Then offer them a solution. Steering the conversation toward things that may be a concern to them and offering them a possible solution can easily do this.
Another way to make MLM marketing easier is to quietly watch the person before and during a conversation with them. Ideally, you are looking for a person who has the same qualities and desires that you have and has a real desire to succeed. Look for people who are looking for change and are people orientated. Influential people also do well in MLM, but make sure that they have the important qualities such as a caring nature and earn respect from others rather than demanding it. Another ideal quality is someone who has the financial means to invest in their own business to make it grow.
By knowing how to approach people with an offer, as well as knowing how to choose the right prospects, you will be giving yourself the best possible chance of being a successful MLM marketer. Once you have got that down to a fine art, you will be getting close to being able to succeed in MLM marketing without having to put in a lot of effort.
The Internet Killed The MLM Business Model
"The Inter Killed The MLM Business Model"
I know this may sound like a bald statement, and honestly, I don't think that the internet actually "killed" the multi-level marketing business model, but it certainly redefined it in many ways. Let's go into depths with that, and try to learn what did changed in the MLM business model and/or what needs to change, since online advertising and marketing has been integrated into many network marketers' business plan.
If you're a network marketer, and you just got started, or you already have a solid customers base and downline, do you think the internet could actually help you build your business or would the internet make it more difficult for you?
There are many ways to see this, and for my part i believe that the internet somewhat killed the MLM business model as we know it, and if the internet didn't kill it, it certainly made it more profitable for the people that knows how to use it. The internet offers endless possibilities, it is a 24/7 marketplace and millions (or should i say billions) of people are clicking on webpages every single day.
With that said, why would someone use the internet to promote his or her business opportunity?
Of course there are multiple reasons for not promoting your business on the internet, here are some examples:
- Your company doesn't want you to
- You don't know how to do it
- You don't want to go through the learning curve
- You are not yet convinced that it would be profitable to you
- You are afraid of all the scams on the internet
- How to train your downline if they live far from you?
- Any other reason is actually a good reason
Now let's take a look at some reasons why you should seriously consider promoting your MLM business opportunity and products using the internet.
First, It cost almost nothing to build a website or blog, and you probably already have a website (from your company), which can be seen by thousands of people from all around the globe day and night, and you would also cut your expenses. Think about it for a second, how much do you spend on a weekly or monthly basis to meet people and do those meetings?
Typical meeting example:
You go for a coffee with your new prospect, get in your car and drive to that coffee-shop, you also grab something to eat on your way, oh and don't forget to print the documents you will need before you leave. The total cost per month if you do, let's say, from 4 to 6 presentations per week can easily be in the couple hundreds of dollars. Of course if you do all those meetings and presentations, it surely means your business is growing.
What if you could cut the time you spend on your MLM business and meetings by half?
In the end, MLM is simply your vehicle, on your way to financial freedom...
Are the prospects you meet pre-qualified before you leave the house?
Do they know what MLM is and if they do, are they interested in starting their own business?
You know, using the internet you can set up advertising campaigns that will run for you 24/7/365. And if you carefully choose who you target with those ads, the people who will contact you will be pre-qualified. I'm not talking about having people running to you with their credit cards in hand, it doesn't work that way. But the internet can make your business grow exponentially, just like that. In a matter of hours, you could have new prospects coming to you, new customers, more sales, more money in your pocket and you could cut your expenses. How does that sound?
I am not saying that the "old-school" way of doing MLM is bad or doesn't work, i know many many people who are extremely successful doing it this way. But if take into account the number of people using the internet, there is no doubts you can reach way more people than by doing those home-meetings and 1-on-1 presentations. Why not combine traditional MLM, and online advertising? You could end up with a faster growing business.
Jonathan-C. Phillips is an independent entrepreneur (mlm) for Immunotec Research based in Canada. He is also an online marketer and advertiser, and runs many websites and blogs. Contact him via his business/marketing blog here
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